KONTRAK BISNIS INTERNASIONAL

KONTRAK BISNIS INTERNASIONAL
Nandang Sutrisno Fakultas Hukum Universitas Iaslam Indonesia 2015

Pendahuluan Definisi Bisnis Internasional
The exchange of goods and services among individuals and businesses in multiple countries. (Pertukaran barang-barang dan jasa-jasa antara individu-individu dan bisnis-bisnis di berbagai negara). A specific entity, such as a multinational corporation or international business company that engages in business among multiple countries. (Suatu badan khusus, seperti perusahaan multinasional yang terlibat bisnis di berbagai negara) Sumber: business transactions crossing national borders at any stage of the transaction (Cindy King) (transaksi bisnis yang melintas batas negara pada setiap tahapan transaksi)

Exchange (pertukaran)
Open, organized marketplace (such as a stock exchange) where buyers and sellers negotiate prices. Exchanges require an almost instant (real time) bid and ask matching mechanism, settlement and clearing, and market wide price communication and determination. (pasar terbuka dan terorganisasi (misalnya pasar saham) di mana para pembeli dan penjual melakukan tawar-menawar harga. Pertukaran memerlukan sesuatu penawaran yang sangat cepat (real time) dan permintaan yang sesuai dengan mekanisme, penyelesaian dan penjelasan, dan komunikasi serta penentuan harga pasar yang luas. Goods and services (barang-barang dan jasa-jasa) The most basic products of an economic system that consist of tangible consumable items and tasks performed by individuals. Many business portfolios consist of a mix of goods and services that they offer to potential consumers via a sales force. (produk-produk yang paling dasar dari sistem ekonomi yang terdiri dari barang-barang berwujud yang dapat dikonsumsi dan tugas-tugas yang dijalankan oleh individu-individu. Banyak bisnis portofolio yang terdiri dari suatu campuran antara barang-barang dan jasa-jasa yang mereka tawarkan kepada konsumen-konsumen potensial melalui suatu kekuatan penjualan.

Individual (Individu)
A person. A distinct, indivisible entity, often one among many others of a similar kind. (Seseorang atau suatu badan yang berbeda dan tidak bisa dipisahkan, sering satu diantara banyak hal lain yang sama) Businesses (Bisnis) An organization or economic system where goods and services are exchanged for one another or for money. (suatu organisasi atau sistem ekonomi di mana barang-barang dan jasa-jasa saling dipertukarkan atau untuk ditukar dengan uang). Every business requires some form of investment and enough customers to whom its output can be sold on a consistent basis in order to make a profit. (Setiap bisnis memerlukan beberapa bentuk investasi dan konsumen yang cukup terhadap mana hasil investasi tersebut dapat dijual dengan dasar yang konsisten untuk mendapatkan keuntungan). Businesses can be privately owned, not-for-profit or state-owned. An example of a corporate business is PepsiCo, while a mom-and-pop catering business is a private enterprise. (Bisnis dapat dimiliki secara pribadi, tidak berorientasi keuntungan atau dimiliki negara. Satu contoh suatu badan hukum bisnis adalah PepsiCo, sementara suatu bisnis katering papa-mama adalah suatu badan swasta. Sumber:

Business Activities (Aktivitas Bisnis)
The aggregate economic activities (buying, selling, renting, investing) of an organization or of the commercial and manufacturing sectors of an economy. (Kumpulan aktivitas-aktivitas ekonomi (beli, jual, menyewakan, berinvestasi) dari sebuah organisasi atau sektor komersial dan manufaktur dari suatu economi) Economic activities (aktivitas ekonomi) Actions that involve the production, distribution and consumption of goods and services at all levels within a society. Gross domestic product or GDP is one way of assessing economic activity, and the degree of current economic activity and forecasts for its future level can significantly impact business activity and profits, as well as inflation and interest rates. (Tindakan-tindakan yang meliputi produksi, distribusi dan konsumsi barang-barang dan jasa-jasa pada setiap tingkatan dalam masyarakat. Gross Domestic Product atau GDP merupakan salah satu cara menilai aktivitas-aktivitas ekonomi, dan tingkatan aktivitas ekonomi saat ini dan prakiraannya di masa mendatang dapat mempengaruhi aktivitas dan keuntungan bisnis, inflasi dan tingkat suku bunga secara signifikan, Sumber:

