Incoterms and UCC Article 2 - Conflicts and Confusions

Abstract

By this time, attorneys are accustomed to the concept that different rules are applicable to domestic and international sales of goods-respectively the Uniform Commercial Code (UCC) and the Convention on Contracts for the International Sale of Goods (CISG).'The purpose of this article is to point out that there is another potential conflict between domestic and international normative rules, a conflict relating to the commercial terms that provide rules for the delivery term in a contract for the sale of goods.The UCC has its own definitions of such terms as "F.O.B." and "C.I.F.' 2 The CISG does not have such definitions, and the CISG rules on delivery terms are very sparse.3 Instead of incorporating detailed rules on the meaning of individual commercial delivery terms for the international sale, the drafters of the CISG could rely upon a written formulation of industry understanding of the meaning of such terms.

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