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CISG sphere of application

The United Nations Convention on Contracts for the International Sale of Goods applies, subject to its conditions, to sales of goods between parties with places of business in different States when the relevant States are Contracting States or applicable private international law leads to a Contracting State’s law. The Convention excludes specified sales and matters, and parties can exclude it or derogate as permitted. Reservations and governing-law questions can affect application. Article 4 distinguishes contract formation and parties’ rights and obligations from matters such as validity and the effect on property in goods.

Worked example

A buyer and seller have relevant places of business in different Contracting States. They check the contract terms, any applicable reservation and the transaction type before deciding whether the CISG governs the sale.

Common mistake

Assuming the CISG governs every international transaction or resolves validity and ownership questions merely because it applies to the sale.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA LW (GLO) Direct September 2026–June 2027