This article is written by Vidushi Kachroo. The following article aims to deliver relevant information about the United Nations Commission on International Trade Law (UNCITRAL) Model Laws, by elaborating on their purpose and features.  The article also offers a brief explanation of how these laws have been actively adopted by various countries worldwide, particularly India.  

Introduction 

With time, the world has not just changed; it has evolved exponentially. Technological advancements, shifts in global economics, and cultural transformations, which can be largely attributed to globalisation, have reshaped nearly every aspect of human life. The face of international trade was thus bound to change dramatically. Access to products of foreign origin, be it Korean skincare, Japanese Wagyu, or American clothes, has become more seamless than ever. This accessibility demonstrates only a glimpse of the changing face of international trade and commerce. However, it was not just the international markets and trade that witnessed a change.

United Nations Commission on International Trade Law (hereinafter referred to as the UNCITRAL) is responsible for enacting Model Laws which facilitate cross-border trade and commerce among States in the international community. These laws are enacted as a response to the complexities and challenges of modern international trade. These laws are developed under the guidance of the United Nations with one primary objective- to harmonise and standardise trade practices across borders. As the name suggests, UNCITRAL, a crucial body of international repute under the United Nations, plays a pivotal role in shaping the norms related to global trade and commerce through Model Laws. 

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These Model Laws address various aspects of international trade, thereby facilitating it. They help shape international trade practices, from enabling smoother cross-border transactions to providing legal frameworks for efficient and effective dispute redressal. The UNCITRAL has covered various aspects of international trade by enacting specific Model Laws for each of such aspects such as electronic commerce, mediation, arbitration, cross-border insolvency, etc. Hence, UNCITRAL Model Laws cover a variety of laws on different subject matters involved in cross-border trade. Therefore, given their importance, this article discusses some of the important UNCITRAL Model Laws in detail, the pivotal role these laws played in international trade and their implications in India. But, before moving on to understand its importance, it is essential to clear our basics.        

What is UNCITRAL

UNCITRAL, which stands for the United Nations Commission on International Trade Law, is a subsidiary body of the United Nations General Assembly (UNGA). Established in 1966, UNCITRAL is a core body under the United Nations that plays a crucial role in the field of international trade law. It aims to provide a robust legal framework for the smooth functioning of trade and commerce between different States in the international community. Initially composed of 29 Member States, UNCITRAL’s membership later expanded in 1973, 2004, and most recently in 2022. Currently, there are 70 Member States, each elected for a term of 6 years. 

UNCITRAL’s primary goal is to formulate a comprehensive legal framework for international trade and commerce. This framework includes various conventions, guidelines, recommendations, and rules that are widely accepted globally. Among these, the UNCITRAL Model Laws are particularly significant. They are one of the most significant and influencing developments done by UNCITRAL. They serve as a guiding light for States and international organisations in framing laws to facilitate secure and efficient trade and commerce on an international level. Many States, including India, have adopted these Model Laws into their domestic legal frameworks. 

The inclusion of Model Laws into a State’s legal system helps nurture the principles of globalisation and liberalisation, enabling States to globalise their trade practices. This, in turn, boosts economic growth and enhances their relationships with other States and international communities. 

What are UNCITRAL Model Laws

The UNCITRAL Model Laws are pivotal legal enactments designed to provide fundamental guidelines for States to facilitate a proper and harmonised operation of international trade. Drafted by the United Nations Commission on International Trade Law, these Model Laws aim to guide States in adapting and shaping their domestic laws so that they align with global standards. This promotes international peace and cooperation, two things which are highly significant for successful and profitable international trade in this era of globalisation.  While the Model Laws are a part of international law, they are not legally binding on the States. Both member and non-member States have the option to incorporate these laws into their domestic legal systems, either in their entirety or with certain modifications to suit local contexts. 

