Question

Case: Forestal Guarani S.A. v. Daros International, Inc. 613 F.3d 395 United States Court of Appeals for the Third Circuit, 2010

Facts: Forestal Guarani S.A., in Argentina, entered into an oral agreement to sell wooden finger-joints to Daros International, Inc. in New Jersey.^[1] Forestal sent Daros the products but Daros declined to pay the full amount.

When Forestal sued Daros in the U.S. for breach of contract, Daros denied owing anything because, under New Jersey sales law, the contract would have had to be in writing to be enforceable. Further, it claimed, Argentina had not accepted the CISG’s elimination of the writing requirement when it ratified the CISG. Since the contract was not in writing, it was also possible that Argentine law applied. The district court dismissed Forestal’s claim because the parties’ agreement was not in writing. Forestal appealed.

Question/Issue: Which law applied to this contract—the CISG, Argentine law, or New Jersey law? You need at least two paragraphs.

Answer 1

CISG : United Nation Convention on Contracts for International sale of goods. It is the law significant for proportion on world trade. All the countries that are in CISG accept the law.

Here the law applied to the contract is CISG law as it is sale of goods between two countries. Here the court dismissed the case as there is a no written contract between both the parties except a oral agreement. No court can rely on oral contracts as people may change their words now and then. So courts always ask for a written agreement which will act of proof of evidence when any one party is try to cheat the other party.

According CISG law no court will take a case basing on oral agreement. Hence the court ruled out the case without hearing. May be if the case was filed in Argentina there may be a chance of getting investigation done on the case but it is filed in US where the courts also follow CISG law.