CISG vs Incoterms

CISG and Incoterms are two distinct sets of rules that govern international commercial transactions.

CISG stands for the United Nations Convention on Contracts for the International Sale of Goods, which is a treaty that sets out rules governing contracts for the sale of goods between parties located in different countries. It provides a framework for the formation of contracts, the obligations and rights of the parties, and the remedies available in case of breach. The CISG is focused specifically on the sale of goods and does not cover services, intellectual property, or real estate.

Incoterms (short for International Commercial Terms) are a set of standardised trade terms developed by the International Chamber of Commerce (ICC). They provide a universal language for international trade and help define the obligations and responsibilities of buyers and sellers in international contracts. Incoterms cover a wide range of issues, including the delivery of goods, transfer of risk, and payment obligations, and are designed to clarify the responsibilities of the parties involved in an international transaction.

While both CISG and Incoterms deal with international commercial transactions, CISG specifically covers the sale of goods while Incoterms cover a broader range of issues related to international trade, including the transportation of goods and the distribution of costs and risks between the buyer and seller.