Differences between Frustration, Misrepresentation, and Deviation - Case Study Example

The rights of the parties who participated in a contract have been extensively examined in the literature. Specifically, regarding the contracts that refer to activities and transactions related to the sea, the traditional law of contract is not considered adequate. For this reason, additional laws are used in this case to offer additional (and more complete) protection to the party that suffered the damage.

To avoid further damage caused by a breach in terms of a contract, the law has given the option of ‘rejection’ regarding the receipt of goods. However, this is a very broad right and in many cases is not adequate to protect the party of the contract that has suffered damage. In this context, it is noticed by Buckley (1999, 54) that ‘will the promisee typically exercise this newfound right of rejection? truth is, usually, he won't; in most cases getting goods late is better than getting no goods at all, so this breach is often waived for just that reason; where it is not, then a "just in time" inventory policy will set out stringent conditions for suppliers, but every strategy is vulnerable to unfortunate outcomes in at least some cases. In other words, existing measures for the protection of parties in a contract could not be characterized as appropriate and effective. It would be necessary for this reason to examine carefully the reasons for the appearance of disputes in contracts because the identification of these reasons would help towards the retrieval of the appropriate solution.

Another issue that should be noticed is the fact that disputes related to the international sale of goods can be regulated by many laws internationally. However, the most important legislative text in this field is considered to be the United Nations Convention on Contracts for the International Sale of Goods (CISG). More specifically, the first article of this convention:

 ‘(1) This Convention applies to contracts of sale of goods between parties whose places of business are in different States:

(a) when the States are Contracting States; or

(b) when the rules of private international law lead to the application of the law of a Contracting State (article 1 of the CISG).