1. Contracts for the supply of goods to be manufactured or produced are to be considered sales unless the party who orders the goods undertakes to supply a substantial part of the materials necessary for such manufacture or production.
2. This Convention does not apply to contracts in which the preponderant part of the obligations of the party who furnishes the goods consists in the supply of labour or other services.
ULIS Article 6
Contracts for the supply of goods to be manufactured or produced shall be considered to be sales within the meaning of the present Law, unless the party who orders the goods undertakes to supply an essential and substantial part of the materials for such manufacture or production.
[See ULF Article 1(7) for language identical to the quoted ULIS article.]
"Article 3(1) corresponds -- with minor textual differences -- to Article 6 ULIS and Article 1(7) ULF. During UNCITRAL's preparatory discussions, consideration was first given to whether Article 3(2) should have a different, more general form, and after the adoption of the 1974 Convention on Limitation it was modelled on Article 6(1) of that convention. The original, more general wording, which provided that the Convention was not applicable if the party's obligations were substantially other than the delivery of and payment for goods, was narrowed to cases in which the other obligations involved labour or other services. The Diplomatic Conference merely made another change to the wording by substituting the words 'party who furnishes the goods' for the term 'seller' used in the Convention on Limitations; this was because Article 3(2) was aimed specifically at contracts that are not characterized as contracts of sale for the purposes of the CISG." Herber in Commentary on the UN Convention on the International Sale of Goods, Peter Schlechtriem ed. (Oxford 1998) 38 [citations omitted].
Go to views on citing ULIS or ULF cases in CISG proceedings
Illustrative ULIS case precedents that can aid in the interpretation of CISG Article 3
ULIS case law referred to below comes from the chapter on CISG Article 3 in Commentary on the UN Convention on the International Sale of Goods, Peter Schlechtriem ed. (Clarendon Press: Oxford 1998)
The author of this chapter is Rolf Herber, Emeritus Professor, University of Hamburg. ULIS case annotations provided are his. [Bracketed] material following each case citation identifies the page of his chapter and the footnote he provides. Click here for schedule of abbreviations contained in his case citations.
Interpretation and ULIS case support
The material we have excerpted pertains only to case law under the Uniform Law that preceded the CISG -- jurisprudence that parties have regarded as relevant because the CISG drafting process commenced with that Law. See the cited chapter of the Schlechtriem Commentary for a comprehensive analysis of CISG Article 3.
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