THE ROLE OF CISG AND UNIDROIT PRINCIPLES IN SHAPING GLOBAL TRADE

AUTHOR – MYDRI GOPINATH, LLM SCHOLAR AT DEPARTMENT OF STUDIES IN LAW, UNIVERSITY OF MYSORE, MYSURU

BEST CITATION – MYDRI GOPINATH, THE ROLE OF CISG AND UNIDROIT PRINCIPLES IN SHAPING GLOBAL TRADE, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (1) OF 2025, PG. 206-216, APIS – 3920 – 0001 & ISSN – 2583-2344.

Abstract

The United Nations Convention on Contracts for the International Sale of Goods (CISG) and the UNIDROIT Principles have played a significant role in harmonizing international trade law, fostering fairness, predictability, and consistency in cross-border transactions. However, both frameworks have critical gaps that hinder their effectiveness. The CISG provides a unified structure for sales contracts but does not address essential issues like contract validity, consideration, or matters of fraud, undue influence, and misrepresentation, which are key to determining enforceability. These gaps cause legal uncertainties, especially when national legal systems conflict. Similarly, while the UNIDROIT Principles offer flexibility and neutrality, they lack clear enforcement guidelines, exacerbating the complexities of international trade. The absence of clear rules on contract fairness, particularly in cases of coercion or misrepresentation, remains a major limitation. This paper proposes the creation of a comprehensive global legal framework that addresses the formation and enforcement of contracts while protecting against fraud and undue influence. Furthermore, establishing a unified dispute resolution mechanism and encouraging collaboration between international organizations like the WTO, UCC, and HCCH would create a more predictable, transparent legal environment. This would reduce uncertainty, simplify international transactions, and promote global economic growth by facilitating smoother cross-border trade.

Keywords: International Contracts, CISG, UNIDROIT Principles, Harmonization of Laws and  Cross-border Trade