Ch.1 Description of the Problem: Uniform Laws and Damages

Subject(s):

Breach of contract — Damages and contract — Damages and choice of law — Anticipatory breach and damages — UN Sales Convention and damages

This introductory chapter provides an overview of the landscape in which any determination of damages takes place. Whenever a contract is being negotiated, each party attempts to identify and minimize the risks involved in the sale of goods. Several issues are important such as which law is to apply, and which jurisdiction is to be preferred. This is of importance as the question of minimizing damages in cases of a breach is tied up in the choice of a legal system. The problem is that as long as transnational laws are not ratified and importantly embraced by the business community, a truly seamless trade system will not eventuate despite the existence of a physical transnational supply network. The United Nations Convention on Contracts for the International Sale of Goods (CISG), despite perceived shortcomings, is still the only harmonised sales law as 85 countries have ratified the Convention.