The United Nations Convention on Contracts for the International Sale of Goods: Should Developing Nations Such As Iran Adopt the CISG?

Abstract

The United Nations Convention on Contracts for the International Sale of Goods (CISG) was agreed in 1980. It has been ratified by 79 states. Despite a declaration in the Preamble that it seeks to contribute to the achievement of a New International Economic Order (NIEO) and to promote the development of international trade on the basis of equality and mutual benefit, a disproportionate number of developing countries, including Iran, have not ratified it. This thesis investigates the link between the NIEO and the CISG in relation to both the process of making international sales law and the substance of that law. While the broader remit of this thesis is to investigate why developing countries have failed to adopt the CISG, its primary focus is on Iran and whether it should adopt the CISG. To that end, the author will thoroughly study the advantages and disadvantages of ratification put forward by different nations. The position taken on the CISG by the United Kingdom will also be examined, since the UK has avoided ratifying the CISG. The purpose of this study is to show that Iran is not in a comparable position to the UK with regard to justifying its non-ratification.

A comparison of the legal provisions of the CISG and their counterparts under Iranian law is the ultimate aim of this thesis. To better understand the Iranian law governing contracts of sale, a brief overview will be provided of Iran’s position in the world economy and of its legal environment. A careful investigation will then be conducted into the rights, duties, and remedies under the CISG and corresponding ones under the Iranian domestic law of sale. The study reveals that the rights and duties under the CISG resemble those under Iranian law. There are certain remedies in the CISG that do not have a counterpart in Iranian law. In such cases, the practical effect of these differences will be discussed. This will lead to the conclusion that Iran should adopt the CISG, and that is where the author’s fieldwork in Iran concerning the practical difficulties that may arise in implementing the CISG in Iran will be discussed in more detail.