Definisi-definisi lain http://kalyan-city. blogspot
International Business conducts butransactions all over the world. These transactions include the transfer of goods, services, technology, managerial knowledge, and capital to other countries. International business involves exports and imports. (Bisnis Internasional melakukan transaksi-transaksi di seluruh dunia. Transaksi-transaksi ini meliputi pengalihan barang-barang, jasa-jasa, teknologi, pengetahuan manajerial, dan modal ke negara-negara lain. Bisnis internasional juga mencakup ekspor dan impor. International Business is also known, called or referred as a Global Business or an International Marketing. (Bisnis Internasional juga dikenal, disebut atau dirujuk sebagai suatu Bisnis Global atau Pemasaran Internasional.

Bisnis internasional memiliki banyak pilihan cara
Exporting goods and services (Mengekspor barang-barang dan jasa-jasa). Giving license to produce goods in the host country (Memberikan lisensi untuk memproduksi barang-barang di negara tuan rumah). Starting a joint venture with a company (Melakukan usaha patungan dengan suatu perusahaan). Opening a branch for producing & distributing goods in the host country (Membuka suatu cabang untuk produksi dan distribusi barang-barang di negara tuan rumah) . Providing managerial services to companies in the host country (Menyediakan jasa-jasa manajerial terhadap perusahaan-perusahaan di negara tuan rumah).

Large scale operations : In international business, all the operations are conducted on a very huge scale. Production and marketing activities are conducted on a large scale. It first sells its goods in the local market. Then the surplus goods are exported. Intergration of economies : International business integrates (combines) the economies of many countries. This is because it uses finance from one country, labour from another country, and infrastructure from another country. It designs the product in one country, produces its parts in many different countries and assembles the product in another country. It sells the product in many countries, i.e. in the international market.

Dominated by developed countries and MNCs : International business is dominated by developed countries and their multinational corporations (MNCs). At present, MNCs from USA, Europe and Japan dominate (fully control) foreign trade. This is because they have large financial and other resources. They also have the best technology and research and development (R & D). They have highly skilled employees and managers because they give very high salaries and other benefits. Therefore, they produce good quality goods and services at low prices. This helps them to capture and dominate the world market. Benefits to participating countries : International business gives benefits to all participating countries. However, the developed (rich) countries get the maximum benefits. The developing (poor) countries also get benefits. They get foreign capital and technology. They get rapid industrial development. They get more employment opportunities. All this results in economic development of the developing countries. Therefore, developing countries open up their economies through liberal economic policies.

Keen competition : International business has to face keen (too much) competition in the world market. The competition is between unequal partners i.e. developed and developing countries. In this keen competition, developed countries and their MNCs are in a favourable position because they produce superior quality goods and services at very low prices. Developed countries also have many contacts in the world market. So, developing countries find it very difficult to face competition from developed countries. Special role of science and technology : International business gives a lot of importance to science and technology. Science and Technology (S & T) help the business to have large-scale production. Developed countries use high technologies. Therefore, they dominate global business. International business helps them to transfer such top high-end technologies to the developing countries.

International restrictions : International business faces many restrictions on the inflow and outflow of capital, technology and goods. Many governments do not allow international businesses to enter their countries. They have many trade blocks, tariff barriers, foreign exchange restrictions, etc. All this is harmful to international business. Sensitive nature : The international business is very sensitive in nature. Any changes in the economic policies, technology, political environment, etc. has a huge impact on it. Therefore, international business must conduct m to find out and study these changes. They must adjust their business activities and adapt accordingly to survive changes.

The Importance of International Business

Earn foreign exchange : International business exports its goods and services all over the world. This helps to earn valuable foreign exchange. This foreign exchange is used to pay for imports. Foreign exchange helps to make the business more profitable and to strengthen the economy of its country. Optimum utilisation of resources : International business makes optimum utilisation of resources. This is because it produces goods on a very large scale for the international market. International business utilises resources from all over the world. It uses the finance and technology of rich countries and the raw materials and labour of the poor countries.

