Essay Sample on Videosoft

Arguments using the CISG Articles

Videosoft stopped making sales in America because of the new law that required the approval of educational videos by the federal government. CISG article 1 indicates that the way that the parties have their places of business in various States is to be ignored at whatever point this reality does not show up either from the agreement or from any dealings (Article 1, n.d).

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OUP signed a five-year contract with Videosoft to receive a supply of medical videos. CISG article 3 of CSIG indicates that contracts for the supply of merchandise to be made or created are to be viewed as sales except if the party who arranges the products embraces to supply a significant piece of materials important for such manufacture and production (Article 3, n.d).

After signing the contract, the obligation of OUP was to purchase the medical videos from Videosoft and sell them to their customers over a five year period. Videosoft was obliged to sell the videos to OUP Digital Inc. CISG article 4 is concerned with the formation of the contract of sale and the rights and obligations of the seller and the buyer (Article 4, n.d).

OUP Digital Inc failed to fulfill its side of the obligation because it believed that paying for the goods would be a fundamental breach of nonconformity of quality. CSIG article 7 governs respect is to be to its global character and to the need to advance consistency in its application and the recognition of good confidence in universal trade (Article 7, n.d).

OUP Digital Inc refused to fulfill its side of the bargain claiming that the medical videos were unable to show in HD. CISG article 8 governs what the intentions of the contracting party were (Article 8, n.d).

Arguments using the New York Convention

The original contract did not contain an arbitration clause. The New York Convention article 1 applies the Convention just to differences emerging out of lawful connections, regardless of whether legally binding or not, which are considered as a business under the national law of the state making such presentation (Newyorkconvention1958.org, n.d).

Both Videosoft and OUP holding verbally agreed to take their dispute to arbitration. Article 1 of the New York Convention applies to arbitral awards not considered as local awards in the State where their authorization are sought (Newyorkconvention1958.org, n.d).

After one month of deliberations, arbitrations concluded that Videosoft would refund OUP 50% of their unsold videos but the latter failed to conform to the terms of the arbitration. In the New York Convention, article 3 indicates that both parties of arbitration should recognize the awards as binding (Newyorkconvention1958.org, n.d).

Videosoft wanted to seek the enforcement of the arbitral award in Canada. Article 2 of the New York Convention indicates that the court of a Contracting State, when seized of an activity in an issue in regard of which the parties have made an arbitration, will, in line with one of the gatherings, allude the parties to arbitration, except if it finds that the said understanding is invalid and void, (Newyorkconvention1958.org, n.d).

Videosoft had to go back to seek the arbitral award in its head offices in Canada after UOP failed to meet its terms of the bargain. In the New York convention, article 3 indicates that each Contracting State will perceive arbitral awards as official and uphold them as per the rules of the region where the honor is depended upon (Newyorkconvention1958.org, n.d).

The case applies under the CSIG because it violates both the substantive provisions of the convention and law that governs obligation of states.

References

Article 1. (n.d). Retrieved from https://www.cisg.law.pace.edu/cisg/text/e-text-01.html

Article 3. (n.d). Retrieved from http://www.cisg.law.pace.edu/cisg/text/e-text-03.html

Article 4. (n.d). Retrieved from https://www.cisg.law.pace.edu/cisg/text/e-text-04.html

Article 7. (n.d) Retrieved from https://www.cisg.law.pace.edu/cisg/text/e-text-07.html

Article 8. (n.d). Retrieved from https://www.cisg.law.pace.edu/cisg/text/e-text-08.html

Newyorkconvention1958.org. (n.d). Convention on the Recognition and Enforcement of Foreign

Arbitral Awards (New York, 1958). Retrieved from http://newyorkconvention1958.org/index.php?lvl=cmspage&pageid=10&menu=866&opac_view=-1