Module 1 Commodity contract (revised 28/9/6

)
1.2 Vienna Sales Convention
1.2 Vienna Sales Convention (CISG)
Table o Contents
!nternational "#reements...............................................................................................1
Statutes...........................................................................................................................1
Common$ealt%..........................................................................................................1
&e$ Sout% 'ales.......................................................................................................2
!nter(retation and a((lication.........................................................................................2
'%en does C!S) a((ly* ........................................................................................2
Countries (arty to C!S).............................................................................................+
,i#%ts o t%e -uyer.....................................................................................................+
"rt ./ 0 reducin# t%e (rice.....................................................................................+
-reac% o contract......................................................................................................+
1undamental -reac%...............................................................................................6
'arranties
....................................................................................................................................6
"voidance o contract................................................................................................2
!nter3relations%i( bet$een C!S) and carria#e o #oods............................................8
,e4ection o s%i((in# documents and #oods 3 re(udiation........................................8
5sto((el................................................................................................................11
,i#%ts o t%e Seller...................................................................................................12
Sto((a#e in transit....................................................................................................1+
-iblio#ra(%y.................................................................................................................1+
International Agreements
• -russels Convention on 6urisdiction and 5norcement o 6ud#ments in Civil
and Commercial Matters 1968
• 7&C!T,"8 Model 8a$ on 5lectronic Commerce (1996)
• 7& Convention on Contracts or t%e !nternational Sale o )oods 198/ (C!S))
Statutes
Commonwealth
• Trade 9ractices "ct 192: (Ct%) and its relevance to im(orts;
o 9art V;
 <ivision 1"" 0 Country o ori#in re(resentations= ss6."" to
6."&>
 <ivision 1" 0 9roduct saety and (roduct inormation= ss 6.-
to 6.T>
 <ivision 2 0 conditions and $arranties in consumer
transactions= ss66 to 2:>
 <ivision 2" 0 "ctions a#ainst manuacturers and im(orters o
#oods= ss2:" to 2.">
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1.2 Vienna Sales Convention
o 9art V";
 8iability o Manuacturers and !m(orters or <eective )ood=
ss2."" to 2."S.
New South Wales
(see equivalent Acts in other States & Territories)
• Sale o )oods (Vienna Convention) "ct 1986 (&S') (C!S))
Interpretation and application
T%e C!S) is a uniorm international trade la$ $%ic% %as conce(ts rom t%e common
la$ and civil la$. "rt 2 is mandatory and re?uires consideration o C!S)@s
international c%aracter in a((lyin# o its "rticles. 7nliAe common la$= inter(retation
and a((lication o C!S) is not de(endent on case la$ t%ou#% (recedent still %as a
role= and re#ard s%ould also be %ad to academic $ritin# in 4udicial reasonin#; see
Beller= 6udicial consistency and "rticle 2. o t%e Convention on t%e !nternational Sale
o )oods; " re(ly. (2//:) 28 "86 +:+.
"rt 8 (rovides #uidance or inter(retation o a contract= and allo$s consideration o
sub4ective and ob4ective intent= and t%is eCcludes a((lication o t%e common la$
limitation o t%e (arol evidence rule as it includes evidence o t%e ne#otiations and
conduct o t%e (arties; see Beller at (+:6=+:2.
!nter(retation o C!S) s%ould be undertaAen $it%in t%e our corners o C!S); see
Beller= 1our Corners 0 T%e Met%odolo#y or !nter(retation and "((lication o t%e 7&
Convention on Contracts or t%e !nternational Sale o )oods
$$$.cis#.la$.(ace.edu /cis#/biblio/:corners.
!m(ortantly= C!S) %as become t%e de acto sales la$ in 5uro(e; see Beller D6udicial
consistency@ +::> ot%er t%an in 5n#land $%ere it %as not been ado(ted= and $%ere t%e
Sale o )oods "ct (7E) a((lies. &ote t%at Scotland %as ado(ted C!S).
When does CISG apply?
