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Oxford Law Citator
Contents
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Collapse All
Preliminary Material
Preface
Contents—Summary
Contents
List of Contributors
List of Abbreviations
Table of Cases
Argentina
Australia
Austria
Belarus
Belgium
Bermuda
Brasil
Canada
Chile
China
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Israel
Italy
Latvia
Lithuania
Mexico
Netherlands
New Zealand
Poland
Republic of Korea
Russia
Scotland
Serbia
Singapore
Slovak Republic
Slovenia
Spain
Switzerland
United Kingdom
United States
Vietnam
Arbitral Tribunals
Court of Justice of the European Communities
European Court of Human Rights (ECHR)
Main Text
United Nations Convention on Contracts for the International Sale of Goods (1980)—Full Text
Preliminary Material
Introduction
I
II
III
Preamble
Preliminary Material
I History
1
II General
2
3
4
III The Preamble in detail
1 New International Economic Order (paragraph 1)
5
6
7
2 Development of international trade (paragraph 2)
8
3 Uniform rules to promote international trade (paragraph 3)
9
Part I Sphere of Application and General Provisions
Ch.I Sphere of Application
Introduction to Articles 1–6
Preliminary Material
I History
1
II General
2
III The CISG in State courts
1 General
3
4
2 Function of the rules in Chapter I
5
6
3 Remaining scope of rules on the conflict of laws
7
8
9
10
IV The CISG in arbitration
1 General
11
2 Choice of law by the parties
12
3 Choice of law by the tribunal
(a) Conflict of laws.
13
(b) Direct choice.
14
V The application of the CISG
1 Direct application
15
2 Languages
16
17
VI Restricting the sphere of application by reservations
1 Principle
18
2 Individual reservations
(a) Non-application of Part II or Part III (Article 92).
19
(b) Non-application to individual territorial units (Article 93).
20
(c) Non-application between States with the same or related legal systems (Article 94).
21
(d) Non-application of Article 1(1)(b) (Article 95).
22
(e) Non-application of freedom of form rules (Article 96).
23
Article 1
Preliminary Material
I History
1
2
II General remarks on Article 1
1 Territorial sphere of application
3
4
5
2 Subject matter
6
3 Supplementary rules
7
III General requirements of Article 1(1)
1 Contract of sale
(a) General.
8
9
10
(b) Barter.
11
(c) Sales contracts with special financing agreements.
12
13
(d) Framework contracts.
14
(e) Modification and avoidance agreements.
15
2 Goods
(a) General.
16
17
(b) Software.
18
(c) Know-how etc.
19
(d) Documentary sales.
20
(e) Companies.
21
(f) Rights.
22
3 Places of business
23
24
25
4 Internationality
(a) General.
26
(b) Agency.
27
IV Specific requirements of Article 1(1)(a): Contracting States
28
29
V Specific requirements of Article 1(1)(b): Conflict of laws rules lead to the law of a Contracting State
1 General
30
31
2 Mechanism of Article 1(1)(b)
32
33
34
35
3 Reservation under Article 95
(a) General.
36
(b) Effects.
37
38
VI Article 1(2): CISG applies only if the internationality of the contract is apparent
1 General
39
40
2 Requirements of Article 1(2)
41
42
43
44
45
VII Article 1(3): Nationality of the parties or civil or commercial character of the parties or of the contract is irrelevant
46
47
48
Article 2
Preliminary Material
I History
1
2
II General
3
III Article 2 in detail
1 Consumer sales (Article 2(a))
(a) Personal use.
4
5
6
7
(b) Discernibility.
8
9
10
11
12
(c) Burden of proof.
13
14
15
(d) Relationship to consumer protection law.
16
17
18
2 Auctions (Article 2(b))
(a) General.
19
(b) Scope of the provision.
20
21
3 Sales on execution or otherwise by authority of law (Article 2(c))
22
4 Stocks, shares, etc (Article 2(d))
23
24
25
26
5 Ships, vessels, hovercraft or aircraft (Article 2(e))
27
28
29
30
31
32
6 Electricity (Article 2(f))
33
Article 3
Preliminary Material
I History
1
II General
2
III Article 3 in detail
1 Contracts for goods to be manufactured (Article 3(1))
3
(a) Contribution of work and materials.
4
(b) ‘Substantial’ test.
5
6
7
(c) Non-physical contributions.
8
(d) Land.
9
(e) Breach of the buyer’s undertaking.
10
2 Contracts for supply and services (Article 3(2))
(a) Mixed contracts.
11
(b) Interpretation as one contract.
12
(c) Additional obligations.
13
14
15
(d) Separate or unified contracts.
16
17
(e) ‘Preponderant part’.
18
19
20
3 Turnkey-contracts (Article 3(2))
21
4 Other mixed contracts
22
5 Burden of proof
23
Article 4
Preliminary Material
I History
1
II General
1 Scope of Convention as outlined by Article 4
2
3
2 Matters not mentioned by Article 4
(a) General.
4
(b) Dichotomy of substance and procedure outdated.
5
3 Matters outside the Convention
6
III Matters covered by the Convention (Article 4, sentence 1)
1 General
7
2 Formation of contract
(a) Objective agreement.
8
(aa) Offer and acceptance.
9
(bb) Other forms of contract conclusion.
10
(cc) Dispute resolution clauses.
11
(b) Standard terms.
12
3 Rights and obligations of the parties
(a) General.
13
(aa) Obligations.
14
15
(bb) Rights.
16
(b) Contractual stipulations on remedies.
17
(c) Pre-contractual liability.
18
(d) Concurrent remedies.
19
(e) Right to withhold performance.
20
4 Third parties
(a) Third party beneficiaries.
21
(b) Direct claims against the manufacturer.
(aa) Claims derived from first contract.
22
23
(bb) Claims derived from express warranties and guarantees.
24
5 Questions of proof
(a) Burden of proof.
25
(b) Standard of proof.
26
6 Set-off
27
28
IV Matters not governed by the Convention (Article 4, sentence 2)
1 General
29
2 Issues of validity (Article 4, sentence 2(a))
(a) General.
30
31
(b) Legal capacity.
32
(c) Questions of validity relating to the consent of the parties.
(aa) Impossibility.
33
(bb) Consumer protection.
34
35
(cc) Mistake.
36
(dd) Tort/fraud.
37
(d) Validity of individual clauses and standard terms.
38
(aa) Violation of statutory prohibitions.
39
(bb) Gross disparity.
40
(cc) Burdensome obligations.
41
(dd) Hardship.
42
(ee) Exclusion and limitation of liability.
43
(ff) Agreed sums.
44
(e) Validity of usages.
45
3 Exclusion of property issues (Article 4, sentence 2(b))
(a) Transfer of property.
46
(b) Retention of title and other security interests.
47
4 Other matters not covered by the Convention
(a) Recovery of attorneys’ fees.
48
(b) Jurisdictional matters.
49
(c) Limitation of actions.
50
Article 5
Preliminary Material
I History
1
II General
2
3
III Article 5 in detail
1 Exclusion of claims for death or personal injury
4
5
6
7
2 Recourse for death or personal injury
8
9
10
3 Damage to property
(a) General.
11
(b) Concurring domestic remedies.
12
13
14
15
(c) EC directives.
16
Article 6
Preliminary Material
I History
1
II General
1 ‘Opting-out’ approach
2
3
2 Two levels of party autonomy
(a) Level of conflict of laws.
4
5
(b) Level of substantive law.
6
7
3 General principle expressed by Article 6
8
9
III Exclusion of the CISG
1 Necessity for agreement
10
2 Standardized exclusion of the CISG is not advisable
11
3 Opting out of the CISG by choice of law
(a) Positive choice of law.
12
13
14
15
16
17
18
(b) Negative choice of law.
19
(c) Exclusion by implicit choice of law.
20
(d) Exclusion by subsequent choice of law.
21
(e) Dépeçage by partial choice of law.
22
IV Derogation or variation of the CISG’s provisions
1 General
23
24
2 Derogating from the entire CISG
25
26
3 Derogating from and varying the effect of individual provisions of the CISG
27
28
V Opting into the CISG
1 General
29
30
2 Opting into the Convention by choice of law
31
32
33
34
35
36
Ch.II General Provisions
Article 7
Preliminary Material
I History
1
2
3
4
II General
5
III Interpretation of the Convention (Article 7(1))
1 General
6
2 Principles of interpretation
(a) General.
7
(b) International character.
8
9
(c) Need to promote uniformity of application.
10
11
12
13
14
15
(d) Observance of good faith in international trade.
16
17
18
19
3 Methods of interpretation
(a) General.
20
(b) Wording and systematic position.
21
(c) Travaux préparatoires.
22
(d) Methods of public international law.
23
(e) Comparative law.
24
(f) Use of uniform projects.
25
26
IV Gap-filling (Article 7(2))
1 General
27
28
2 Gaps and interpretation
29
3 Matters governed by the Convention
30
4 General principles
(a) General.
31
(b) Principles derived from Part I.
32
(c) Principles derived from Part II.
33
(d) Principles derived from Part III.
34
35
(e) External principles.
36
5 General gaps
(a) Services obligations.
37
(b) Additional obligations.
38
(c) Materials to be provided by the buyer.
39
(d) Right to withhold performance.
40
41
6 Recourse to domestic law
(a) General.
42
(b) Uniform projects.
43
(c) Individual cases.
44
Article 8
Preliminary Material
I Subject matter
1 Interpretation and supplementation of statements and conduct
1
2
2 Determining contract content
3
4
5
3 Interpretation and defective intent
6
7
4 Interpretation and partial nullity
8
5 Borders to hardship
9
II Central ideas of interpretation and supplementation
1 Intent of the parties and protection of commerce
10
11
2 Completion of the contract
12
III Interpretation according to the intent of a party (Article 8(1))
1 Determination of party intent
13
14
2 Knowledge or imputable unawareness of a party
15
16
17
18
19
IV Interpretation according to a reasonable understanding (Article 8(2))
20
21
V Determination of contract content
1 Steps in the determination of contract content
22
2 Determinable common intention of the parties and discoverable intent of each
23
24
3 Objective third person
25
4 Judicial supplementation of the contract
26
27
28
VI Individual questions of interpretation
1 Alignment with the subject of the contract
29
2 Interpretation of the contract as a whole
30
3 Good faith is not a guiding principle for interpretation
31
4 Consideration of negotiations and circumstances of contract formation
(a) In general.
32
(b) The parol evidence rule and presumption of accuracy and completeness.
33
34
35
(c) Use of merger clauses.
36
5 Silence and duty to inquire
37
38
39
6 Foreseeability and recognition as circumstances
40
7 Usual meaning
41
42
8 Language risks
43
44
45
9 Practices between the parties
46
10 Usages
47
48
11 Contra proferentem
49
50
12 Favor negotii and interpretation favouring effect
51
13 Subsequent conduct of the parties
52
53
54
14 Favor debitoris?
55
VII Treatment of standard terms and conditions
1 Incorporation of standard terms
56
57
58
59
60
61
62
63
64
65
2 Surprising clauses
66
3 Precedence of individually agreed-upon terms
67
4 Interpretation of standard terms
68
VIII Procedural considerations
1 Question of law or fact
69
2 Burden of proof
70
Article 9
Preliminary Material
I Subject matter
1 Usages, practices, and determination of contract content
1
2
2 Applicability to rules of contract formation
3
3 Material foreign to the Convention
4
4 ‘Validity’ of usages
5
II Usages and practices (Article 9(1))
1 Agreement on usages
6
7
2 Practices between the parties
8
9
10
11
III International trade usages (Article 9(2))
1 Applicability of international trade usages
(a) Concept of trade usage.
