The Entry into Force of the Vienna Convention on the International Sale of Goods Legal Letter April 2014 Website: www.cpbs.com.br São Paulo Av. Brigadeiro Faria Lima, 3.015, 10th floor São Paulo, SP - 01.452-000 P.: +55 (11) 3165-3000 Rio de Janeiro Av. Lauro Müller, 116, 14th floor Rio de Janeiro, RJ - 22.290-906 P.: +55 (21) 3289-0930 Authors: Marcus Wilson Valverde [email protected] Rafaella Schwartz Jaroslavsky [email protected] Vitor Primo Ribeiro [email protected] Editorial: Daniela Yoko Taminato Corporate Communication Marketing [email protected] Marcelo Vieira Rechtman Partner [email protected] Apart from a relative controversy, important scholars assert that the Vienna Convention on the International Sale of Goods (“CISG”) has come into force and effect in Brazil on April 1, 2014. With this, a significant part of the international trade of good relating to Brazil will be governed by this convention, as the main commercial partners of the country, such as China, United States and Mercosur nations, are all included in the extensive list of signatory parties to it. It is believe that the CISG will ensure legal predictability and reduce transactional and legal costs, as the one incurred when determining the applicable law to a international sales agreement, for instance. With 101 articles, the CISG has provisions on the formation, duties of seller, duties of buyer, passing of risk, interpretation and breach of the international sale of goods contract. Pursuant to its rules, the CISG is not applicable to the marketing of goods to consumers or to the sale of securities or power, among other exceptions. Other than these exceptions, article 6 authorizes parties to partially or fully derogate from the CISG, by expressly stating so in the contract itself. and Article 7 of the CISG provides that the interpretation of its provisions shall consider its international character, which means that legal terms shall not, as a general rule, be read in accordance with domestic law, but in harmony with international legal texts on the matter and principles applicable. Examples of distinctions between the CISG and Brazilian law include new rules on contract formation and specific provisions on the breach of contract. Marcus W. Valverde, Rafaella Schwartz Jaroslavsky and Vitor Primo Ribeiro This legal letter is a periodic publication of Cascione, Pulino, Boulos e Santos Advogados solely addressed to its recipients. The opinions presented herein do not imply a final legal opinion by the firm and its application is subject to further analysis of the mat ter in hand.