Reference no: EM133410760
Plastic Makers Limited is a company based in Winnipeg, Manitoba, Canada. It entered into a contract to purchase plastic molds from Excellent Plastics, a company based in Prague, Czech Republic. Under the contract that both companies signed, Excellent Plastics was to supply 2,000 plastic molds to Plastic Makers at the cost of 1 Million USD. Excellent Plastics, while it has its head office in Prague, Czech Republic, also has a production facility in Budapest, Hungary and a sales outlet in Alabama, United States. In the contract that the two companies signed, there were clear specifications regarding the packaging and standards of the plastic molds. The molds were also required to be delivered at a specific time.
Plastic Makers have filed a suit in the Manitoba Superior Court against Excellent Plastics resulting from this transaction. In the claim, Plastic Makers alleged that Excellent Plastics breached the contract to supply the molds according to the packaging and standard specified in the contract. Plastic Makers also allege that Excellent Plastics breached the warranty as to the fitness of the molds. Furthermore, Plastic Makers allege that the molds were not delivered at the time specified under the contract. While Canada, Czech Republic and United States of America are all state parties to the United Nations Convention on International Sale of Goods, (CISG) the parties to this contract did not indicate the law to govern the contract or the court that will exercise jurisdiction in the event of a dispute.
1. Article 1 of the CISG stipulates two conditions under which the Convention can apply in a sale of goods transaction, what are the conditions?
2. Since Plastic Makers and Excellent Plastics did not choose any law to govern their contract, what law should the Manitoba Superior Court apply in deciding this case?
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