1. CISG and international arbitration Choice of CISG as governing law
Karolína Horáková

2. Interplay between procedural and substantive aspects of the case
Purpose of arbitration:
fair, neutral and flexible procedure capable of efficiently resolving disputes
According to 2012 International Arbitration Survey
3 aspects of flexibility
Choice of the law governing substance of the dispute
Choice of the seat of arbitration
Choice of the arbitral institutions and/or arbitrators

3. Interplay between procedural and substantive aspects of the case
Relationship between the seat of arbitration and the law governing the substance
Reasons for selecting preferred seats of arbitration:
2015 International Arbitration Survey, Improvements and Innovations in International Arbitration, p. 13

4. What influences choice of governing law?
Top 4 aspects influencing choice
Perceived neutrality and impartiality of the legal system with regard to the parties and their contract
The appropriateness of the law for the type of contract
The party´s familiarity with the law
Place of performance of contract
2010 International Arbitration Survey, p. 11

5. Which law is prefered?
2010 International Arbitration Survey, p. 13, 14

6. And where is CISG?
2010 International Arbitration Survey, p. 15

7. Neutrality and impartiality
CISG is not a national law – cannot be considered as biased in favour of one of the contracting parties
It is deemed to be balanced concerning buyers and sellers

8. Appropriateness for type of contract
Sphere of application (Art. 1(1)):
„contracts of sale of goods“
Excluded sales (Art. 2), by type or method of conclusion of contract:
sale of goods for personal, family or household use; sale of stocks, shares, investment securities, negotiable instruments or money; sale of ships, vessels, hovercraft or aircraft; sale of electricity;
sale by auction; sale on execution or otherwise by authority of law

9. Appropriateness for type of contract
CISG thus can apply only to a part of international business transactions
International business transactions are often not clear-cut sales contracts for goods
National legal orders have an advantage as they offer comprehensive regulation for hybrid international business transactions, as well as those not covered by CISG

10. Familiarity and experience with the CISG
Familiarity vs. Neutrality
CISG is not a national law of any party to the contract, which limits the depth of familiarity with the instrument
However, there is advantage for Czech businessmen – CISG served as model for the relevant provisions of the former Commercial Code and is similar to the current new Civil Code

11. Choice of law imposed by other party
Strong preference for law of the home jurisdiction may turn choice of law into a contentious situation
Level of bargaining power in the relationship
2010 International Arbitraton Survey, p. 7
CISG may limit these conflicts – neutral law, potential high familiarity even if never used by a party

12. Place of performance of the contract
CISG covers 85 state parties
(nearly half the number of states)
CISG covers most exporting
countries (laws of which would normally apply
if there is no agreement on applicable law)
Status map – CISG (
Trade map (

13. Conclusion Compliance with criteria Non-compliance with criteria
Neutrality and impartiality
Familiarity (to some degree)
No discomfort if imposed by other party
Place of performance of the contract
Apropriate for a specific type of contract
Lack of experience with application