MOHAMAD BAGJA AZHARI

1306437896
Law of Treaties Assignment
FHUI KKI

COMPARATIVE ANALYSIS BETWEEN GATT and CISG

GATT: General Agreement on Tariff and Trade 1948

CISG: UN Convention on Contracts for International Sales of Goods 1980

GATT

The agreement in the GATT that entered into force from January 1, 1948 is contained in three
principles, namely:
1. The principle of reciprocity, that is, the treatment that a country grants to another country
as a commercial partner must also be granted by the trading partner of that country.
2. The most-favored-nation principle, that is, the GATT member countries, will not grant
favorable privileges for only one or a group of specific countries.
3. The principle of transparency, namely the treatment and policies undertaken by a country,
must be transparent so that other countries know about it.

GATT as International treaty

The General Agreement on Tariffs and Trade (GATT), as an agreement, is a formal

instrument that provides restrictions and space to the GATT itself as an institution. Therefore,
the GATT has a high legal content. Obviously, the GATT is only a legally binding and
legally binding form of law, not a complete international organization. But little by little the
GATT collects staple personnel, owns the building as headquarters, develops several
committees, creates budgets, internal regulations and carries out various actions that
constitute an organization

The purpose of GATT formation

The purpose of the GATT is to create a climate of secure and clear international trade for the
business community, as well as to create a sustainable liberalization of trade, employment
and a precious business climate. In essence, there are four important objectives that the
GATT is about to achieve:
1) improve the living standards of humanity;
2) increase employment opportunities;
3) increase the use of the world's natural wealth;
4) increase production and exchange of goods.

GATT function:
• First, a multilateral set of rules that govern commercial transactions made by GATT
member countries by providing a series of terms of trade.
• Secondly, as a forum for trade negotiations and endeavored to make trade practices free
from disruptive obstacles [trade liberalization]
 • Third, the GATT endeavors to clarify such trade rules or practices by opening up national
markets or through their application and also by disseminating their application.

CISG

The Convention on Contracts for the International Sale of Goods (CISG) is a convention that
regulates the rules of material law that will apply to any international trade transaction. In his
view, the conventions relating to the choice of law are not conventions relating to the rule of
law in international commercial transactions, but only impose national legal provisions on an
international commercial transaction. While "An international sale is more than a national
sale with incidental fire elements". In addition, he says that "it entails special communication
and transportation problems, requires the parties to operate in alien legal and environmental
environments, and requires them to speak in different languages in a more than literal
sense".

Therefore, it is clear why the Vienna Convention of 1980 is necessary. The different features
and characteristics of international trade and domestic trade have led to the fact that domestic
law can not be applied in any international trade transaction. Not to mention the chauvinistic
nature that always adheres to the individual or certain parties about the validity of the national
legislation of a particular country vis-à-vis other countries.
The CISG applies to purchase and sale agreements between parties with domicile of companies
located in different States that are members of the Vienna Convention of 1980 or the applicable
provisions of international civil law refer to the enactment of State law that He is a member of
the 1980 Vienna Convention.

The main objectives are:

• Increase legal security in international trade by clarifying the terms of an international sales
agreement.
• Formulate texts of conventions that are easily applied by the parties and reinforced by the
courts of their country.
• Reduction of commercial transaction costs and the time needed to close a commercial
transaction.
• Harmonize and standardize both the legal and legal content of the international purchase
and sale contract.
• Accommodate the different commercial interests of directors, international merchants.

There are several formal requirements for the CISG contract:

• The CISG Agreement does not expressly require a formal form of contract, including written or
other documents.
• The contract is made in writing, then according to this Agreement can be proven by several
means, including the evidence of witnesses and without special requirements as provided in
Article 11:

“A contract of sale need not concluded in or evidenced by writing and is not subject to
any other requirements as to form. It may be proved by any means, including witnesses”

The CISG submits the contractual formalities to the agreement of the parties [Article 11] and not
to the conventions of this Convention, since this is a medium term to avoid possible conflicts
by expressly expressing certain formalities that may contradict the national laws of a country
in particular

The CISG only regulates the establishment of purchase and sale agreements, rights and
obligations of the seller and the buyer of the purchase contract and does not govern the validity
of the contract or any of its articles or its application and the effect of the agreement on the
ownership of the contract. article sold. The CISG also does not apply to the responsibility of
the seller for the death or personal injury of a person caused by the object of trafficking. The
parties to this Agreement will be free to exclude the application of this CISG, and to regulate
in a variable manner the provisions of this CISG, at its discretion.

According to the CISG, the existence of a purchase agreement does not need to be made or
proven in writing, and does not require certain formalities. The existence of purchases and
sales can be tested with all kinds of evidence, including witnesses. The Vienna Convention of
1980 further states that a declaration made or an action made by the receiving party (not
necessarily a buyer) indicating approval of an offer made by the other party is required as a
form of acceptance, but the " Silence "or" inactivity "is not treated as acceptance. Therefore,
in this case, it can be said that a new purchase agreement exists when there is an offer
presented and a receipt that must be in the form of an action or deed or a declaration made by
the receiving party. Meanwhile, the effective moment of acceptance is when this acceptance
is received by the offerer, provided that the acceptance of the offer must arrive within the
period specified by the offerer or within a period generally considered appropriate to accept
offer for sale and purchase.

Related to matters that include the object of the agreement, in particular the application of the
agreement, in addition to the objects of the trade must be objects that are authorized to be
commercialized in the State in which the object is transported, the entire provisions of CIM
will be valid and legitimate, when there is a conflict or not in accordance with the provisions
of the domestic legislation applicable in a particular State that is a State of one of the parties to
the purchase agreement. In this context, the provisions of domestic law are valid in a particular
country, which is a State of one of the parties in the purchase agreement in the opposite
direction or different from the provisions of the CIM must be declared null.

Thus, the means to avoid problems related to the validity of a purchase agreement under the
CIM and therefore subject to the provisions of the CIM is, to say that the problem of the ability
and subjective authority of the parties to enter into a Purchase agreement and an agreement
freely in the purchase agreement formation, these two fully comply with the rules of domestic
law of the State in which the parties and the legal domicile or business. Therefore, related
problems can be solved.

After determining the promulgation of CISG, there are four things that should be considered:
1. With respect to the parties to the purchase agreement
1) the parties will be the parties that have a place located in different countries that both have
chosen to impose CIM;
2) the parties to the purchase agreement must be the parties that have their establishments in
different States, and only one of the parties that their country had participated impose CIM,
but the rules of international law designate the law of this country (the participants of the
CIM) as legal to apply to such purchase and sale transactions.
1. About the content of the agreement

1) The purchase agreement stipulated in the CIM are commercial agreements, and do not
include sales to consumers or end users, and;
2) not all traded goods may be subject to the provisions of the CISG. In this regard, the
provisions of Article 2 of the CIM can be considered.
1. CIM excludes the sale of goods, when the buyer supplying a large quantity of products for
production purposes. CIM does not apply to sales in which the main obligation of the sale
purchase is the provision of labor or similar services.

2. CISG excludes:

1) the validity of the agreement;

2) the consequences of the merchandise, including the rights of third parties of the article;
3) responsibility for any injury or death caused by said merchandise.

Reference:

Huala Adolf, 2007, Dasar-dasar Hukum Kontrak Internasional, Refika

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