C!S) a((lies as a #eneral rule in t%e ollo$in# situations;
1 t%e (arties are in dierent Contractin# States= "rt 1(1)(a)>
2 (rivate international la$ rules a((ly= "rt 1(1)(b) e# $%ere t%e (arties %ave
c%osen t%e la$ o a 4urisdiction $%ere C!S) a((lies; -9 Fil !ntern@l 8td v
5m(ressa 5statal 9etroleos de 5caudor ++2 1.+d +++ (.
t%
Cir 2//+). -ut note
t%at some Contractin# States %ave s(eciically eCcluded its o(eration; C%ina=
Sin#a(ore= 7S">
+ 5C(ress c%oice o la$ clause in t%e contract.
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1.2 Vienna Sales Convention
Countries party to CISG
"n u( to date list o t%e countries $%ic% %ave ratiied= acce(ted= a((roved or acceded
to C!S) is available at t%e 7ncitral $eb site; see $$$.uncitral.or#. " list is also in
t%e attac%ments. !n addition= it is necessary to c%ecA $%et%er t%e Contractin# State
%as eCcluded o(eration o any (art o C!S)= e# "rt 1(1)(b).
1or cases decided on C!S) "rticles; see $$$.uncitral.or# $%ic% (rovides a list o
international cases.
Rights of the Buyer
T%e ri#%ts o t%e buyer are set out in C!S);
:. -uyer@s remedies
:9= .1 -uyer declares contract avoided
&one ,emedy or breac% o $arranty
./ -uyer may reduce (rice
.2(1) -uyer may reuse early delivery
.2(2) -uyer may reuse eCcess ?uantity
2: <ama#es
2:" )eneral rules or measurin# dama#es; loss suered due to
breac%
28 !nterest and s(ecial dama#es
Art 50 – reducing the rice
"n im(ortant -uyer remedy (not available in Sale o )oods la$s) is reduction o t%e
(urc%ase (rice. !n )inGa 9te 8td v Vista Cor( 9ty 8td H2//+I '"SC 11 t%e Court
%eld t%at C!S) #overned all relevant issues to t%e eCclusion o t%e Sale o )oods "ct
189. ('")= and reduced t%e (urc%ase (rice to Gero= and a$arded "rt 2: dama#es.
T%e dis(ute concerned su((ly o non sterile contact lens solution $%ic% caused t%e
"ustralian buyer to conduct a (roduct recall.
Breach of contract
See C!S) "rts 2.= :.= :6 to .2= 61= 2: to 22.
"rt 2. must not be read in isolation= and s%ould be read as a declaratory ri#%t= #iven
unctionality by ot%er "rts= e# "rt :9; see Beller= 6udicial consistency and "rticle 2.
o t%e Convention on t%e !nternational Sale o )oods; " re(ly. (2//:) 28 "86 +:+.
"rt 2. deines undamental breac%; T%e Jandels#eric%t "ar#au (Clout 212)
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"rt :. contains t%e substantive rule.
See <o$ns !nvestments 9ty 8td v. 9er$a4a Steel H2///I KSC :21 concernin# a
contract or t%e sale o )oods $%ere t%ere $as a ailure to (resent a timely letter o
credit= considerin# C!S) "rts 2.= .:= 6:= 22= 2:> 9erry 5n# 9ty 8td (,eceiver and
Mana#er a((ointed) v -ernold ") H2//1I S"SC 1.> )inGa 9te 8td v Vista
Cor(oration 9ty 8td H2//+I '"SC 11>
!n 9laycor( 9ty 8td v Taiyo Eo#yo 8td H2//+I VSC 1/8 t%e dis(ute concerned breac%
o a distribution a#reement and a claim or dama#es arisin# rom t%e su((ly o
deective #oods. T%ere $as no c%oice o la$ clause. T%e case (roceeded on t%e
(erroneous) belie t%at t%ere $as no material dierence or inconsistency bet$een "rt
+. and t%e )oods "ct 19.. (Vic) s19(a) and (b).
