Ch.4 Breach of Contract: The CISG

Subject(s):

Breach of contract — Exemption from liability — Remedies for breach of contract — UN Sales Convention and damages — Obligations of the buyer — Obligations of the seller

This chapter details the remedial provisions of the United Nations Convention on Contracts for the International Sale of Goods (CISG). The CISG has two articles, namely articles 45 and 61, which provide an overview of the remedies available to the buyer or the seller in the event of a breach. Article 45(2) for the buyer and article 61(2) for the seller make it clear that damages provide the most important and all-embracing remedy, as both the buyer and seller never lose the right to damages even if they choose another remedy. In addition, parties to a sale are relieved of liability for a breach of contract only by article 79, which indicates that only an impediment beyond the control of the party will excuse non-performance. The CISG allows for three broad categories of remedies: specific performance, avoidance, and substitutionary relief.