Which contract law governs international sales of goods when payment terms are not specified?

The correct answer is the United Nations Convention on International Sales of Goods (CISG), which is specifically designed to govern international sales transactions. The CISG offers a comprehensive set of rules that address various aspects of international sales, including formation of contracts, obligations of buyers and sellers, and remedies for breach. One important feature of the CISG is its default provisions that apply in the absence of specific terms in a contract, such as payment terms.

When parties enter into an international sales contract and do not specify payment terms, the CISG provides guidance on how such terms should be interpreted and applied. This ensures a level of uniformity and predictability in international trade, making it easier for businesses from different legal jurisdictions to engage with one another.

The other choices pertain to different legal frameworks that generally apply to domestic transactions rather than international ones. The Uniform Commercial Code (UCC) is tailored for domestic sales of goods within the United States and does not apply to international sales. The Restatement (Second) of Contracts serves as a guideline for common law principals in the United States and also does not govern international sales. Local business contract law would vary significantly from one jurisdiction to another and generally does not provide a uniform approach to international transactions. Therefore,