Achieve its objectives : International business achieves its objectives easily and quickly. The main objective of an international business is to earn high profits. This objective is achieved easily. This it because it uses the best technology. It has the best employees and managers. It produces high-quality goods. It sells these goods all over the world. All this results in high profits for the international business. To spread business risks : International business spreads its business risk. This is because it does business all over the world. So, a loss in one country can be balanced by a profit in another country. The surplus goods in one country can be exported to another country. The surplus resources can also be transferred to other countries. All this helps to minimise the business risks.

Improve organisation's efficiency : International business has very high organisation efficiency. This is because without efficiency, they will not be able to face the competition in the international market. So, they use all the modern management techniques to improve their efficiency. They hire the most qualified and experienced employees and managers. These people are trained regularly. They are highly motivated with very high salaries and other benefits such as international transfers, promotions, etc. All this results in high organisational efficiency, i.e. low costs and high returns. Get benefits from Government : International business brings a lot of foreign exchange for the country. Therefore, it gets many benefits, facilities and concessions from the government. It gets many financial and tax benefits from the government

Expand and diversify : International business can expand and diversify its activities. This is because it earns very high profits. It also gets financial help from the government. Increase competitive capacity : International business produces high-quality goods at low cost. It spends a lot of money on advertising all over the world. It uses superior technology, management techniques, marketing techniques, etc. All this makes it more competitive. So, it can fight competition from foreign companies.

International Business Operations and Influences
External Environment Legal Historical Geographical Cultural Economical Political Objectives Sales Expansion Resource Acquisition Diversification Means Competitive Environment Speed of product changes Optimum production size Number of customers Amount bought by each customers Homogeneity of customers Local versus international competitors Cost of moving products Unique capabilities of Means Operational Import Production Export Transport Licensing Franchising Management Contract Turnkey Direct Investment Portfolio Investment Functional Production Marketing Accounting Finance Personnel

Sales Expansion Number of people Purchasing power Higher sales, higher profits 40%foreign sales (UN Study) Objectives Resource Acquisition Seek foreign products, services, components, finished goods To reduce costs Increased profit margin Diversification To avoid wild swings different seasons different countries recession in one country recovery in another

Means (Types of International Business) Operational MerchandiseExports and Imports Visible exports and imports Major sources of international revenue and expenditure for most countries The first type of foreign operations of a firm Least commitment and least risk of a firm’s resources

Means (Types of International Business) Operational Service Exports and Imports invisible exports and imports: many types travel, tourism, transportation importance revenue for int. airlines, shipping companies, reservation agencies, and hotels. performance of activities abroad Banking, insurance, rentals, engineering, management turn-key operations Management contracts use of assets from abroad Royalties Licensing agreements Franchising After successfully building exports to a market Greater international commitment

Means (Types of International Business) Operational Investments Direct investments Control follows the investment High commitment of capital, personal, technology Gain of foreign resources Higher foreign sales than exporting (often) Partial ownership (sometimes) Portfolio investments Debt or equity Non-control of foreign operation Financial purposes, e.g. loans Move funds to get a higher yield on short-term Borrow funds in different countries

Means (Types of International Business) Functional Multinational Enterprise Worldwide approach to markets and production Also known as MNC or TNC Usually involved in nearly every type of international business practice integrated global philosophy: domestic and overseas operations definition: production facilities, size Two categories of MNE: The Global Company: operations from different countries The Multidomestic Company: each country’s operations to be independent.

