Michigan Contract for the International Sale of Goods with Purchase Money Security Interest

• Category: Contracts - Buy Sell - Agreements
• State: Multi-State
• Control #: US-04415BG
• Format: Word; Rich Text

Description

The CISG governs international sales contracts if (1) both parties are located in Contracting States, or (2) private international law leads to the application of the law of a Contracting State (although, as permitted by the CISG (article 95), several Contracting States have declared that they are not bound by the latter ground). The autonomy of the parties to international sales contracts is a fundamental theme of the Convention: the parties can, by agreement, derogate from virtually any CISG rule, or can exclude the applicability of the CISG entirely in favor of other law. When the Convention applies, it does not govern every issue that can arise from an international sales contract: for example, issues concerning the validity of the contract or the effect of the contract on the property in (ownership of) the goods sold are, as expressly provided in the CISG, beyond the scope of the Convention, and are left to the law applicable by virtue of the rules of private international law (Article 4). Questions concerning matters governed by the Convention but that are not expressly addressed therein are to be settled in conformity with the general principles of the CISG or, in the absence of such principles, by reference to the law applicable under the rules of private international law.

The Michigan Contract for the International Sale of Goods with Purchase Money Security Interest is a legal agreement that governs the exchange of goods between parties located in different countries, where the buyer obtains financing to make the purchase. This contract provides specific terms and conditions for the sale of goods and includes provisions related to a Purchase Money Security Interest (PSI), which grants the lender a security interest in the goods being purchased with the loan proceeds. Under the Michigan Contract for the International Sale of Goods with Purchase Money Security Interest, the parties involved can agree to various types of contracts depending on the nature of the transaction. Some common types include: 1. Conditional Sales Contract: This type of contract states that the ownership of the goods will remain with the seller until the buyer fulfills certain conditions, such as completing the payment in full. The seller has a PSI in the goods until the buyer meets these conditions. 2. Chattel Mortgage: In this type of contract, the buyer pledges the goods being purchased as security for the loan. The seller retains legal ownership until the buyer fully repays the loan. If the buyer defaults, the lender has the right to repossess the goods to satisfy the outstanding debt. 3. Assignment of Accounts Receivable: This contract allows the buyer to assign their accounts receivable from the sale of the goods to the lender as collateral. The lender holds a security interest in the accounts receivable, which gives them the right to collect payment directly from the buyer's customers if the buyer defaults. 4. Security Agreement: This contract creates a security interest in the goods being purchased, which serves as collateral for the loan. The goods are held as security until the buyer completes the payment, and in case of default, the lender has the right to repossess and sell the goods to recover the outstanding debt. The Michigan Contract for the International Sale of Goods with Purchase Money Security Interest ensures that all parties involved have a clear understanding of their rights and obligations regarding the sale of goods and the financing arrangements. It provides legal protection, helps prevent disputes, and facilitates smooth international transactions by establishing a consistent framework and guidelines. Keywords: Michigan, Contract, International Sale of Goods, Purchase Money Security Interest, PSI, Conditional Sales Contract, Chattel Mortgage, Assignment of Accounts Receivable, Security Agreement, financing, legal agreement, transaction, parties, terms and conditions, ownership, Pledge, collateral, repossession, default, obligation.