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ACCA Applied Skills · Corporate and Business Law (Global) · Introduction to the UN Convention on Contracts for the International Sale of Goods and ICC Incoterms

Alpina Ltd, based in Country A, sells industrial machinery to Brenner GmbH, based in Country B. Both countries are contracting states to the UN Convention on Contracts for the International Sale of Goods (CISG), and the parties have not excluded it. Which feature of the contract is the main reason the CISG applies?

The CISG applies because the buyer and seller have their places of business in different contracting states. Value, written form and the method of transport do not determine whether the Convention applies, so those options are wrong.

  1. AThe parties have places of business in different contracting statesCorrect
  2. BThe goods are worth more than a minimum value set by the CISG
  3. CThe contract was concluded in writing
  4. DThe goods will be transported by sea

Explanation

The CISG applies to contracts of sale of goods between parties whose places of business are in different contracting states. Value, form and mode of transport are irrelevant to its application. Writing is not required under the CISG.

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