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Activity
Searc% t%e !nternet or use ot%er means to ind t%e decision in 9laycor( 9ty 8td v
Taiyo Eo#yo 8td H2//+I VSC 1/8= clicA %ere or t%e case (1// (a#es) and
consider t%e case %avin# re#ard to t%e criticism o t%e case by <r -runo Beller
L%tt(;//cis#$+.la$.(ace.edu/cases//+/:2:a2.%tmlM;
This is another disappointing case where the CISG should have been applied
but was in essence ignored. It appears that the CISG has not fallen on fertile
ground in Australia.
This case between an Australian buer and a !apanese seller deals with a
breach of a distribution agree"ent as well as a clai" for da"ages for the
suppl of defective goods. As there was no choice of law clause in the contract
the CISG na"el article #$ is applicable. As far as the distribution agree"ent
is concerned do"estic law needs to be applied pursuant to article %.
It is astounding to note that the defence argued that the CISG is not applicable
because !apan is not a signator to the Convention. The fact that the
sub"itted to a &ictorian court would have "ade it clear ' and the court noted it
' that the sub"itted to &ictorian law. (owever equall astounding is the fact
that the plaintiff and the court used ter"s contained in s )* of the Goods Act
)*$+ &ic such as fitness for purpose and "erchantable. The Court noted,
-It was not suggested that there was an "aterial difference or
inconsistenc between the provisions of art #$ and s )*(a) and (b) and
because of that and the wa the case was conducted. it is unnecessar
to consider whether there is. Counsel proceeded on the basis that there
was no "aterial difference or inconsistenc.- /0lacorp at 1#$2.
The question is not whether there is an inconsistenc the si"ple fact is the
Goods Act does not appl. The CISG does not use re"edial ter"s such as
breach of warrant or condition. 3urther"ore the re"edial regi"e of article #$
is different to the one prescribed b s.)*. The court did note that there was
difficult and uncertaint in the ascertain"ent of da"ages.
Article 4% should have been the first step in loo5ing for re"edies or article 1$ if
a funda"ental breach is envisaged. Instead the court loo5ed at do"estic case
law for guidance and never consulted the CISG. It is well established in
acade"ic writing and case law that the CISG does not per"it the use of
do"estic law in the interpretative process. It has been suggested ' and it is also
" view ' that a breach of article 4 can lead to a successful appeal in law no
different to a "isapplication of an article within the Convention.
It is also interesting to note that the defence never e6plored articles #+ and #*.
In brief the buer "ust e6a"ine the goods within a short period and pursuant to
article #* loses the right to an re"ed if he does not notif the seller of such
defects within reasonable ti"e after discover of the defects. 3urther"ore the
question of "itigation of da"ages pursuant to article 44 was also never
addressed.
,ead t%e C!S) "rts reerred to. <o you t%inA t%is criticism is 4ustiied*
T%is is a sel3study activity to be com(leted in your (ersonal notebooA.
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Notes
!undamental "reach
C!S) "rt 22 (rovides t%at t%e contract is avoided i t%ere is a undamental breac%;
()) If prior to the date for perfor"ance of the contract it is clear that one of the parties will
co""it a funda"ental breach of contract. the other part "a declare the contract avoided.
(1) If ti"e allows. the part intending to declare the contract avoided "ust give reasonable
notice to the other part in order to per"it hi" to provide adequate assurance of his
perfor"ance.
(#) The require"ents of the preceding paragraph do not appl if the other part has declared
that he will not perfor" his obligations.
" breac% $%ic% de(rives an innocent (arty o t%e $%ole beneit o t%e contract; Jon# Eon#
1ir S%i((in# Co 8td v Ea$asaAi Eisen Eais%a 8td H1962I 2 K- 26. -reac% o a undamental
term is a undamental breac%; Suisse "tlanti?ue Societe d@"rmement Maritime S" v &V
,otterdamsc%e Eolen Centrale H1962I 1 "C +61. !t may be a total non3(erormance o t%e
contract; Neoman Credit 8td v "((s H1962I 2 K- ./8 at .12 or a total breac%; 1arn$ort%
1inance 1acilities 8td v "ttryde H192/I 1 '8, 1/.+.
