1KONTRAK BISNIS INTERNASIONAL Nandang SutrisnoFakultas HukumUniversitas Iaslam Indonesia2015
2Pendahuluan 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)
3Exchange (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.
4Individual (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:
5Business 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:
6Definisi-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.
7Bisnis 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).
9Large 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.
10Dominated 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.
11Keen 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.
12International 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.
14Earn 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.
15Achieve 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.
16Improve 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
17Expand 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.
18International Business Operations and Influences External EnvironmentLegalHistoricalGeographicalCulturalEconomicalPoliticalObjectivesSales ExpansionResource AcquisitionDiversificationMeansCompetitive EnvironmentSpeed of product changesOptimum production sizeNumber of customersAmount bought by eachcustomersHomogeneity of customersLocal versus internationalcompetitorsCost of moving productsUnique capabilities ofMeansOperationalImportProductionExportTransportLicensingFranchisingManagement ContractTurnkeyDirect InvestmentPortfolio InvestmentFunctionalProductionMarketingAccountingFinancePersonnel
19International Business Operations and Influences Sales ExpansionNumber of peoplePurchasing powerHigher sales, higher profits40%foreign sales (UN Study)ObjectivesResource AcquisitionSeek foreign products,services, components,finished goodsTo reduce costsIncreased profit marginDiversificationTo avoid wild swingsdifferent seasonsdifferent countriesrecession in one countryrecovery in another
20International Business Operations and Influences Means(Types of International Business)OperationalMerchandiseExports and ImportsVisible exports and importsMajor sources of international revenue and expenditure for most countriesThe first type of foreign operations of a firmLeast commitment and least risk of a firm’s resources
21International Business Operations and Influences Means(Types of International Business)OperationalService Exports and Importsinvisible exports and imports: many typestravel, tourism, transportationimportance revenue for int. airlines, shipping companies, reservation agencies, and hotels.performance of activities abroadBanking, insurance, rentals, engineering, managementturn-key operationsManagement contractsuse of assets from abroadRoyaltiesLicensing agreementsFranchisingAfter successfully building exports to a marketGreater international commitment
22International Business Operations and Influences Means(Types of International Business)OperationalInvestmentsDirect investmentsControl follows the investmentHigh commitment of capital, personal, technologyGain of foreign resourcesHigher foreign sales than exporting (often)Partial ownership (sometimes)Portfolio investmentsDebt or equityNon-control of foreign operationFinancial purposes, e.g. loansMove funds to get a higher yield on short-termBorrow funds in different countries
23International Business Operations and Influences Means(Types of International Business)FunctionalMultinational EnterpriseWorldwide approach to markets and productionAlso known as MNC or TNCUsually involved in nearly every type of international business practiceintegrated global philosophy: domestic and overseas operationsdefinition: production facilities, sizeTwo categories of MNE:The Global Company: operations from different countriesThe Multidomestic Company: each country’s operations to be independent.
24International Business Operations and Influences The External EnvironmentDrawing on Other DisciplinesOperations in the worldwide environmentaffected by social science disciplinesCover all functional fieldsGeographylocation, quantity and quality of the world’s resources and their availability for exploitationHistoryA systematic recording of the evaluation of ideas and institutionsLooking at the past gives a clearer understanding of international business activities in the presentThe accumulation of human experience
25International Business Operations and Influences The External EnvironmentDrawing on Other DisciplinesPoliticsPlay important role in shaping worldwide businessRelationship between business and national political organizationsBehavior patterns of governments and business firmsPolitical leadership controls international businessLawdomestic and international law determine international business can and cannot doDomestic law in home and host countriesTaxation, employment, foreign exchange transactionsEconomicsThe impacts of international business on the economy of home and host countries, and vice versa.Anthropologyunderstanding the values, attitudes, and beliefs of the society
26International Business Operations and Influences The Competitive EnvironmentTrends Affecting the Nature of International CompetitionTime and Space ShrinkageTechnology and Geographic ExpansionInstitutional DevelopmentsDevelopment of Global Competition
27Kontrak 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)
28Unidroit 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.”
29Kontrak (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, danDigunakannya mata uang asing di dalam kontrak tersebut.
30Bisnis atau Komersialthe 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).
