Considerations that the Government Should Take into Account in Making Efficient International Transaction Contracts with Private Sectors

Abstract

In order to provide public services efficiently, in many cases, the government needs to sign procurement contracts with foreign businessmen. Depending on the objective of such contracts, the mentioned transaction contracts or contracts for the international sale of goods can be classified as administrative contracts or civil contracts. In regards to civil contracts for international trade, there are always some considerations that the government should take into account especially when the contract is prone to be breached by the private sectors. Although the United Nations Convention on Contracts for the International Sale of Goods, 1980 (CISG) allows the buyer to require performance by the seller of his obligations, it is also stipulated that the court not be bound to enter a judgment for specific performance unless the court would do so under its own law. Thus, in making international transaction contracts with private sectors, the government should also consider the legal system of the law applicable to the contract. Furthermore, it is also preferable, in case of failure to require specific performance, to enclose the remedy measure such as penalty clause or liquidated damages clause.