Applicable Law in International Sales Contracts

Extract

[...] Furthermore, both parties are established in Contracting States. In fact, Austria has been a Contracting State since 11 April 1980 and France since 27 August 1981. However, the contract is subject to an exclusion under Article 2. In fact, the Convention does not apply when the goods have been bought for personal use. However, in this case, Mr. Hansi acquired the solar panels to save energy and improve his personal quality of life. This represents personal use, so the material criterion is not met. [...]

[...] The Applicable Law A. The Determination of the Applicable Norm At first glance, three international texts are likely to apply and therefore take precedence over French law: - The Hague Convention of 1955 on the Law Applicable to International Sales of Movable Property, as, in this case, the dispute concerns an international sale between France and Austria of solar panels, which are movable corporeal objects. - The Vienna Convention of 1980 on Contracts for the International Sale of Goods, for the same reasons. [...]

[...] Determination of the Applicable Law in International Contract - Would a French judge be competent to act against an Austrian seller for non-conformity of a product? Case Law Subject: Today, it's Sunday morning and you're enjoying a well-deserved rest at your parents' place. The university holidays are welcome and you're looking forward to residing in one of the sunniest regions of France. However, you're woken up by the insistence of a visitor who presents himself at the door. Mr. Hansi, a neighbor of your parents, comes to vent about his latest misfortune. [...]

[...] Moreover, the parties have not chosen the law applicable to the contract at all, neither explicitly nor implicitly with certainty. It is therefore necessary to apply Article 4 Rome I. As seen previously, this is a contract for the sale of goods. Thus, the applicable law is that of the habitual residence of the seller. The seller being the Austrian company, Austrian law is applicable. However, one could consider that the contract has manifestly closer links with France and therefore that French law is applicable. [...]

[...] Hansi and to answer his questions. If he were to take action against the Austrian seller for non-conformity of the product, would a French judge be competent, which law would be applicable and under what international text? Resolution In this practical case, we must determine the jurisdictional competence before determining the applicable law (II.). I. Jurisdictional Competence A. Determination of the applicable standard In this case, a dispute arises between Mr. Hansi and the Austrian company regarding the solar panels sold. [...]