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UNCITRAL CLOUT Case 541

7 Ob 301/01t (2002)

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UNCITRAL CLOUT Case 541

Austria Supreme Court of Justice
7 Ob 301/01t (2002)

RW

Facts

An Austrian buyer ordered a cooling device from a German seller. The seller missed the contract delivery date, thereby frustrating the buyer’s plan to inspect the cooler before installing it at a construction site. When the buyer discovered that the cooler was defective in ways that could harm the construction site, the buyer promptly notified the seller and warned that cooler and site repairs could be costly. Once the repairs were underway, it became clear that the repair costs would greatly exceed the cooler’s price. The buyer sued to set off the repair costs against sums that the buyer owed the seller under another contract. The Austrian trial court entered judgment for the seller but was reversed by an intermediate appellate court, which also ruled that the United Nations Convention on Contracts for the International Sale of Goods (CISG) applied to the case. The seller appealed to Austria’s supreme court.

Rule of Law

Issue

Holding and Reasoning ()

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