The External Environment Drawing on Other Disciplines Operations in the worldwide environment affected by social science disciplines Cover all functional fields Geography location, quantity and quality of the world’s resources and their availability for exploitation History A systematic recording of the evaluation of ideas and institutions Looking at the past gives a clearer understanding of international business activities in the present The accumulation of human experience

The External Environment Drawing on Other Disciplines Politics Play important role in shaping worldwide business Relationship between business and national political organizations Behavior patterns of governments and business firms Political leadership controls international business Law domestic and international law determine international business can and cannot do Domestic law in home and host countries Taxation, employment, foreign exchange transactions Economics The impacts of international business on the economy of home and host countries, and vice versa. Anthropology understanding the values, attitudes, and beliefs of the society

The Competitive Environment Trends Affecting the Nature of International Competition Time and Space Shrinkage Technology and Geographic Expansion Institutional Developments Development of Global Competition

Kontrak Bisnis Internasional
Definisi Kontrak Internasional “are contracts with elements in two or more nation states. Such contracts may be between states, between a state and a private party, or exclusively between private parties.” (Willis Reese) (kontrak dengan unsur-unsur di dua negara atau lebih. Kontrak tersebut bisa antara negara dengan pihak swasta, atau secara eksklusif antar pihak swasta). Are national contracts having foreign elements (Sudargo Gautama) (Kontrak nasional yang memiliki unsur-unsur asing)

Unidroit Principles Kontrak Internasional
The international character of a contract may be defined in a great variety of ways. The solutions adopted in both national and international legislation range from a reference to the place of business or habitual residence of the parties in different countries to the adoption of more general criteria such as the contract having “significant connections with more than one State”, “involving a choice between the laws of different States”, or “affecting the interests of international trade”. Ciri internasional dari suatu kontrak dapat didefinisikan dengan banyak cara. Solusi yang diambil baik dalam legislasi nasional maupun internasional bervariasi mulai dari yang mengacu kepada tempat kedudukan bisnis atau tempat tinggal para pihak di negara-negara yang berbeda sampai yang mengacu kepada kriteria-kriteria yang lebih umum seperti kontrak memiliki “hubungan yang signifikan dengan lebih dari satu negara”, “melibatkan pilihan hukum dari negara-negara yang berbeda,” atau “mempengaruhi kepentingan-kepentingan perdagangan internasional.”

Kontrak (Bisnis) Internasional
Indikator-indikator kontrak internasional (Huala Adolf): Kebangsaan yang berbeda; Para pihak memiliki domisili hukum di negara yang berbeda; Hukum yang dipilih adalah hukum asing, termasuk aturan-aturan atau prinsip-prinsip kontrak internasional terhadap kontrak tersebut; Penyelesaian sengketa kontrak dilangsungkan di luar negeri; Pelaksanaan kontrak tersebut di luar negeri; Kontrak tersebut ditandatangani di luar negeri; Objek kontrak di luar negeri; Bahasa yang digunakan dalam kontrak adalah bahasa asing, dan Digunakannya mata uang asing di dalam kontrak tersebut.

Bisnis atau Komersial the concept of “commercial” contracts should be understood in the broadest possible sense, so as to include not only trade transactions for the supply or exchange of goods or services, but also other types of economic transactions, such as investment and/or concession agreements, contracts for professional services, etc. (Unidroit Principles) Konsep kontrak “komersial” hendaknya difahami dalam pengertian seluas mungkin, Sehingga mencakup tidak hanya transaksi-transaksi perdagangan untuk memasok atau mempertukarkan barang-barang atau jasa-jasa saja, tapi mencakup juga jenis-jenis transaksi ekonomi yang lain, seperti perjanjian-perjanjian investasi dan/atau konsesi, kontrak-kontrak untuk jasa-jasa profesional, dll. (Unidroit Principles).

Prinsip-prinsip Hukum Kontrak Internasional
Prinsip-prinsip Fundamental Prinsip Supremasi/Kedaulatan Hukum Nasional Prinsip Kebebasan Berkontrak Prinsip-prinsip Hukum Kontrak Internasional Pacta Sunt Servanda Good Faith (Iktikad Baik) Dalam Sistem Hukum Kontinental Dalam Sistem Common Law Dalam Perjanjian Internasional Resiprocal (Resiprositas)

Prinsip-prinsip Kontrak Bisnis Internasional (Unidroit Principles)
(Freedom of contract) The parties are free to enter into a contract and to determine its content. (No form required) Nothing in these Principles requires a contract to be concluded in or evidenced by writing. It may be proved by any means, including witnesses.

