engleski

The CISG And The Good Faith Principle

Interpretation of Art. 7(1) CISG and its part relating to the requirement to interpret the CISG by observance of good faith in international trade is highly disputed in both theory and practice. Our analysis shows that one of the main problems pertaining to Art. 7(1) CISG is not so much the notorious elusiveness of the term good faith, but rather the absence of an agreement on a workable frame of reference against which the substantive meaning of the principle can be measured. Fully acknowledging that the good faith principle at its very core represents a standard of parties’ behavior represents a helpful first step in finding a workable solution within the CISG. A second step is to recognize the full wording of the respective part of Art. 7(1) CISG, i.e., good faith in international trade. A proposed functional approach reveals that the purpose of the reference is to consider subjects conducting their transactions in international trade. Such an approach is complementary to the fundamental purpose of the general principle of good faith itself, which is to ensure that parties to a transaction are discharging of their rights and obligations in a manner which is considered appropriate within a given legal framework.

CISG ; Good Faith Principle ; trade usages

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