{"id":11290,"date":"2017-06-30T12:08:11","date_gmt":"2017-06-30T10:08:11","guid":{"rendered":"https:\/\/www.slt.vr.it\/epc-contract-and-cisg-the-coexistence-is-possi\/"},"modified":"2019-01-18T17:46:36","modified_gmt":"2019-01-18T16:46:36","slug":"epc-contract-and-cisg-the-coexistence-is-possible","status":"publish","type":"post","link":"https:\/\/www.slt.vr.it\/en\/epc-contract-and-cisg-the-coexistence-is-possible\/","title":{"rendered":"EPC Contract and CISG: the coexistence is possible"},"content":{"rendered":"<div class=\"pdfprnt-buttons pdfprnt-buttons-post pdfprnt-top-right\"><a href=\"javascript: imageToPdf()\" class=\"pdfprnt-button pdfprnt-button-pdf\" target=\"_self\"><img decoding=\"async\" src=\"https:\/\/www.slt.vr.it\/wp-content\/plugins\/pdf-print\/images\/pdf.png\" alt=\"image_pdf\" title=\"View PDF\" \/><span class=\"pdfprnt-button-title pdfprnt-button-pdf-title\">Crea PDF<\/span><\/a><a href=\"https:\/\/www.slt.vr.it\/en\/wp-json\/wp\/v2\/posts\/11290?print=print\" class=\"pdfprnt-button pdfprnt-button-print\" target=\"_blank\"><img decoding=\"async\" src=\"https:\/\/www.slt.vr.it\/wp-content\/plugins\/pdf-print\/images\/print.png\" alt=\"image_print\" title=\"Print Content\" \/><span class=\"pdfprnt-button-title pdfprnt-button-print-title\">Stampa<\/span><\/a><\/div><p>During a recent case of mine, that I\u2019m currently handling before the ICC Arbitral Tribunal, I&#8217;ve had the opportunity to discuss the well-known problem of the applicability of the UN Vienna Convention 1980 on Contracts for the International Sale of Goods (CISG) to the so-called EPC Contract (<em>Liefervertr\u00e4ge mit Montageverpflichtung,<\/em> or <em>Turnkey contracts<\/em>).<\/p>\n<p>In particular, I debated whether a contract for the engineering and erection of an energy plant (bio-mass plant) falls within the scope of Vienna Convention.<\/p>\n<p>Passed the applicability test according to art. 1 CISG, the Arbitral Court verified whether or not the Convention applies to the matter pursuant to art. 3.2 CISG, precisely drafted in order to solve such a kind of problem:<\/p>\n<blockquote><p><strong>Art. 3.2 CISG: <\/strong><em>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<\/em>.<\/p><\/blockquote>\n<p>In interpreting the above-mentioned provision, the Arbitral Court aligned itself with the most reliable opinion, according to which art. 3.2 CISG simply refers to the comparison between the economic value of the obligations regarding the supply of labour and services and the economic value of the obligations regarding the delivery of the goods (the so-called &#8220;<em>economic criterion<\/em>&#8220;; in these terms, among others Prof. F. FERRARI, Prof. P. SCHLECHTRIEM, THE ADVISORY COUNCIL on CISG).<\/p>\n<p>Considering that the value of the goods to be provided under the contact was undisputed and much higher (80%) than the value of the related services\/labour, the Arbitral Tribunal found that the CISG applies to the matter.<\/p>\n<p>This decision can be considered an important further step for the application of the CISG to EPC Contracts and the creation of a reliable and stable pattern of rules.<\/p>\n<p>&nbsp;<\/p>\n<p>Note: the case and the questions involved in the matter have been simplified for the scope of this short presentation. Much more issues have been discussed and solved by the parties&#8217; representatives and the Arbitral Court before achieving the cited solution. Consequently, do not consider this presentation as a formal\/conclusive opinion.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>During a recent case of mine, that I\u2019m currently handling before the ICC Arbitral Tribunal, I&#8217;ve had the opportunity to discuss the well-known problem of the applicability of the UN Vienna Convention 1980 on Contracts for the International Sale of Goods (CISG) to the so-called EPC Contract (Liefervertr\u00e4ge mit Montageverpflichtung, or Turnkey contracts). In [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":11292,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","iawp_total_views":396},"categories":[],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>EPC Contract and CISG: the coexistence is possible - SLT Strategy Legal Tax<\/title>\n<meta name=\"description\" content=\"Problem of the applicability of the UN Vienna Convention 1980 on Contracts for the International Sale of Goods (CISG) to the so-called EPC Contract (Liefervertr\u00e4ge mit Montageverpflichtung, or Turnkey contracts).