(Binding character of contract)
A contract validly entered into is binding upon the parties. It can only be modified or terminated in accordance with its terms or by agreement or as otherwise provided in these Principles.

(Mandatory rules) Nothing in these Principles shall restrict the application of mandatory rules, whether of national, international or supranational origin, which are applicable in accordance with the relevant rules of private international law. Interpretation and supplementation of the Principles) (1) In the interpretation of these Principles, regard is to be had to their international character and to their purposes including the need to promote uniformity in their application. (2) Issues within the scope of these Principles but not expressly settled by them are as far as possible to be settled in accordance with their underlying general principles.

(Good faith and fair dealing)
(1) Each party must act in accordance with good faith and fair dealing in international trade. (2) The parties may not exclude or limit this duty. (Usages and practices) (1) The parties are bound by any usage to which they have agreed and by any practices which they have established between themselves. (2) The parties are bound by a usage that is widely known to and regularly observed in international trade by parties in the particular trade concerned except where the application of such a usage would be unreasonable.

(Notice) (1) Where notice is required it may be given by any means appropriate to the circumstances. (2) A notice is effective when it reaches the person to whom it is given. (3) For the purpose of paragraph (2) a notice “reaches” a person when given to that person orally or delivered at that person’s place of business or mailing address. (4) For the purpose of this article “notice” includes a declaration, demand, request or any other communication of intention.

“court” includes an arbitral tribunal;
(Definitions) In these Principles: “court” includes an arbitral tribunal; where a party has more than one place of business the relevant “place of business” is that which has the closest relationship to the contract and its performance, having regard to the circumstances known to or contemplated by the parties at any time before or at the conclusion of the contract; “obligor” refers to the party who is to perform an obligation and “obligee” refers to the party who is entitled to performance of that obligation. “writing” means any mode of communication that preserves a record of the infor-mation contained therein and is capable of being reproduced in tangible form.

UNITED NATIONS CONVENTION ON CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS (1980)
Konvensi ini mengatur Kontrak-kontrak bisnis yang obyeknya barang –barang antara para pihak di negara-negara yang menjadi anggota konvensi ini,. Konvesi ini dapat menggantikan hukum nasional negarara-negara anggotanya dalam konteks internasional. Kapan Konvensi ini Diterapkan? Jual beli barang antara para pihak di negara-negara anggota atau “contracting states.” Jika hanya satu pihak yang berasal dari negara anggota, CISG tidak berlaku , kecuali kalau kedua pihak yang berkontrak sepakat untuk menerapkan konvensi tersebut.

Contracting States Argentina, Australia, Austria, Belarus, Belgium, Bosnia, Herzegovina, Bulgaria, Burundi, Canada, Chile, China, Kirghizstan, Croatia, Cuba, The Czech Republic, Denmark, Ecuador, Egypt, Switzerland, Estonia, Finland, France, Georgia, Germany, Ghana, Greece, Guinea, Iraq, Italy, Yugoslavia, Latvia, Lesotho, Lithuania, Luxembourg, Mauritania, Mexico, Moldova, Mongolia, Norway, New Zealand, Holland, Peru, Poland, Romania, Russia, Singapore, Slovakia, Slovenia, Spain, Syria, Sweden, USA, Ukraine, Uganda, Uruguay, Uzbekistan, Venezuela, Zambia

Apakah CISG “Hukum”? Ya, jika:
Para pihak setuju memposisikan konvemsi ini sebagai hukum yang mengikat. Para pihak memilih untuk memberlakukan konvensi ini melalui bahasa atau klausula kontrak.. Jika ada pilihan hukum lain, CISG tidak berlaku. Sebaliknya jika pilihan hukumnya merujuk pada CISG, maka kedua pihak harus Setuju.

