A comparison between the CISG and the SOGA to determine the advisable provisions to be incorporated in Saudi Arabia

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This dissertation will discuss the United Kingdom Sale of Goods Act 1979 (SOGA 1979 or the UK Act)1 and the United Nations Convention on Contracts for the International Sale of Goods (CISG or the Vienna Convention)2 from a comparative perspective. The specific focus of the work will be on breach of contract provisions and more specifically, on termination of international sales contracts due to fundamental breaches, as well as the remedies according to these two legal instruments. The research question of this work will deal with whether the CISG and SOGA’s provisions on avoidance of contract can be modified so that they become appropriate to the Saudi context. In terms of methodology, this dissertation will be based on secondary - doctrinal and comparative research. Analysis will demonstrate that the SOGA 1979 provides the innocent party with a greater opportunity to avoid the contract, triggered solely by a breach of a condition of the contract. In distinction, the CISG 1980 qualifies this right, not only requiring a fundamental breach but also that the breach had caused a significant detriment to the injured party by substantially depriving them from the benefits expected under the contract. It will then look at the issue of avoidance of a contract from an economic point of view, demonstrating that preserving the contract is ultimately more efficient and less costly to the parties. The dissertation will continue by outlining the legislative framework in Saudi Arabia, explaining the main principles of Shariah law and how they relate to contract law and to the issue at hand. The author will use this analysis to determine the advisable provisions, if any, to be incorporated in Saudi Arabia. Upon a careful consideration, it will be suggested that the introduction of these provisions in Saudi law is unlikely to be successful, due to the profound differences in the cultural and legislative set up between the Saudi and Western societies.

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