12
(b) Reason for applicability.
13
14
15
2 Requirements of applicability
16
(a) Knowledge and observance.
17
18
(b) International nature.
19
(c) Knowledge or imputed knowledge of the parties.
20
3 Examination and procedural treatment
21
IV Individual cases
22
1 Commercial letters of confirmation (Kaufmännisches Bestätigungsschreiben)
23
24
25
2 Arbitration clauses and agreements on venue
26
3 Handling sets of rules
27
28
Article 10
Preliminary Material
I History
1
II General
2
3
III Article 10 in detail
1 Relevant place of business (Article 10(a))
(a) Closest relationship to the contract and its performance.
4
5
6
7
(b) View by the parties.
8
9
10
2 Habitual residence (Article 10(b))
11
Article 11
Preliminary Material
I History and systematical setting
1
2
3
II General: functions and principle of freedom from requirements as to form
1 Principle
4
2 Importance in international contracts
5
6
III Sphere of application
1 Formation and modification of the contract
(a) Formation under Article 14 et seq.
7
(b) Formation under other rules.
8
(c) Mixed contracts.
9
(d) Modifications to the contract.
10
2 Other declaratory acts and communications
(a) Other declarations provided for in the Convention
11
(b) Communications not provided for in the CISG.
12
IV Superseded rules
1 Validity or proof of a contract conditional on the observance of domestic requirements as to form
(a) Validity conditional on form.
13
(b) Right to adduce proof and bring proceedings conditional on form.
14
(c) Parol evidence rule.
15
(d) Consumer protection by form requirements.
16
(e) National rules on the use of language
17
(f) Duties of manifestations.
18
2 Problems of characterization
19
V Agreed requirements as to form
20
21
Article 12
Preliminary Material
I History
1
II Significance of a reservation
2
3
III Scope
4
5
6
7
Article 13
Preliminary Material
I History
1
II Significance and functions
1 Situations covered
2
2 Agreement on the need for writing
3
4
3 Writing required as a result of Articles 12, 96
5
6
7
III Broadening the scope of the rule enshrined in Article 13
1 General principle under Article 7(2)
8
9
2 Telefax
10
3 Electronic communications
11
Part II Formation of the Contract
Introduction to Articles 14–24
Preliminary Material
I Scope: Objective agreement and validity
1
2
1 Questions of validity not concerning matters of objective agreement or form
3
2 Control of contractual clauses, in particular standard terms
(a) Control of the content of contractual clauses.
4
(b) Incorporation of standard terms.
5
6
(c) Control of surprising terms.
7
(aa) Surprising content.
8
(bb) Surprising language or presentation.
9
(cc) Combination of factors.
10
3 Dissent
11
4 Rights of withdrawal
12
13
14
15
5 Incorporation of dispute resolution clauses
16
(a) Objective agreement.
17
(aa) Applicability of Articles 14–24 ratione materiae.
18
19
(bb) Compatibility with separability presumption.
20
(cc) Applicability issues not governed by Articles 14–24.
21
(b) Formal validity.
22
23
(c) CISG and conflicting provisions (Brussels I Regulation, New York Convention, and others).
24
25
26
27
6 Agreements about ‘opting into’ or ‘opting out of’ the CISG
28
(a) Exclusion of the CISG’s application in accordance with Article 6 (‘opting out’).
29
30
(b) Choice of the CISG (‘opting in’).
31
II Scope: Other forms of concluding the contract
32
1 General position of the CISG
(a) Alternative types of contract formation also covered.
33
(b) Identification of applicable rules.
34
(c) Role of usages (Article 9).
35
2 Conclusion of contract by failure to respond to a commercial letter of confirmation
36
37
38
39
(a) Domestic rules pre-empted by the CISG.
40
41
(b) Usages in international trade (Article 9).
42
43
44
45
(c) Commercial letters of confirmation as evidence.
46
3 Agreements without clear offer and acceptance
47
48
49
4 Contract conclusion in electronic commerce
(a) Applicability of the CISG.
50
51
(b) Autonomous interpretation of Articles 14–24.
52
(c) Party consent to use of electronic communications.
53
5 Internet auctions
54
6 Commodity exchanges
55
7 Calls for tender
56
57
III Conclusion of multi-party contracts
1 Multi-party sales contracts
58
2 Applicability of Articles 14–24
59
60
3 Problems
61
62
IV Negotiations and pre-contractual duties
63
1 Pre-contractual duties arising under the CISG
64
65
2 Applicability of pre-contractual duties arising under domestic law to CISG contracts
(a) General duties of care for life, limb, property, etc.
66
67
(b) Protection from fraudulent conduct.
68
69
(c) Negligent misrepresentation.
70
71
(d) Breaking off contractual negotiations.
72
(e) Pre-contractual duties of information and disclosure.
73
74
3 Agreements to agree, purchase options, framework contracts, etc
75
V Conclusion of the contract and its content
76
77
VI Reservation under Article 92
78
79
VII Influence of Part II beyond the scope of the CISG
1 Articles 14–24 as a model for other uniform law texts and for domestic laws
(a) General.
80
(b) Uniform law texts.
81
(c) Domestic laws.
82
(d) Deviations from the model.
83
2 Effect on the interpretation of laws
84
(a) Influence of Part II on the interpretation of other laws.
85
(b) No interpretation of Articles 14–24 in light of other legal texts (Article 7(1)).
86
Article 14
Preliminary Material
I Basic elements
1
II Minimum content determined or determinable
2
1 Minimum content
(a) Goods, quantity, and price.
3
(b) Identity of the parties.
4
(c) Other contractual details.
5
(d) Missing minimum content.
6
(e) Burden of proof.
7
2 Determination or determinability
(a) Express or implicit determination.
8
9
(b) Defects in intent.
10
11
(c) Determinability.
12
3 Powers of determination
(a) Determination by both parties or by a third party.
13
(b) Determination by one party.
(aa) General.
14
(bb) Issues of validity.
15
(c) Contract clauses referring to the ‘price currently charged by the seller’.
16
(d) Price review clauses etc.
17
III Indefinite price
1 Determinability requirement of Article 14(1), sentence 2
18
2 Historical background
19
20
3 Relationship between Articles 14 and 55: Possible approaches
21
4 Preferable solution
22
23
24
IV Intention to be bound
1 Offeror’s intention to be bound
25
2 Proposal’s objective meaning decisive
26
3 Specific cases
(a) ‘Without obligation’, freibleibend, sans engagement, etc.
27
(b) ‘Letter of intent’, etc.
28
(c) Invitatio ad offerendum.
29
(d) Presentations on the internet.
30
4 Non-binding nature of invitatio ad offerendum, concurrent pre-contractual duties
31
V Offers to the public
32
33
VI Conditions precedent and conditions subsequent
1 Contract formation subject to conditions
34
2 Application of the CISG
35
3 Interpretation of conditions
36
4 Burden of proof
37
VII Incorporation of standard terms of business
38
39
1 Applicable provisions
40
41
42
2 Standard terms as part of the offer
43
(a) Reference to standard terms in offer.
44
45
(b) Offeree’s awareness of standard terms’ text
(aa) Standard terms known to offeree.
46
(bb) Offeror’s obligation to ensure offeree’s awareness: the ‘making available’ test.
47
48
49
3 Making the standard terms’ text available to the offeree
50
(a) Sending the standard terms’ text.
51
52
53
(b) Making the standard terms’ text otherwise available.
54
(aa) During meeting between the parties.
55
(bb) Through availability on the internet.
56
57
(cc) Constant business relationships.
58
59
(dd) Widely known standard terms.
60
61
(ee) Insufficient steps.
62
(c) Layout and format of standard terms’ text.
63
64
(d) Modifications to standard terms’ text.
65
4 Time of offeree’s awareness
66
67
5 Languages and standard terms’ text
68
(a) Language used during contract negotiation.
69
(b) Language of contract.
70
(c) Other languages known to the offeree.
71
(d) ‘World languages’.
72
73
(e) Standard terms’ text in more than one language.
74
6 Incorporation of standard terms into offer according to Articles 8(3), 9
75
(a) Incorporation of certain standard terms as practice between the parties.
76
77
78
79
(b) Standard terms as international usage.
80
7 Acceptance of the offer
81
82
8 Burden of proof
83
Article 15
Preliminary Material
I Function
1
II Effect of an offer reaching the offeree; withdrawal
1 Effectiveness
(a) Reaching the offeree.
2
(b) Offers to the public.
3
2 Withdrawal
4
(a) Declaration of withdrawal.
5
(b) Withdrawal of offers to the public.
6
(c) Legal effect of withdrawal.
7
3 Death, lack of legal capacity, insolvency of a party before his declaration reaches the addressee
8
9
Article 16
Preliminary Material
I The problem and the solution adopted
1 The problem
1
2 The solution
2
II Exercise of the right to revoke; limits on the right (Article 16(1))
1 Revocation by a declaratory act that reaches the addressee
3
2 End of the right to revoke
4
3 Consequences of ineffective revocation
5
4 Extension of the right to revoke
6
5 Burden of proof
7
III The binding nature of the offer (Article 16(2))
1 Binding nature resulting from the offer indicating to be irrevocable (Article 16(2)(a))
(a) Indication of irrevocability.
8
(b) Fixed time for acceptance as presumption of irrevocability.
9
(c) Rebuttal of the presumption.
10
2 Binding nature resulting from the offeree’s action in reliance on the offer (Article 16(2)(b))
11
12
IV Consequences of revocability or of revocation being barred; remedies under domestic law
1 Revocable offers
13
2 Irrevocable offers
14
Article 17
Preliminary Material
I Rejection reaching the offeror
1
2
3
II Expiry of a period set for acceptance
4
5
III Other grounds for termination
6
Article 18
Preliminary Material
I Outline
1
2
II Acceptance
3
1 Acceptance by declaration
(a) Intention to be bound and wording used.
4
5
6
(b) Means of communication.
7
8
9
10
11
2 Acceptance by conduct
(a) Types of conduct equivalent to a declaration.
12
13
14
15
(b) Change of role pursuant to Article 19(1).
16
17
(c) Silence.
18
19
(d) Cross-offers.
20
21
III Effectiveness of a declaration of acceptance
1 When acceptance becomes effective: significance
(a) Conclusion of the contract.
22
(b) Withdrawability of an acceptance.
23
2 Time for and effect of an acceptance which must reach the offeror
(a) Principle that acceptance must reach the offeror.
24
25
(b) Time for acceptance where a period has been fixed.
26
27
(c) Acceptance within a reasonable period.
28
29
30
(d) Time for acceptance of an oral offer.
31
32
33
34
3 Time for and effect of an acceptance which does not have to reach the offeror
(a) Acts.
35
36
(b) Declarations which do not need to reach the offeror.
37
(c) Timeliness of acceptance.
38
4 Acceptance without an indication reaching the offeror
(a) When provided for in the offer.
39
(b) Practices, usage, framework agreements.
40
(c) Effect.
41
42
43
IV Whether there is a duty to give notice of acceptance
44
45
46
Article 19
Preliminary Material
I Outline
1 History
1
2
2 Outline of Article 19(1)
3
3 Outline and history of Article 19(2), (3)
4
4 Commercial letters of confirmation and ‘battle of the forms’ during the CISG’s drafting history
5
II Materially different terms
1 Differences
(a) Agreement in fact.
6
7
(b) Additions, interpretation of the offer.
8
9
(c) Expectations and proposals of the acceptor.
