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Choice-of-Law Issue in Breach of Contract Suit Under the U.N. CCISG

By FindLaw Staff on July 21, 2010 3:48 PM

Forestal Guarani S.A. v. Daros Int'l, Inc., 08-4488, concerned a challenge to the district court's grant of defendant's motion for summary judgment in an Argentinian corporation's breach of contract suit against a New Jersey corporation under the United Nations Convention on Contracts for the International Sale of Goods.

In vacating the judgment and remanding the matter, the court held that the district court incorrectly concluded that Argentina's declaration, opting out of the provision in the Convention allowing a contract to be proved even if it was not in writing, imposed a writing requirements and that the absence of a written contract in this case precluded the plaintiff's claim.  Therefore, where, as here, one party's country of incorporation has made a declaration while the other's has not, a court must first decide, based on the forum state's choice-of-law rules, which forum's law applies, and then apply the law of the forum designated by the choice-of-law analysis.

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