Regulation of contracts for the international sale of goods and material breaches of their terms in the legal systems of the Russian Federation, the People's Republic of China, and the Hong Kong special administrative region

the article addresses the contemporary issue of legal regulation concerning contracts for the international sale of goods and material breaches of their terms within the legal frameworks of the Russian Federation, the People's Republic of China, and the Hong Kong Special Administrative Region (SAR) of the PRC in relation to the burgeoning foreign trade exchange between Russia and China. The essay focusses on addressing the discrepancies in the methods of the three legal systems of the two states regarding a material breach of the contract, which entitles a party to refuse or terminate an international contract. Diverse legal frameworks infuse legal uncertainty into the relationships of the parties, posing an impediment to both the conclusion of foreign commerce transactions and the resolution of disputes in courts and arbitrations. The author employs comparative legal research to scrutinize the legal foundation for such regulation, encompassing the applicability of the UN Convention on Contracts for the International Sale of Goods (Vienna Convention 1980, CISG) to international contracts, alongside national legal standards and interpretative guidance from higher courts in Russia and China, as well as precedent rulings from the common law of the Hong Kong SAR. This paper analyses the application of the legal systems of Russia, China, and the Hong Kong SAR in foreign trade transactions involving commercial enterprises situated within their jurisdictions, where the governing law is established by the private international law or by mutual agreement of the parties. The research undertaken enables the identification of similarities and disparities, as well as the advantages and disadvantages of legal regulation, to formulate recommendations for participants in foreign trade relations aimed at enhancing the resolution of current issues and the prevention of possible difficulties. The author asserts that the most effective solution for resolving legal ambiguity in international contract relations is the governance of international trade transactions by the Vienna Convention of 1980, allowing the parties to designate the applicable law for contract aspects not addressed by the CISG.

breach of warranty, breach of condition, breach of an innominate term, foreseeable breach, repudiatory breach, material breach, foreign trade contract, international sale of goods, comparative legal research, Vienna Convention 1980 (CISG)