The role and meaning of trade usages in the 1980 United Nations convention on contracts for the international sale of goods

Abstract

The 1980 United Nations Convention on the International Sale of Goods, concluded under the auspices of UNCITRAL, creates a comprehensive statutory legal framework for international sales. Through the express incorporation of the principle of freedom of contract, the convention contains rules which the parties may freely adapt to the particular circumstances of their transaction, by filling any gaps that may arise with trade usages and other practices. In addition, the convention recognises the binding force of international trade usages in certain circumstances, in that it binds parties to usages which are so widely known and have acquired such regularity of observance in international trade as to justify an expectation that they will be observed in the particular transaction. Such acknowledgment of the changing patterns and norms of behaviour which characterise international trade law allows the CISG to be categorised as a major component of the modern lex mercatoria.