Answer to Question #125181 in Economics for Catherine

Question

According to CISG, a contract can be established when ( )
A. an acceptance arrives at the offeror
B. both seller and buyer sign on a written contract
C. the contract is approved by authorities
D. an offer reaches the offeree

Answer 1

(B) and (D)

In order to properly form a contract under the CISG, there must be two declarations of intent - acceptance and proposal. The participant must have a specific offer and intention to be bound by this offer. The tenderer, on the other hand, may accept the offer by means of a statement or by means of his conduct.

The offer takes effect when it reaches the addressee. Article 24 provides that the offer will reach the addressee when it is verbally made to the addressee or delivered in any way personally at the place of his business, or to his mailing address or to his usual place of residence.

In cases where the contract is concluded by electronic communications, article 2 of ICC eTerms, 2004 states that the addressee receives the electronic message upon entering the addressee's information system, and the system must have information for the addressee to apply this provision. If the electronic message is sent to another information system specified by the addressee, the message is considered received when the addressee becomes aware of it.