UN Sales Convention, CISG (UN-Kaufrecht)

In practice

The UN Sales Convention generally applies automatically. If German law governs a sale of goods covered by the CISG, the CISG is part of that law, even if the other party is based in the United Kingdom. This means that the clause ‘German law applies’ does not exclude the CISG. Rather, it actually includes it. Anyone who does not want it needs to include an extended choice-of-law clause. Excluding it by reflex is not always wise, however. For sellers, the CISG is often more favourable than the BGB. The buyer can declare the contract avoided mainly in cases of fundamental breach, and there is no mandatory supplier recourse. For buyers, the rules on giving notice of lack of conformity are more generous than under the HGB, but notice is generally no longer possible once two years have passed since handover. Where only one party excludes the CISG in its standard terms, what applies has to be determined by the courts if a dispute arises.