|
Rules Governing International Oil sale Contracts and the Role of the Intenational Convention on Commodity Sales in these Contracts
|
Hoda Kashanizade *   1, Abdolhossein Shiravi Qoozani2 |
1- University of Tehran (Faraby Campus) , hoda.kashanizadeh@gmail.com
2- University of Tehran (Faraby Campus) |
|
|
Abstract: (5605 Views) |
Applicable law is one of the issues in international crude oil sales contracts. When we review General Terms and Conditions (GTCs) for crude oil sales by international oil companies including Chevron, Total, Royal Dutch Shell, Statoil and Litasco, we notice that they stipulate English law as the legal framework applicable to their contracts. and are not bound by provisions of the United Nations Convention on Contracts for the International Sale of Goods 1980 (CISG). State owned oil companies of developing oil exporting countries have generally chosen their domestic law as the governing framework for crude oil sales and are silent about the CISG since they have not acceded to it. Our study shows that the CISG does not provide any restrictions applicable to crude oil sales contracts. Oil traders prefer to use English Law rather than CISG becauase CISG provisions are too general and vague, hard to review and have unpredictable effects on contracts. Given the shortcomings of the CISG, there is no merit to its ratification by developing oil exporting countries as far as its application to crude oil sales contracts is concerned.
JEL Classification: K3
|
|
| Keywords: General Terms and Conditions, Vienna Convention, English Law, Governing Law |
|
|
Full-Text [PDF 427 kb]
(7781 Downloads)
|
Type of Study: Thesis(PhD.) |
Subject:
Contracts
Received: 2017/02/7 | Accepted: 2017/12/27 | Published: 2017/12/27 | ePublished: 2017/12/27
|
|
|
|
|
|
|
| Send email to the article author |
|
|
|
| Add your comments about this article |
|
|
|
