Statement 2: The 1980 United Nations Convention on Contracts for the International
Sale of Goods (CISG 1980) applies to all types of sales contracts.
No.
According to Article 1(1) of the CISG 1980, This Convention applies to contracts of sale
of goods between parties whose places of business are in different States:
(a) when the States are Contracting States; or
(b) when the rules of private international law lead to the application of the law of a
Contracting State.
CISG applies only to international sales contracts between parties whose places of
business are in different Contracting States or when private international law rules lead to the
application of the law of a Contracting State. The Convention does not apply to all types of sales
contracts, especially domestic sales contracts (between parties within the same country).
According to Article 2 of the CISG 1980,This Convention does not apply to sales:
(a) of goods bought for personal, family or household use, unless the seller, at any time
before or at the conclusion of the contract, neither knew nor ought to have known that the goods
were bought for any such use;
(b) by auction;
(c) on execution or otherwise by authority of law;
(d) of stocks, shares, investment securities, negotiable instruments or money;
(e) of ships, vessels, hovercraft or aircraft;
(f) of electricity.
The Convention explicitly excludes specific categories of transactions. These include
goods intended for personal, family, or household purposes (unless the seller neither knew nor
should have known about such usage), sales conducted by auction, sales made under legal
enforcement, and transactions involving stocks, shares, currency, ships, aircraft, or electricity.
As a result, the CISG's applicability is confined to international commercial contracts for
the sale of goods and does not extend to transactions that fall under the exclusions outlined in
Article 1 and Article 2.
