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Saturday 10 August 2013

Remedies for Breach of International Sales

Remedies for Breach of International Sales
CISG provides remedies similar to the UCC:
§Monetary damages that are foreseeable, consequential damages.
§Damages are difference between contract price and market price.
Parties can agree to what law they will use.
Seller- Goods in Seller’s Possession
Seller may withhold delivery of the goods:
§If material breach by Buyer, Seller can withhold delivery of all goods.
§If non-material breach, Seller can withhold delivery of this installment.
Seller can withhold delivery of all goods if Buyer is insolvent.
Seller may rescind the contract.
Seller may identify the goods to the contract.
Seller may sell raw materials for scrap or finish production.
Seller may resell the goods; and
§Recover damages: the difference between the contract price and the resale price + incidental damages+ damages = the market price at the time & place of tender  + incidental damages - expenses saved.
§If No Damages, Seller can sue for lost profits.
Case 22.1:  Brandeis Machinery v. Capital Crane Rental (2002).
Seller may sue Buyer for breach of contract.
§Recover Damages = the market price at the time & place of tender  + incidental damages.
if there are no damages, Seller can sue for lost profits.
Seller-Goods in Transit
Goods are “in transit” when Seller has tendered goods to Carrier.
Goods are in transit until:
§Buyer is given negotiable document of title to goods.
§Buyer is given non-negotiable document of title or Bailee has acknowledged Buyer’s right to have the goods.
§Buyer has had a reasonable time to pick up the goods.
Seller has the right to stop the goods in transit if:
§Buyer is insolvent - Seller can stop entire shipment of goods.
§Buyer is in breach - Seller may stop a whole truckload or whole container.
Seller-Goods in Buyer’s Possession
Seller may sue for the purchase price.
§Seller may also sue Buyer if goods were  “specially-made” which Seller cannot resell.
§Seller may also sue for the purchase price if the goods were destroyed and the risk had already passed to the Buyer.

Seller can reclaim goods received by an insolvent Buyer if demand made within 10 days of receipt.

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