Do you use aircraft purchase agreements in business aircraft transactions? (Hint: You should!) If you do, you are probably aware that all good aircraft purchase agreements have a choice of law provision in which the parties are agreeing to the state law that will govern the agreement and any disputes arising from the agreement. But what happens when a business aircraft transaction involves a buyer and a seller who are each businesses from different countries? Will the parties’ choice of law selection still apply? Not necessarily. It is possible that the UN Convention on the International Sale of Goods (“CISG“) could pre-empt that choice of law provision.
For a more detailed discussion of the CISG and how it may apply to a business aircraft transaction, please read my latest article on the subject: Application of the UN Convention on Contracts for the International Sale of Goods to Business Aircraft Transactions.