国际商法CHAPTER

10-1,CHAPTER10,SALES,10-2,CHAPTER10SALES,Topicsforthischapter:UNConventiononContractsfortheInternationalSaleofGoods(CISG)TransactionsCoveredinCISGContractualIssuesExcludedfromCoverageofCISGInterpretingCISGInterpretingSalesContractsFormationoftheContractGeneralStandardsforPerformanceSellersObligationsThePassingofRiskRemediesExcusesforNonperformance,10-3,UNConventiononContractsfortheInternationalSaleofGoods,TheCISG,adoptedin1980,incorporatesrulesfromallthemajorlegalsystems.Itprovidesacceptedsubstantiverulesonwhichcontractingparties,courts,andarbitratorsmayrely.Ithasbeenratifiedby72countries,buthasnotbeenratifiedbyBrazil,Japan,India,andtheUK.Japanisexpectedtoratifyitin2008.,10-4,TransactionsCoveredinCISG,CISGappliestocontractsforinternationalsaleofgoods.Thebuyerandsellermusthavetheirplaceofbusinessindifferentstates.Either:Bothofthestatesmustbecontractingpartiestotheconvention,orTherulesofprivateinternationallawmustleadtotheapplicationofthelawofacontractingstate.AratifyingstatemaydeclarethatitwillapplyCISGonlywhenthebuyerandsellerarebothfromcontractingstates.,10-5,OptingInandOut,PartiestoacontractmayexcludeormodifyCISGsapplicationbyachoice-of-lawclause.Achoice-of-lawclauseisacontractualprovisionthatidentifiesthelawtobeappliedintheeventofadisputeoverthetermsortheperformanceofthecontract.,10-6,Case10-1:AsanteTechnologies,Inc.v.PMC-Sierra,Inc.,Issue:DoestheU.S.federalcourthavejurisdictionanddoesCISGapplytothiscontract?ThecourtdeterminedthepartieswerefromdifferentstatesandCISGappliestocontractsbetweensuchparties.ThepartiesdidnotoptoutoftheCISGanditwasthecontrollinglaw.,10-7,SalesDefined,Asaleistheexchangeofgoodsforanamountofmoneyoritsequivalent.TheCISGdoesnotdefinesales,butvarioussectionspresentthesamedefinitionasmanydomesticlaws,suchastheU.S.UCC,whichdefinesasaleasthe“passingoftitlefromthesellertothebuyerforaprice.”,ThegoodsprocessedthroughthePortofVancouver,B.C.arelikelybeingshippedundercontractscontrolledbytheCISG.Photo:Publicdomain/wiki/Image:PortOVan.jpg,10-8,GoodsDefined,Agoodisamoveable,tangibleobject.ForthepurposesoftheCISG,goodsdonotincludethingsboughtforpersonaluseoratanauctionorforeclosuresale,normaytheybeocean-goingvesselsoraircrafts.,ThesecandlesmayormaynotbeagoodunderCISGdependinguponwhethertheyaresoldtoindividualconsumersorsoldinbulktoaretailerforresale.Photo:Usedwithpermissionoftheauthorfrompersonalarchive.,10-9,MixedSales,Sellerofgoodsoftenfurnishesserviceswhendeliveringaproduct.CISGlooksuponmixedsalesandservicecontractsassalesofgoods,unlessthepreponderantpartoftheobligation”oftheseller“consistsinthesupplyoflabororotherservices.”,10-10,ContractualIssuesExcludedFromtheCoverageofCISG,CISGonlydealswith:Theformationofthecontract,andTheremediesavailabletothebuyerandseller.CISGexcludesquestionsabout:thelegalityofthecontract,thecompetencyoftheparties,therightsofthirdparties,andliabilityfordeathorpersonalinjury.,10-11,Preemption,IfCISGappliestoaparticularcontractualissue,domesticlawispreempted.RemediesprovidedinCISGaretheonlyremediesavailable.Preemptionhelpstofulfillthegoaloftheconventiontoestablishuniformrulesforinternationalsalescontracts.,TheonlypermissibleremedyforadefectivesawistheoneprovidedbyCISGwhenthereisaninternationalsale.Photo:publicdomainSource:/SLTC/etools/woodworking/radial.html,10-12,InterpretingCISG,TointerpretCISG,acourtistoconsider:theinternationalcharacteroftheconvention,theneedtopromoteuniformityintheconventionsapplication,andtheobservanceofgoodfaith.TheCISGimpliesthatacourtmayonlyusetheplainmeaningofthelanguageoftheconvention.Courtsmayalsolookthetravauxpreparatoriesorlegislativehistorytodetermineintent.,10-13,InterpretingCISG:GeneralPrinciples,CISGcallsforcourtstolooktothegeneralprinciplesonwhichtheconventionisbasedwheninterpretingitsprovisions.Twoofthesuggestedprinciplesare:Apartytoacontracthasthedutytocommunicateinformationneededbytheotherparty,andPartieshavetheobligationtomitigatedamagesresultingfromabreach.,10-14,InterpretingSalesContracts,Acontractissaidtobeformedonlywhenthepartieshaveameetingoftheminds.Thissubjectiveintentapproachsaysthatcontractsshouldbeinterpretedaccordingtotheactualintentandunderstandingofthepartiesatthetimetheymadetheiragreement.CISGsayscourtsaretousesubjectiveintentonlyiftheotherpartykneworcouldnothavebeenunawareofthespeakersintent.Ifintentisunclear,courtsuseobjectiveintent.,10-15,Negotiations,Whenacourtistodetermineintent,CISGdirectsthatdueconsiderationbegiventoallrelevantcircumstances,including:thenegotiationsleadinguptothecontract,thepracticesthatthepartieshaveestablishedbetweenthemselves,andthepartiesconductaftertheyagreetothecontract.CISGdoesnotapplythetechnicalrulesthatdomesticcourtsusetointerpretcontracts,suchastheparoleevidencerule.,10-16,PracticesandUsages,Partiesareboundbyanypracticeswhichtheyhaveestablishedbetweenthemselves.Acourtisallowedtoconsideranyusagesthatthepartiesagreedto.Ausageisthecustomarymethodofperformingoractingthatisfollowedbyaparticulargroupofpeople,suchaspeoplewithinaparticulartrade.CISGletsacourtconsider“ausageofwhichthepartieskneworoughttohaveknownwhichininternationaltradeiswidelyknownto,andregularlyobservedbypartiestocontractsofthetypeinvolvedintheparticulartradeconcerned.”,10-17,Case10-2:TreibacherIndustrie,A.G.v.AlleghenyTechnologies,Inc.,DefendantTDYenteredintoconsignmentcontractswithTreibacher,thenrefusedshipmentwhenitfoundacheapersupplier.Courthadtointerpret,undertheCISG,thewordconsignment.Issueturnedonwhetherthatwordshouldbeinterpretedaccordingtoitsmeaningbasedonthe“courseofdealings”or“customaryusageintrade.”Courtappliedcourseofdealingsandawarded$5,327,042.,10-18,Form,TheCISGstatesthatacontractforsaleneednotbeconcludedinorevidencedbywritingandisnotsubjecttoanyotherrequirementsastoform.Itmaybeprovedbyanymeans,includingwitnesses.However,CISGauthorizesacontractingstatewhoselegislationrequirescontractsofsaletobeconcludedinorevidencedbywritingtomakeadeclarationatthetimeofratificationtheCISGprovisiondoesnotapplywhereanypartyhashisorherplaceofbusinessinthatstate.,10-19,FormationoftheContract:TheOffer,Acontractisformedwhenanoffertobuyorsellagoodisaccepted.Anofferisaproposalbyonepersontoanotherindicatinganintentiontoenterintoacontractunderspecificterms.Tobeavalidoffer,theofferormustcommunicateanintentiontobebound.Aproposalissufficientlydefiniteifitindicatesthegoodsandexpresslyorimplicitlyfixesormakesprovisionfordeterminingthequantityandprice.,10-20,EffectivenessofanOffer,Anofferbecomeseffectiveonlyafteritreachestheofferee,aspecificpersonaddressedintheoffer.Offerscanbewithdrawnbeforetheyreachtheofferee.Offerscanberevokedanytimebeforetheoffereedispatchesanacceptance.Afirmofferisanofferthattheofferorpromisestokeepopenforafixedperiodoftime.,10-21,Acceptance,Acontractcomesintoexistenceatthetimetheofferisaccepted.Anacceptanceisastatementofconductbytheoffereeindicatingassentthatiscommunicatedtotheofferor.Silencedoesnotconstituteacceptance.Acceptancemustbereceivedwithinthetimeperiodspecifiedintheoffer.Ifnotimeperiodisgiven,acceptancemustbereceivedwithinareasonabletime.Acceptanceiseffectivewhenreceivedbyofferor.,10-22,Case10-3:UnitedTechnologiesInternational,Inc.v.MagyarLegiKozlekedesiVallalat,Plaintiffofferedtosellaircraftenginestodefendantatspecifiedpricesinaquantitytobeselectedbythedefendantdependinguponhowmanyplanestheypurchased.Defendantssentacceptance.Termrequiringgovernmentapprovalwasnotaconditionprecedent.Anenforceablecontractwasformed.,10-23,AssentbyPerformanceofanAct,Withdrawal,andRejection,Iftheofferorasksforperformanceofanactratherthantheindicationofacceptance,theacceptanceiseffectivewhentheactisperformed.Anoffereemaywithdrawhis/heracceptanceanytimebeforeorsimultaneouswithitsreceipt.Arejectionbecomeseffectivewhenitreachestheofferor.Iftheoffereesendsbothanacceptanceandarejection,theonethatreachedtheofferorfirstwouldbegiveneffect.,10-24,AcceptanceWithModifications,Iftheacceptancemodifiessomeofthetermsoftheoffer,thereisacounterofferinsteadofanacceptanceiftheseinconsistenciesare“material.”UndertheCISG,additionaltermsordifferenttermsrelating,amongotherthings,totheprice,payment,qualityofthegoods,place,andtimeofdelivery,extentofonepartysliabilitytotheother,orthesettlementofdisputesareconsideredtoalterthetermsoftheoffermaterially.,10-25,Case10-4:Filanto,SPAv.ChilewichInternationalCorp.,ChilewichwassupplyingbootstoaRussiancompanythatwerebeingmadebyFilanto.ChilewichmadereferencetoanarbitrationclauseintheRussianContractwithChilewich.FilantofailedtoobjecttotheincorporationbyreferenceoftheRussianContractinatimelyfashion.Thearbitrationclausebecomepartofthecontract,requiringarbitrationinMoscow.,10-26,FundamentalBreach,Whenonepartybreaches,theotherpartymayavoidthecontractormakeademandforspecificperformance.Abreachofcontractcommittedbyoneofthepartiesisfundamentalifitresultsinsuchdetrimenttotheotherpartyassubstantiallytodeprivehimorherofwhatheorsheisentitledtoexpectunderthecontract.Theinjuredpartymayusetheremedyofavoidancebynotifyingtheotherpartyandreturninganygoodsalreadyreceived.,InvoiceusedinTaiwanPhoto:CC-BY/wiki/Image:Invoice_TW_front.JPG,10-27,RequestsforSpecificPerformance,Aninjuredpartymaybeabletorequestspecificperformanceiftheotherpartyisinbreach.Specificperformanceisacourtorderdirectingapartytocarryouttheobligationsheorshehadcontractuallypromisedtodo.Insomecivillawcountries,apartyisentitledtorequireperformance.IntheUS,specificperformanceisgrantedifthegoodsareuniqueandcannotbeobtainedelsewhere.,10-28,SellersObligations,Asellerisrequiredto:deliverthegoods,handoveranydocumentsrelatingtothem,ensurethatthegoodsconformtothecontract.Theplacefordeliveryistheplaceagreedtointhecontract.Otherwise,itis:thefirstcarriersplaceofbusiness,ortheplacewherethepartiesknewthegoodswerelocatedorweretobemanufactured.,10-29,TimeforDeliveryandTurningOverDocuments,Selleristodelivergoodsonthedatefixedinthecontract.Ifnofixeddate,withinareasonabletimeaftertheconclusionofthecontract.Attimeandplaceofdelivery,sellermustturnoveranydocumentsrelatingtothegoodsthatthecontractrequires.Ifdocumentsaredeliveredearly,sellerhastherighttocureanydefectinthedocuments.,10-30,ConformityofGoods,Sellermustdelivergoodswhichareofthequantity,quality,anddescriptionrequiredbythecontractandarepackagedinthemannerrequired.Goodsdonotconformunlessthey:arefitforthepurposeofwhichgoodsofthesamedescriptionwouldordinarilybeused;arefitforanyparticularpurposeexpresslyorimpliedlymadeknowntotheseller;possessthequalitiesofgoodswhichthesellerhasheldoutforthebuyerasasample;arepackagedinthesamemannerusualforsuchgoods.,10-31,Third-PartyClaims,Waiver,TimeforExaminingGoods,andCuringDefects,Goodsarenonconformingiftheyaresubjecttothird-partyclaimssuchasownershipandrightsinintellectualproperty.Thepartiesmaywaivetheconformityrequirement.Buyhasanobligationtoexaminethegoodsfordefectswithinasshortaperiodasispracticableafterdelivery.Buyerisobligatedtoinformthesellerofanydiscovereddefectwithinareasonabletime.Ifasellerdeliversearly,heorshemaycureanydefectuptotheagreedupondatefordelivery.,10-32,BuyersObligations,Abuyerisrequiredto(1)paythepriceand(2)takedeliveryofthegoods.Unlessadifferenttimeisspecified,thebuyermustpaywhenthegoodsorthedocumentscontrollingtheirdispositionaredelivered.Ifplaceofdeliveryisspecified,paymentisalsomadethere.Ifnoplaceofdeliveryisspecified,thenbuyermustpayatthesellersplaceofbusiness.,9-33,Case10-5TheNaturalGasCase,Theplaintiff,aGermanycompany,negotiatedtobuynaturalgasfromanAustrianpartnership.ThedefendantwastoshipthepropanefromtheUStotheplaintiffinBelgium.Theplaintiffwastoobtainaletterofcreditoncethedefendanttolditwherethepropanewastobeloaded.Issue:Hadthedefendantbreachedthecontractbyfailingtodeliverthepropaneorwasitsdutytoperformexcusedbytheplaintiffnotobtainingaletterofcredit?,10-34,Case10-5TheNaturalGasCase,Held:Thebuyerwasexcusedfromopeningaletterofcreditbecausethedefendantneverprovidedthenecessaryinformationfortheletter.Thebreachwasduetothesellersfailuretomakeproperarrangementstoshipthegas.,10-35,PassageofRisk,Thelegalconceptofpassageorriskisthepointintimewhenthebuyerbecomesresponsibleforlossestothegoods.Oncetheriskpasses,thebuyermustpayforthegoods.Eveniftheyaredamagedordestroyed.CISGallowsthepartiestoallocateriskandspecifywhenriskwillpass.Thepartiesusuallyshowpassageofriskthroughtheusageoftradeterms,suchasFreeonBoard(FOB)orCost,Insurance,andFreight(CIF).,SinkingshipintheStraitofGibraltar.PhotoLic:CC-BY/wiki/Image:MV_New_Flame_salvage.jpg,10-36,MeansofDelivery,Goodsmaybedeliveredbyacarrierorbytheseller.Inshipment,transshipment,in-transit,anddestinationcontracts,theriskoflosswillnotpassuntilthegoodsareclearlyidentifiedtothecontractbymarkingsonthegoods,shippingdocuments,ornoticegiventothebuyer.Inashipmentcontractwheretheselleristodeliverthegoodstoacarrieranddoesnotrequirethatthesellerdelivertoaparticularplace,theriskpasseswhenthegoodsarehandedovertothefirstcarrier.,10-37,MeansofDelivery,Ifthegoodsaretobedelivered“FreeAlongsideShip”(FAS)BigOcean,NewYorkCity,NY,thesellerbearstheriskuntilthegoodsaredeliveredtoNYalongsidetheBigOcean.Whenacontractrequiresthesellertoarrangetransportationtoaspecificdestination,theriskoflossdoesnotpasstothebuyeruntilthegoodsarehandedoverorplacedathis/herdisposalatthatplace.WhenasellerinChinaagreestoacontractcontaininga“DeliveredDutyPaid(DDP)LosAngeles,California,thesellerbearstheriskoftransportingthegoodstoLA.,10-38,BuyersRemedies,Thebuyersremediesarecumulative,meaningtheyareabletobejoinedortakentogether.Theremediesuniquetothebuyerare:tocompelspecificperformance,toavoidthecontract,toreducetheprice,torefuseearlydelivery,andtorefuseexcessquantities.,10-39,BuyersRemedies,ThebuyermayavoidacontractifeitherThesellercommitsafundamentalbreachorThebuyergivestheselleraNachfristnoticeandthesellerrejectsitordoesnotperformwithintheperioditspecifies.AbuyersNachfristnoticeisthefixingofanadditionalperiodoftimeofreasonablelengthforperformancebythesellerofhisorherobligations.DuringtheNachfristperiod,thesellerisentitledtocorrectorcurethenonconformityathisorherownexpense.,10-40,Case10-6TheShoeSellersCase,Plaintiff,anItalianbusiness,contractedtosellshoestothedefendant,aGermanbusinesswoman.Theshoesweredeliveredlateandthedefendantcontendedtheywerenonconforming.DefendantdidnotgiveaNachfristnoticeorattempttouseotherremediessuchaspricereduction.Courtfoundnofundamentalbreachbytheplaintiff.,10-41,ReductioninPrice,Ifabuyerisnotentitledtodamageswhenasellerdeliversnonconforminggoods,thebuyerwillbeentitledtoareductioninprice.Thebuyermayreducethepriceinthesameproportionasthevaluethatthegoodsactuallydeliveredhadatthetimeofdeliverybearstothevaluethatconforminggoodswouldhavehadatthattime.Theformulais:,10-42,SellersRemedies,Thesellersremediesmirrorthoseofthebuyer.The