<P> The CISG also applies if the parties are situated in different countries (which need not be Contracting States) and the conflict of law rules lead to the application of the law of a Contracting State . For example, a contract between a Japanese trader and a Brazilian trader may contain a clause that arbitration will be in Sydney under Australian law with the consequence that the CISG would apply . A number of States have declared they will not be bound by this condition . </P> <P> The CISG is intended to apply to commercial goods and products only . With some limited exceptions, the CISG does not apply to personal, family, or household goods, nor does it apply to auctions, ships, aircraft, or intangibles and services . The position of computer software is' controversial' and will depend upon various conditions and situations . </P> <P> Importantly, parties to a contract may exclude or vary the application of the CISG . </P> <P> Interpretation of the CISG is to take account of the' international character' of the Convention, the need for uniform application, and the need for good faith in international trade . Disputes over interpretation of the CISG are to be resolved by applying the' general principles' of the CISG, or where there are no such principles but the matters are governed by the CISG (a gap praeter legem) by applying the rules of private international law . </P>

When does the cisg govern contracts for the sale of goods