Article 7(1) of the United Nations Convention on Contracts for the International Sale of Goods (CISG) requires that the instrument be interpreted by having, amongst other things, due regard to the observance of good faith in international trade. Common law Contracting States have shown a reluctance to adopt a common practice of engaging with or including the CISG as part of standard contractual terms. It has been suggested that this practice is based on potential inconsistencies or conflicts that may arise as between established common law doctrines and the CISG provisions. This paper seeks to explore the argument with respect to the requirement of good faith in the CISG and the manner in which it has been interpreted and applied in both Australia and overseas. The author concludes that a common law application of notions of good faith is not dissimilar to the requirements in the CISG and such arguments do not present a significant barrier to the adoption of this international instrument.
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