10
11
12
(d) Materially different terms under Article 19(3).
13
(aa) Terms covered.
14
(bb) Article 19(3) as rebuttable presumption.
15
16
(e) Other materially different terms.
17
18
2 Legal consequence of a material alteration
(a) Rejection of the offer.
19
(b) Counter-offer.
20
21
(c) Acceptance of the counter-offer.
22
23
III Immaterially different terms
1 Differences
24
25
2 Legal consequences of an immaterial alteration
(a) Addition to the contract.
26
(b) Objection by the offeror.
27
(c) ‘Without undue delay’.
28
29
(d) Consequences of a timely objection.
30
IV Conflicting standard terms (‘battle of the forms’)
1 Problem
31
32
2 Proposed solutions
33
34
(a) Last shot rule.
35
(b) Knock-out rule.
36
(c) Other approaches.
37
3 Preferable solution
38
(a) Conclusion of contract despite conflicting standard terms.
39
(aa) Oral conclusion of contract.
40
(bb) Party autonomy: the parties’ (implied) derogation from Article 19.
41
(i) Through practices between the parties.
42
(ii) Through the parties’ declarations.
43
(iii) Relevance of the parties’ subsequent conduct.
44
45
46
(cc) Conclusion of contract where Article 19 applies.
47
48
(b) Content of the contract.
49
50
51
Article 20
Preliminary Material
I When time begins to run
1 Time fixed by reference to a period
1
2 Time fixed in a letter or telegram
2
3 Time fixed by telephone or similar direct means of communication
(a) Telephone, telex, fax, etc.
3
(b) Electronic communication.
4
4 Time fixed by separate declaration
5
II Calculation of the period
1 Basic rule (Article 20(2), sentence 1)
6
2 Exception (Article 20(2), sentence 2)
7
III Article 20 as expression of general principles
8
1 Article 20(1)
9
2 Article 20(2)
10
Article 21
Preliminary Material
I Outline
1
2
II Article 21(1)
1 Late acceptance
(a) Acceptance after lapse of the offer.
3
(b) Material and immaterial lateness.
4
(c) Reasons for lateness.
5
2 Conclusion of a contract despite late acceptance
(a) Acceptance must reach the offeror.
6
(b) Approval of a late acceptance.
7
(c) Approval without delay.
8
(d) Approval by notice or orally.
9
(e) Time when contract is concluded.
10
(f) Approval given with additions.
11
(g) Withdrawal of a declaration of approval.
12
(h) Approval given early.
13
(i) Late acceptance containing modifications.
14
3 Contrary agreement
15
III Delay in transmission, Article 21(2)
1 Policy aims
16
2 Reasons for the delay
17
3 Discernible delay in transmission
18
4 ‘Normal transmission’
19
5 Protest by the offeror
20
6 Protest made too soon
21
IV Specific issues
1 Derogation from Article 21(2)
22
2 Uncertainty and opportunities for speculation
23
3 Burden of proof
24
Article 22
Preliminary Material
I Outline
1
II Content
1 Effectiveness of an acceptance
2
2 Conduct amounting to acceptance
3
3 Withdrawal as a declaratory act
4
4 Additions
5
5 Similar declarations
6
6 Speculation
7
Article 23
Preliminary Material
I Time when a contract is concluded
1 Importance of the rule
1
2
2 Cases not addressed by Article 23
(a) Contract concluded subject to conditions.
3
(b) Consent of third party.
4
(c) Performance subject to conditions.
5
(d) Agreement reached without offer and acceptance.
6
II Place where a contract is concluded
7
Article 24
Preliminary Material
I Function and origin of the rule
1
2
II Declarations to which Article 24 applies
1 Declarations which must reach the addressee
3
2 Distinction between declarations made orally and those delivered by other means
4
(a) Oral declarations.
5
(b) Declarations delivered by other means.
6
(c) Use of an intermediary.
7
8
9
III When an oral declaration ‘reaches’ the addressee
1 Must declarations ‘made orally’ have been heard?
(a) Theoretical approaches.
10
(b) Autonomous interpretation of Article 24.
11
2 Declarations made inter praesentes
12
3 Declarations made over the telephone
13
4 Telephone answering machines
14
IV When declarations delivered by ‘other means’ ‘reach’ the addressee
1 Address to which the declaration is to be sent
15
2 Means of declaration
16
3 Delivery
17
18
4 Specific means of communication
(a) Letter.
19
20
21
(b) Telegram.
22
(c) Fax, telex.
23
(d) E-mail.
24
25
26
27
(e) Websites on the World Wide Web.
28
(f) Electronic Data Interchange (EDI).
29
(g) Short Message Service (SMS).
30
5 Party autonomy
31
6 Communications delivered outside business hours
32
33
7 Unintelligible declarations
34
35
V Foreign languages
1 Use of a foreign language as an impediment to the declaration ‘reaching’ the addressee
36
2 Allocation of the ‘language risk’ in detail
37
38
39
40
3 Voidability under domestic law
41
VI Abuse of rights: Addressee preventing receipt
42
43
VII Burden of proof
44
45
Part III Sale of Goods
Ch.I General Provisions
Article 25
Preliminary Material
I Outline and history
1 Unwinding of the contract as remedy of last resort
1
2
2 History of Article 25
3
4
5
II General; functions of a ‘fundamental breach of contract’
1 Precondition for certain remedies under the CISG
6
7
2 Primary role of the particular contract and its circumstances
8
9
3 Limited role of Nachfrist
10
11
4 Article 25’s concept of fundamental breach of contract and ‘false friends’
12
III Preconditions of a ‘fundamental breach of contract’
1 Breach of an obligation, committed by the obligor
13
(a) Types of obligations.
14
(aa) Contractual obligations.
15
(bb) Extracontractual duties.
16
(cc) Protective duties.
17
(b) Effect of obligor’s right to suspend or withhold performance.
18
(c) Obligor’s intention to breach irrelevant.
19
(d) Multiple breaches.
20
2 Detriment to the other party
(a) Definition of contractual expectation by the parties decisive.
21
22
(b) Examples.
23
24
3 Defining ‘fundamental breach’ in standard business terms
25
4 Foreseeability and/or knowledge of the detriment as a factor in contract interpretation
26
27
(a) Where an obligation’s importance has been clearly defined in the contract.
28
(b) Where an obligation’s importance has been addressed during negotiations.
29
(c) In other cases.
30
31
5 Time of foreseeability or knowledge
32
33
6 Burden of proof
(a) Breach of contract.
34
(b) Detriment (ie importance of obligation breached).
35
(c) Foreseeability (or lack thereof).
36
IV Specific cases
1 Breach of the seller’s obligations
(a) Non-delivery of goods.
37
(b) Late delivery of goods.
(aa) General.
38
(bb) Fundamental breach.
39
(cc) No fundamental breach.
40
(dd) Effect of ICC Incoterms®.
41
(c) Failure to deliver in full.
42
(d) Delivery of non-conforming goods.
(aa) General.
43
(bb) Definition of threshold by the parties.
44
45
46
(cc) Impact of seller’s right to cure.
47
48
(dd) Additional period of time (Nachfrist).
49
(ee) Unwinding of contract as ultima ratio, limited to cases where the buyer can make no use of the goods.
50
51
(i) Buyer’s possibility to make use of defective goods.
52
53
(ii) Unreasonable burden for buyer as limit.
54
55
56
(iii) Further cases of fundamental breach.
57
58
(iv) Further non-fundamental breaches.
59
(e) Non-conforming documents.
60
(aa) Accompanying documents.
61
62
(bb) Documentary sales, in particular commodity sales.
(i) General.
63
(ii) Principle of strict compliance.
64
(iii) Strict compliance and Article 25.
65
(iv) Late tender of documents.
66
2 Breach of the buyer’s obligations
(a) Late payment.
67
(b) Documentary payment obligations.
68
69
(c) Failure to take delivery.
70
3 Breach of other (ancillary) obligations
71
72
Article 26
Preliminary Material
I History
1
II Effects of contract avoidance
1 Release from original obligations and creation of duties to make restitution
2
2 Comparative analysis
3
III Requirements
1 A ground for avoiding the contract
4
5
2 Declaration
(a) Form.
6
(b) Clarity of content.
7
8
(c) Lack of a declaration of avoidance.
9
(d) Declaration of avoidance versus agreement to terminate the contract.
10
3 Specific questions
(a) Risk of transmission.
11
(b) Binding effect.
12
(c) ‘Receivability’.
13
(d) Addressee; agency; assignment; transfer of contract.
14
15
4 Time limits
16
17
IV Burden of proof
18
Article 27
Preliminary Material
I Subject matter
1
2
3
II Sphere of application
1 Communications covered
4
2 Oral and equivalent declarations
5
3 Contrary agreement, practices, or usage
(a) Agreements to derogate from Article 27.
6
(b) Usage and practices.
7
(c) Standard terms of business.
8
III Conditions of exemption from the transmission risk
1 Means appropriate in the circumstances
9
2 Language
10
3 Dispatch
11
IV Legal consequences
1 Loss of the communication
12
2 Delay
13
3 Error in transmission
14
4 Time when declaration becomes effective
15
5 Whether a declaration is binding
16
Article 28
Preliminary Material
I General
1 Object and purpose
1
2
3
2 Importance in practice
4
II Preconditions for application of Article 28
1 Summary
5
2 Parties’ rights to require performance according to the CISG
6
7
3 Court
8
4 Own law
(a) Forum law excluding private international law.
9
(b) Scope of selection of the proper law.
10
11
(c) Applicable cases.
12
13
14
15
16
17
(d) Result.
18
5 Comparative standard of the ‘similar contract of sale’
19
6 Recap
20
III Legal consequence: rejection of the action for performance
21
22
23
IV Not excludable by mutual consent
24
Article 29
Preliminary Material
I Modification or termination of contracts (Article 29(1))
1
1 Applicable provisions
(a) Agreement.
2
3
(b) Freedom of form.
4
5
2 Modification or termination
(a) Modifications and additions.
(aa) General.
6
7
8
(bb) Modifications in immediate aftermath of contract conclusion.
9
10
11
12
(cc) Other modifications.
13
(b) Modifications involving third parties.
14
15
(c) Termination.
16
(aa) Termination vs avoidance.
17
(bb) Prerequisites.
18
19
(cc) Contracts conferring benefits on third parties.
20
(dd) Consequences of termination.
21
II Agreements as to form (Article 29(2), sentence 1)
1 Legal effect of agreement as to form
22
23
2 Modification of an agreement as to form
24
3 Merger clauses; confirmation clauses; framework agreements
(a) Merger clauses.
25
(b) Confirmation clauses.
26
(c) Framework agreements.
27
4 Meaning of ‘writing’
28
29
5 Agreement
30
6 Agreement as to form must itself be in writing
31
32
III Abuse of rights (Article 29(2), sentence 2)
1 Preconditions
33
(a) Reliance-inducing conduct.
34
35
36
(b) Reliance, induced by the other party’s conduct.
37
38
(c) Contractual derogation from Article 29(2), sentence 2.
39
2 Domestic rules as to form and misuse of rights
40
3 Legal effect; consideration by the court of its own motion
41
42
4 Concurrent domestic remedies
43
IV Burden of proof
44
Ch.II Obligations of the Seller
Article 30
Preliminary Material
I Subject matter of Article 30
1
2
II Delivery obligation
1 Substance of the obligation to deliver the goods
3
4
2 ICC Incoterms®
5
6
3 Goods in the buyer’s possession
7
III Handing over of documents
8
IV Transfer of property
1 Transfer
9
10
2 Retention of title
11
V Further obligations of the seller
12
s.I Delivery of the Goods and Handing Over of Documents
Article 31
Preliminary Material
I Subject matter and function
1 Overview
1
(a) The content of the delivery obligation.
