INTERNATIONAL SALES LAW - seminar 2004 ISL Contractual Risk Management in Transnational Sales Transactions ISL: objectives, functions and structure Management of information on ISL Management of risk of contractual disputes Management of risk of contract breach Management of risk of loss of or damage to the goods Management of risk of changed circumstances Case study Case studies I II V VI VII IX IV VIII III

Management of risk of contractual disputes - Litigation in national courts ISL ISC Litigation vs. Negotiation vs. Litigotiation !? IS C !? - Arbitration - Mediation - Conciliation LITIGATION ALTERNATIVE / AMICABLE DISPUTE RESOLUTION LITIGOTIATION ICC ADR Rules (2001) I II V VI VII IX IV VIII III RENEGOTIATION - Contractual - Ad hoc

Management of risk of contractual disputes 1) JURISDICTIONJURISDICTION 2) APPLICABLE PROCEDURAL LAW PROCEDURAL LAW 3) APPLICABLE SUBSTANSIVE LAW 4) RECOGNITIONRECOGNITION and ENFORCEMENT ISL Arbitration:National courts: !? IS C !? National courts vs. arbitration I II V VI VII IX IV VIII III

1) JURISDICTIONJURISDICTION 2) APPLICABLE PROCEDURAL LAW PROCEDURAL LAW 3) APPLICABLE SUBSTANSIVE LAW 4) RECOGNITIONRECOGNITION and ENFORCEMENT EC: Regulation (EC) No 44/2001 and Brussel Convention 1968Regulation (EC) No 44/2001 Brussel Convention 1968 Elsewhere: Lugano Convention 1988,Lugano Convention 1988 bi-/unilateral agreements Management of risk of contractual disputes ISL Arbitration:National courts: National courts vs. arbitration !? IS C !? I II V VI VII IX IV VIII III

1) JURISDICTIONJURISDICTION 2) APPLICABLE PROCEDURAL LAW PROCEDURAL LAW 3) APPLICABLE SUBSTANSIVE LAW 4) RECOGNITIONRECOGNITION and ENFORCEMENT - In general: - Simplified procedures - Service of documents - Taking of evidence - Interim and precautionary measures Management of risk of contractual disputes ISL Arbitration:National courts: National courts vs. arbitration !? IS C !? I II V VI VII IX IV VIII III EC: Regulation (EC) No 44/2001 and Brussel Convention 1968Regulation (EC) No 44/2001 Brussel Convention 1968 Elsewhere: Lugano Convention 1988,Lugano Convention 1988 bi-/unilateral agreements

Management of risk of contractual disputes ISL National courts I II V VI VII IX IV VIII III INT APPLICABLE PROCEDURAL LAW PROCEDURAL LAW EU (except DEN) UNIDROIT & ALI Fundamental Principles of Transnational Civil Procedure Simplified procedures ”Small claims” and ”Order for payment”-procedures - National PI-law - A variety of international organisations are working with this issueinternational organisations Interim and precautionary measures Council Regulation (EC)Regulation No 44/2001 of 22 December Hague Convention ofHague Convention 18 March Bilateral agreements Taking of evidence Council Regulation (EC)Regulation No 1206/2001 of 28 May Hague Convention ofConvention 15 November Bilateral agreements Service of documents Council Regulation (EC)Regulation No 1348/2000 of 29 May 2000 National procedural laws In general: National procedural laws (also DEN)

1) JURISDICTIONJURISDICTION 2) APPLICABLE PROCEDURAL LAW PROCEDURAL LAW 3) APPLICABLE SUBSTANSIVE LAW 4) RECOGNITIONRECOGNITION and ENFORCEMENT Management of risk of contractual disputes ISL Arbitration:National courts: National courts vs. arbitration !? IS C !? I II V VI VII IX IV VIII III CISG: Art. 1 + art declarationsArt. 1declarations EC: Rome Convention 1980Rome Convention 1980 Elsewhere: - Hague Convention 1955/Hague Convention National PIL-statutes EC: Regulation (EC) No 44/2001 and Brussel Convention 1968Regulation (EC) No 44/2001 Brussel Convention 1968 Elsewhere: Lugano Convention 1988,Lugano Convention 1988 bi-/unilateral agreements - In general: - Simplified procedures - Service of documents - Taking of evidence - Interim and precautionary measures

