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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