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Interpretation of Party Intention under the CISG – A Comparative Study of China and the United States with Reference to Germany

Liu, Congshan LU (2026) HARN63 20261
Department of Business Law
Abstract
The United Nations Convention on Contracts for the International Sale of Goods (CISG) serves as the preeminent uniform legal framework governing international sales. Central to its application is Article 8, which prescribes a tripartite hierarchy for interpreting party intent by prioritizing subjective intent, applying the objective reasonable person standard, and mandating a holistic review of all relevant circumstances. However, judicial application of Article 8 in three major trading jurisdictions, namely China, the United States, and Germany, remains fragmented by the “homeward trend,” whereby domestic courts unconsciously assimilate CISG provisions into familiar national legal categories, thereby undermining the Convention’s... (More)
The United Nations Convention on Contracts for the International Sale of Goods (CISG) serves as the preeminent uniform legal framework governing international sales. Central to its application is Article 8, which prescribes a tripartite hierarchy for interpreting party intent by prioritizing subjective intent, applying the objective reasonable person standard, and mandating a holistic review of all relevant circumstances. However, judicial application of Article 8 in three major trading jurisdictions, namely China, the United States, and Germany, remains fragmented by the “homeward trend,” whereby domestic courts unconsciously assimilate CISG provisions into familiar national legal categories, thereby undermining the Convention’s uniformity goal and escalating transaction costs for global traders.
This thesis investigates three core questions: How do courts in these jurisdictions diverge in applying Article 8? What institutional and cultural factors sustain such divergences? What normative strategies can promote uniform interpretation? Employing comparative law, legal doctrinal analysis, and case study methodology, the study finds that Chinese courts over-rely on written terms while marginalizing extrinsic evidence; U.S. courts oscillate between the parol evidence rule and CISG’s permissive evidentiary framework; and German courts adopt a contextual, good-faith-oriented approach most consistent with the Convention’s intent. In response, this thesis proposes targeted measures including enhanced judicial training, systematic recourse to CISG Advisory Council Opinions, and transnational evidentiary guidelines to harmonize Article 8 application and strengthen the predictability of international commercial transactions. (Less)
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author
Liu, Congshan LU
supervisor
organization
course
HARN63 20261
year
type
H1 - Master's Degree (One Year)
subject
keywords
CISG, Article 8, Party Intention, Comparative Study, Homeward Trend, Uniform Application, Transaction Costs.
language
English
id
9230845
date added to LUP
2026-06-04 12:19:54
date last changed
2026-06-04 12:19:54
@misc{9230845,
  abstract     = {{The United Nations Convention on Contracts for the International Sale of Goods (CISG) serves as the preeminent uniform legal framework governing international sales. Central to its application is Article 8, which prescribes a tripartite hierarchy for interpreting party intent by prioritizing subjective intent, applying the objective reasonable person standard, and mandating a holistic review of all relevant circumstances. However, judicial application of Article 8 in three major trading jurisdictions, namely China, the United States, and Germany, remains fragmented by the “homeward trend,” whereby domestic courts unconsciously assimilate CISG provisions into familiar national legal categories, thereby undermining the Convention’s uniformity goal and escalating transaction costs for global traders.
This thesis investigates three core questions: How do courts in these jurisdictions diverge in applying Article 8? What institutional and cultural factors sustain such divergences? What normative strategies can promote uniform interpretation? Employing comparative law, legal doctrinal analysis, and case study methodology, the study finds that Chinese courts over-rely on written terms while marginalizing extrinsic evidence; U.S. courts oscillate between the parol evidence rule and CISG’s permissive evidentiary framework; and German courts adopt a contextual, good-faith-oriented approach most consistent with the Convention’s intent. In response, this thesis proposes targeted measures including enhanced judicial training, systematic recourse to CISG Advisory Council Opinions, and transnational evidentiary guidelines to harmonize Article 8 application and strengthen the predictability of international commercial transactions.}},
  author       = {{Liu, Congshan}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Interpretation of Party Intention under the CISG – A Comparative Study of China and the United States with Reference to Germany}},
  year         = {{2026}},
}