\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.slt.vr.it\/en\/epc-contract-and-cisg-the-coexistence-is-possible\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"EPC Contract and CISG: the coexistence is possible - 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Pubblica interventi in alcune riviste scientifiche ed \u00e8 relatore in eventi di natura scientifica e divulgativa. - Profession: Lawyer Areas of expertise: M &amp; A, Globalization assistance - specialized ww assistance with GGI, Commercial and Corporate Law, Contracts, Banking and Insurance Law Lawyer and member of the Professional Lawyers' Association of Verona, his professional activity consists above all in assistance to companies, insolvency procedures and to other economic operators in the field of international trade law and banking law. In these sectors considerable space is dedicated to international contract consultancy, to company reorganization and company internationalization operations, to typically international litigation (also before foreign courts and or arbitrators), to contract drafting and to banking litigation. 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Pubblica interventi in alcune riviste scientifiche ed \u00e8 relatore in eventi di natura scientifica e divulgativa. - Profession: Lawyer Areas of expertise: M &amp; A, Globalization assistance - specialized ww assistance with GGI, Commercial and Corporate Law, Contracts, Banking and Insurance Law Lawyer and member of the Professional Lawyers' Association of Verona, his professional activity consists above all in assistance to companies, insolvency procedures and to other economic operators in the field of international trade law and banking law. In these sectors considerable space is dedicated to international contract consultancy, to company reorganization and company internationalization operations, to typically international litigation (also before foreign courts and or arbitrators), to contract drafting and to banking litigation. He publishes articles in some scientific journals and is a speaker at events of a scientific and academic nature - Fachgebiete M &amp; A, Unterst\u00fctzung bei der Globalisierung des Gesch\u00e4fts - spezialisierte Unterst\u00fctzung ww mit GGI, Handels- und Gesellschaftsrecht, Vertr\u00e4ge, Bank- und Versicherungsrecht Rechtsanwalt, eingeschrieben in der Berufsgenossenschaft von Verona. Die berufliche T\u00e4tigkeit konzentriert sich vor allem auf die Betreuung von Unternehmen, Insolvenzverfahren und anderen Wirtschaftsteilnehmern im Bereich des internationalen Handelsrechts und Bankrechts. Einen gro\u00dfen Raum nehmen in diesen Bereichen die internationale Vertragsberatung, die Umstrukturierung und Internationalisierung von Unternehmen, typische internationale Rechtsstreitigkeiten (auch vor ausl\u00e4ndischen Gerichten oder Schiedsgerichten), Vertrags- und Bankrechtsstreitigkeiten ein. Er ver\u00f6ffentlicht Artikel in verschiedenen Fachzeitschriften und ist Referent bei wissenschaftlichen und popul\u00e4ren Veranstaltungen.","sameAs":["https:\/\/it.linkedin.com\/pub\/matteo-zanotelli\/18\/423\/3b"],"url":"https:\/\/www.slt.vr.it\/en\/author\/matteo-zanotelli\/"}]}},"_links":{"self":[{"href":"https:\/\/www.slt.vr.it\/en\/wp-json\/wp\/v2\/posts\/11290"}],"collection":[{"href":"https:\/\/www.slt.vr.it\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.slt.vr.it\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.slt.vr.it\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.slt.vr.it\/en\/wp-json\/wp\/v2\/comments?post=11290"}],"version-history":[{"count":2,"href":"https:\/\/www.slt.vr.it\/en\/wp-json\/wp\/v2\/posts\/11290\/revisions"}],"predecessor-version":[{"id":16534,"href":"https:\/\/www.slt.vr.it\/en\/wp-json\/wp\/v2\/posts\/11290\/revisions\/16534"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.slt.vr.it\/en\/wp-json\/wp\/v2\/media\/11292"}],"wp:attachment":[{"href":"https:\/\/www.slt.vr.it\/en\/wp-json\/wp\/v2\/media?parent=11290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.slt.vr.it\/en\/wp-json\/wp\/v2\/categories?post=11290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.slt.vr.it\/en\/wp-json\/wp\/v2\/tags?post=11290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}