1) JURISDICTIONJURISDICTION 2) APPLICABLE PROCEDURAL LAW PROCEDURAL LAW 3) APPLICABLE SUBSTANSIVE LAW 4) RECOGNITIONRECOGNITION and ENFORCEMENT Management of risk of contractual disputes ISL Arbitration:National courts: National courts vs. arbitration !? IS C !? I II V VI VII IX IV VIII III EC: Regulation (EC) No 44/2001 and Brussel Convention 1968Regulation (EC) No 44/2001 Brussel Convention 1968 Elsewhere: Lugano Convention 1988,Lugano Convention 1988 bi-/unilateral agreements EC: Regulation (EC) No 44/2001 and Brussel Convention 1968Regulation (EC) No 44/2001 Brussel Convention 1968 Elsewhere: Lugano Convention 1988,Lugano Convention 1988 bi-/unilateral agreements - In general: - Simplified procedures - Service of documents - Taking of evidence - Interim and precautionary measures CISG: Art. 1 + art declarationsArt. 1declarations EC: Rome Convention 1980Rome Convention 1980 Elsewhere: - Hague Convention 1955/Hague Convention National PIL-statutes

1) JURISDICTIONJURISDICTION 2) APPLICABLE PROCEDURAL LAW PROCEDURAL LAW 3) APPLICABLE SUBSTANSIVE LAW 4) RECOGNITIONRECOGNITION and ENFORCEMENT EC: Regulation (EC) No 44/2001 and Brussel Convention 1968Regulation (EC) No 44/2001 Brussel Convention 1968 Elsewhere: Lugano Convention 1988,Lugano Convention 1988 bi-/unilateral agreements - In general: - Simplified procedures - Service of documents - Taking of evidence - Interim and precautionary measures CISG: Art. 1 + art declarationsArt. 1declarations EC: Rome Convention 1980Rome Convention 1980 Elsewhere: - Hague Convention 1955/Hague Convention National PIL-statutes EC: Regulation (EC) No 44/2001 and Brussel Convention 1968Regulation (EC) No 44/2001 Brussel Convention 1968 Elsewhere: Lugano Convention 1988,Lugano Convention 1988 bi-/unilateral agreements Management of risk of contractual disputes ISL Arbitration:National courts: Arbitration agreement The ICC Model International Sale Contract ICC Publication No 556 B. GENERAL CONDITIONS Art. 14 Resolution of disputes ”14.1 Unless otherwise agreed in writing, all disputes arising in connection with the present Contract shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with the said Rules An arbitration clause does not prevent any party from requesting interim or conservatory measures from the courts.” National courts vs. arbitration !? IS C !? I II V VI VII IX IV VIII III

EC: Regulation (EC) No 44/2001 and Brussel Convention 1968Regulation (EC) No 44/2001 Brussel Convention 1968 Elsewhere: Lugano Convention 1988,Lugano Convention 1988 bi-/unilateral agreements - In general: - Simplified procedures - Service of documents - Taking of evidence - Interim and precautionary measures CISG: Art. 1 + art declarationsArt. 1declarations EC: Rome Convention 1980Rome Convention 1980 Elsewhere: - Hague Convention 1955/Hague Convention National PIL-statutes EC: Regulation (EC) No 44/2001 and Brussel Convention 1968Regulation (EC) No 44/2001 Brussel Convention 1968 Elsewhere: Lugano Convention 1988,Lugano Convention 1988 bi-/unilateral agreements Management of risk of contractual disputes ISL Arbitration:National courts: National arbitration lawsNational arbitration laws, intenationalintenational conventions,conventions lex mercatoria arbitralis and institutional arbitration rules arbitration rules Arbitration agreement National courts vs. arbitration !? IS C !? I II V VI VII IX IV VIII III 1) JURISDICTIONJURISDICTION 2) APPLICABLE PROCEDURAL LAW PROCEDURAL LAW 3) APPLICABLE SUBSTANSIVE LAW 4) RECOGNITIONRECOGNITION and ENFORCEMENT