2
3
(b) The place of delivery.
4
2 Function
5
(a) Buyer’s right to require performance (Article 46(1)).
6
(b) Buyer’s right to avoid the contract (Article 49(1)(b)).
7
(c) Buyer’s right to claim damages (Article 45(1)(b)).
8
(d) Passing of risk.
9
(e) Jurisdiction.
10
II Article 31(a): Delivery by handing the goods over to the carrier
1 Contract of sale involving carriage of the goods
(a) Carriage.
11
12
(b) Contracts of sale ‘involving’ carriage.
13
14
2 The carrier
(a) Starting point.
15
(b) Independent carriers.
16
(c) Transportation by the seller or the seller’s employees.
17
18
(d) Transportation by several carriers.
19
(e) Suppliers.
20
(f) Freight forwarders.
21
22
23
24
3 Handing over the goods
(a) Transferring custody to the carrier.
25
(b) Handing over ‘for transmission to the buyer’.
26
(c) Place of handing over.
27
(d) Legal effects of handing over.
28
4 Breach of contract by the seller in connection with delivery
(a) Dispatch of non-conforming goods.
29
(b) Delivery of an aliud.
30
(c) Partial delivery.
31
(d) Defective packaging.
32
(e) Unjustified imposition of costs on the buyer.
33
34
(f) Dispatch to the wrong place.
35
36
5 Seller’s instructions to return or stop goods in transit
(a) Instructions to return or stop the goods.
37
38
(b) Buyer’s liability for additional costs.
39
(c) Seller’s obligation to preserve the goods.
40
(d) Seller’s liability.
41
III Article 31(b) and (c): Delivery by placing the goods at the buyer’s disposal
1 Starting point
42
2 Place of delivery under Article 31(b)
(a) The four cases covered by Article 31(b).
43
(b) Goods in transit?
44
(c) Parties’ knowledge at the time of conclusion of the contract.
45
3 Place of delivery under Article 31(c)
46
4 Placing the goods at the buyer’s disposal
(a) Making the goods available.
47
(b) Notifying the buyer.
48
49
(c) Packaging.
50
(d) Loading.
51
(e) Goods made available subject to conditions.
52
53
(f) Goods stored at third-party premises.
54
55
56
(g) Legal effects of placing goods at buyer’s disposal.
57
58
59
5 Breach of contract by the seller in connection with delivery
(a) Delivery of non-conforming goods.
60
61
(b) Partial delivery.
62
(c) Goods made available at the wrong place.
63
(d) Where the seller ceases to make the goods available.
64
IV Agreement to deliver at ‘any other particular place’
1 Starting point
65
66
2 ICC Incoterms®
67
(a) Where the place of delivery corresponds to Article 31.
68
(b) Where the place of delivery deviates from Article 31.
69
(c) Where the delivery obligation corresponds to Article 31.
70
(d) Where the delivery obligation deviates from Article 31.
71
3 Place of delivery at the buyer’s place of business
72
4 Breach of contract by the seller in connection with delivery
(a) Loss or damage during transportation to the place of delivery.
73
(b) Delivery at the wrong place.
74
5 Sale of goods in transit
75
76
77
6 Assembly obligations and obligations to provide instructions
78
V Costs and licences
1 Transportation costs
79
2 Customs duties and charges
80
3 Export and import licences
81
82
VI Jurisdiction of the courts for the place of performance
1 General
83
84
2 Legal position under Article 7(1)(b) Brussels Regulation
(a) Overview.
85
(b) Actual place of performance of the delivery obligation.
86
87
88
89
(c) Impact of delivery terms on jurisdiction.
90
(d) Consequences for Article 31.
91
3 Legal position under Article 7(1)(a) Brussels Regulation
(a) Overview.
92
(b) Contracts of sale under Article 31(a).
93
(c) Contracts of sale under Article 31(b) or (c).
94
4 Legal position under the Lugano Convention
95
Article 32
Preliminary Material
I Subject matter and function
1
2
3
II Duty to give notice of consignment (Article 32(1))
1 Scope of application
4
(a) Delivery by handing the goods over to a carrier.
5
(b) Goods not clearly identified to the contract.
6
7
2 Notice
(a) Content.
8
(b) Time.
9
(c) Risk of transmission.
10
3 Consequences
(a) Where seller complies with the duty.
11
12
(b) Where seller fails to comply.
13
14
15
4 Contractual obligation to give notice (ICC Incoterms®)
16
17
III Duty to conclude the contract of carriage (Article 32(2))
1 Scope of application
18
19
2 Seller’s obligations
(a) Conclusion of a contract of carriage.
20
(b) Carriage ‘to the place fixed’.
21
(c) ‘Appropriate’ means of transportation.
22
(d) ‘Usual’ terms.
23
3 Use of a third party
(a) Freight forwarder.
24
25
(b) Sub-carrier.
26
(c) Direct delivery by supplier.
27
4 Transportation costs
28
5 Transportation insurance
29
30
6 Significance of buyer’s instructions
31
32
7 Consequences of seller’s breach
33
IV Duty to provide information for the purpose of effecting insurance (Article 32(3))
34
Article 33
Preliminary Material
I Subject matter and function
1 Subject matter
1
2 Function
(a) Identifying the time when seller must deliver.
2
(b) Identifying the time when buyer’s remedies for non-delivery arise.
3
(c) Identifying the time when buyer must take delivery.
4
3 ‘Delivery period’ and ‘period for taking delivery’ distinguished
5
II Date for delivery fixed by or determinable from the contract: Article 33(a)
6
7
III Period for delivery fixed by or determinable from the contract: Article 33(b)
1 General
8
9
2 Seller’s right to choose the date for delivery
10
3 Buyer’s right to choose the date for delivery
(a) Buyer’s contractual right to call off the goods.
11
(b) Buyer’s right owing to ‘circumstances’.
12
(c) Buyer’s failure to co-operate.
13
4 Timely delivery
14
IV No time fixed by or determinable from the contract: Article 33(c)
1 Delivery within a reasonable time
15
16
2 Determining the date for delivery
17
3 Contracts subject to a condition or time limit
18
4 Non-binding date or period for delivery
19
V Burden of proof
20
Article 34
Preliminary Material
I Subject matter and scope
1
2
3
II Handing over of documents (Article 34, sentence 1)
1 The reference to the contract
4
5
2 Time of handing over
6
3 Place of handing over
7
4 Form of handing over
8
5 Consequences of seller’s breach
9
II The right to cure (Article 34, sentences 2 and 3)
1 General
10
11
2 Non-conforming documents
12
3 ‘Handing over’ of non-conforming documents
13
4 Curing lack of conformity
14
5 Unreasonable inconvenience or expense
15
6 Damages
16
III Burden of proof
17
IV Jurisdiction
18
s.II Conformity of the Goods and Third Party Claims
Article 35
Preliminary Material
I History
1
2
3
II General
1 Comparison with liability for defective goods in domestic legal systems
4
2 Conformity of the goods with the contract and third party claims
5
III Requirements for conformity
1 Contractual requirements (Article 35(1))
6
7
(a) Discrepancies in quantity.
8
(b) Discrepancies in quality.
9
10
(c) Discrepancies in nature.
11
(d) Containers or packaging.
12
2 Subsidiary definition of conformity (Article 35(2))
13
(a) Fitness for the purpose for which the goods would ordinarily be used (Article 35(2)(a)).
14
15
16
17
18
19
(b) Fitness for a particular purpose (Article 35(2)(b)).
20
21
22
23
24
25
(c) Sale by sample or model (Article 35(2)(c)).
26
27
28
29
(d) Usual or adequate packaging (Article 35(2)(d)).
30
31
32
33
3 Immaterial discrepancies
34
4 Mixed contracts
35
5 Lack of conformity attributable to the buyer
36
IV Exclusion of liability
1 Awareness of the buyer (Article 35(3))
37
38
39
40
41
42
2 Failure to give notice of non-conformity
43
3 Disclaimers
44
45
V Remedies
1 Under the CISG
46
2 Under domestic law
47
(a) Mistake.
48
49
(b) Misrepresentation.
50
(c) Fraud and deceit.
51
VI Questions of proof
1 In general and scope
52
2 Object of proof
53
3 Burden of proof
54
(a) Non-conformity based on Article 35(1).
55
(b) Non-conformity based on Article 35(2).
56
(c) Exclusion of liability (Article 35(3)).
57
4 Standard of proof
58
Article 36
Preliminary Material
I History
1
II General
2
III Lack of conformity when the risk passes (Article 36(1))
3
4
IV Lack of conformity after the risk has passed (Article 36(2))
1 Seller’s breach of an obligation
5
6
2 Guarantee
7
8
9
10
11
V Burden of proof
1 General
12
2 Guarantee of durability
13
Article 37
Preliminary Material
I History
1
II General
2
3
III Premature delivery
4
5
IV Right to cure lack of conformity
1 Scope
6
2 Types of cure
7
(a) Making up any deficiency.
8
(b) Delivery of replacement goods.
9
(c) Remedying lack of conformity.
10
3 Incomplete cure
11
4 Limits
12
13
14
V Consequences
1 Exclusion of remedies under Article 45 et seq
15
2 Damages
16
3 Buyer’s refusal
17
VI Burden of proof
18
Article 38
Preliminary Material
I History
1
2
II General
1 Purpose and nature of the duty to examine
3
4
5
2 Comparative law
6
3 Scope of application
7
8
9
III Method of examination
1 Examination by the buyer or a third party
10
2 Agreement by the parties and usage
11
3 Method of examination in the absence of agreement or usage
(a) Law of the place of examination?
12
(b) General principles.
13
(c) Groups of cases.
14
IV Period for the examination
1 Determination of the period
15
16
17
18
2 Beginning of the period
(a) In general.
19
(b) Premature delivery; late delivery; partial delivery.
20
(c) Contract involving carriage of the goods (Article 38(2)).
21
22
23
(d) Redirection in transit or redispatch (Article 38(3)).
24
25
26
27
V Costs of the examination
28
VI Contrary agreement
29
30
31
32
VII Burden of proof
33
Article 39
Preliminary Material
I History
1
2
II General
1 Purpose and nature
3
2 Comparative law
4
3 Scope of application
5
III Notice
1 Requirements as to content
6
7
8
9
10
2 Form and transmission risk
11
12
13
3 Addressee
14
IV Period for giving notice of lack of conformity (Article 39(1))
1 Reasonable period
15
16
17
18
2 Beginning of the period
19
20
21
22
V Time limit (Article 39(2))
1 Two-year period
23
24
25
26
27
2 Guarantee period
28
29
3 Limitation
30
31
VI Consequences of a failure to give any or proper notice
1 Exclusion of remedies
32
2 Exceptions
(a) Article 40.
33
(b) Article 44.
34
(c) Waiver by the seller.
35
(d) Forfeiture.
36
37
(e) Knowledge for other reasons.
38
(f) No disadvantages for the seller.
39
VII Contrary agreement
1 In general
40
2 Contractual guarantees
41
VIII Burden of proof
42
43
Article 40
Preliminary Material
I History
1
II General
2
3
4
III Requirements
1 Seller knew or could not have been unaware of the facts
5
6
7
2 No disclosure
8
3 Relevant time
9
IV Consequences
1 Under the CISG
10
2 Under domestic law
11
V Contrary agreement
12
VI Burden of proof
13
Article 41
Preliminary Material
I History
1
II Transfer of title and acquisition in good faith or free from encumbrances
2
III Requirements for liability for defects in title
1 Third party rights
(a) Sale of third party goods.