" undamental breac% #ives a (arty t%e ri#%t to terminate t%e contract; Suisse "tlanti?ue
T%is raises an interestin# (roblem in "ustralia as undamental breac% doctrine %as been %eld
not to be (art o t%e la$ o "ustralia; 9S C%ellaram O Co 8td v C%ina Fcean S%i((in# Co
T%e DB%i 6ian# Eou@ H1991I 1 8loyd@s ,e( :9+ (&S'C") (er Eirby 9 at .16> and see
<arlin#ton 1utures 8td v <elco "ustralia 9ty 8td (1986) 161 C8, .// at .1/> &iss%o !$ai
"ustralia 8td v M!SC Cor(= -er%ad (1989) 6+ "86, :68 at :2/.
Warranties
C!S) contains $arranties o ?uality= t%e breac% o $%ic% #ives t%e buyer a remedy;
"rt +.;

()) The seller "ust deliver goods which are of the quantit. qualit and
description required b the contract and which are contained or pac5aged in
the "anner required b the contract.
(1) 76cept where the parties have agreed otherwise. the goods do not confor"
with the contract unless the,
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(a) are fit for the purposes for which goods of the sa"e description
would ordinaril be used8
(b) are fit for an particular purpose e6pressl or i"pliedl "ade
5nown to the seller at the ti"e of the conclusion of the contract. e6cept
where the circu"stances show that the buer did not rel. or that it
was unreasonable for hi" to rel. on the seller9s s5ill and :udge"ent8
(c) possess the qualities of goods which the seller has held out to the
buer as a sa"ple or "odel8
(d) are contained or pac5aged in the "anner usual for such goods or.
where there is no such "anner. in a "anner adequate to preserve and
protect the goods.
(#) The seller is not liable under subparagraphs (a) to (d) of the preceding
paragraph for an lac5 of confor"it of the goods if at the ti"e of the
conclusion of the contract the buer 5new or could not have been unaware of
such lac5 of confor"it.
!n summary= t%e #oods do not conorm $it% t%e contract unless t%ey are;
1 it or t%e (ur(oses or $%ic% t%e #oods (o t%e same descri(tion) are
ordinarily used; "rt +.(2)(a)>
2 it or a (articular (ur(ose made Ano$n to t%e seller; "rt +.(2)(b)>
+ t%e same ?uality as a sam(le or model; "rt +.(2)(c)>
: (acAed in t%e usual manner or suc% #oods; "rt +.(2)(d).
Avoidance of contract
"voidance is a remedy o last resort. "rt :9 allo$s t%e buyer to avoid t%e contract or
undamental breac%= and is t%e only "rt (rovidin# a le#al basis or avoidance; T%e
Jandels#eric%t "ar#au (Clout 212).
Activity
Searc% t%e !nternet or use ot%er means to dra$ a lo$ c%art settin# out t%e
buyers ri#%ts= based on "rt 2..
T%is is a sel3study activity to be com(leted in your (ersonal notebooA.
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Notes

Interrelationship !etween CISG and carriage of goods
T%e suiciency o (acAa#in# arises in t%e conteCt o t%e international carria#e o
#oods $%en3ever #oods are dama#ed. T%e carrier $ill almost al$ays alle#e t%at t%e
#oods $ere not suiciently (acAed. "rt +.(2)(d) re?uires usual and ade?uate
(acAa#in#.
Re"ection of shipping documents and goods repudiation
" buyer is bound to (ay or documents i= on t%eir ace= t%ey conorm to t%e terms o
t%e contract; )ill O <uus S" v -er#er O Co !ncv H198:I "C +82> H198:I 1 8loyd@s
,e( 222= 8ord <i(locA.
