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Ch.13 Fundamental Breach and the CISG

From: Damages Under the Convention on Contracts for the International Sale of Goods (3rd Edition)

Bruno Zeller

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2022. All Rights Reserved.date: 06 July 2022

Subject(s):
Breach of contract — Remedies for breach of contract — Termination/unwinding of contract — UN Sales Convention and damages

This chapter discusses the concept of fundamental breach. In brief, the United Nations Convention on Contracts for the International Sale of Goods (CISG) offers two different approaches to a breach of contract. If the breach is ‘minor’, the aggrieved party simply concludes the contract and asks for damages. If the breach is ‘major’, the contract can be avoided, or terminated, and remedies for breach of contract can be sought. Damages are among the most important remedies any legal system can award to restore financial equilibrium. However, in certain circumstances damages are not the remedy that is envisaged or practical. It should be noted that a breach of a contract gives rise to secondary rights and obligations. Fundamental breach is one of the secondary rights and must be read within the remedial framework of the CISG.

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