CISG
One aspect of international trade law is the underlying contract law in use. By default in an international setting the rules of CISG may be applied. Ofcourse opting for the application of a specific countries contract law onto the international setting is an often used solution, but if this is not specified the rules of CISG apply. These rules were designed for international trade and have taken into account international practices of trade without having the quirks of single countries contract law. CISG is being used more and more and is often referred to in dispute settlements due to its balanced set of rules.
Useage:
The rules of CISG apply only to countries that have accepted it, which include most countries with a few noteworthy exceptions in Japan, Brasil, England and the Swiss.
The rules further only apply in a transnational trade situation wherein at least one of the parties is based in a country that has accepted the CISG.
Contracts
Contracts are formed by offer(14 CISG) and acceptance(18 CISG) wherein the offer must be specific, have a contract will and be recieved, while the acceptance must be recieved without major changes in which case it is considered a new offer(Last shot rule).
Obligations
Within the CISG the use of trade specific short terms to define obligations applies. Such as the use of Incoterms in cargo transport with terms as FOB(Free on board), CIF(Cost, Freight and Insurance), DDP(Delivery duty paid).
Where specific obligations are not determined the basic seller obligations of delivery(30 CISG) at the negotiated place and the basic buyer obligations(38 CISG) of goods inspection and complaint, payment and acceptance apply.
Claims
Basic rights include the buyers right of fulfillment of the contract, otherwise repair or cancellation of the contract. While the seller has the right to payment and acceptance of the goods otherwise cancellation of the contract.
Damages
Damages(74 CISG) include a specific damage as well as loss of profit + interest as far as this can be proven and does not conflict with the obligation to keep damages as small as possible.
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