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Consultation Paper on Review of Reservation under Article 95 of United Nations Convention on Contracts for the International Sale of Goods 
Posted on Wednesday, June 20, 2007 - 08:00 PM

The Attorney-General's Chambers invites feedback on its review of the reservation made by Singapore under Article 95 of the United Nations Convention on Contracts for the International Sale of Goods ("CISG"). The issues are discussed in the consultation paper which can be downloaded from www.reach.gov.sg .

Background

2. Singapore is a party to the CISG. Singapore ratified the CISG on 16 February 1995, and it was implemented through the Sale of Goods (United Nations Convention) Act (Cap. 283A), which came into force on 1 March 1996.

3. A reservation was made by Singapore in 1995 under Article 95 of the CISG. The effect of the reservation is to limit the scope of application of the CISG so that, under Singapore law, the CISG will apply to contracts of sale of goods between parties from different states only when both the states are Contracting States, and the CISG will not apply where one of the parties is not from a Contracting State. The original rationale for the reservation was to avoid the unintended application of the CISG in circumstances where the contractual parties, one of whom being from a non-Contracting State, actually intended Singapore domestic law to apply. These points are discussed in Chapter One of the consultation paper. It has been strongly argued by Associate Professor Gary Bell of the NUS Faculty of Law that the rationale for the reservation is no longer valid today.

4. Prof. Bell argues that the reservation results in uncertainty in the application of the CISG where one or more of the contractual parties is from a non-Contracting State. The uncertainty, according to him, discourages contractual parties from choosing Singapore law as the governing law of the contract and also discourages them from choosing Singapore as the forum for resolving disputes relating to the CISG. Various policy reasons have also been expressed as to why the reservation should be withdrawn. These issues are discussed in Chapter Two of the consultation paper. Feedback is sought on these issues, and on the specific issue of whether the reservation should be withdrawn.

5. Chapter Three of the consultation paper discusses some of the processes that would be required if a decision is taken to withdraw the reservation. These include the legislative amendments required and also the need for public education about the legal effects of withdrawing the reservation. Feedback is sought on the additional steps that may be required.

Feedback

6. AGC requests that comments be submitted by 31 August 2007.

7. Interested parties may provide their comments:

- via email, to agc_LRRD@agc.gov.sg;

- via post to,
Law Reform and Revision Division,
Attorney-General's Chambers,
1 Coleman Street, #05-04 The Adelphi,
Singapore 179803; or

- via fax, at + 65 63324700


Attorney-General's Chambers
20 June 2007


References
Related URL : www.agc.gov.sg/publications/consultation_papers.htm