PREAMBLE Part I. Sphere of application and general provisions CHAPTER I. SPHERE OF APPLICATION CHAPTER II. GENERAL PROVISIONS Part II. Formation of the contract Part III. Sale of goods CHAPTER I. GENERAL PROVISIONS CHAPTER II. OBLIGATIONS OF THE SELLER Section I. Delivery of the goods and handing over of documents Section II. Conformity of the goods and third party claims Section III. Remedies for breach of contract by the seller CHAPTER III. OBLIGATIONS OF THE BUYER Section I. Payment of the price Section II. Taking delivery Section III. Remedies for breach of contract by the buyer CHAPTER IV. PASSING OF RISK

CHAPTER V. PROVISIONS COMMON TO THE OBLIGATIONS OF THE SELLER AND OF THE BUYER
Section I. Anticipatory breach and instalment contracts Section II. Damages Section III. Interest Section IV. Exemptions Section V. Effects of avoidance Section VI. Preservation of the goods Part IV. Final provisions

EXPLANATORY NOTE BY THE UNCITRAL SECRETARIAT ON THE UNITED NATIONS CONVENTION ON CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS PREAMBLE Part One. Scope of application and general provisions Scope of application Party autonomy Interpretation of the Convention Interpretation of the contract; usages Form of the contract Part Two. Formation of the contract Part Three. Sale of goods A. Obligations of the seller Obligations of the buyer Remedies for breach of contract Passing of risk Suspension of performance and anticipatory breach Exemption from liability to pay damages Preservation of the goods Part Four. Final clauses

International Institute for the Unification of Private Law
UNIDROIT International Institute for the Unification of Private Law PRINCIPLES OF INTERNATIONAL COMMERCIAL CONTRACTS 1994 These Principles set forth general rules for international commercial contracts. They shall be applied when the parties have agreed that their contract be governed by them. They may be applied when the parties have agreed that their contract be governed by “general principles of law”, the “lex mercatoria” or the like. They may provide a solution to an issue raised when it proves impossible to establish the relevant rule of the applicable law. They may be used to interpret or supplement international uniform law instruments. They may serve as a model for national and international legislators.

CONTENTS Foreword v Introduction vii The UNIDROIT Governing Council xi Members of the Working Group xiii Other Participants in the Project xv PREAMBLE (Purpose of the Principles) 1 CHAPTER 1: GENERAL PROVISIONS 7 Article 1.1 (Freedom of contract) 7 Article 1.2 (No form required) 8 Article 1.3 (Binding character of contract) 9 Article 1.4 (Mandatory rules) 10 Article 1.5 (Exclusion or modification by the parties) 12 Article 1.6 (Interpretation and supplementation of the Principles) 13 Article 1.7 (Good faith and fair dealing) 16 Article 1.8 (Usages and practices) 19 Article 1.9 (Notice) 22 Article 1.10 (Definitions) 24

CHAPTER 2: FORMATION 26 Article 2.1 (Manner of formation) 26 Article 2.2 (Definition of offer) 27 Article 2.3 (Withdrawal of offer) 29 Article 2.4 (Revocation of offer) 30 Article 2.5 (Rejection of offer) 33 Article 2.6 (Mode of acceptance) 34 Article 2.7 (Time of acceptance) 37 Article 2.8 (Acceptance within a fixed period of time) 38 Article 2.9 (Late acceptance. Delay in transmission) 39 Article 2.10 (Withdrawal of acceptance) 40 Article 2.11 (Modified acceptance) 41 Article 2.12 (Writings in confirmation) 43 Article 2.13 (Conclusion of contract dependent on agreement on specific matters or in a specific form) 45 Article 2.14 (Contract with terms deliberately left open) 47 Article 2.15 (Negotiations in bad faith) 50 Article 2.16 (Duty of confidentiality) 52 Article 2.17 (Merger clauses) 54 Article 2.18 (Written modification clauses) 55 Article 2.19 (Contracting under standard terms) 56 Article 2.20 (Surprising terms) 58 Article 2.21 (Conflict between standard terms and non-standard terms) 60 Article 2.22 (Battle of forms)

