The Law Applicable to International Trade Transactions with Brazilian Parties: A Comparative Study of the Brazilian Law, the CISG, and the American Law About Contract Formation

Despite Brazil’s importance in the world economy and its increasing participation in foreign trade, there is considerable legal uncertainty regarding the law applicable to international commercial contracts involving Brazilian parties because Brazilian judicial courts do not respect parties’ freedom to choose the governing law, thus this determination is only made by a judge, according to Private International Law rules of the forum. Applying these rules, this study demonstrates that there are at least three potential legal regimes: the Brazilian law, the United Nations Convention on Contracts for the International Sale of Goods, and a foreign domestic sales law. Making use of the American law as the foreign law, a comparative analysis of these three legal regimes regarding contract formation demonstrates that their approaches are very distinct, and this confirms the legal uncertainty. In order to reduce this problem, three different strategies are proposed to the Brazilian government.MAS