Unilex, D. 1996-3.21
Germany Court of Arbitration
CLOUT Case 166 (1996)
- Written by Matthew Celestin, JD
Facts
A German buyer (defendant) executed a sales agreement with a Hong Kong seller (plaintiff). Under the agreement, the price and time of delivery would be different for each order. The buyer purchased thousands of units of goods. At some point, due to the seller’s financial difficulties, the seller asked the buyer to make advance payment for future orders and refused to make any further deliveries unless the buyer also paid the seller its outstanding debts for all past deliveries, even though neither of those conditions were terms of the contract. The buyer declined, and the seller sued in the Germany Court of Arbitration. The buyer, however, argued that the seller breached the contract and that the buyer was thus entitled to avoid the contract under the United Nations Convention on Contracts for the International Sale of Goods (CISG).
Rule of Law
Issue
Holding and Reasoning ()
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