1. Chapter 1: Introduction to the COT
- Commercial: Merchants
-Transaction: Trans + Action
- The purpose of the course:
The major legal aspects of COT into 4 sections.
1- Sale of goods
2- Secured Transaction
3- Negotiable Instruments
4- Payment systems
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C.O.T.

2. Chapter1: Introduction to sale of goods
The exchange of goods is an essential part of every economy.
Most countries have developed special rules governing.
The special rules were developed with a common goal in mind:
- To facilitate commercial activities
- Predictable
- Efficient
- Fair
- Protecting consumers
- Discourage anti-competitive practices
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C.O.T.

3. Sources of law governing the sale of goods
We will be relying on two laws:
- The D#38 governing K and other obligation
- Civil Code Rkmrdæb,evNI 2007
- The United nations convention for International sale of goods (CISG)
1-Decree#38
- Law governing, sale Ks (ch II section I, Art 34 – Art55)
- Applies to all sales Ks, not just to Ks for sale of goods (real & personal property)
LAW
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C.O.T.

4. - Art 59 interest 5% per year 2- CISG: apply to
There some Arts are not consistent with free market principles. Such as:
- Art12 Consideration from each party must be equal when there is different in consideration given, the party who receives less can rescind the K. (no profit)
- Art 59 interest 5% per year
2- CISG: apply to
- Only applies to sale of contract
between different countries.
- Only applies to countries that have
signed the CISG
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C.O.T.

5. Basic Application of CISG A K B
CISG Problem CISG
A sues B Court looks at PIL (conflict of law) which country law will apply ?
- If A country law CISG apply
- If B country law CISG apply
no CISG Problem CISG
A sues B, so the Court looks at PIL (conflict of law) which country law will apply ?
- If A country law CISG not apply
LAW
5/8/2019
C.O.T.