Overseas Corporation (OC),a U.S.firm,orally agrees to sell six freezers to Pisa Pizza,Ltd.,in Italy.OC fails to deliver.Under the CISG,Pisa Pizza can
A)enforce the agreement.
B)not enforce the agreement because it is not in writing.
C)not enforce the agreement because the price term is not specified.
D)not enforce the agreement because there is no consideration.

Question

Quizplus · Accepted Answer

The CISG, which is applicable to contracts for the sale of goods between parties from different countries, does not require that contracts be in writing. The fact that the agreement was made orally does not prevent Pisa Pizza from enforcing the agreement. Additionally, the CISG provides that where the contract does not specify the price, the parties will be deemed to have agreed on a price that is reasonable at the time of the conclusion of the contract. As such, the lack of a specific price term does not prevent Pisa Pizza from enforcing the agreement. Finally, consideration is assumed to exist in contracts under the CISG, and so the absence of consideration is not a valid reason for Pisa Pizza to be unable to enforce the agreement. Therefore, Pisa Pizza can enforce the oral agreement for the sale of the freezers.