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As a general rule, the Contracts for International Sale of Goods (CISG) applies to all contracts between parties whose place of business are in different contracting states, according to article 1(1)(a) of the CISG (Aguiar, 2011). If both parties have their places of business in different contracting states, and if after its ratification of CISG is considered a national law in both contracting states.

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As a general rule, the Contracts for International Sale of Goods (CISG) applies to all contracts between parties whose place of business are in different contracting states, according to article 1(1)(a) of the CISG (Aguiar, 2011). If both parties have their places of business in different contracting states, and if after its ratification of CISG is considered a national law in both contracting states. This information will explore international contract law in Brazil, United Kingdom, and Japan.

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International Contract Law in Brazil:

In Brazil, when only one party is from a contracting state, the CISG may govern the transaction depending on where the contract was concluded, which could be either parties' place of business. The moment a contract is formed is relevant in determining when it becomes binding and when the parties are obligated to perform their contractual agreements; one to pay the fee, and the other to deliver the goods (Aguiar, 2011). As a consequence, none of the parties would be able to terminate the contract individually, unless by breaching it (Aguiar, 2011). In that case, the other party would be entitled to either specific performance or damages (Aguiar, 2011). There are no controversies regarding the moment a contract is formed in cases when the parties are negotiating in person and no fixed term for acceptance was given (Aguiar, 2011). As stated in article 428 (I) of the CISG, because a proposal made in person loses it enforced effect just after it is made, the party has to accept it immediately, As a result, the contract is formed with the acceptance (Aguiar, 2011).

Negotiation of Sales and Contracts:

When and offer is presented followed by a counter-offer, the negotiation process commences. In Brazilian law, under the CISG a late acceptance or a reply that is meant to be an acceptance, but suggests the possibility of additional or different terms is considered a counter-offer, therefore terminating the first offer and continuing the negotiation (Aguiar, 2011). In this event, courts would have to determine the terms of the contract. Previous judicial and arbitral decisions with negotiations have shown to be difficult to resolve (Aguiar, 2011).

There is always a risk that courts will interpret the CISG differently, in particular with the tendency to follow their respective domestic legal traditions. As a means to achieve consistent ...

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Kaira Carter, MBA, DBA
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  • MBA, University of Phoenix
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