Examination of goods by buyers under international sales contracts

Research output: Contribution to journalArticlepeer-review

Abstract

Article 38 of the UN Convention on Contracts for the International Sale of Goods (CISG) requires that buyer must examine the goods, or cause them to be examined, within as short a period as is practicable under the circumstances. In this respect, it is crucial for a buyer to examine the goods within as short a period as is practicable in the circumstances of a case. The study aims to identify what are the factors that may be taken into consideration for the purpose of fixing the time limit to examine the goods. The buyer’s examination of goods is an obligation based on CISG rules that are intended to protect the interests of both the seller and buyer. The findings show that the factors that are considered by the courts include, the nature of goods, applicable trade usages, mode of delivery, machinery’s complexity, type of defect, circumstances of the parties and expertise of the buyer’s employees. The conclusion is that a buyer who fails to both examine the goods and give notice of nonconformity to the seller within a reasonable time loses the right to rely on the lack of conformity provision and, consequently, loses remedies recognized under Article 45 of the CISG. The study recommends that a buyer, who wishes to obtain more time to examine the goods and to give notice of nonconformity, specify the intended period in contract by derogating from the provisions of Articles 38 and 39 of CISG.

Original languageEnglish
Pages (from-to)1-8
Number of pages8
JournalAcademy of Entrepreneurship Journal
Volume27
Issue number1
Publication statusPublished - Feb 2021

Keywords

  • Buyer
  • Examination of Goods
  • Nonconformity
  • Seller
  • UN CISG

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics
  • Strategy and Management

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