The Difference between UCC and CISG - Essay Example

Several factors make the UCC and the CISG different from each other. Prime differences between the UCC and the CISG include but are not limited to the applicable transactions, coverage, requirements of the contract, Statute of Frauds, reduction in the price of non-conforming goods, and damages. In the case of the UCC, the applicable transactions apply to commercial transactions as well as the consumer whereas, in the case of the CISG, consumer sales are specifically excluded from the provisions.

Coverage in the UCC includes the sale of goods whereas coverage in the CISG is exclusive of the goods that are purchased at auction, as well as ships, aircraft, securities, and service contracts. Requirements of the contract of the UCC include legal capacity, consideration, mutual assent, and legal purpose whereas the CISG validity of the contract is not a direct concern in the CISG. The Statute of Frauds in the case of the UCC necessitates writing over $500 whereas writing is not a requirement in the Statute of Frauds of the CISG (“UCC and CISG”). The UCC limits the consequential damages to those which cannot be prevented reasonably. On the other hand, damages in the CISG include the lost profit which could or should have been foreseen by the other party.