UNCITRAL has developed a variety of Model Laws and rules that address specific areas of commercial law directly associated with international trade such as arbitration, electronic commerce, mediation, cross-border insolvency, etc. These Model Laws serve as templates that States can adopt and amend or modify according to their unique legal requirements and economic environments. Some of the important Model Laws drafted and enacted by the UNCITRAL are as follows:-

  • UNCITRAL Model Law on International Commercial Arbitration, 1985
  • UNCITRAL Model Law on Electronic Commerce, 1996
  • UNCITRAL Model Law on Cross Border Insolvency, 1997
  • UNCITRAL Model Law on Commercial Mediation, 2018
  • UNCITRAL Model Law on Public Procurement, 2011 

Why UNCITRAL Model Laws were adopted

The UNCITRAL Model Laws were enacted and adopted by many States to facilitate the smooth operation of international trade practice. Being a subsidiary body of the United Nations, UNCITRAL mainly focuses on developing laws that do not compromise international peace and security. With this aim in view, various Model Laws were enacted to address different aspects involved with or arising out of the practice of international trade and commerce. These Model Laws have been subjected to several modifications and amendments over time to adapt to emerging challenges and dynamic global changes that significantly impact trade practices. The following points offer a more detailed explanation of the need for the enactment and adoption of the UNCITRAL Model Laws: 

To bridge the inadequacy of domestic laws

Domestic laws are the legal frameworks that govern a particular sovereign State and are enforceable within its courts. These laws cover various important aspects that affect the State, including cross-border trade. Even though domestic laws cover international trade, the problem often lies in the inconsistency of these laws as they do not cover each and every aspect of international trade. Every State has its own set of domestic laws, including laws on international trade but one State’s laws may be conflicting or inconsistent with the domestic laws of other States. Moreover, the domestic laws usually date back to a very long time. Some of the States have domestic laws that were enacted in the 18th or 19th century. Although there is no doubt that these laws may have been amended or modified with the advancement of technology, still there may be a lack of uniformity and some inconsistencies which make it important to have laws on an international level for governing the trade practices of the modern time. 

The emergence of new technology and innovation has led to a significant development in trade practices. Facilities like electronic and secured transactions, electronic registration, etc. did not exist a few decades ago. These advancements make domestic laws somewhere inconsistent and are lacking in dealing with the present issues of international trade. Therefore, it gives rise to the need to have some uniform and modern laws, which are now being fulfilled by the various Model Laws.

To tackle the disparity between national laws

As mentioned before, all States have their respective domestic laws to govern cross-border trade and the issues that may arise out of such trade practices. Apart from the inadequacy of these domestic laws, another reason for the need for UNCITRAL Model Laws is the disparity that lies between the different domestic or national laws of different States. International trade occurs between two or more different States, where each party to the trade has their distinct legal framework. When these parties or States are faced with issues related to such trade and the associated decision-making, they are also posed with a crucial question. Which State’s national law should be ultimately followed? 

It is obvious that the laws of all the involved parties or States can not be followed at the same time. Even if all of such laws were taken into consideration to make a unified decision, it would be very time- and resource-consuming. In fact, it may even lead to disagreements which, if aggravated, may lead to tension among the involved States and the international community at large. This defines the main aim of international organisations like the United Nations. Hence, the enactment of uniform laws is of utmost importance. That is why UNCITRAL has enacted Model Laws to bring uniformity to dispute resolution between different countries in dispute. These laws consider the needs and expectations of all the States, which are party to the trade practice in dispute, upholding their main motto—harmonisation, uniformity, and peace in the international community. 

To boost economic development globally

The UNCITRAL Model Laws provide a trade-friendly environment to the States by establishing uniformity and giving legal recognition to new practices in the field of international trade. This facilitates and streamlines international trade practice, which, in turn, further helps the States to enhance their economic growth by engaging in different businesses or trade practices with other States. This also promotes unity and good relations among the States in the international community.

To provide justice and easy dispute-resolution facilities

There are UNCITRAL Model Laws and Rules, which are enacted specifically for the resolution of disputes that may arise between States in the course of international trade. Model Laws on international arbitration, mediation, and conciliation have been recognised and given more importance from the very beginning. This is to ensure that all disputes are resolved amicably and fairly without compromising the needs and rights of any State. For instance, the UNCITRAL Model Law on International Commercial Arbitration was one of the major and first Model Laws to be enacted in 1985. It is a harmonised law, covering all stages of the arbitral process. Hence, UNCITRAL Model Laws ensure fair access to justice for every State that is a party to a dispute and also protect their contractual rights.

To ensure certainty and predictability in international trade

The Model Laws were adopted to ensure uniformity in the rules and regulations related to cross-border trade, whether it be transactions, procurement of goods, insolvency, or dispute resolution. The uniformity in laws governing international trade provides certainty and predictability to the States regarding their rights as well as obligations. This guarantee of certainty doesn’t exist in the absence of a uniform legal framework. Thanks to the certainty and predictability offered by UNCITRAL Model Laws, there is also less chance of disputes between States, which ensures peace and harmony within the international community. 