3
(b) Rights in personam and in rem.
4
(c) Public law encumbrances.
5
6
7
8
(d) Intellectual property rights.
9
2 Third party claims
10
11
12
13
3 Third party rights or claims based on the buyer’s conduct
14
4 Seller’s own rights or claims
15
5 Relevant time
16
17
6 Geographical scope of application
18
IV Exclusion of liability for defects in title
1 Consent of the buyer
19
20
2 Failure to give notice
21
3 Exemption clauses
22
V Remedies
1 Under the CISG
23
24
2 Under domestic law
25
26
27
VI Burden of proof
28
Article 42
Preliminary Material
I History
1
2
II Existence of industrial or intellectual property rights
3
III Requirements for liability
1 Third party rights based on intellectual property
(a) Intellectual property.
4
(b) Rights of personality, etc.
5
2 Third party claims
6
3 Seller’s own rights
7
4 Relevant time
8
5 Territorial limitations
9
(a) State of use.
10
11
(b) Buyer’s State.
12
(c) Seller’s State.
13
(d) State of transit.
14
6 Seller’s knowledge or culpable lack of knowledge
15
16
IV Exclusion of liability
1 Buyer’s knowledge or culpable lack of knowledge (Article 42(2)(a))
17
18
19
2 Compliance with technical instructions, etc (Article 42(2)(b))
(a) Seller’s exemption.
20
21
22
(b) Seller’s remedies.
23
24
3 Failure to give notice
25
4 Exemption clauses
26
V Remedies
1 Under the CISG
27
28
2 Under domestic law
29
30
VI Burden of proof
31
Article 43
Preliminary Material
I History
1
II Exclusion of liability (Article 43(1))
1 Duty to give notice
2
2 Period for giving notice
3
4
3 Form, risk of loss in transit, and addressee
5
4 Absence of a preclusive period
6
7
5 Legal consequences of failure to give notice
8
III The exception in Article 43(2)
9
10
11
IV Burden of proof
12
Article 44
Preliminary Material
I Subject matter and purpose of the rule
1
2
3
II Reasonable excuse
1 Equitable ‘excuse’
4
5
2 Excuse due to failure to examine and failure to give notice
6
3 Specific cases
7
8
9
10
III Consequences
1 Right to claim damages
(a) Loss for which compensation may be claimed.
11
(b) Failure to examine goods or documents—a breach of the duty to mitigate loss?
12
13
14
2 Price reduction
15
3 Seller’s right to cure the defect
16
4 Damages claim of the seller for failure to notify of lack of conformity
17
5 Limitation period
18
6 Contrary agreement and usage
19
IV Burden of proof
20
s.III Remedies for Breach of Contract by the Seller
Article 45
Preliminary Material
I Subject matter and function of Article 45
1
II Seller’s failure to perform an obligation (Article 45(1))
1 Failure to perform a contractual obligation as the basic precondition of liability
2
(a) Seller’s obligations.
3
4
(b) Failure to perform.
5
6
7
2 ‘Failure to perform’ not dependent on fault or circumstances within the seller’s control
8
3 Burden of proof
9
10
III Remedies under Articles 46–52 (Article 45(1)(a))
1 Right to require performance, avoidance of the contract, price reduction
11
2 Right to elect; ius variandi
(a) Right to elect.
12
13
(b) Ius variandi
(aa) Right to require performance.
14
15
(bb) Avoidance of the contract.
16
(cc) Price reduction.
17
18
19
20
(c) Incumbent upon buyer to decide between remedies.
21
3 Buyer’s right to suspend performance
22
IV Damages (Article 45(1)(b) and (2))
1 Seller’s guarantee liability (Article 45(1)(b))
23
24
2 Claim for damages combined with another remedy (Article 45(2))
25
(a) Right to require performance.
26
(b) Avoidance of the contract.
27
(c) Price reduction.
28
V No period of grace allowed (Article 45(3))
29
VI Concurrent domestic remedies
30
31
32
VII Limitation
33
VIII Jurisdiction of the place of performance
34
35
IX Exclusion of liability
36
37
Article 46
Preliminary Material
I Subject matter and principle of Article 46
1 Priority of the right to require performance
1
2
2 Delivery of substitute goods and repair
3
4
5
II The general right to require performance (Article 46(1))
1 Preconditions and subject matter
6
2 Limits
(a) Resort to a remedy inconsistent with the right.
7
(b) Limits to enforceability using Article 28.
8
(c) Impediments
(aa) Exemption under Articles 79 and 80.
9
10
11
(bb) Impossibility, unreasonableness.
12
13
(d) Duty to take reasonable measures to mitigate loss.
14
(e) Purchase of replacement goods.
15
3 Burden of proof
16
III The right to require delivery of substitute goods (Article 46(2))
1 Sphere of application
17
18
2 Concept of delivery of substitute goods
19
3 Lack of conformity of the goods sold
20
21
22
4 Fundamental breach of contract
23
(a) Objective importance of the defect.
24
25
(b) No cure of the defect
(aa) By repair.
26
27
(bb) Irreparable defects.
28
29
(cc) Exceptions.
30
(c) Burden of proof.
31
(d) Recap.
32
5 Time limit for assertion of the claim to delivery of substitute goods and place for such delivery
33
6 Return of non-conforming goods
34
7 Seller’s choice between delivery of substitute goods and repair
35
8 Legal consequences
36
37
38
IV The right to require repair (Article 46(3))
1 Preconditions
(a) General.
39
(b) Reasonableness.
40
41
42
(c) Time limit.
43
2 Subject matter
(a) General.
44
(b) Place, time, costs.
45
3 Consequences of failure to repair
46
47
V Derogatory agreements
48
Article 47
Preliminary Material
I Functions of an additional period of time
1
2
3
II Fixing an additional period of time (Article 47(1))
1 Fixing the period and demand for performance
(a) Fixing the period.
4
(b) Demand for performance.
5
2 Reasonable period of time
(a) Determined by the circumstances.
6
(b) Period too short.
7
8
9
(c) Period too long.
10
3 Formalities of an additional period of time
(a) Timing.
11
(b) Form and transmission risk.
12
4 Burden of proof
13
III Binding effect on the buyer (Article 47(2))
1 No resort to remedies before expiration of the period
14
15
2 Expiration of the period; compliance
16
3 Refusal to perform
17
4 Right to damages
(a) Damages for delay.
18
(b) Other losses.
19
(c) Contractual penalties.
20
5 Buyer bound if no additional period of time fixed?
21
Article 48
Preliminary Material
I Subject matter and principle of Article 48
1
2
II Right to remedy a failure to perform (Article 48(1), sentence 1)
1 Failure to perform
3
4
2 Remedying a defect
(a) General.
5
(b) Modalities.
6
7
3 Costs
8
4 Reasonableness
(a) General.
9
(b) Criteria.
10
11
12
(c) Burden of proof.
13
5 Reservation of avoidance of the contract
(a) Purpose of the reservation.
14
(b) Fundamental nature of the breach of contract.
15
16
(c) Right to avoid takes priority over seller’s right to cure.
17
6 Relationship to other remedies
(a) Avoidance of the contract.
18
(b) Price reduction.
19
(c) Delivery of substitute goods/repair.
20
(d) Damages.
21
7 Legal consequences
22
23
III Right to remedy a failure to perform following buyer’s failure to respond to the seller’s request (Article 48(2) to (4))
1 Request that the buyer make known his willingness to accept performance by the time indicated (Article 48(2))
(a) Purpose.
24
(b) Preconditions.
25
26
(c) Legal consequences.
27
2 Notice of willingness to perform within a specified period of time without a request that the buyer make known his position (Article 48(3))
28
3 Notice must reach the buyer (Article 48(4))
29
4 Seller’s declaration crossing with that of buyer
30
IV Derogatory agreements
31
Article 49
Preliminary Material
I Subject matter and underlying principle of Article 49
1 Article 49(1)
1
2
2 Article 49(2)
3
II Preconditions of the right to avoid the contract (1): Fundamental breach of contract (Article 49(1)(a))
1 General
4
2 Failure to deliver
(a) Delay.
5
(b) Non-performance.
6
3 Delivery of non-conforming goods
7
8
9
4 Defect in title
10
5 Defective documents
11
6 Other breaches of contract
12
7 Burden of proof
13
8 Contract provision
14
III Preconditions of the right to avoid the contract (2): Additional period of time fixed for delivery (Article 49(1)(b))
1 Non-delivery
(a) Principle.
15
16
(b) Exceptions.
17
(c) Defective or missing documents.
18
19
2 Failure to perform within the additional period fixed
20
21
22
IV Declaration of avoidance of the contract
1 Requirement for a declaration
23
2 Form, content, and addressee of the declaration
24
25
3 Avoidance of the contract in part
26
V Period within which a declaration must be made (1): Late delivery (Article 49(2)(a))
1 Before delivery: No time limit on declaration of avoidance
27
2 After delivery: Declaration of avoidance of the contract within a reasonable period
28
29
VI Period within which a declaration must be made (2): Other breaches of contract (Article 49(2)(b))
1 Principle
30
2 Declaration within a reasonable time
(a) General.
31
(b) Reasonable period of time.
32
(c) Consequences of a failure to observe the time limit.
33
3 Beginning of the period
(a) Buyer knew or ought to have known (Article 49(2)(b)(i)).
34
35
(b) Expiration of an additional period fixed by the buyer and seller’s refusal to perform (Article 49(2)(b)(ii))
(aa) Underlying principle.
36
(bb) Preconditions.
37
38
(cc) Legal consequences.
39
40
(c) Expiration of the period within which a declaration must be made under Article 48(2) and rejection of performance (Article 49(2)(b)(iii)).
41
42
VII Legal consequences
1 Avoidance of the contract justified
43
2 Avoidance of the contract not justified
44
(a) Seller’s consent to avoidance.
45
(b) Avoidance of the contract by the seller on account of the buyer’s refusal to perform.
46
(c) Seller abides by the contract.
47
48
VIII Derogatory agreements
49
50
Article 50
Preliminary Material
I Subject matter and underlying principle of Article 50
1
II Preconditions
1 Goods not in conformity with the contract
2
2 Notice of lack of conformity
3
3 Declaration of price reduction
4
5
6
4 Priority of seller’s right to cure
7
III Calculation
1 Proportional calculation
8
2 Relevant time and place
(a) Relevant time.
9
10
11
(b) Relevant place.
12
3 Goods without value
13
4 Not dependent on loss suffered by the buyer
14
5 Burden of proof
15
IV Legal consequences
1 General
16
2 Relationship to other remedies
17
18
V Derogatory agreements
19
Article 51
Preliminary Material
I Subject matter and scope of application of Article 51
1 Subject matter
1
2 Goods capable of division into parts
2
3 Instalment contracts
3
4 Rejection of partial delivery
4
II Article 51(1): Remedies in case of delivery of only a part of the goods
1 Partial delivery (defect in quantity)
5
6
2 Partially defective delivery
7
3 Obligation to give notice of lack of conformity
8
III Article 51(2): Avoidance of the contract in its entirety
9
10
11
Article 52
Preliminary Material
I Delivery before the date fixed (Article 52(1))
1 Principle
1
2
2 Right to refuse to take delivery
3
3 Consequences of taking delivery
4
5
II Delivery of an excess quantity (Article 52(2))
1 Delivery of an excess quantity
6
2 Rejection
(a) Preconditions.
