Any lawyer involved in cross-border transactions or disputes should be aware of the United Nations Convention on Contracts for the International Sale of Goods (the CISG). The CISG (sometimes referred to as the Vienna Convention) is a treaty that governs international contracts for the sale of goods between parties doing business in those countries that have ratified the treaty. It applies by default to any such contracts, and has been adopted by 94 countries, including the U.S., most of Europe, and most of Asia (though notably not the U.K., India, and Taiwan). That makes it one of the most widely adopted international treaties, and it covers approximately two-thirds of international trade contracts today.

The CISG was developed by the United Nations Commission on International Trade Law (UNCITRAL), and was adopted by the United Nations in 1980. Despite that, many feel it is not widely understood in the United States, with one U.S. court noting there is “little case law addressing the CISG” in U.S. courts. MCF Liquidation, LLC v. Int’l Suntrade, Inc., 2015 WL 12670169, at *3 (S.D. Iowa Nov. 16, 2015). This article highlights the importance of understanding when the CISG applies and why it matters.