The acquisition and exchange of goods across international boundaries have taken place since time immemorial. It goes without saying that centrepiece of international trade is the sale of goods contract. This contract between buyer and seller is most likely to have been made on behalf of their agents. The relationship in question is one between the seller and buyer. The following characteristics make the sale an international sale rather than a domestic sale:
1. The transaction involves the carriage of the goods from one country to another; or
2. The transaction is entered between parties who are situated in different countries, the place where the goods are situated and where they are to be delivered is immaterial.
The first type might not
The Act is applicable to all transactions involving the sale of goods within the territory of India. This Act was drafted and prepared on the model of the English Sale of Goods Act 1893. The provisions relating to the sale of goods used to be part of the Indian Contract Act 1872 (Contract Act) but were repealed after the Sale of Goods Act came into force. Sections that were not repealed after the promulgation of the Sales of Goods Act remain in force, provided that they are not inconsistent with any provisions of the
The adoption of its provisions, which were specially tailored for cross-border exchanges, assists in more efficient contract management and may lead to a more equitable result in case of litigation.
Formation of Contract:
A contract for the sale of goods is created when an offer to buy or sell goods is made for a price, and when that offer is accepted. A contract for the sale of goods can provide for the immediate or future delivery of goods, and for payment of the price at once or in instalments.
Any contract entered into in India, for the sale of goods or otherwise, must satisfy the criteria laid down in section 10 of the Indian Contract Act 1872. A valid contract must be entered into by parties capable of entering into a contract, have a lawful object, a lawful consideration and must be enforceable under Indian law.
Whereas in CISG, Article 14(1) contains reference to two criteria for making a valid