UNCITRAL CLOUT Case 395 (Internationale Jute Maatschappij BV v. Marín Palomares SL)

No. 31/200, UNCITRAL CLOUT Case 395 (2000)

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UNCITRAL CLOUT Case 395 (Internationale Jute Maatschappij BV v. Marín Palomares SL)

Spain Supreme Court
No. 31/200, UNCITRAL CLOUT Case 395 (2000)

RW

Facts

The Dutch company Internationale Jute Maatschappij BV (seller) (plaintiff) contracted to sell jute to a long-time customer, the Spanish company Marín Palomares SL (buyer) (defendant). The buyer subsequently proposed a modest reduction in the contract price to reflect a change in international currency exchange rates. In return for considering this proposal, the seller demanded special payment guarantees. The buyer was unwilling to give these guarantees and refused to accept delivery at the contract price. A few days later, the seller resold the remaining jute to a third party for far less than the reduced price the buyer had proposed and without receiving any payment guarantees. The seller sued the buyer for breach of contract. A Spanish trial court ruled for the buyer. Spain’s supreme court reversed on appeal and then turned to the seller’s claim for damages.

Rule of Law

Issue

Holding and Reasoning ()

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