Salient features of UNCITRAL Model Laws

All the Model Laws under UNCITRAL share similar features despite the fundamental differences in their working. All these Model Laws have been enacted to achieve certain common goals in the field of international trade. Some of the common salient features of these Model Laws are discussed below: 

Harmonisation

The UNCITRAL Model Laws aim to harmonise the domestic legal framework of different States, especially in connection with the operation of international trade and commerce. They do so by providing uniform and modernised laws that the States can adopt, thus, creating consistency and predictability in trade practices. This facilitates international trade and contributes to the maintenance of harmony, peace, and good relations among the international community. 

Flexibility

The Model Laws are flexible in terms of their application and adoption. These laws act as a template that can be amended, modified, and adapted by the States according to their respective legal needs and environments. In other words, the Model Laws provide a structure or a framework that the States can customise to fit their existing legal frameworks and policies. They can fill in the gaps according to their national policies or principles. This goes on to show that the Model Laws recognise that each State is different and thus, has unique legal requirements which may be different from one another, and hence, the laws need to be modified accordingly.  

Dynamic

The Model Laws are dynamic and evolve with the changing practices of cross-border trade. Rather than being tied to outdated practices, they adapt to emerging changes, as and when required, by modifying existing laws or enacting new Model Laws. A prime example can be seen in the field of electronic commerce, where UNCITRAL has modified and enacted new Model Laws. These laws align with changing times and emerging technologies to address issues related to electronic transfers, electronic signatures, and electronic transferable records, to name a few. These laws are also dynamic in terms of the diverse legal aspects they have recognised, with specific Model Laws dedicated to all those different subject matters.

Dispute resolution mechanism

There are Model Laws enacted specifically to provide mechanisms for smooth dispute resolution. UNCITRAL has given legal recognition to alternative dispute resolution mechanisms like arbitration, conciliation, and mediation. All of these mechanisms have been covered under different Model Laws, such as the Model Law on International Commercial Arbitration, the Model Law on International Commercial Conciliation, and the Model Law on Mediation. The motive behind the enactment of these laws was to provide uniform laws for amicable resolution of the disputes arising between the States involved in international trade. It also promotes fairness in procedures.

With the emergence of new technology, UNCITRAL has also adopted an online dispute resolution mechanism. All these inclusions facilitate the States to become more involved in cross-border trade and boost their economic development as well as their relations in the international community.

International recognition

These Model Laws are enacted by UNCITRAL, the core legal body of the United Nations, giving them international recognition. Although these laws do not have a binding effect on the States, they do provide the States a pathway to a peaceful and harmonised way of practising trade internationally. Also, the majority of the States have become members of UNCITRAL, indicating that they have adopted and accepted these laws.

What are the most important Model Laws 

Since its inception in 1966, UNCITRAL has drafted numerous Model Laws focused on specific areas of trade law. The objective of doing so has been to gap the inadequacies among various domestic legal systems and harmonise the practice of international trade. The evolution of UNCITRAL Model Laws is a landmark development in the field of international trade and commerce. As of now, several key Model Laws have come into existence to meet the needs of the international community. Some of these major Model Laws are discussed below in brief.

Model Law on International Commercial Arbitration, 1985

The Model Law on International Commercial Arbitration was one of the first major Model Laws enacted to create harmony between the various laws on international arbitration. It was adopted by UNCITRAL on June 21, 1985, followed by its adoption by the General Assembly on December 11 of the same year. This Model Law provides a set of rules for each aspect involved in the arbitral process. It covers every step starting from the arbitral agreement to the enforcement of the arbitral awards. 

This Model Law has been widely accepted by many countries to govern the arbitral process in case of disputes arising from cross-border trade between States. The need for enacting this Model Law arose due to gaps in domestic laws of different States and inconsistencies among national laws on matters related to arbitration. The arbitration laws of the various States proved inadequate for resolving conflicts arising out of cross-border trade and commerce. Hence, this Model Law was drafted. It includes the core principles of arbitration. Upon its adoption, the General Assembly recommended that all States should closely look up to and follow this Model Law while drafting their domestic laws on arbitration.

Article 1(3) of this Model Law defines arbitration as international if the parties to the arbitration agreement have their places of business situated in different States at the time of the conclusion of the agreement. Along with this, it is also been given that an arbitration is deemed international if any of the following places are situated outside the States where the parties have their places of business:

  • Place of arbitration agreement,
  • Place of contractual performance or place of the subject matter of the dispute.