7
8
(b) Consequences.
9
3 Taking delivery
10
4 Delivery of more valuable goods
11
Ch.III Obligations of the Buyer
Article 53
Preliminary Material
I Subject matter
1
II The buyer’s obligation to pay the purchase price
1 Determination of the purchase price
2
3
2 Currency
(a) Contractual currency.
4
(b) Currency governed by and implicitly settled in the CISG.
5
6
7
(c) The buyer’s right to pay in the currency of the place of payment.
8
(d) The seller’s right to require payment in the currency of the place of payment.
9
3 Means of payment
(a) Open account/cash payment/credit transfer.
10
11
12
(b) Acceptance of a draft (bill of exchange).
13
14
(c) Documentary collection.
15
16
(d) Documentary credits—letters of credit.
17
18
4 Place of payment
19
5 Time of payment
20
6 Interest on the due purchase price
21
7 Costs of payment
22
8 Partial payments
23
9 Imputation of payments
24
10 Action for the purchase price
25
11 Foreign exchange control
26
12 Limitation periods
27
13 Application to countertrade
28
14 Assignment and assignability
29
15 Third party payment
30
16 The buyer’s obligation to provide security
31
(a) Payment guarantee.
32
(b) Standby letter of credit.
33
III The buyer’s obligation to take delivery of the goods
34
1 Supplying parts of the material necessary for manufacture or production of the goods
35
36
2 Specifications of the goods
37
3 ICC Incoterms® 2010
38
4 Duty to cooperate and inform
39
IV Other obligations of the buyer
40
V The seller’s remedies for breach of contract by the buyer
41
VI Burden of proof
42
s.I Payment of the Price
Article 54
Preliminary Material
I Subject matter
1
II Compliance with governmental procedures
1 Exchange control laws and regulations
2
2 Direct application of laws and regulations that require compliance in order to effect payment
3
4
III Compliance with banking procedures
5
6
7
IV The seller’s remedies
8
V Burden of proof
9
Article 55
Preliminary Material
I Subject matter
1 Comparative law background
1
2 Drafting history
2
3 Scope of application—current views
3
II Open price contracts
1 Contract formation—purchase price neither determined nor determinable
4
(a) Parties intended to conclude an open price contract.
5
(b) Parties (partly) performed the contract despite the open price.
6
(c) Parties concluded a contract by means other than by offer and acceptance.
7
(d) Failure of (one of) the parties or a third party to determine the price.
8
(e) CISG part II reservation.
9
(f) Article 55 as a means of interpretation of implicit price terms.
10
2 Validity
(a) ‘Validly concluded’ refers to Article 14 which excludes any domestic requirements of a pretium certum.
11
(b) Right of one of the parties to determine the price.
12
3 Exclusion of rights under domestic law to unilaterally determine the price
13
III Price determination
1 Price generally charged for such goods sold under comparable circumstances in the trade concerned
14
2 Current price
15
3 Current price at the time of the conclusion of the contract
16
4 Reasonable price
17
IV Burden of proof
18
Article 56
Preliminary Material
I Subject matter
1
II Price fixed according to the weight of the goods
2
3
4
III Burden of proof
5
Article 57
Preliminary Material
I Subject matter
1
2
3
4
II Contractual place of payment
5
6
7
8
III Payment against goods or documents at the place of exchange, Article 57(1)(b)
1 Sphere of application—concurrent performance by the parties
9
2 Payment against goods or documents, Article 58(1)
10
11
3 Contract involving carriage of goods or goods in transit if seller dispatches the goods on terms pursuant to which the goods or documents will only be handed over against payment, Article 58(2)
12
4 Contract involving goods stored in a third party warehouse
13
IV Payment at the seller’s place of business, Article 57(1)(a)
1 Sphere of application—advance performance by one of the parties
14
2 Open account payment
15
3 Contract involving carriage of goods or goods in transit or goods in a third party warehouse if seller does not dispatch the goods on terms pursuant to which the goods or documents will only be handed over against payment
16
4 Change of seller’s place of business, Article 57(2)
17
18
19
V Discharge of payment obligation— risk of loss and delay of payment
20
VI Assignment of the claim for the purchase price— effects on the place of payment
21
22
VII International jurisdiction at the place of payment
1 Brussels Convention/Lugano Convention/domestic rules on jurisdiction
23
24
2 Brussels Regulation (Recast) and revised Lugano Convention
25
26
27
28
VIII Place of payment of sums other than the purchase price
1 Damages and penalties
29
30
2 (Partial) Repayment of the purchase price
31
3 Interest
32
IX Burden of proof
33
Article 58
Preliminary Material
I Subject matter
1
2
3
4
II Contractual time of payment (due date)
5
6
III Simultaneous payment against goods or documents, Article 58(1)
7
1 Delivery by placing the goods at the buyer’s disposal at the seller’s place of business or the place of storage or production
8
9
10
2 Delivery by placing the goods at the buyer’s disposal at his place of business or any other agreed place
11
3 Contract involving carriage of goods
12
4 Goods in transit
13
5 Contract involving goods stored in a third party warehouse
14
6 Payment against documents
15
16
17
IV Contract involving carriage of goods under the seller’s reservation that the goods or documents are only to be handed over against payment, Article 58(2)
18
V Legal consequences resulting from the time of payment
1 The seller’s remedies for late payment
19
2 The seller’s right to reject premature payments
20
21
3 Interest
22
23
VI Rights of retention
1 The seller’s rights of retention, Article 58(1), (2)
24
25
2 The buyer’s right of retention, Article 58(1)
26
3 Article 71 and applications of a general right of retention
27
28
29
30
31
32
33
VII The buyer’s right to examine the goods before payment, Article 58(3)
34
35
36
37
VIII Burden of proof
38
39
40
Article 59
Preliminary Material
I Subject matter
1
II No (formal) request for payment or other formality required
2
3
III Invoice
4
5
IV Application of Article 59 to payment of sums other than the purchase price
6
7
8
s.II Taking Delivery
Article 60
Preliminary Material
I Subject matter
1
II The buyer’s obligation to take delivery of the goods
1 Taking over the goods and/or the documents
2
3
4
5
6
2 Acts enabling the seller to make delivery
7
8
9
10
3 Retention rights
11
(a) Premature delivery, Article 52(1).
12
(b) Excess quantity, Article 52(2).
13
(c) Late delivery.
14
(d) Non-conforming goods.
15
16
17
(e) Non-conforming documents.
18
III Other obligations of the buyer
19
IV Burden of proof
20
s.III Remedies for Breach of Contract by the Buyer
Article 61
Preliminary Material
I Subject matter
1
2
3
II The buyer’s failure to perform any of his obligations
4
5
III The seller’s remedies
1 Require performance, set additional period of time, contract avoidance, specification, Articles 61(1)(a), 62 to 65
6
2 Damages, Articles 61(1)(b), 74 to 77
7
3 Retention rights
8
4 Penalties
9
5 Anticipatory breach, Article 72
10
6 Instalment contracts, Article 73
11
IV Damages and concurrent remedies, Article 61(2)
12
13
V Exemption from liability, Articles 79, 80
14
15
VI Contractual exclusion of liability
16
17
VII No period of grace, Article 61(3)
18
VIII The buyer’s right to set-off
19
IX No concurrent remedies under domestic law
20
X Limitation periods
21
Article 62
Preliminary Material
I Subject matter
1
1 Comparative law background
2
3
4
5
2 Drafting history
6
7
8
II The seller’s right to require the buyer to perform the contract
9
1 Action for the price
10
2 Action for taking delivery or performing any other obligation
11
III Restrictions on the seller’s right to require performance
1 Inconsistent remedies
12
2 Specific performance, Article 28
13
(a) Action for the price.
14
(b) Action for taking delivery or performing any other obligation.
15
3 Duty to mitigate loss, Article 77
16
4 Exemption from liability, Articles 79, 80
17
5 Self-help sale, Article 88
18
IV Concurrent remedies and change to other remedies
19
V Burden of proof
20
Article 63
Preliminary Material
I Subject matter
1
2
3
II Prerequisites for giving notice under Article 63
1 Application to all obligations of the buyer
4
2 Time of notice
5
III Notice of additional period of time for performance, Article 63(1)
1 Requirements as to content
6
(a) Fixed period of time.
7
(b) Period of time of reasonable length.
8
9
2 Transmission risk, Article 27
10
IV Provisional preclusion of other remedies of the seller, Article 63(2)
11
1 Remedies provisionally precluded during the fixed additional period of time
12
13
2 All remedies available upon fruitless expiration of additional period of time
14
3 The seller’s right to damages
15
V Burden of proof
16
17
Article 64
Preliminary Material
I Subject matter
1
2
3
4
II Prerequisites for contract avoidance by the seller, Article 64(1)
1 Fundamental breach of contract by the buyer, Article 64(1)(a)
5
(a) Failure to pay.
6
7
8
9
10
11
12
(b) Failure to take delivery.
13
14
15
16
(c) Failure to perform any other obligation.
17
18
2 Expiration of an additional period of time for performance of payment or taking delivery, Article 64(1)(b)
19
20
21
III Time limits on the seller’s right to avoid the contract if the buyer has paid the price, Article 64(2)
22
23
24
25
1 Late performance, Article 64(2)(a)
26
27
28
2 Continuing breach of contract, Article 64(2)(b)
29
30
3 Preclusion of right of contract avoidance
31
IV Declaration of contract avoidance, Article 26
32
V Effects of contract avoidance
1 Release from obligations and restitution, Articles 81 to 84
33
2 Damages, Articles 74 to 77
34
3 Relationship between the seller’s remedy of contract avoidance and his remedy to require the buyer to perform the contract
35
36
37
VI Burden of proof
38
39
40
Article 65
Preliminary Material
I Subject matter
1
2
3
II Prerequisites for the seller’s specification
1 The contract requires the buyer’s specification
4
2 The buyer’s failure to make specification
5
(a) Date agreed upon.
6
(b) The seller’s request to make specification.
7
8
III Specification by the seller
1 The seller’s notice supplying missing specification
9
(a) Requirements of the buyer that may be known to the seller.
10
(b) Information of the buyer of the specification and its details.
11
(c) Reasonable time for the buyer to make different specification.
12
13
(d) Legal consequences.
