International Commercial Transactions
Core concepts
Cross-border sales raise issues of choice of law, jurisdiction, arbitration, Incoterms, letters of credit, and customs. The CISG governs international sale of goods between contracting states, with rules on formation, conformity, and remedies. Incoterms allocate costs, risk, and obligations (e.g., FOB, CIF, DAP). Letters of credit operate on strict compliance and independence principles. Force majeure and hardship clauses address changed circumstances. Sanctions and export controls add compliance layers. Recognition and enforcement of foreign judgments and arbitral awards depends on treaties such as the New York Convention.
Traps
- Assuming the CISG applies automatically; parties may exclude it.
- Confusing risk transfer under Incoterms with property transfer.
- Missing strict compliance in letter-of-credit presentation.
- Overlooking that arbitration clauses exclude court jurisdiction.
- Forgetting sanctions and export-control screening obligations.
Worked rule of thumb
Use the C-A-P checklist: Contract (which law and terms apply, including CISG and Incoterms), Arbitration/Jurisdiction (forum and enforcement), Payment (letter of credit or other mechanism).