International Law Chapter 4

The CISG governs:

the formation of an international contract and obligation of the parties under the contract.

When one party to a contract fails to perform, the contract does not end automatically but the other party may as a result declare _____ of the contract.

An avoidance (tantamount to a termination) of the contract

Raul signs a written lease with ABC Apartments to pay "$1,000 per month" for occupancy. He pays $800 rent the first month of occupancy; ABC sues to collect its $200 in rent. Raul testifies in court that he and the leasing agent has a "gentleman's understanding" that all months were for only $800 in rent. ABC's lawyer objects that this testimony cannot be admitted into evidence and consideration by the jury because of:

Parol Evidence Rule

The CISG does not incorporate the

Parol evidence rule

The _____ is the primary body of commercial law covering domestic transactions in the US.

Uniform Commercial Code (UCC)

The CISG permits recovery by an injured party of a monetary amount called:

Consequential damages if provided by "reasonably foreseeable" as a consequence of the breach.

Both the UCC and the CISG allow a seller to cure a _______ with a reasonable time.

Nonconforming shipment

William is a contractor who is asked by Joanne to build her a house. Joanne shows her architect's plan to William and he estimates his total labor and materials costs will be $200,000. He proposed to build the house for a fixed price of $240,000 and a contract is signed. The next day Joanne calls William before he has done anything and tells him she has been transferred to another city and no longer wants the house. William is furious and will likely sue her for:

$40,000

A clause contained in a commercial contract excusing a party from performance if specified circumstances occur is often included, generally for the benefit of a seller. The clause is called

Force majeure clause.

Boeing Company in the US has a contract with Air France located in Paris to sell Air France 20 aircrafts it makes. Is this contract covered by CISG?

No, CISG states that certain items are excluded from coverage: vessels, aircraft, securities, electricites

On Tuesday Sam says to John "Let me sell you my car for $10,000, a great deal and below "blue book" value of the car. If I don't hear from you by Friday before I go to Chicago, I assume we have a deal." As of the following Saturday, is there a contract between Sam and John?

No.

The _______ states that a court may not consider evidence or oral statements made prior to or at the time of contracting that vary or contradict the clear, unambiguous terms in a written contract.

Parol evidence rule

Many attorneys encourage their clients to exclude application of CISG law in an international contract by:

Placing a choice of law clause in the contract specifying a national law to be applied.

John's Used Car Company states on June 1st to its customer Fred that "We will offer you and your family two red jeeps from our inventory for $50,000 and will hold this open until July 1st." What statement below best describes the ability of the parties to terminate this offer as of June 17th?

Revocation can be made legally by John's Used Cars.

John is in New York. On June 1, he transmits an offer via email to Susan in Boston stating he will sell her his red car for $15,000. She reads it on the 1st and places a letter and check in the mailbox on June 3 accepting his offer. On June 4 he emails her that he has changed his mind. On June 7 he receives in the mail her letter with the check. Is there a contract in effect between them?

Yes, because the mailbox rule means Susan's acceptance occurred when her letter was placed in the mail on the 4th

The Convention on Contracts for the International Sale of Goods (CISG) general applies:

to contracts for the international sale of goods (excluding consumer items)