31Prinsip-prinsip Hukum Kontrak Internasional Prinsip-prinsip FundamentalPrinsip Supremasi/Kedaulatan Hukum NasionalPrinsip Kebebasan BerkontrakPrinsip-prinsip Hukum Kontrak InternasionalPacta Sunt ServandaGood Faith (Iktikad Baik)Dalam Sistem Hukum KontinentalDalam Sistem Common LawDalam Perjanjian InternasionalResiprocal (Resiprositas)
32Prinsip-prinsip Kontrak Bisnis Internasional (Unidroit Principles) (Freedom of contract)The parties are free to enter into a contractand to determine its content.(No form required)Nothing in these Principles requires acontract to be concluded in or evidenced by writing.It may be proved by any means, including witnesses.
33(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.
34(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.
35(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.
36(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.
37“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 thatwhich has the closest relationship to the contractand its performance, having regard to thecircumstances known to or contemplated by theparties at any time before or at the conclusion ofthe contract;“obligor” refers to the party who is toperform an obligation and “obligee” refers to the party who is entitled to performance of thatobligation.“writing” means any mode ofcommunication that preserves a record of the infor-mation contained therein and is capable of being reproduced in tangible form.
38UNITED 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.
40Apakah 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.
41PREAMBLEPart I. Sphere of application and general provisionsCHAPTER I. SPHERE OF APPLICATIONCHAPTER II. GENERAL PROVISIONSPart II. Formation of the contractPart III. Sale of goodsCHAPTER I. GENERAL PROVISIONSCHAPTER II. OBLIGATIONS OF THE SELLERSection I. Delivery of the goods and handing over of documentsSection II. Conformity of the goods and third party claimsSection III. Remedies for breach of contract by the sellerCHAPTER III. OBLIGATIONS OF THE BUYERSection I. Payment of the priceSection II. Taking deliverySection III. Remedies for breach of contract by the buyerCHAPTER IV. PASSING OF RISK
42CHAPTER V. PROVISIONS COMMON TO THE OBLIGATIONS OF THE SELLER AND OF THE BUYER Section I. Anticipatory breach and instalment contractsSection II. DamagesSection III. InterestSection IV. ExemptionsSection V. Effects of avoidanceSection VI. Preservation of the goodsPart IV. Final provisions
43EXPLANATORY NOTE BY THE UNCITRAL SECRETARIAT ON THE UNITED NATIONS CONVENTION ON CONTRACTS FOR THE INTERNATIONAL SALE OF GOODSPREAMBLEPart One. Scope of application and general provisionsScope of applicationParty autonomyInterpretation of the ConventionInterpretation of the contract; usagesForm of the contractPart Two. Formation of the contractPart Three. Sale of goodsA. Obligations of the sellerObligations of the buyerRemedies for breach of contractPassing of riskSuspension of performance and anticipatory breachExemption from liability to pay damagesPreservation of the goodsPart Four. Final clauses
44International Institute for the Unification of Private Law UNIDROITInternational Institute for the Unification of Private LawPRINCIPLES OF INTERNATIONAL COMMERCIAL CONTRACTS 1994These 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.
45CONTENTSForeword vIntroduction viiThe UNIDROIT Governing Council xiMembers of the Working Group xiiiOther Participants in the Project xvPREAMBLE (Purpose of the Principles) 1CHAPTER 1: GENERAL PROVISIONS 7Article 1.1 (Freedom of contract) 7Article 1.2 (No form required) 8Article 1.3 (Binding character of contract) 9Article 1.4 (Mandatory rules) 10Article 1.5 (Exclusion or modification by the parties) 12Article 1.6 (Interpretation and supplementation of the Principles) 13Article 1.7 (Good faith and fair dealing) 16Article 1.8 (Usages and practices) 19Article 1.9 (Notice) 22Article 1.10 (Definitions) 24
46CHAPTER 2: FORMATION 26Article 2.1 (Manner of formation) 26Article 2.2 (Definition of offer) 27Article 2.3 (Withdrawal of offer) 29Article 2.4 (Revocation of offer) 30Article 2.5 (Rejection of offer) 33Article 2.6 (Mode of acceptance) 34Article 2.7 (Time of acceptance) 37Article 2.8 (Acceptance within a fixed period of time) 38Article 2.9 (Late acceptance. Delay in transmission) 39Article 2.10 (Withdrawal of acceptance) 40Article 2.11 (Modified acceptance) 41Article 2.12 (Writings in confirmation) 43Article 2.13 (Conclusion of contract dependent on agreement on specific matters or in a specific form) 45Article 2.14 (Contract with terms deliberately left open) 47Article 2.15 (Negotiations in bad faith) 50Article 2.16 (Duty of confidentiality) 52Article 2.17 (Merger clauses) 54Article 2.18 (Written modification clauses) 55Article 2.19 (Contracting under standard terms) 56Article 2.20 (Surprising terms) 58Article 2.21 (Conflict between standard terms and non-standard terms) 60 Article 2.22 (Battle of forms)