" buyer under a C!1 or C1, contract can only re4ect s%i((in# documents in t%ree
situations; see T%e D!ntan 6 V.+6/" S&@ H2//+I 2 8loyd@s ,e( 2// (er JavelocA3
"llan 6 at H2:I;
1 1raud>
2 $%ere= by t%eir eC(ress terms= t%ey do not conorm to t%e re?uirements o t%e
contract in a res(ect $%ic% is more t%an minimal>
+ $%ere= even i t%ey a((ear to conorm to t%e re?uirements o t%e contract= t%ey
are not #enuine in t%e sense t%at t%ey contain alse inormation about an as(ect
o t%e (erormance o t%e contract $%ic% $ould normally be disclosed in t%e
documents and $%ic% is o more t%an minimal im(ortance= e# t%e date o
s%i(ment;
See -en4amins Sale o )oods= .
t%
edn= (ars 193/2: to 193/2..
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1.2 Vienna Sales Convention
T%e test $as recently restated in T%e D!ntan 6 V.+6/" S&@ H2//+I 2 8loyd@s ,e( 2//
(er JavelocA3"llan 6 at H2.I;
The test is whether the docu"ents contain a state"ent or state"ents which.
without further investigation. de"onstrate that the contract has not been
honoured in one or "ore respects of "ore than "ini"al i"portance. This "ust
be apparent fro" the ter"s of the docu"ents the"selves. without inquir into
the phsical perfor"ance of the contract.
1or an eCam(le o a document containin# a statement on its ace $%ic%= $it%out
urt%er investi#ation= demonstrates t%e contract %as not been %onoured in more t%an
minimal im(ortance; Mars%all Enott O -arAer 8td v "rcos 8td (19+2) :: 8l 8 ,e(
+8: 0 bills o ladin# incor(orated t%e c%arter(arty= and t%e terms o t%e c%arter(arty
?ualiied t%e delivery obli#ation 0 as t%ey did not re?uire delivery at t%e ?uay= but
only at t%e ?uay DPor as near t%ereunto as s%e may saely #et@.
T%e seller o #oods on C!1 !ncoterms (erorms %is obli#ations to$ards t%e buyer in
t$o modes= a (%ysical mode and a documentary mode; %e s%i(s #oods $it%in t%e
s%i(ment (eriod and %e tenders documents to (rove s%i(ment.
'%ere a buyer o #oods in a domestic sale $is%es to ensure t%at t%e seller (erorms
%is obli#ations under t%e contract o sale= t%e most (ersuasive remedy at %is dis(osal
is t%e remedy o termination or re(udiatory breac%. T%is remedy is e?ually= i less
4ustly= available to a buyer $%o $is%es to beat %is seller do$n to a lo$er (rice a#ainst
a allin# marAet.
'%ere t%e sale is concluded on s%i(ment terms= it $ill come as no sur(rise to discover
t%at t%e bimodal nature o (erormance= (%ysical and documentary= causes diiculty
or $%at is normally t%e unitary remedy o re(udiation.
T%ere are t%ree issues arisin# rom re(udiation in international sale contracts on
s%i(ment terms;
1 <oes a deect in a document allo$ t%e buyer to re(udiate t%e contract*
T%e (oint %as arisen in t%e re(orted cases in terms sli#%tly dierent to t%ose used
above. T%e 4ud#es %ave= on a number o occasions= considered $%et%er t%e Qde
minimisQ rule a((lied to t%e documentary duties o a seller on C!1 terms.
