Title: Uniformity of laws: a reality or just a myth?

Authors: B. Zeller

Addresses: Victoria University, Melbourne, Australia

Abstract: This paper attempts to show that the greatest impediment to a reduction in the transaction cost consists of two factors. First, the problem of the choice of laws makes contracting a hazardous enterprise for those who have an information disadvantage. Second, the reluctance of the legal profession to embrace and familiarise themselves with uniform international laws does not enhance a client|s expectation to be able to access the |best| law. It is argued that the inclusion of international uniform laws such as the United Nations Convention on Contracts for the International Sale of Goods (CISG, 1980) will reduce the transactions costs either at trial or when a problem arises as both parties operate in essence under the same law and, hence, a negotiated settlement is more likely. The paper specifically addresses the problem which can emerge when a contract is silent as to which law will govern the legal relationship. Close attention is given to a possibility of overcoming choice of laws problems by applying the CISG, instead of explicitly excluding the CISG. This paper also investigates the inclusions of soft laws into contracts and the ability of such an inclusion to reduce transaction costs. The conclusion is that the inclusion of uniform laws reduces uncertainty and is, furthermore, merely recognition of a development which is gathering speed.

Keywords: international sales contracts; drafting contracts; choice of governing laws; conflict of laws; uniform international laws; United Nations Convention on Contracts for the International Sale of Goods; CISG; UNIDROIT principles; transaction costs; uniform laws; uniformity.

DOI: 10.1504/IJPL.2009.021509

International Journal of Private Law, 2009 Vol.2 No.1, pp.3 - 14

Published online: 30 Nov 2008 *

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