47CHAPTER 3: VALIDITY 64Article 3.1 (Matters not covered) 64Article 3.2 (Validity of mere agreement) 64Article 3.3 (Initial impossibility) 66Article 3.4 (Definition of mistake) 68Article 3.5 (Relevant mistake) 69Article 3.6 (Error in expression or transmission) 72Article 3.7 (Remedies for non-performance) 73Article 3.8 (Fraud) 74 Article 3.9 (Threat) 75Article 3.10 (Gross disparity) 77Article 3.11 (Third persons) 80Article 3.12 (Confirmation) 81Article 3.13 (Loss of right to avoid) 81Article 3.14 (Notice of avoidance) 83Article 3.15 (Time limits) 84Article 3.16 (Partial avoidance) 85Article 3.17 (Retroactive effect of avoidance) 86Article 3.18 (Damages) 87Article 3.19 (Mandatory character of the provisions) 88Article 3.20 (Unilateral declarations) 88
48CHAPTER 4: INTERPRETATION 90 Article 4.1 (Intention of the parties) 90Article 4.2 (Interpretation of statements and other conduct) 91Article 4.3 (Relevant circumstances) 93Article 4.4 (Reference to contract or statement as a whole) 95Article 4.5 (All terms to be given effect) 96Article 4.6 (Contra proferentem rule) 97Article 4.7 (Linguistic discrepancies) 98Article 4.8 (Supplying an omitted term) 99CHAPTER 5: CONTENT 101Article 5.1 (Express and implied obligations) 101Article 5.2 (Implied obligations) 101Article 5.3 (Co-operation between the parties) 102Article 5.4 (Duty to achieve a specific result. Duty of best efforts) 103 Article 5.5 (Determination of kind of duty involved) 105Article 5.6 (Determination of quality of performance) 108Article 5.7 (Price determination) 109Article 5.8 (Contract for an indefinite period) 111
49CHAPTER 6: PERFORMANCE 113Section 1: Performance in General 113Article (Time of performance) 113Article (Performance at one time or in instalments) 114Article (Partial performance) 115Article (Order of performance) 117Article (Earlier performance) 119Article (Place of performance) 121Article (Payment by cheque or other instrument) 124Article (Payment by funds transfer) 125Article (Currency of payment) 127Article (Currency not expressed) 130Article (Costs of performance) 131Article (Imputation of payments) 131Article (Imputation of non-monetary obligations) 133Article (Application for public permission) 133Article (Procedure in applying for permission) 138Article (Permission neither granted nor refused) 141Article (Permission refused) 143
50Section 2: Hardship 145Article (Contract to be observed) 145Article (Definition of hardship) 146Article (Effects of hardship) 151CHAPTER 7: NON-PERFORMANCE 156Section 1: Non-performance in general 156Article (Non-performance defined) 156Article (Interference by the other party) 157Article (Withholding performance) 158Article (Cure by non-performing party) 159Article (Additional period for performance) 163Article (Exemption clauses) 166Article (Force majeure) 169
51Section 2: Right to performance 172 Article (Performance of monetary obligation) 172Article (Performance of non-monetary obligation) 172Article (Repair and replacement of defective performance) 176 Article (Judicial penalty) 178 Article (Change of remedy) 180Section 3: Termination 182Article (Right to terminate the contract) 182Article (Notice of termination) 185Article (Anticipatory non-performance) 187Article (Adequate assurance of due performance) 188Article (Effects of termination in general) 189Article (Restitution) 190
52Section 4: Damages 194Article (Right to damages) 194Article (Full compensation) 195Article (Certainty of harm) 198Article (Foreseeability of harm) 200Article (Proof of harm in case of replacement transaction) 201Article (Proof of harm by current price) 203Article (Harm due in part to aggrieved party) 204Article (Mitigation of harm) 206Article (Interest for failure to pay money) 208Article (Interest on damages) 210Article (Manner of monetary redress) 211Article (Currency in which to assess damages) 212Article (Agreed payment for non-performance) 213Index 217Annex: Text of the Articles of the Principles of International Commercial Contracts 233