(a) ar#uments a#ainst a((lyin# t%e rule
certainty= consistency $it% letter o credit la$= balance o convenience bet$een
t%e (arties
(b) ar#uments in avour o a((lyin# t%e rule=
avoidance o s%ar( (ractice= consistency bet$een t%e (%ysical and documentary
as(ects o (erormance; see Samuel McCausland 8imited v ,ailton H19+1I V8,
2:2
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2 -uyerRs remedy o re4ection; (ractical constraints
T$o eatures o sales concluded on s%i(ment terms maAe it diicult or a buyer
to decide $%et%er or not %e $is%es to terminate t%e contract;
(a) T%e buyer may not= at t%e time t%e documents are tendered= $is% to
re(udiate beore %e %as %ad an o((ortunity to eCamine t%e #oods>
(b) T%e buyer may not even Ano$= at t%e time t%e documents are tendered=
$%et%er t%ere is a re(udiation ri#%t= because t%e transaction on documents
conceal a re(udiatory breac% $%ic% may eCist in deective #oods. T%is is
$%y t%e buyer is #iven a reasonable time to eCamine t%e #oods= but t%is
%a((ens ater t%e money %as been (aid. "not%er issue is t%e use o a
shippers; letter of inde"nit in eCc%an#e or a clean bill of lading@ to %ide
rom t%e buyer some deect in t%e (acAa#in# or t%e #oods $%ic% $ould
result in t%e documents not bein# acce(ted or (ayment under t%e letter o
credit.
-ot% ty(es o diiculty are caused as t%e #oods and documents rarely reac% t%e buyer
to#et%er. T%e (ractical im(lications arise in a number o situations;
(a) '%ere t%e documents reac% t%e buyer beore t%e #oods and t%e buyer
notices a documentary deect>
(b) '%ere t%e documents reac% t%e buyer beore t%e #oods and t%e buyer
does not notice t%e documentary deect>
(c) '%ere t%e #oods reac% t%e buyer beore t%e documents and t%e buyer
notices t%e documentary deect>
(d) '%ere t%e #oods reac% t%e buyer beore t%e documents and t%e buyer
does not notice t%e documentary deect>
(e) '%ere t%e #oods are deective= but t%e documents do not reveal t%e
deect Ano$n to t%e seller and t%e carrier (t%e s%i((er@s letter o
indemnity)
+ T%e buyerRs ri#%t to re4ect documents and t%e ri#%t to re4ect #oods.
T%e situations described above raise t%ree ?uestions;
(a) <oes t%e buyerRs reaction to one mode o (erormance aect %is ri#%ts
re#ardin# t%e ot%er mode o (erormance*
See 1inlay O Co. 8td.. v. M.V. E$iA Joo Ton# Jandel Maatsc%a((ii H1929I
1 E- ://> E$ei TeA C%ao O Ft%ers v. -ritis% Traders and S%i((ers 8td.
H19.:I 2 K- :.9.
" buyer %as no ri#%t to re4ect #ood documents on t%e basis o a sus(icion as
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Module 1 Commodity contract (revised 28/9/6)
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to t%e #oods; See Masse v. "rlitG H192+I V8, 1+2> Jenry <ean v. FR<ay
H1922I +9 C8, ++/> Samuel McCausland 8imited v. ,ailton H19+1I V8,
2:2> )ill O <uus v. -er#er H198:I 1 8loydRs ,e( 222 at 2+1.
(b) '%ere t%e buyer is du(ed into acce(tin# latently deective documents=
$%at are %is remedies a#ainst t%e seller*
'%at is t%e loss t%e buyer %as suered by acce(tin# documents in t%ese
circumstances*
<oes t%e loss recoverable include losses QcausedQ by luctuations in t%e marAet
(rice o t%e #oods*
Can t%e buyer recover substantive dama#es $%ere t%e deect eCists in t%e
documents alone and no identiiable loss is caused to t%e buyer*
See; 9rocter O )amble 9%ili((ine Manuacturin# Cor(oration v Eurt "
-ec%er )mbJ O Co E) H1988I 2 8loydRs ,e( 21.
(c) '%ere t%e buyer acce(ts documents $%ic% contained noticeable
deects= $%at eect does t%at acce(tance %ave on %is ri#%t to re4ect t%e
#oods*
! t%e ri#%t to re4ect documents is se(arate and inde(endent o t%e ri#%t to
re4ect #oods= t%en surely t%e ans$er to t%is ?uestion is &one. Fn t%e ot%er
%and= to #ive t%e buyer t%e ri#%t to re4ect #oods in t%ese circumstances $ould
be to allo$ %im to blo$ %ot and cold on t%e contract de(endin# on $%at $as
%a((enin# to t%e marAet (rice o t%e commodity concerned.
