‘Regard is to be had’: the meaning of Article 7(1) of the United Nations Convention on Contracts for the international sale of goods from a legislative history perspective
The Convention on Contracts for the International Sale of Goods (‘CISG’) is the international legal framework that enables international sales, removing the legal barriers among countries and promoting legal uniformity. Arguably, Article 7(1) is the most important provision as it establishes the interpretation guidelines that promote uniformity within the CISG. Article 7(1) reads: ‘In the interpretation of this Convention, regard is to be had to its international character and to the need to promote uniformity in its application and the observance of good faith in international trade’. However, this thesis argues that the interpretation of Article 7(1) is itself a legal obstacle to uniformity. The mandate ‘regard is to be had’ which is inextricably linked to its elements ‘international character’, ‘uniformity’ and ‘good faith’ is ambiguous and lead to a lack of uniformity. To address this issue, Article 7(1) should be critically analysed according to its legislative history or travaux préparatoires, a source of interpretation in private international law that overcomes the literal interpretation’s shortcomings. This thesis fills gaps in the scholarship by presenting a comprehensive legislative history of Article 7(1) and a critical analysis on the legal expression ‘regard is to be had’. This thesis states that the CISG should not be interpreted according to domestic law, CISG foreign decisions have strong persuasive authority, and the CISG should be interpreted with the promotion of the principle of good faith between the parties. The legal history of Article 7(1) can help to achieve more uniformity and predictability across the CISG and all national and international laws that have adopted Article 7(1).