Ch.6 Limitation on Claims within Article 74

Subject(s):

Breach of contract — Avoidance of damages — Mitigation of damages — UN Sales Convention and damages

This chapter looks at the limitations on the right to claim damages under the United Nations Convention on Contracts for the International Sale of Goods (CISG). A breach of a contract within the CISG does not give unlimited access to damages. Thus, it must be stressed that principles limiting damages must be found within the four corners of the CISG and there should be no recourse to domestic principles. Three limiting factors need to be considered: the foreseeability rule contained in article 74; a duty to mitigate damages by the promisee pursuant to article 77; and the exemption from paying damages for those breaches that are due to an impediment beyond the control of the breaching party pursuant to article 79.