Contracts for the international sale of goods with open-price terms: An interplay between arts. 14 and 55 CISG

Abstract

This paper examines the relationship between Arts. 14 and 55 of the United Nations Convention on Contracts for the International Sale of Goods (CISG). According to Art. 14(1) CISG for the valid offer it is necessary that the price of the goods is at least determinable. On the other hand, Art. 55 CISG presuposes that the contract can be valid even if the price is neither determined nor determinable. Linguistic interpretation of those provisions shows contradiction and the controversy stems from demand from Art. 14(1) CISG for sufficiently definite price and open-price rule from Art. 55 CISG. The relationship between those provisions, if any, is widely discussed in theory. The author analyzes possible approaches advocated by scholars and attempts to resolve this contradiction.

Keywords

• international sale of goods
• offer
• price
• open-price contracts