A Commentary on Good Faith Under Article 7 of CISG

Abstract

Trade between nations has been a part of the global commerce for time immemorial. Modern technology and pro-globalisation policies have allowed this trade to become ubiquitous and today international trade has penetrated even the most isolated parts of the world. This trade has brought benefits to the impoverished communities. China has been one of the most noticeable benefactors of such trade as it has allowed China to lift half a billion people out of poverty in the last 30 years. With this commendable rise in trade there has also been an inevitable rise in disputes between international parties to contracts. These disputescould not be resolved with the merchant law which has governed international trade forcenturies. In absence of unified law for international trade, Tribunals and Courts turn to their own domestic laws in trying to resolve disputes. Such practice leads to further disputes and the need for unification of the law of contracts between international sellers and buyers becomes unavoidable. In short, absence of such unification provides more room for disputes and uncertainty between businesses which can hamper trade.