Unilex, D. 1996-3.4

Unilex D. 1996-3.4 (1996)

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Unilex, D. 1996-3.4

Hamburg Chamber of Commerce Arbitration Court
Unilex D. 1996-3.4 (1996)

RW

Facts

A German buyer (defendant) agreed to buy goods from a Hong Kong seller (plaintiff). This framework agreement permitted the buyer to contract for individual shipments of goods on an as-needed basis, provided that the buyer paid in advance for certain rush orders. In the course of the parties’ relationship, the buyer contracted for rush delivery of 10,000 units of the seller’s goods, to be paid for in advance. Later, the seller informed the buyer that the seller’s supplier had difficulty filling the order. The seller conditioned delivery on the buyer’s paying any unpaid bills under previous contracts. When the buyer objected to this condition, the seller filed a complaint with the Chamber of Commerce Arbitration Court based in Hamburg, Germany. The buyer invoked the United Nations Convention on Contracts for the International Sale of Goods (CISG), declared avoidance of both the framework agreement and the specific contract, and petitioned for damages.

Rule of Law

Issue

Holding and Reasoning ()

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