Article 1(3) also adds that arbitration is international if the parties to the agreement have expressly stated that the arbitration agreement relates to more than one country.

Article 1(2), as amended by the Commission at its thirty-ninth session in 2006, envisages the principle of territorial scope and application. It stipulates that the Model Law as enacted by a specific state will apply only if the place of arbitration is within the territory of that State. It also creates certain exceptions that are given in Articles 8(1), 9, 17 H, 17 I, 17 J, and 36.

The Model Law applies to international commercial arbitration. The term ‘commercial’ used in Article 1(1) has been kept open for a wide interpretation. The notes in Article 1(1) give the definition of this term as encompassing matters arising from commercial relationships, whether contractual or not, and state that it should be given a wider interpretation. The definition is inclusive, as it includes the phrase ‘not limited to’ while explaining the relationships of a commercial nature.  

The Model Law also sets out that there should be no intervention of courts in arbitration proceedings except in certain circumstances as provided by the law itself. This gives power to the arbitral tribunal established by the provisions of the Model Law and minimises the intervention of other courts in matters related to international arbitration. Additionally, the Model Law provides for the recognition and enforcement of arbitral awards. 

Article 2 contains important definitions and rules of interpretation. The Model Law includes provisions for the composition of the arbitration tribunal, the appointment of arbitrators, and the grounds and procedures for challenging the appointment of an arbitrator. An arbitrator may be challenged if justifiable doubts arise about their impartiality or independence, or if they do not possess the required qualifications agreed upon by the parties. The jurisdiction of the tribunal has been outlined and the power to order interim measures has also been conferred upon it. 

The Model Law follows the principle of equal treatment of the parties involved, making sure that there is no arbitrariness or discrimination involved in the resolution process. It includes detailed provisions regarding each and every aspect of arbitral proceedings, from the start of the proceeding to its termination. It aims for uniform treatment of all awards, irrespective of their country of origin, along with their enforcement and recognition of the arbitral award. 

Model Law on Electronic Commerce, 1996

The huge shift in commercial transactions from paper-based to digital communication through the use of computers, known as electronic commerce, led to the enactment of a law specifically drafted for validating the use of e-commerce in international trade. The Model Law on Electronic Commerce (MLEC) was enacted on June 12, 1996 to remove legal barriers and provide credibility to e-commerce, so as to facilitate the digitalisation of international trade. With the change in time, international trade has also increasingly relied upon electronic data transfer and other means of electronic communication to carry out transactions. Hence, this Model Law provides a set of rules which are internationally accepted to increase the reliance on e-commerce. It also provides for equal treatment between paper-based and electronic information. The MLEC is legislated on three principles:

  1. Principle of non-discrimination: This principle ensures that any document shall not be denied legal recognition, validity, and enforceability only because it is in an electronic form.
  2. Principle of technological neutrality: This principle states that the provisions to be included should be neutral to the technology in use. This enables the adoption of new technology without having to change much legislative framework.
  3. Principle of functional equivalence: This principle asserts that every electronic document, record, and signature shall be treated as equivalent to their paper-based document, record, and signature.

The MLEC also validates electronic contracts, provides safeguards to protect the confidentiality of electronic data, and offers protection to consumers involved in electronic transactions. It is important to note that the MLEC includes two parts. The first part talks about electronic commerce in general, while the second part aims at electronic commerce in specific areas. Initially, the specific area was in the context of transport documents, but it was later felt that an open-ended structure should be followed. This structure will make it easier to include more provisions or specific areas into the Model Law according to the changing times. 

The Model Law has an open-ended structure; it has taken a wide approach to defining the term ‘electronic commerce’. It is not restricted to computer-to-computer transmission of information but has also included the aspects of the development of the internet and other sources of e-commerce. The Model Law defines the scope, applicability, and important definitions related to e-commerce, along with giving legal recognition to digital information, digital signatures, data messages, and their evidentiary value. It also provides legal validation to electronic contracts. And lastly, Articles 16 and 17 specifically talk about electronic commerce in areas such as the carriage of goods and transport documents. 

The Model Law has played a huge role in the development and enactment of laws related to electronic commerce within the international community and has facilitated economic growth in the ongoing digital era. 

