(CISG) Into the UK Legal Order: Two Legislative Models

(CISG) Into the UK Legal Order: Two Legislative Models

UNIVERSITY OF DERBY The Transformation of the UN Convention on Contracts for the International Sale of Goods (CISG) into the UK Legal Order: Two Legislative Models Katerina Georgiadou LLB, LLM, PhD Candidate A Submission to the University of Derby of a Dissertation Thesis for the degree of Doctor of Philosophy, Ph.D. – August 2014 Outline Table of Contents i. Abstract ii. Acknowledgements iii. Bibliography iv. Annex of Published Material 1.INTRODUCTION .................................................................................................................................. 8 1.1 Thesis ..................................................................................................................................................... 8 1.2 Hypothesis ............................................................................................................................................. 8 1.3 Background ........................................................................................................................................... 9 1.4 À la carte model .................................................................................................................................. 12 1.4.1 Sub-model 1: À la carte by omitting Part II of the CISG .......................................................................... 12 1.4.2 Sub-model 2: À la carte by omitting Part III of the CISG ......................................................................... 13 1.4.3 Sub-model 3: À la carte by taking advantage of the EU experience ......................................................... 14 1.5 Parallel model ......................................................................................................................................... 14 2. LITERATURE REVIEW& ANALYTICAL PARAMETERS ...................................................... 16 2.1 Introduction ............................................................................................................................................ 16 2.2 Hypothesis ............................................................................................................................................... 18 2.3 What we have in the UK: Freedom of Contract .................................................................................. 20 2.3.1 The business world in the UK (and elsewhere) moves much more rapidly than law .................................... 23 2.3.2 Bottom up approach: Currently the Affected Parties in the UK Govern the Agenda; Not the Legislature ........................................................................................................................................................ 27 2.3.3 Opting into and out of CISG -Validation of Hypothesis ............................................................................... 32 2.3.3.1 Economic and Political considerations for the UK traders .................................................................... 33 2.3.4 The response of large and influential organisations ...................................................................................... 37 2.4 Positioning of UK Law vis-à-vis International Law Incorporation in the UK Legal Order ................................................................................................................................................................................. 41 2.4.1 The doctrine of transformation in the UK ................................................................................................. 44 2.4.2 The UK approach towards Treaties/Conventions ..................................................................................... 44 2.5 What we could have in the UK: Thesis Models ................................................................................... 45 2.5.1 Differences and similarities between the CISG and the Sale of Goods Act 1979 ......................................... 48 2.5.1.1 Quality and Fitness Obligations ............................................................................................................. 50 2.5.1.2 Description ............................................................................................................................................. 50 2.5.1.3 Termination of the Contract ................................................................................................................... 52 2.5.1.4 Breaches of Time and Documentary Obligations .................................................................................. 53 2.5.1.5 Curing Defective Performance ............................................................................................................... 54 2.5.1.5.1 Acceptance and Restitution ............................................................................................................ 55 2.5.1.5.2 Specific Performance, Price Reduction and Damages .................................................................... 55 2.5.1.5.3 Risk ................................................................................................................................................. 56 2.5.2 Mandatory rules of the CISG and the Sale of Goods Act 1979 ..................................................................... 57 2.5.2.1 CISG Mandatory rules ........................................................................................................................... 57 2.5.2.2 The Sale of Goods Act 1979 mandatory rules ....................................................................................... 60 2.5.3 CISG advantages: A brief exposition ............................................................................................................ 61 2.5.4 Disadvantages of the CISG: A brief exposition ............................................................................................ 64 2.5.4.1 The parole evidence rule ........................................................................................................................ 65 2.5.4.2 Consideration under the CISG ............................................................................................................... 66 2.5.4.3 The Reliance on CISG Precedents ......................................................................................................... 68 2.5.4.4 Courts' reluctant reference to scholars ................................................................................................... 68 2.5.5 Methodology ................................................................................................................................................. 69 2.6 Literature Review Conclusion ............................................................................................................... 77 3. À LA CARTE MODEL ...................................................................................................................... 86 3.1 Introduction ............................................................................................................................................ 86 3.2 CISG: à la carte for traders and à la carte for the implementing legislator ..................................... 86 3.2.1 À la carte for traders ...................................................................................................................................... 87 3.2.3 Private and Public Law Considerations for the Implementing Legislator ..................................................... 90 3.2.3.1 Monism and Dualism ................................................................................................................................. 91 3.2.3.1.1. United Kingdom’s Dualism in the Sphere of International Law Incorporation ............................. 94 3.3 The à la carte model may be transposed into the UK legal order through three sub models ............................................................................................................................................................ 97 3.4 Article 92 Reservation .......................................................................................................................... 101 3.4.1 Sub-model I: À la carte by omitting Part II of the CISG ............................................................................. 102 3.4.2 Sub-model II: À la carte by omitting Part III of the CISG ......................................................................... 107 3.4.3 Sub-model III: À la carte by taking advantage of European experience ..................................................... 114 3.4.3.1 German Experience with regard to the Incorporation of Directive on Certain Aspects on the Sale of Consumer Goods and Associated Guarantees ........................................................................... 117 3.4.3.2 UK Experience with regard to the Incorporation of Directive on Certain Aspects on the Sale of Consumer Goods and Associated Guarantees ................................................................................ 119 3.5 Possible criticisms of the à la carte model .......................................................................................... 121 3.5.1 À la carte by omitting Part II of the CISG ................................................................................................... 121 3.5.2 À la carte by omitting Part III of the CISG ................................................................................................. 122 3.5.3 À

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