A comparative study of the CISG and the North Korean contract law as to formation of a contract

Author:Sang Man Kim
Position:Department of International Trade, Duksung Women's University, Seoul, Republic of Korea
Pages:36-50
SUMMARY

Purpose North Korea joined the United Nations Convention on Contracts for the International Sale of Goods (CISG) as a 90th member on March 27, 2019, which will necessitate the understanding of North Korean laws, in particular, the contract law for sale. This paper aims to compare the CISG and the North Korean contract law as to the formation of a contract focusing on form and writing... (see full summary)

 
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A comparative study of the CISG
and the North Korean contract law
as to formation of a contract
Sang Man Kim
Department of International Trade, Duksung Womens University, Seoul,
Republic of Korea
Abstract
Purpose North Korea joined the United Nations Convention on Contracts for the International Sale of
Goods (CISG) as a 90th member on March 27, 2019, which will necessitate the understanding of North
Korean laws, in particular, the contract law for sale.ThispaperaimstocomparetheCISGandtheNorth
Korean contract law as to the formation of a contract focusing on form and writing requirement, offer
and acceptance.
Design/methodology/approach This paper analyzes the provisions of the North KoreanCivil Code
and the CISG and reviews the previousresearch studies concerning the formation of a contract.
Findings The CISG and the North Korean CivilCode are very similar in many aspects as to the formation
of a contract. However,there are some discrepancies as to the formation of a contractto which the parties need
to pay attentionin choosingthe governing law.
Practical implications The parties need to pay attentionto the differences concerning the formation of
a contract between the North Korean Civil Code andthe CISG in concluding a contract for sale with North
Korea.
Originality/value This paper will be the rst research work, to the bestof the authors knowledge, on
the comparisonof the CISG and the North Korean contract law as to the formation of a contract.
Keywords North Korea, CISG, Formation of contract, International uniform law,
North Korean Civil Code, North Korean contract law
Paper type Viewpoint
1. Introduction
The United Nations (UN) Convention on Contracts for the International Sale of Goods
(CISG) has been acknowledged as one of the most successful international uniform laws
(Lee, 2017). The CISG incorporatedboth procedural and substantive aspects ofinternational
sales law (Schlechtriem and Butler, 2009). Unexpectedly, North Korea joined the CISG as a
90th member state on March 27, 2019[1].The total volume of international trade in goods by
the CISG member statesexceeds 80 per cent of the volume of world trade (WTO, 2019).
The Panmunjom Declaration for Peace, Prosperity and Unication of the Korean
Peninsula of April 27, 2018 (Panmunjom Declaration), between South Korea and North
Korea; the United StatesNorthKorea Singapore Summit of 2018 and Hanoi Summit of 2019;
and North Koreas ratication of the CISG show wellNorth Koreas willingness to open the
market aiming at boosting its national economy. In the event that North Korea opens its
markets wide and the UN sanction against North Korea is withdrawn, international
transactions with North Koreaare expected to increase[2]. International sale of goods among
other international transactions is expected to signicantly increase. The increase of
international sale of goods with North Korea will necessitate the understanding of North
JITLP
19,1
36
Received30 July 2019
Revised27 November 2019
Accepted3 January 2020
Journalof International Trade
Lawand Policy
Vol.19 No. 1, 2020
pp. 36-50
© Emerald Publishing Limited
1477-0024
DOI 10.1108/JITLP-07-2019-0046
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1477-0024.htm

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