Contracts law Alert February, 2016 www.bakermckenzie.com For further information please contact: Kamil Valiyev, Partner Kamil.Valiyev@bakermckenzie.com Rena Eminova, Associate Rena.Eminova@bakermckenzie.com Azerbaijan joins United Nations Convention on Contracts for the International Sale of Goods On 1 February 2016 the Republic of Azerbaijan adopted a law on accession to the United Nations Convention on Contracts for the International Sale of Goods (CISG) with certain declarations. CISG is a convention setting uniform rules for international trade (in particular commercial trade) and has been ratified by more than 80 states, including 15 members of G-20 countries. By governing contracts for the international sale of goods and adopting uniform rules in this area CISG removes legal barriers interfering with international trade among entities with different social, economic and legal systems. CISG makes it possible for the parties to international deals from different member states to avoid application of the law of a specific country and to regulate trade-contract relations within the uniform legal framework of CISG. CISG, as an international agreement of Azerbaijan, becomes an integral part of the legal system of the Republic of Azerbaijan and in case of discrepancy between CISG and normative legal acts of Azerbaijan (other than the Constitution and legal acts adopted by referendum) CISG will prevail. Therefore, CISG has superiority over the provisions of the Civil Code regulating transactions on the commercial sale of goods. However, it should be noted that certain CISG principles had already been contemplated in the Civil Code of the Republic of Azerbaijan. This LEGAL ALERT is issued to inform Baker & McKenzie clients and other interested parties of legal developments that may affect or otherwise be of interest to them. The comments above do not constitute legal or other advice and should not be regarded as a substitute for specific advice in individual cases.