Guatemala approves adherence to the United Nations Convention on Contracts for the International Sale of Goods
On April 19th, 2018, Decree Number 7-2018, containing Guatemala's accession to the United Nations Convention on Contracts for the International Sale of Goods (CISG), was published in the Official Gazette. Once Guatemala issues the instrument of ratification, it will become the ninetieth Contracting State of the CISG.
The CISG was prepared by the United Nations Commission on International Trade Law and adopted by a diplomatic conference in 1980. Its fundamental purpose is to facilitate and promote the development of international trade by establishing a set of uniform rules applicable to contracts for the international sale of goods. The acceptance of this Convention has been exceptional, as evidenced by the fact that it has been ratified by 89 countries of all legal traditions that constitute more than 75% of international trade.
The CISG is structured in four main parts: Part I, concerning the sphere of application of the Convention and its general provisions; Part II, regarding the formation of the contract; Part III, related mainly to the sale of goods and to the obligations of the seller and buyer; and Part IV, essentially referring to the final provisions relevant to the procedure of ratification, acceptance, approval or accession to the Convention by States.
The entry into force of the United Nations Convention on Contracts for the International Sale of Goods, which will take place 12 months after the deposit of its instrument of ratification, it will be a transcendental event for Guatemalan foreign trade since it implies a reduction in transaction costs and legal certainty for the matters regulated by this Convention.