Model Law on Cross-Border Insolvency, 1997 

The UNCITRAL Model Law on Cross-Border Insolvency (MLCBI) is designed to assist States in developing more effective cross-border insolvency laws to expedite insolvency proceedings more efficiently. It was adopted on May 30, 1997 by UNCITRAL. This Model Law addresses the challenges that arise when a debtor is facing severe financial distress or insolvency and has assets or creditors in multiple jurisdictions. The MLCBI focuses on authorising and encouraging cooperation and coordination among different jurisdictions while respecting the differences among national procedural laws. 

The Model Law emphasises four essential elements that are key to the conduct of cross-border insolvency cases: access, recognition, relief, and cooperation. These elements aim to 

  • Access: These provisions provide the representatives of foreign insolvency proceedings and their creditors the right to access to the local courts in a State that has adopted these rules, allowing them to ask for help. They also enable representatives of local bankruptcy cases in that State to ask for help from courts in other countries
  • Recognition: The main objective of this Model Law is to simplify the legal procedures related to the recognition of insolvency cases from other countries. This reduces the complexity and time consumption that often happens and provides certainty when a foreign case has been recognised. The Model Law acknowledges the orders of foreign courts that have commenced insolvency proceedings and also appointed representatives for those cases. According to the law, a case may be recognised as a main proceeding if the debtor’s main interests are located in the State where the proceedings started at the date of its commencement. Alternatively, it may be recognised as a non-main proceeding if it commences at a place where the debtor has business or operations. 
  • Relief: One of the main principles of the Model Law is that relief considered necessary for the fair and orderly conduct of cross-border insolvencies should be available to assist foreign proceedings. This relief includes interim relief at the discretion of the court, an automatic stay upon recognition of the main proceeding, or any other relief at the discretion of the court for both main or non-main proceedings. 
  • Cooperation: The provisions of the Model Law aim to establish cooperation among the courts of States where the debtor’s assets are located and to coordinate concurrent proceedings. 

Model Law on International Commercial Mediation, 2018

The Model Law was initially adopted in 2002 and was known as the Model Law on International Commercial Conciliation. This Model Law was amended in 2018 with the addition of a section that covered international settlement agreements and their enforcement. The Model Law previously used the term ‘conciliation’ with a view that it can be used interchangeably with the term ‘mediation’. However, when this Model Law was amended in 2018, UNCITRAL replaced the term ‘conciliation’ with the term ‘mediation’ to adapt to the actual and practical usage of the terms. This change was also done with the expectation that this change would promote the credibility and use of the Model Law. 

The main objectives of the Model Law are to resolve disputes through an amicable process that intends to:

  • Reduce the expenses and time involved in dispute resolution.
  • Create a cooperative, healthy, and peaceful environment between parties involved in international trade and commerce.
  • Discover personalised and tailor-made solutions that address the conflict or dispute specifically.
  • Prevent the occurrence of further disputes or conflicts.
  • Facilitate certainty in the practice of international trade and commerce.

This law covers all the procedural aspects involved in the mediation. The primary aim is to promote and encourage the use of mediation while ensuring predictability and certainty in its application. The Model Law provides the definition of mediation and the appointment of mediators. It provides that a mediator can be a sole mediator or consist of two or more mediators as the case requires. Mediation refers to a process where the parties have consented to the appointment of a third party to resolve a conflict arising between them through amicable means. This conflict may arise from contractual or any other legal relationships, and the mediator does not have the authority to impose a decision on the parties. 

The Model Law includes provisions for the appointment of mediators, the commencement of mediation proceedings, the confidentiality and disclosure of information, and the admissibility of evidence in other proceedings, to name a few. These provisions aim to create a structured and reliable framework for mediation, enhancing its credibility and effectiveness in resolving international commercial disputes.

Implication of UNCITRAL Model Laws in India

India, being a Member State of UNCITRAL, holds a moral obligation to consider the Model Laws enacted by the commission, even though they are not binding. Consequently, India has adopted and modified several Model Laws into its national laws. However, it is important to note that India has not adopted every Model Law but only a selected few. The implications of UNCITRAL Model Laws in India can be seen in the following enactments:

Arbitration and Conciliation Act, 1996 and UNCITRAL Model Law on International Commercial Arbitration, 1985

The Arbitration and Conciliation Act, 1996, enacted by the Indian Legislature, is largely based on the provisions of the Model Law on International Commercial Arbitration, 1985. Many provisions of the Arbitration and Conciliation Act have been taken from the provisions of the aforementioned Model Law, including some provisions that differ or have not been adopted from it. For example, Article 9 of the Model Law and Section 9 of the Indian Act talks about arbitration agreements and interim measures by the court. The only difference between these two provisions is the extent of power. 