1) JURISDICTIONJURISDICTION 2) APPLICABLE PROCEDURAL LAW PROCEDURAL LAW 3) APPLICABLE SUBSTANSIVE LAW 4) RECOGNITIONRECOGNITION and ENFORCEMENT !? IS C !? Choice of law-clauses, Mandatory law EC: Regulation (EC) No 44/2001 and Brussel Convention 1968Regulation (EC) No 44/2001 Brussel Convention 1968 Elsewhere: Lugano Convention 1988,Lugano Convention 1988 bi-/unilateral agreements - In general: - Simplified procedures - Service of documents - Taking of evidence - Interim and precautionary measures CISG: Art. 1 + art declarationsArt. 1declarations EC: Rome Convention 1980Rome Convention 1980 Elsewhere: - Hague Convention 1955/Hague Convention National PIL-statutes EC: Regulation (EC) No 44/2001 and Brussel Convention 1968Regulation (EC) No 44/2001 Brussel Convention 1968 Elsewhere: Lugano Convention 1988,Lugano Convention 1988 bi-/unilateral agreements Management of risk of contractual disputes ISL Arbitration:National courts: Arbitration agreement National arbitration lawsNational arbitration laws, intenationalintenational conventions,conventions lex mercatoria arbitralis and institutional arbitration rules arbitration rules The ICC Model International Sale Contract ICC Publication No 556 B. GENERAL CONDITIONS Art. 1.2 ”Any questions relating to this Contract which are not expressely or implicitly settled by the provisions contained in the Contract itself (i.e. these General Conditions and any specific conditions agreed upon by the parties) shall be governed: A.by the United Nations Convention on Contracts for the International Sale of Goods (Vienna Convention of 1980, hereafter referred to as CISG), and B.to the extent that such questions are not covered by CISG, by reference to the law of the country where the Seller has his place of business.” National courts vs. arbitration I II V VI VII IX IV VIII III

EC: Regulation (EC) No 44/2001 and Brussel Convention 1968Regulation (EC) No 44/2001 Brussel Convention 1968 Elsewhere: Lugano Convention 1988,Lugano Convention 1988 bi-/unilateral agreements - In general: - Simplified procedures - Service of documents - Taking of evidence - Interim and precautionary measures CISG: Art. 1 + art declarationsArt. 1declarations EC: Rome Convention 1980Rome Convention 1980 Elsewhere: - Hague Convention 1955/Hague Convention National PIL-statutes EC: Regulation (EC) No 44/2001 and Brussel Convention 1968Regulation (EC) No 44/2001 Brussel Convention 1968 Elsewhere: Lugano Convention 1988,Lugano Convention 1988 bi-/unilateral agreements Management of risk of contractual disputes ISL Arbitration:National courts: Arbitration agreement National arbitration lawsNational arbitration laws, intenationalintenational conventions,conventions lex mercatoria arbitralis and institutional arbitration rules arbitration rules Choice of law-clauses, Mandatory law UN New York Convention 1958UNNew York Convention 1958 National courts vs. arbitration !? IS C !? I II V VI VII IX IV VIII III International conventions,International conventions 1) JURISDICTIONJURISDICTION 2) APPLICABLE PROCEDURAL LAW PROCEDURAL LAW 3) APPLICABLE SUBSTANSIVE LAW 4) RECOGNITIONRECOGNITION and ENFORCEMENT

ISL ISC A+B ICC Model International Sale Contract Manufactured Goods Intended for Resale ICC Publication No 556 INTERNATIONAL SALES LAW - seminar 2004 An example of an international sales contract I II V VI VII IX IV VIII III

ISL ISC A+B ICC Model International Sale Contract Manufactured Goods Intended for Resale ICC Publication No 556 CISG Law of the Seller’s country Incoterms UCP 500 ICC Uniform Rules for Collections ICC Uniform Rules for Demand Guarantees ICC Rules of Arbitration INTERNATIONAL SALES LAW - seminar 2004 An example of an international sales contract Lex Mercatoria? PECL? UPICC? ADR? I II V VI VII IX IV VIII III

Go to section V Management of risk of contract breach