Prerequisites for International Sale of Goods - Essay Example

Download file to see previous pages The growth provides a base and context where harmonization of sales law should be approached. For a contract to be recognized it has to pass through a number of legal systems so as to keep problems in check. If there is an absence of coordinated law, then private international law can be used to keep things sane. These rules may be difficult to apply if the governing law has been established. The traders may be forced to apply the local legal system which does not keep in mind the needs of an international standard. It may be worse if there is a lack of enforcement mechanisms in certain jurisdictions.

A history of harmonization
It is therefore of no doubt that international sales are in dire need of a harmonious legal system that will bypass local boundaries to be international. This legal system should work without the help of local and private legal systems. Harmonization seems to be the only answer to this problem. The Hague and International Institute for Unification of Private Law have taken the responsibility to see this coming to pass. They came up with a convention that has its grassroots in Europe but is meant to serve the global world.
The United Nations took part in the regulation of international trade rules after the Second World War. It created many international organizations and developed a United Nations Commission on International Trade law which did well in trying to find a solution to a harmonious law that could be used globally. It was this group that came up with CISG as its first effort to harmonization of trade among the different stakeholders.

Many regional organizations came into existence in this period. There was the European Union, Common Market of the Southern Cone, North American Free Trade Agreement, Common Market of Eastern and Southern Africa, and Southern African Development Community. The main reason why these organizations emerged was due to commercial and economic development. Harmonization of Business Law in Africa steered a number of ministers to have a need in adopting a collection of laws that will be effective in member stakeholders (member countries). These laws were beyond the countries’ legal system. Harmonization activities are slow because different countries have different beliefs and traditions and therefore different laws. Harmonization of sales laws can take place on two levels which are the regional level and international level.

Soft law vs. hard law
Currently, a lot of capital, time, and manpower is being spent on international harmonization and these efforts are not actually bearing any fruits. An international convention is a vague process that has been used to solve this problem. The biggest issue about conversation is that much is talked about but little is done. ...Download file to see next pages Read More