Forestal Guarani S.A., in Argentina, entered into an oral agreement to sell wooden finger-joints to Daros International, Inc. in New Jersey. Forestal sent Daros the products but Daros declined to pay the full amount. 

When Forestal sued Daros in the U.S. for breach of contract, Daros denied owing anything because, under New Jersey sales law, the contract would have had to be in writing to be enforceable. Further, it claimed, Argentina had not accepted the CISG’s elimination of the writing requirement when it ratified the CISG. Since the contract was not in writing, it was also possible that Argentine law applied.The district court dismissed Forestal’s claim because the parties’ agreement was not in writing. Forestal appealed.

A finger joint is a method of attaching two pieces of wood. Rectangular cut-outs are made in the end of each piece. Then the pieces are joined together so that the cut-outs on one piece fit the projections on the other. It is as if you bent your fingers at the knuckle and then slid your hands together.

Questions:

1. Which law applied to this contract—the CISG, Argentine law, or New Jersey law?

2. What types of contracts does the CISG apply to?

3. What formalities associated with proving the existence of a contract does the CISG dispense with?

4. When does the elimination of a formal writing requirement by the CISG not apply?