14
2 The buyer’s reaction
15
3 Remaining risks for the seller
16
17
IV Possible restrictions on the seller’s specification
1 Application of Article 28
18
2 Application of Article 77
19
V The seller’s other remedies
20
21
22
23
VI Other possible applications of the general principle behind Article 65
24
VII Burden of proof
25
26
Ch.IV Passing of Risk
Introduction to Articles 66–70
Preliminary Material
I General
1
2
3
II Comparative law considerations
4
1 Periculum est emptoris
5
6
7
2 Res perit domino
8
9
10
3 Handing over of the goods
11
12
13
14
III Principles of passing of risk under the CISG
1 Starting point
15
16
17
18
2 Identification of the goods
19
3 Rudimentarily or not expressly regulated questions
20
21
22
IV CISG and ICC Incoterms®
23
24
Article 66
Preliminary Material
I History
1
II Subject matter
2
3
III Notion of risk
1 Starting point
4
5
2 Governmental interferences
6
7
8
9
10
11
3 Changes in transport
12
13
14
15
IV Risk and liability
16
1 Scope of Article 66 in fine
17
18
19
20
21
2 Standard for seller’s conduct
22
23
24
25
3 Compliant conduct of the seller
26
V Risk and the action for the price
1 Principle
27
28
2 Restriction of claim for the purchase price
29
30
31
32
33
34
VI Burden of proof
35
Article 67
Preliminary Material
I History
1
2
3
II Subject matter
4
5
6
7
III Basic rule (Article 67(1), sentence 1)
8
1 Carriage called for under the contract
9
10
11
2 Carrier
12
13
14
15
16
3 Handing over
17
18
19
20
21
IV Carriage from an agreed place (Article 67(1), sentence 2)
22
23
24
25
26
V Withholding documents (Article 67(1), sentence 3)
27
28
VI Identification of the goods (Article 67(2))
1 General
29
30
2 Bulk cargo
31
32
33
34
3 No retroactive effect of passing of risk
35
VII Questions of proof
36
Article 68
Preliminary Material
I History
1
2
3
II Subject matter
4
III Basic rule (Article 68, sentence 1)
5
6
IV Exception (Article 68, sentence 2)
1 Carriage called for under the contract
7
2 Specific circumstances
8
9
10
11
3 Carrier
12
13
V Seller’s bad faith (Article 68, sentence 3)
14
1 Scope
15
16
2 Extent
17
18
19
20
3 Standard of bad faith
21
VI Bulk cargo
22
23
24
VII Questions of proof
25
Article 69
Preliminary Material
I History
1
2
3
II Subject matter
4
III Parties in the same place (Article 69(1))
1 Taking over of the goods at the place of the seller (Article 69(1), first alternative)
5
6
7
8
2 Passing of risk in case of delay in taking over the goods (Article 69(1), second alternative)
9
(a) Delay in taking over the goods.
10
(b) Placing at disposal.
11
12
13
(c) Exoneration; buyer’s other breaches.
14
15
16
IV Any other place as place of delivery (Article 69(2))
17
18
19
1 Placing at disposal
20
2 Buyer’s knowledge
21
22
23
V Identification of the goods (Article 69(3))
24
VI Questions of proof
25
Article 70
Preliminary Material
I History
1
II Subject matter
2
3
4
III Scope
1 Fundamental breach of contract
5
6
7
2 Non-fundamental breach of contract
8
9
3 Re-transfer of risk
10
11
12
13
Ch.V Provisions Common to the Obligations of the Seller and of the Buyer
s.I Anticipatory Breach and Instalment Contracts
Article 71
Preliminary Material
I History
1
II Function and scope
1 Context
2
2 Purpose of the rule
3
4
3 Scope of application
(a) Advance performance by either the debtor or the creditor; concurrent performance.
5
6
(b) Grounds for suspension.
7
(c) Instalment contracts.
8
(d) Suspension of damages.
9
(e) Right of suspension after performance has become due?
10
11
(f) Right of suspension referring to non-synallagmatic obligations?
12
13
4 Volume, quantity, and value of the suspended performance
14
5 Effects
15
6 Non-mandatory nature
16
III Impending future breach of a substantial part of the contractual duties; prognosis (Article 71(1))
1 Overview
17
2 Requirements in detail
(a) Impending breach of an obligation.
18
19
20
(b) Grounds for endangerment.
(aa) Article 71(1)(a).
21
22
(bb) Article 71(1)(b).
23
24
(c) Becoming apparent after the conclusion of the contract.
25
26
27
(d) Prognosis.
28
29
30
31
IV Right to suspend performance
1 Exercising the right of suspension
32
2 Time restrictions
33
3 Duty to give notice
(a) Time limits.
34
(b) Form.
35
4 Effects
(a) In case of notification.
36
(b) In case of lack of notification.
37
5 Exclusion of domestic law
38
V Right of stoppage (Article 71(2))
1 Purpose of the rule
39
2 An exclusive right of the seller
40
3 Requirements
41
42
43
4 Effect on the parties
44
5 Effect on third parties
45
46
VI Loss of the right of suspension or stoppage
1 Grounds for loss
(a) Overview.
47
48
(b) In particular: Providing assurance.
(aa) General remarks.
49
50
51
52
53
(bb) State of suspension.
54
(cc) Effects of providing assurance.
55
(dd) Effects of failure to provide assurance.
56
2 Renewal of the contract schedule
57
VII Claims for damages
1 The creditor’s claims for damages
58
2 The debtor’s claims for damages
59
VIII Burden of proof
60
Article 72
Preliminary Material
I History
1
2
II Function and scope
1 Protection of the creditor prior to the date of performance
3
4
2 Comparative analysis
5
6
3 Differentiation between objective grounds and grounds based on the debtor’s conduct
7
4 Distinguishing Article 72 from other remedies
8
III Right of avoidance in case of a future fundamental breach of contract, Article 72(1)
1 Overview
9
2 Future fundamental breach
10
11
12
3 Prediction
13
14
15
IV Duty to give notice, Article 72(2)
1 Purpose of the rule
16
17
2 Notice as a precondition for the right of avoidance
18
19
3 Form and time limits
20
21
4 Duty to substantiate
22
5 Reasonability of the notice
23
24
25
6 Fixing a deadline for providing assurance
26
27
28
7 Combination of the notices in Article 72(2) and Article 71(3)
29
8 Providing assurance
(a) Adequacy of assurance.
30
(b) Effect.
31
(c) Failure to provide (adequate) assurance.
32
(d) Form requirements and time limits.
33
V Anticipatory repudiation, Article 72(3)
1 Purpose of the rule
34
2 Extent
35
3 Declaration of refusal to perform
36
4 Revocability?
37
VI Right of avoidance; declaration
1 Article 26
38
2 Time limits
39
40
3 Effect
41
VII Damages
42
VIII Burden of proof
43
Article 73
Preliminary Material
I History
1
II Function and scope
1 Overview
2
3
2 Comparative analysis
4
5
6
III Breach with regard to a single instalment (Article 73(1))
1 Overview
7
2 Definition of ‘instalment contract’
8
9
10
11
3 Fundamental breach of contract
12
13
14
4 Avoidance—form and time limits
15
16
5 Effects of avoidance
17
18
IV Avoidance with respect to future instalments (Article 73(2))
1 Overview
19
2 Current breach of a duty
20
21
3 Interrelation between current and future breach of contract
22
4 Prediction of a future fundamental breach of contract
23
24
25
5 Avoidance of the contract
(a) Avoidance for the future.
26
(b) Duty to give prior notice?
27
(c) Form and time limits for declaring avoidance.
28
29
(d) Effects.
30
6 Distinguishing Article 73(2) from Articles 71, 72
31
V Extension of the right of avoidance by reason of interdependence (Article 73(3))
1 Overview
32
2 Avoidance according to Article 73(1)
33
3 Interdependence
(a) Interdependence of individual instalments.
34
35
(b) Criteria.
36
4 Avoidance only with respect to future or past instalments?
37
38
5 Effects
39
6 Form and time limits
40
41
VI Distinguishing Article 73 from Article 51
42
43
VII Burden of proof
44
s.II Damages
Article 74
Preliminary Material
I History
1
2
II Basic principles and system
3
4
1 Principles
5
6
7
8
2 Relationship to other provisions of the CISG
9
3 Relationship to other remedies
10
III Scope of application of Article 74
1 Breach of contractual obligations
11
12
2 Breach of non-actionable duties
13
3 Death and personal injury
14
4 Persons entitled to damages and third party losses
15
16
IV Form of compensation
17
V Extent of damages
1 General
18
19
20
2 Categories of loss
21
(a) Non-performance loss.
22
23
24
25
26
27
(b) Incidental loss.
28
29
30
31
32
(c) Consequential loss.
33
34
35
36
37
3 Loss of profit
38
39
40
4 Non-pecuniary loss
41
5 Causation
42
VI Calculation of loss
1 Concrete and abstract calculation of loss
43
2 Betterment
44
3 Disgorgement of profits
45
4 Relevant time for calculation of loss
46
VII Foreseeability rule (sentence 2)
1 General
47
48
2 Relevant persons and relevant point in time
49
3 Standard of foreseeability
50
51
4 Object of foreseeability
52
5 Examples
53
(a) Non-performance loss.
54
(b) Incidental loss.
55
(c) Consequential loss.
56
57
58
59
VIII Contractual stipulations on liability
1 General
60
2 Agreed sums
61
3 Limitation of liability
62
IX Individual matters
1 Place of payment
63
2 Limitation periods
64
3 Currency of compensation
65
X Questions of proof
1 Burden of proof
66
2 Standard of proof
67
3 Furnishing evidence
68
Article 75
Preliminary Material
I Basic principles
1
II Prerequisites
1 Entering into a substitute transaction
2
3
4
2 After avoidance of the contract
5
3 Reasonableness of the substitute transaction
6
7
4 Application of the foreseeability rule?
8
III Legal consequences
1 Recovery of non-performance loss
9
10
2 Recovery of further damages
11
12
13
3 Relationship to Articles 74 and 76
14
IV Burden of proof
15
Article 76
Preliminary Material
I Basic principles
1
II Prerequisites
1 No substitute transaction
2
2 Avoidance of the contract
3
3 Existence of a market price
4
4 Price fixed by the contract
5
5 Application of the foreseeability rule?
6
III Legal consequences
1 Recovery of non-performance loss
7
(a) Relevant place for calculating the market price (Article 76(2)).
8
9
(b) Point in time for calculating loss.
10
11
12
2 Recovery of further loss
13
3 Relationship to Articles 74 and 75
14
IV Burden of proof
15
Article 77
Preliminary Material
I Basic principles
1
2
II Scope of application
1 Damages for breach of contract
3
2 Other remedies
4
5
3 Distinction from Article 80
6
III Extent of the duty to mitigate damages
1 General
7
2 Individual cases
8
9
3 Substitute transactions in particular
10
4 Reimbursement for expenses
11
IV Legal consequences (sentence 2)
12
V Burden of proof
13
s.III Interest
Article 78
Preliminary Material
I General
1
2
3
II Previous drafts
4
III Scope
5
6
7
IV Preconditions
1 Due date
8
(a) Payment of the price.
9
(b) Other claims.
10
(c) Liquidated sum.
11
12
13
14
(d) Price reduction.
15
(e) Damages claims.
16
17
18
2 Non-payment
19
3 No other preconditions
20
21
4 Counterclaims by the debtor
22
(a) Set-off.
23
(b) Suspend performance.
24
5 Termination of the contract
25
(a) Contract is avoided.
26
(b) Reduction.
27
V Provisions
28
VI Cessation
29
30
31
32
VII Rate of interest
33
1 Domestic law or uniform approach?
34
(a) Problems of a uniform approach.
35
36
37
38
39
40
(b) Problems applying domestic law.
41
42
43
44
45
(c) Result.
46
47
2 Interest rates in some States
48
3 Usage and practices
49
4 Agreement
50
5 Compound interest
51
52
53
VIII Other claims for interest
1 Additional loss
54
55
2 Article 84(1)
56
57
58
3 Interest on judgments
59
60
s.IV Exemptions
Article 79
Preliminary Material
I Basic principles
1 Content of the regulation
1
2
3
2 Relationship to other provisions of the CISG
4
3 Parallels in (inter)national commercial law
5
II Sphere of application of Article 79
1 Non-performance of contractual obligations
6
2 Delivery of non-conforming goods
7
3 Non-actionable duties
8
4 Guarantees, liquidated damages, and penalties
9
5 Imputation of knowledge
10
III Conditions for exemption under Article 79(1)
1 General requirements
11
(a) Impediment beyond control.
12
13
(b) Unforeseeability of the impediment.
14
(c) Unavoidability of the impediment and of its consequences.
15
(d) Causation of non-performance
16
2 Specific problem areas
(a) Natural phenomena and catastrophes.
