International Transactions Law Assignment Example | Topics and Well Written Essays - 2000 words

International Transactions Law - Assignment Example The harmonization rationale is meant to develop a comprehensive legal basis for the easy and free movement of trade across boundaries of nations. The aim of harmonization is to make the regulations of different nations similar. Such similarity leads to the adoption of common law principles which reduce the differences among states laws. International trade may be hindered by obsolete laws which are unsuited for business practice. The international law on the transaction for the sale of goods should aid in the harmonization of international trade (Scott, 2005). International laws on the sale of goods are generally similar in character. The common laws are continually reviewed through dispute arbitration and through the establishment of policies by international associations (Martinussane, 2006). The international laws have seen the creation of conventions that govern the contracts on the sale of goods internationally. Such conventions include the Vienna Convention, which has the merit of neutrality and hence more acceptable. There has also been the development of standard contracts, which aim to achieve a fair balance in the transactions of sales. Contracts for the international sales of goods (CISG) incorporate principles of common, civil, and socialist law (Bridge, 2009). The CISG compromises the principle of international trade from different legal systems. This has led to the complexity of international trade harmonization. This is because it does not apply to consumer transactions, the sale of the auction, and sale of stocks such as s hares and investment securities (Taussig, 2007). The CISG rules relate to offering and acceptance, which is a combination of civil and common law. There are several deviations, which lead to complexity of the rules that govern international transactions (Madl, 2002).