The Model Law allows the court to provide interim protection to a party during an arbitral proceeding, while the Act of 1996 in India gives the courts the power to provide interim protection to a party even after the making of the arbitral award but before it has been enforced. Further, the Arbitration and Conciliation (Amendment) Act, 2015 was enacted to provide the arbitration tribunal the power to take interim measures after the matter has been referred to it. This amendment lies in conformity with the provisions of the UNCITRAL Model Law. The Indian Legislature expressly mentioned in the Preamble of the Act that the Model Law was duly considered before enacting the Act of 1996. 

Information Technology Act, 2000 and UNCITRAL Model Law on Electronic Commerce, 1996

The Information and Technology Act, 2000 was enacted by the Indian Legislature to facilitate the transition to the new paperless mode of communication and storage of information, specifically electronic commerce (e-commerce). This Act was brought into existence to give effect to the UNCITRAL Model Law on Electronic Commerce which was adopted by the UNCITRAL in 1996. The main objective of this Act was to give legal recognition to the transactions made through electronic means and electronic records. The Act also contains provisions for penalties and punishment against offences related to cybercrimes. It also gave punishment for the acts of hacking, fraudulent use of electronic signatures, breach of confidentiality, and other offences related to electronic communication and data security.  

Information Technology (Amendment) Act, 2008 and UNCITRAL Model Law on Electronic Signatures, 2001

After the enactment of the Model Law on Electronic Signatures in 2001, the Indian Legislature passed the Information Technology (Amendment) Act in 2008. This amendment was done to make the Act technology-neutral and align with international standards set by the Model Law. This Act gave legal recognition to electronic signatures, emphasised the security of electronic records and digital signatures, and granted the State the power to regulate websites to safeguard privacy and also impose a check on the activities related to tax evasion. The Act was enacted to strengthen the practice of electronic transactions and also reduce the incidents of fraudulent activities related to electronic commerce. 

Conclusion 

The UNCITRAL Model Laws act as a guiding pathway for the international community. They provide States with a skeleton framework to enact laws facilitating cross-border trade practices and also for the resolution of conflicts arising out of such practices. States have the authority to make modifications to these Model Laws according to their national policies and principles. The aim is to create a peaceful and harmonised trade structure all around the globe and amicable ways to resolve disputes between States. These Model Laws bridge gaps in domestic laws as well as harmonise national laws across different States. Many States, being members of the UNCITRAL, have adopted these Model Laws into their domestic legislation. Even though the Model Laws are not legally binding on any State, they have been proven of great significance in the international trade community as they have brought uniformity in the laws governing trade internationally.

Frequently Asked Questions (FAQs)

Which States are the members of UNCITRAL?

Some of the current Member States of UNCITRAL include China, the Republic of Korea, Singapore, Belgium, Vietnam, Japan, and Indonesia, to name a few. These States were elected for a term of 6 years beginning from July 8, 2019. 

Has India adopted the Model Law on Cross-Border Insolvency, 1997?

India still needs to adopt the Model Law on Cross-Border Insolvency. However, discussions are going on and proposals have been made for the enactment of this Model Law in India.

Where is the headquarters of UNCITRAL?

UNCITRAL conducts its work in annual sessions held in alternative years at the headquarters of the United Nations in New York and at the Vienna International Centre in Vienna.

What are some other Model Laws adopted by the UNCITRAL?

Some of the Model Laws adopted by UNCITRAL include the UNCITRAL Model Law on Procurement of Goods and Construction (1993), UNCITRAL Model Law on Secured Transactions (2016), UNCITRAL Model Law on International Credit Transfers (1992), and more. 

How does a Model Law differ from a convention?

A Model Law serves as a guiding enactment for States to draft domestic laws, whereas a convention is a binding international agreement that States can sign and ratify. The Model Laws are designed to be more flexible and adaptable to different legal systems.

How can a country adopt a UNCITRAL Model Law?

A country can adopt a UNCITRAL Model Law by incorporating its provisions into its domestic laws or by creating new legislation based on the provisions of the Model Law, tailored to the needs and principles of the legal system of such a country. 

References

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