#stoel
See t%e doctrine in 9anc%aud 1reres H192/I 1 8loydRs ,e( .+ concernin# $aiver=
esto((el by conduct and constructive notice.
"lso 8ubrano v. )ollin O Com(any 9ro(rietary 8imited H1919I 22 C8, 11+> -o$es
v C%elleyer H192+I +2 C8, 1.9> -arry v Slade H192/I 2/ &S'8, 121> 1airbanAs.
8avender O Son v 8o$ -ros (189+) 12 &B8, +/2.
T%e eects o t%e doctrine is t%at t%e buyer is esto((ed rom re4ectin# t%e #oods on
similar #rounds;
T%e buyer is esto((ed rom recoverin# dama#es or loss o t%e o((ortunity to re4ect;
Elein4an O Jolst v -remer Jandels H1922I 2 8loydRs ,e( 11> Var#as v Cremer
H1982I 1 8loydRs ,e( +9:.
T%e buyer is not esto((ed rom re4ectin# #oods on ot%er #rounds.
11
Module 1 Commodity contract (revised 28/9/6)
1.2 Vienna Sales Convention
Activity
!s t%e buyer esto((ed t%rou#% t%is doctrine by t%e actions o t%e banAs $%ere a
letter o credit is in (lace*
T%is is a sel3study activity to be com(leted in your (ersonal notebooA.
Notes
Rights of the Seller
61= 62= 6+ 7n(aid seller@s ri#%ts
6: Seller declares contract avoided
Seller@s lien
6/ -uyer must taAe delivery
9art delivery
Termination o lien
,i#%t o sto((a#e in transitu
<uration o transit
Jo$ sto((a#e in transitu is eected
5ect o subsale or (led#e by buyer
Sale not #enerally rescinded by lien or sto((a#e in transitu
21 "ntici(atory breac%
22 Contract avoided i undamental breac%
2+ !nstalments= undamental breac%= contract avoided
"ction or (rice
2: 0 22 <ama#es or breac% o contract
61(1)(b)= 6+(2)=
2: 0 22
<ama#es or non3acce(tance
<ama#es or non3delivery
T%e ri#%ts o t%e seller under C!S) s%ould be considered in t%e conteCt o a romal(a
clause.
12
Module 1 Commodity contract (revised 28/9/6)
1.2 Vienna Sales Convention
Activity
Searc% t%e !nternet or use ot%er means to ind a deinition o a romal(a clause=
and consider $%et%er t%e ri#%ts o t%e seller under C!S) are ade?uate= or
en%anced by a romal(a clause.
T%is is a sel3study activity to be com(leted in your (ersonal notebooA.
Notes
Stoppage in transit
T%ere is no ri#%t under C!S).
"i$liograh%
7&C!T,"8 See $$$.uncitral.or# or C8F7T cases
Van ,eesc%= 9aul 6udicial consistency and "rticle 2. o t%e Convention
on t%e !nternational Sale o )oods. (2//+) 22 "86 :+6
Beller= <r -runo 6udicial consistency and "rticle 2. o t%e Convention
on t%e !nternational Sale o )oods; " re(ly. (2//:) 28
"86 +:+
Beller= <r -runo 1our Corners 0 T%e Met%odolo#y or !nter(retation and
"((lication o t%e 7& Convention on Contracts or t%e
!nternational Sale o )oods
$$$.cis#.la$.(ace.edu/cis#/biblio/:corners
9ace 7niversity= &N <atabase on t%e C!S) and !nternational Commercial
8a$
%tt(;//$$$.cis#.la$.(ace.edu/cis#/teCt/di#est3cases3
notables.%tml
1+

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