Interplay with Other International Commercial Conventions

The UN-CISG was not the only offshoot of the pursuit of states for a uniform rule that will govern international transactions. “The UN-CISG is a uniform law binding buyers and sellers from different legal cultures to its set of rules and principles. ” It exists side by side with other conventions, which provide and lay down guidelines, rules as well as rights and obligations of international commercial transactions, such as “The Hague” and “The Rome” Conventions. The latter two conventions are embarking on a quite different direction than the UN-CISG dealing with separate subject matter in international commercial transaction.

The Hague Conference on Private International Law was formed in the year 1893 with a main objective of unifying the various rules of private international law. In short, it has for its view the harmonization of Conflict of Laws principles, which is eminent in international business transactions. To harmonize the conflicts of laws principles, the Hague Conventions has created and established guidelines to assist the states to come up to a multi-lateral convention in order to settle differences and ambiguities in handling commercial disputes and cases with foreign elements or involving parties belonging to totally different jurisdiction.

As regards the sale of goods, the Hague Convention tried to provide legal clarity and certainty to the prevailing legal uncertainties brought about by the various contrasting conflict rule adopted by respective states. The so-called “individualizing method” was resorted by states creating legal uncertainty. The said method in dispute resolution tries to resolve conflicts involving foreign element or parties based on the conflicts rules of a state without regard on the other conflicts rules of another state that has lawfully acquired, based on its domestic laws, jurisdiction over the same subject matter or transaction.

This situation in international dealings allowed parties to resort in the practice of forum shopping in different jurisdictions, further resulting in legal ambiguities. The problem of forum shopping has become so prevalent awakening the international community and international bodies. The Hague Convention tried to remedy the situation through its harmonization effort and the unification of conflict rules in the international transactions. On the one hand, in Rome, Italy, the Convention on the Law Applicable to Contractual Obligations were agreed to by mostly members of the European Union.

As with The Hague convention, the Rome Convention was mainly for the harmonization of conflicts of laws rules of different states within the union. It also seeks to eliminate such differences that deter the free movement of goods. This was carried through by providing leeway and liberty to parties to a commercial contract in the selection of the applicable law that will govern the contract, the rights and obligations of the parties, as well as the available remedy in case of breach.

The Rome Convention further provides for guideline through the “choice of law” rules as to facilitate and aid the parties to determine their status and situation in an international sales contract. Both The Hague and the Rome conventions delved with the institution and establishment of a uniform conflict of laws rule in international contracts. Both conventions has the force of   law, binding upon states, non-contracting states included, as the principles laid in the said conventions has been duly accepted and acceded to have a universal character.

Hence, the compliance with rules in case of conflict of laws is obligatory among states as a sizable number of states have ratified and accepted the application of the said international conventions. In short, The Hague and Rome conventions are considered authoritative when it comes to the question of determining which law should apply in cases of conflict of laws situation. They are remedial or procedural in character without providing for any substantive rights and obligations, which is considered the domain of the domestic or national law of respective states.