4. What exactly is the Convention on Contracts for the International Sale of Goods (CISG or the Vienna Convention) and how does it affect my contracts?

The Vienna Convention is an International Treaty to which more than 60 Countries are part (just to mention a few: USA, Canada, Mexico, Australia, Argentina, most western European countries except England, etc.), and contains international set of rules designed to provide clarity to international sales contracts by regulating them in almost every aspect including: parties' rights and obligations, parties' liabilities, contract formation, remedies available against non-compliance, etc.

The CISG will govern every sales contract in which buyer and seller are located in different Countries which are signatories to the CISG, unless a specific provision in said contract excludes the application of the Convention. The CISG will not apply however in the following cases:

· International consumer sales (sales bought for personal, family or household use);

· Specific kind of sales like auctions;

· Sales regarding specific kind of goods like stocks, electricity, ships, hovercraft, and aircraft;

· Generally, distribution agreements, because they govern "future" sales of goods;

· Sale of goods where the buyer supplies a substantial part of materials needed for production.

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