Manama, Nov. 16 (BNA): Under the auspices of the Minister of Justice, Islamic Affairs and Endowments, Nawaf bin Mohammed Al-Maawda, the Bahrain Lawyers Association, in cooperation with the Bahrain Economic Development Board and the United Nations Committee for International Affairs, organized the event. Trade Law (UNCITRAL) organized a seminar on the United Nations Convention on Contracts for the International Sale of Goods (CISG).
A CISG is a treaty that provides a uniform legal framework for the formation and enforcement of contracts for the cross-border sale of goods.
It is the most widely adopted standardized contract law treaty, with 95 countries party to it, including the USA, China, Japan, 25 EU member states, Egypt, Lebanon and Iraq. Bahrain adopted the CISG in 2013, and it has been in effect in the Kingdom since October 1, 2014.
Bahrain is the first GCC member to adopt the CISG, and other GCC member states are considering adopting it.
Dr. Luca Castellani of the UNCITRAL Secretariat provided an overview of the content of the CISG.
He explained that the CISG is a modern treaty that provides a balanced legal framework for sellers and buyers, and is specially designed for long-distance transactions.
He said the sale agreement aims to preserve the economic value of the contract, which is particularly important in cross-border transactions given the high transaction costs.
Dr. added. Castellani argues that the CISG allows the parties to the contract of sale to adapt its provisions to their needs, or even, if they wish, to exclude their application. At the same time, the CISG provided an effective safety net for all cases in which the parties did not choose the law applicable to the contract, or were unable to fully negotiate their contractual terms.
He explained that the sales agreement also provided useful guidance in the event of a defect due to unexpected events such as COVID-19, by clarifying the duties of the parties and the distribution of risks.
Dr. Castellani noted that the CISG is complemented by the United Nations Convention on the Use of Electronic Communications in International Contracts, another treaty prepared by UNCITRAL.
Bahrain has adopted this agreement as part of its legal framework for its digital trade agenda, which is particularly recent and complete.
Dr. Castellani also stressed that the CISG is indispensable for any country actively participating in cross-border trade, and can be particularly beneficial for enhancing economic exchanges in the GCC in line with current policies of economic diversification and integration.
He concluded by inviting Bahraini judges, lawyers and practitioners to take advantage of the large number of materials available on the CISG, which includes more than 5,000 judicial decisions, and to apply the CISG whenever appropriate.
Ilham Ali Hassan & Co. Legal partner Ilham Ali Hassan spoke at the seminar and compared the provisions of the agreement with the corresponding provisions under Bahraini law.
ZHB