Legal Analysis of The Auction Exclusion Under The CISG In Reverse Auction Contracts For Government Procurement
DOI:
https://doi.org/10.33751/palar.v12i3.139Abstrak
This article examines the qualification of the auction exclusion under Article 2(b) of the United Nations Convention on Contracts for the International Sale of Goods (CISG) and analyses the mechanism of reverse auction in government procurement, particularly in relation to that provision. The research adopts a normative juridical method with a conceptual approach and library-based legal research, supported by an examination of the CISG, relevant legal doctrine, and pertinent case law. Jurisprudential practice indicates a growing tendency not to characterise reverse auction or competitive public procurement mechanisms automatically as sales by auction, with the consequence that international contracts for the sale of goods arising therefrom may still fall within the scope of the CISG. This position is further supported by the Electronic Electricity Meter Case, in which the Court affirmed that the CISG may remain applicable notwithstanding that the contract originated in a public procurement, on the ground that such procedure constitutes a mechanism for the selection of bids prior to contract formation rather than an auction in the traditional sense.
Keywords: CISG, Auction, Reverse Auction, Government Procurement.
Referensi
A. Legislation
Brazil. Decree No. 10.024 of 20 September 2019.
Germany. Law on Compulsory Auction and Compulsory Administration, as last amended by Article 1 of the Act of 24 October 2024, Federal Law Gazette 2024 I No. 329.
United Nations Convention on Contracts for the International Sale of Goods. Vienna, 1980.
United States. Uniform Commercial Code
B. Cases
Electronic Electricity Meter Case. Swiss Federal Supreme Court, Switzerland, 2019, CISG-Online No. 4463.
Fleck Elektroinstallation GmbH v. Transquest Tag & Tracing Solutions B.V. Rechtbank Gelderland (District Court Gelderland), Netherlands, 6 November 2013, CISG-Online No. 2590.
Hilaturas Miel, S.L. v. Republic of Iraq. U.S. District Court for the Southern District of New York, U.S.A., 20 August 2008, CISG-Online No. 1777.
Online Auction of Car Case. Higher Regional Court of Brandenburg, Germany, 8 April 2016, CISG-Online No. 2727.
Online Auction of Photography Case. Federal Supreme Court of Switzerland, Switzerland, 8 November 2016, CISG-Online No. 2803.
Steel Products Case I. China International Economic & Trade Arbitration Commission (CIETAC), China, 1 April 1993, CISG-Online No. 1428.
B. Books
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C. Journal Articles
Borges de Oliveira, Alexandre et al. “Auction Length and Prices: Evidence from Random Auction Closing in Brazil.” World Bank Group Policy Research Working Paper, April 2019.
Cesar Pereira. “Application of the CISG to International Government Contracts for the Procurement of Goods.” Revija Kopaoničke Škole Prirodnog Prava, No. 2, 2023.
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Syukir, and Prita Amalia. “Implications of the Principle of Non-Discrimination in Indonesia-European Union Comprehensive Economic Partnership Agreement on Government Procurement Chapter Toward Regulations of Domestic Product Use in Indonesia.” Transnational Business Law Department, August 2020.
D. Theses / Academic Papers
Purba, Viktor. Kontrak Jual Beli Benda Internasional (Konvensi Vienna 1980). Jakarta: Postgraduate Program, Faculty of Law, Universitas Indonesia, 2002.
E. Reports / Official Documents
CISG-Online. “Contracting States.” Faculty of Law, University of Basel.
UNCITRAL Secretariat. “Explanatory Note by the UNCITRAL Secretariat on the United Nations Convention on Contracts for the International Sale of Goods.”
United Nations Trade and Development (UNCTAD). “Global Trade Hits Record $33 Trillion in 2024, Driven by Services and Developing Economies.” 14 March 2025.
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