Comparison Between Cisg and Ucc

Running head: COMPARISON BETWEEN CISG AND UCC

Comparison between CISG and UCC

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Comparison between CISG and UCC

The Uniform Commercial Code (UCC) is one of the uniform acts that have been publicized in conjunction with initiatives to synchronize the law of sales and other commercial transactions in the U.S (Mark, 2001). The United Nations Convention on Contracts for the International Sale of Goods (CISG) is a treaty that provides a standardized international sales law that has been endorsed by 76 nations as of August 2010 that account for a considerable proportion of world trade (Felemegas, 2000).

Formation of Contracts

The CISG is founded on the principles of the common law tradition but the civil law has some influence as well as socialist law. The combination of laws normally leads to principles in the CISG which has several differences from the UCC. Under the common law, for instance a valid contract is an agreement which consists of the four main elements. The first element is that it must be an arrangement based on mutual assent while the second is that it must supported by appropriate consideration. The parties forming the contract must have the legal capacity to enter contracts as the third requirement while the fourth element is that there should be no illegal purpose. Each of the mentioned elements should be present to make the contract valid. The CISG however controls the formation of the contract of sale and the rights and obligations of the seller and buyer emerging from such a contract. As opposed to UCC, it is not directly involved with the validity of the contract where an individual is stimulated into a contract by fraud, a situation where an individual does not have capacity to make a contract or where domestic law bars the sale of commodities stipulated in the contract (Felemegas, 2000).

The UCC comprises a statute of frauds, which is not contained in the CISG. Under the CISG, contracts may be...