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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

Altus Ltd, based in Country A, emails Borra SA in Country B offering to sell 500 tonnes of steel at a stated price, delivery in June. The email is addressed to Borra only and states that the offer is open for 14 days. Both countries are CISG contracting states and the parties have not excluded the CISG. Which statement about the offer is correct?

The email is a valid offer. Under the CISG, a proposal to a specific person that identifies the goods, quantity and price and shows intention to be bound is an offer. No signed writing or payment terms are required.

  1. AIt is a valid offer because it is addressed to a specific person, is sufficiently definite and indicates intention to be boundCorrect
  2. BIt is only an invitation to treat because the CISG requires offers to be made in a signed written document
  3. CIt is not an offer because it does not specify the method of payment

Explanation

Under the CISG a proposal addressed to one or more specific persons is an offer if it is sufficiently definite (goods, quantity and price stated or determinable) and shows intention to be bound on acceptance. No writing is required, and payment method need not be stated. The email meets the requirements.

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