CHAPTER 3: VALIDITY 64 Article 3.1 (Matters not covered) 64 Article 3.2 (Validity of mere agreement) 64 Article 3.3 (Initial impossibility) 66 Article 3.4 (Definition of mistake) 68 Article 3.5 (Relevant mistake) 69 Article 3.6 (Error in expression or transmission) 72 Article 3.7 (Remedies for non-performance) 73 Article 3.8 (Fraud) 74 Article 3.9 (Threat) 75 Article 3.10 (Gross disparity) 77 Article 3.11 (Third persons) 80 Article 3.12 (Confirmation) 81 Article 3.13 (Loss of right to avoid) 81 Article 3.14 (Notice of avoidance) 83 Article 3.15 (Time limits) 84 Article 3.16 (Partial avoidance) 85 Article 3.17 (Retroactive effect of avoidance) 86 Article 3.18 (Damages) 87 Article 3.19 (Mandatory character of the provisions) 88 Article 3.20 (Unilateral declarations) 88

CHAPTER 4: INTERPRETATION 90
Article 4.1 (Intention of the parties) 90 Article 4.2 (Interpretation of statements and other conduct) 91 Article 4.3 (Relevant circumstances) 93 Article 4.4 (Reference to contract or statement as a whole) 95 Article 4.5 (All terms to be given effect) 96 Article 4.6 (Contra proferentem rule) 97 Article 4.7 (Linguistic discrepancies) 98 Article 4.8 (Supplying an omitted term) 99 CHAPTER 5: CONTENT 101 Article 5.1 (Express and implied obligations) 101 Article 5.2 (Implied obligations) 101 Article 5.3 (Co-operation between the parties) 102 Article 5.4 (Duty to achieve a specific result. Duty of best efforts) 103 Article 5.5 (Determination of kind of duty involved) 105 Article 5.6 (Determination of quality of performance) 108 Article 5.7 (Price determination) 109 Article 5.8 (Contract for an indefinite period) 111

CHAPTER 6: PERFORMANCE 113 Section 1: Performance in General 113 Article (Time of performance) 113 Article (Performance at one time or in instalments) 114 Article (Partial performance) 115 Article (Order of performance) 117 Article (Earlier performance) 119 Article (Place of performance) 121 Article (Payment by cheque or other instrument) 124 Article (Payment by funds transfer) 125 Article (Currency of payment) 127 Article (Currency not expressed) 130 Article (Costs of performance) 131 Article (Imputation of payments) 131 Article (Imputation of non-monetary obligations) 133 Article (Application for public permission) 133 Article (Procedure in applying for permission) 138 Article (Permission neither granted nor refused) 141 Article (Permission refused) 143

Section 2: Hardship 145 Article (Contract to be observed) 145 Article (Definition of hardship) 146 Article (Effects of hardship) 151 CHAPTER 7: NON-PERFORMANCE 156 Section 1: Non-performance in general 156 Article (Non-performance defined) 156 Article (Interference by the other party) 157 Article (Withholding performance) 158 Article (Cure by non-performing party) 159 Article (Additional period for performance) 163 Article (Exemption clauses) 166 Article (Force majeure) 169

Section 2: Right to performance 172
Article (Performance of monetary obligation) 172 Article (Performance of non-monetary obligation) 172 Article (Repair and replacement of defective performance) 176 Article (Judicial penalty) 178 Article (Change of remedy) 180 Section 3: Termination 182 Article (Right to terminate the contract) 182 Article (Notice of termination) 185 Article (Anticipatory non-performance) 187 Article (Adequate assurance of due performance) 188 Article (Effects of termination in general) 189 Article (Restitution) 190

Section 4: Damages 194 Article (Right to damages) 194 Article (Full compensation) 195 Article (Certainty of harm) 198 Article (Foreseeability of harm) 200 Article (Proof of harm in case of replacement transaction) 201 Article (Proof of harm by current price) 203 Article (Harm due in part to aggrieved party) 204 Article (Mitigation of harm) 206 Article (Interest for failure to pay money) 208 Article (Interest on damages) 210 Article (Manner of monetary redress) 211 Article (Currency in which to assess damages) 212 Article (Agreed payment for non-performance) 213 Index 217 Annex: Text of the Articles of the Principles of International Commercial Contracts 233

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