17
(b) State interventions.
18
(c) Responsibility for own sphere.
19
20
(d) Liability for own personnel.
21
(e) Labour disputes.
22
23
24
25
(f) Financial capacity.
26
(g) Procurement risk.
27
28
(h) Conformity of the goods and third party rights or claims.
29
30
(i) Economic impossibility.
31
32
(j) ‘Ethical hardship’.
33
(k) Utility risk.
34
IV Liability for third persons according to Article 79(2)
1 Third persons
35
36
37
38
39
2 Exemption
40
3 Imputation of knowledge
41
V Temporary impediments to performance (Article 79(3))
42
43
VI Duty to inform the promisee (Article 79(4))
1 In general
44
2 Notice
45
46
47
3 Liability for damages
48
49
VII Legal consequences of an exemption (Article 79(5))
1 No liability for damages
50
51
52
2 Right to require specific performance
53
54
55
3 Promisee’s other remedies
56
57
VIII Contractual modifications
1 Modalities of the exemption
58
2 Guarantees of performance
59
IX Burden of proof
60
Article 80
Preliminary Material
I Basic principles
1
2
II Conditions for exemption
1 Act or omission of the promisee
3
2 Cause of non-performance
4
5
6
3 Causation by both parties
7
8
III Legal consequences
1 Exemption of the promisor
9
10
2 Liability of the promisee
11
IV Burden of proof
12
s.V Effects of Avoidance
Introduction to Articles 81–84
Preliminary Material
I Sphere of application
1 Avoidance and restitution
1
2 Right to avoid the contract and declaration of avoidance
2
3 Comparative analysis
3
4
4 Property in the goods
5
6
5 Application of Article 81 et seq beyond the case of avoidance
(a) Delivery of substitute goods.
7
(b) Exemption, Article 79.
8
(c) Contractual rights to avoid the contract and consensual avoidance.
9
10
(d) Partial restitution.
11
II The rules in outlines
1 Avoidance of the contract and damages
12
2 Effects of avoidance
13
14
15
3 Concurrent restitution; concurrent compensation of benefits
16
Article 81
Preliminary Material
I History
1
2
II Requirements of avoidance of the contract
1 Grounds of avoidance
3
2 Declaration of avoidance
4
III Effects of avoidance of the contract
1 Parties’ release from their original obligations
5
2 Exclusion of domestic law
6
7
8
9
10
3 Third parties’ rights
11
4 Continuing obligations
(a) Overview.
12
13
(b) In particular: damages.
14
15
5 Partial restitution
16
6 Application of Article 81 to consensual avoidance of the contract
17
IV Restitution of what has been paid or supplied
1 Right to claim restitution
18
2 Form and scope of restitution
19
20
3 Concurrent restitution
(a) The principle.
21
22
(b) A right of set-off under the Convention?
23
24
25
4 Place of making restitution
(a) General remarks.
26
(b) Place of repayment.
27
28
(c) Place of restitution of the goods.
29
(d) No general principle of restitution at the innocent party’s place of business.
30
(e) Place of restitution and judicial competence.
31
32
5 Costs of restitution
33
6 Time limits for making restitution; seller’s failure to accept the goods
34
V Burden of proof
35
Article 82
Preliminary Material
I History
1
II Loss of the right to avoid the contract (Article 82(1))
1 Principle of restitution with unimpaired goods
2
2 Comparative analysis
3
4
3 Impossibility of restitution
5
4 De minimis rule
6
7
8
5 Relevant point in time
9
6 Legal consequences
10
11
III Exceptions to the principle (Article 82(2))
1 Overview
12
13
14
2 Not due to the buyer’s act or omission (Article 82(2)(a))
15
(a) Breach of contract by the seller.
16
(b) Force majeure.
17
(c) Other cases.
18
19
20
3 Examination of the goods (Article 82(2)(b))
21
4 Resale, consumption, or transformation of the goods (Article 82(2)(c))
(a) Seller’s risk of use in the normal course of business.
22
(b) Consumption, transformation.
23
(c) Use.
24
25
(d) Resale.
26
27
28
29
(e) Disposal of useless goods.
30
(f) Time limits.
31
(g) Normal course of business.
32
IV Subsequent loss, decrease in value or resale of the goods
33
V No application of Article 82 in case of contract avoidance by the seller or by mutual consent
34
35
VI Burden of proof
36
Article 83
Preliminary Material
I History
1
II Sphere of application
1 Principle of independent remedies
2
2 Continuing remedies
(a) Price reduction.
3
(b) Delivery, substitute delivery, cure of defects.
4
(c) Damages.
5
(d) Contractual remedies.
6
3 Problems of delimitation
7
8
Article 84
Preliminary Material
I History
1
2
II Purpose of the rule and sphere of application
1 A supplement to restitution
3
4
2 Scope of application
5
6
7
3 Right to payment/set-off
8
4 Exclusion of domestic law
9
III Interest on the purchase price (Article 84(1))
1 An obligation of the seller
(a) Overview.
10
(b) Interest ‘from the date on which the price was paid’.
11
(c) Cessation of the duty to pay interest.
12
2 Interrelation between interest and damages
(a) The principle.
13
(b) Points of intersection.
14
3 Calculation of interest
(a) Interest rate at the seller’s place of business.
15
16
17
18
19
(b) Abstract interest calculation.
20
4 Currency
21
5 Compensation for currency devaluation exceeding the interest rate?
22
IV Concomitant equalization of benefits (Article 84(2)(a))
1 Defining ‘benefits’
23
24
25
2 Benefits derived from using the goods
26
3 Costs of use; expenses
(a) Net benefit; deduction of expenses.
27
28
(b) Deductible costs.
(aa) General remarks.
29
(bb) Necessary expenditures.
30
(cc) Luxury expenditures.
31
(dd) Useful expenditures.
32
33
34
(ee) Expenses that are not directly linked to the goods.
35
4 Foregone benefits
36
V Equalization by means of a surrogate (Article 84(2)(b))
1 Benefit as a surrogate
37
2 Benefits from using the goods (commodum ex re)
38
3 Benefits from selling the goods (commodum ex negotiatione)
39
40
4 Net benefit
41
5 Lack of a surrogate
42
VI Burden of proof
43
s.VI Preservation of the Goods
Introduction to Articles 85–88
Preliminary Material
I General
1
2
3
II Consequences in case of infringement
4
5
III Analogy
6
Article 85
Preliminary Material
I General
1
II Previous drafts
2
III Conditions
1 Delay in taking delivery
3
(a) Delay or refusal.
4
5
(b) Delay of payment.
6
7
2 Possession of the goods
8
(a) Possession.
9
(b) Ability to control the disposition.
10
3 No further conditions
11
IV Consequences
1 Obligation to preserve the goods
12
13
14
15
16
2 Responsibility for costs
17
18
19
20
3 Right of retention
21
4 Infringement of the obligation to preserve the goods
22
Article 86
Preliminary Material
I General
1
II Previous drafts
2
III Conditions for the obligation to preserve the goods
1 Goods received
3
2 Intention to reject the goods
4
(a) Examples.
5
6
(b) Manifestation of the intention to reject.
7
IV Conditions for the obligation to take possession of the goods
8
1 Dispatch
9
10
2 Rejection
11
12
3 Possibility of taking possession
13
(a) Payment of the price.
14
(b) No unreasonable inconvenience.
15
16
(c) Responsibility for third persons.
17
4 Presence of the seller
18
5 Avoidance of the contract
19
V Obligation to preserve the goods, responsibility for costs, right of retention
20
21
22
VI Miscellaneous
23
Article 87
Preliminary Material
I General
1
II Previous drafts
2
III Conditions
3
4
IV Consequences
1 Careful choice
5
2 Insurance?
6
3 Performance?
7
4 Legal relationship to the depositary
8
5 Costs
9
Article 88
Preliminary Material
I General
1
II Previous drafts
2
III ‘Self-help sale’ (paragraph 1)
3
1 Delay of performance
4
2 Unreasonable delay
5
3 Obstacles
6
4 Notice of intention to sell
7
8
9
5 Performance of the sale
10
IV Emergency sale (paragraph 2)
11
1 Danger of rapid deterioration of the goods
12
2 Unreasonable expense
13
3 Prior notice
14
4 Performance of the sale
15
5 Duty of best effort
16
V Legal relationships to third persons
17
18
VI Use of the proceeds of sale
19
20
21
22
Part IV Final Provisions
Introduction to Articles 89–101
Preliminary Material
I History
1
II General
2
III Main elements of the final provisions
1 Overview
3
2 Diplomatic clauses
4
3 Priority clause
5
4 Reservations
6
7
5 Temporal aspects
8
6 Denouncing ULIS and ULF
9
Article 89
Preliminary Material
1
2
3
Article 90
Preliminary Material
I General
1
II Article 90 in detail
1 International agreement
2
3
4
5
6
2 Matters governed by the Convention
(a) General.
7
(b) Conflict of laws rules.
8
(c) Formal requirements.
9
3 Legal effect of Article 90
(a) General.
10
11
(b) Problematic cases.
12
13
Article 91
Preliminary Material
1
2
3
4
Article 92
Preliminary Material
1
2
3
4
5
6
Article 93
Preliminary Material
1
2
3
4
5
Article 94
Preliminary Material
1
2
3
4
5
6
7
8
Article 95
Preliminary Material
1
2
3
Article 96
Preliminary Material
1
2
3
4
Article 97
Preliminary Material
1
2
Article 98
Preliminary Material
1
2
Article 99
Preliminary Material
1
2
Article 100
Preliminary Material
1
2
3
4
Article 101
Preliminary Material
1
Witness Clause
Preliminary Material
1
2
3
United Nations Convention on the Limitation Period in the International Sale of Goods (1974)—Full Text
Preliminary Material
I Convention on the Limitation Period in the International Sale of Goods as Amended by the Protocol Amending the Convention on the Limitation Period in the International Sale of Goods
Introductory Note
Convention on the Limitation Period in the International Sale of Goods as Amended by the Protocol Amending the Convention on the Limitation Period in the International Sale of Goods
II Explanatory Note by the Uncitral Secretariat on the Convention on the Limitation Period in the International Sale of Goods and the Protocol Amending the Convention on the Limitation Period in the International Sale of Goods
Introduction
A Scope of Application
B Duration and Commencement of Limitation Period
C Cessation and Extension of Limitation Period
D Overall Limit of Limitation Period
E Consequences of Expiration of Limitation Period
F Other Provisions and Final Clauses
Commentary on the United Nations Convention on the Limitation Period in the International Sale of Goods 1974
Introduction
I
1
2
3
4
II
5
6
Preamble
Preliminary Material
Part I Substantive Provisions
Sphere of Application
Article 1: [Introductory provisions: subject-matter and definitions]
Preliminary Material
I General comments
1
II Factual scope of application
1 Basic principle (paragraph 1)
2
(a) The concept of limitation.
3
(b) Claims arising from, or relating to, a sales contract.
4
5
2 Exceptions (paragraph 2)
6
7
III Definitions (paragraph 3)
1 General comments
8
2 Selected definitions
(a) Parties to a sales contract (lit a).
9
(b) ‘Person’ (lit f).
10
(c) ‘Year’ (lit h).
11
Article 2: [Definition of a contract of international sale]
Preliminary Material
Article 3: [Application of the Convention]
Preliminary Material
I Legislative history
1
II The provision in detail
1 Paragraph 1: requirements for application
(a) General comments.
2
(b) Reservation clause.
3
2 Paragraph 2: exc