FUNDAMENTAL BREACH OF CONTRACT UNDER THE UN CONVENTION ON CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS

Nevena Tepavac

doi:10.5937/ptp2304174T

Аутори

Nevena Tepavac Univerzitet Privredna akademija u Novom Sadu, Pravni fakultet za privredu i pravosudje, Geri Karolja 1, 21000 Novi Sad, info@pravni-fakultet.edu.rs https://orcid.org/0000-0003-2981-2304

##plugins.pubIds.doi.readerDisplayName##:

https://doi.org/10.5937/ptp2304174T

Кључне речи:

breach, fundamental breach, contract, international sale of goods, detriment, damage, reasonable person, foreseeability

Сажетак

The concept of fundamental breach of contract under the United Nations Convention on Contracts for the International Sale of Goods (CISG) of 1980 plays a pivotal role in determining the legal remedies available to the aggrieved party. It allows for contract termination only in instances where a breach is deemed fundamental. This paper delves into a comprehensive analysis of the institution of fundamental breach of contract and its characteristics, providing insight into how the Convention distinguishes between a fundamental breach and a non-fundamental breach. As a result, it assists in resolving potential uncertainties and dilemmas the aggrieved party might face concerning the choice of legal remedies. The analysis begins with an exploration of the background and drafting process of Article 25 of the Convention. The focus then shifts to an in-depth analysis of the institution of fundamental breach of contract. This covers how and why the distinction between a fundamental breach and a non-fundamental breach emerged, leading up to an intricate examination of all the conditions and features of a fundamental breach of contract, all with the aim of accurately defining this term in line with the provisions of the Convention. The study also encompasses a review of pertinent judicial and arbitral practices, aiding in a better understanding of the practical application and interpretation of the institution of fundamental breach of contract. Special attention is devoted to analyzing how the aggrieved party can be confident in its right to terminate the contract and how to sidestep potential hazards and consequences of an unjustified termination.

Through a detailed review of the Convention's provisions and both judicial and arbitral practices, this paper offers a succinct insight into the institution of fundamental breach of contract in the context of international sales of goods. It investigates how contracting parties can safeguard themselves and how they can act in accordance with the rights and obligations stipulated by the Convention.

Референце

Babiak, A. (1992). Defining “Fundamental Breach” Under the United Nations Convention on Contracts for the International Sale of Goods. Downloaded 2021, April 19 from http://www.cisg.law.pace.edu/cisg/biblio/babiak.html

Bianca, C. M., & Bonell, M. J. (1987). Commentary on the International Sales Law, The 1980 Vienna Sales Convention, Milan

Ćirić A., & Cvetković, P. (2008). Bitna povreda ugovora u opštim izvorima međunarodnog privrednog ugovornog prava [Fundamental Breach of Contract in General Sources of International Commercial Contract Law]. In: Kovačević- Kuštrimirović, R., & Lazić, M. (eds), Aktuelna pitanja građanske kodifikacije: zbornik radova [Current Issues in Civil Codification: Collected Papers] (pp. 233-254). Niš: Centar za publikacije 4. Đorđević, M. V. (2012). Obim naknade štete zbog povrede ugovora o međunarodnoj prodaji robe [Damages for breach of contract for international sale of goods]. Beograd. Downloaded 2021, April 19 from http://doiserbia.nb.rs/phd/fulltext/BG20120622DJORDJEVIC.pdf

Enderlein, F., & Maskow, D. (1992). International sales law, United Nations Convention on Contracts for the International Sale of Goods, Convention on the Limitation Period in the International Sale of Goods. Oceana Publications, Downloaded 2021, March 30 from http://www.cisg.law.pace.edu/cisg/biblio/enderlein.html#*

Fišer Šobot, S. (2014). Pravo međunarodne prodaje [International Sales Law]. Novi Sad: Pravni fakultet u Novom Sadu

Graffi, L. (2003). Case Law on the Concept of “Fundamental Breach” in the Vienna Sales Convention, Downloaded 2021, April 19 from: https://cisgw3.law.pace.edu/cisg/biblio/graffi.html

Honnold, J. O. (1999). Uniform Law for International Sales under the 1980 United Nations Convention. The Hague: Kluwer Law International. Downloaded 2021, April 15 from http://www.cisg.law.pace.edu/cisg/biblio/honnold.html

Jafarzadeh, M. (2001). Buyer’s Right to Withhold Performance and Termination of Contract: A Comparative Study Under English Law, Vienna Convention on Contracts for the International Sale of Goods 1980, Iranian and Shi’ah Law. Downloaded 2021, April 15 from http://www.cisg.law.pace.edu/cisg/biblio/jafarzadeh1.html

Koch, R. (2009). Commentary on Whether the UNIDROIT Principles of International Commercial Contracts May Be Used to Interpret or Supplement Article 25 CISG. Downloaded 2021, March 21 from: http://www.cisg.law.pace.edu/cisg/biblio/koch1.html

Koch, R. (1998). The Concept of Fundamental Breach of Contract under the United Nations Convention on Contracts for the International Sale of Goods (CISG). Downloaded 2021, April 27 from http://www.cisg.law.pace.edu/cisg/biblio/koch.html#III

Liu, C. (2005). The concept of fundamental breach: Perspectives from the CISG, UNIDROIT Principles and PECL and case law. Downloaded 2021, April 27 from http://www.cisg.law.pace.edu/cisg/biblio/liu8.html

Lorenz, A. (1998). Fundamental Breach under the CISG, Downloaded 2021, April 27 from: http://www.cisg.law.pace.edu/cisg/biblio/lorenz.html

Official Records of the United Nations Conference on Contracts for·the International Sale·of Goods, Vienna 10 march – 11 april, Documents of the Conference and. SummaryRecords of the Plenary Meetings and of the Meetings of the Main Committees. (1991). United Nations. Downloaded 2021, March 10 from: https://www.uncitral.org/pdf/english/texts/sales/cisg/a-conf-97-19-ocred-e.pdf

Perović, J. (2004). Bitna povreda ugovora: Međunarodna prodaja robe [Fundamental Breach of Contract: International Sale of Goods]. Beograd: Službeni list SCG

Schlechtriem, P. (1986). Uniform Sales Law – The UN–Convention on Contracts for the International Sale of Goods. Downloaded 2021, March 10 from: http://www.cisg.law.pace.edu/cisg/biblio/schlechtriem.html#a37

Schlechtriem, P., & Schwenzer, I. (2016). Commentary on the UN Convention on the International Sale of Goods (CISG), Oxford University Press. DOI: 10.1093/law/9780198723264.001.0001

Spaić, A. (2009). Ostvarivanje uniformnosti u primjeni prava međunarodne prodaje robe, Na primjeru bitne povrede ugovora prema Konvenciji UN o ugovorima o međunarodnoj prodaji robe [Achieving uniformity in the application of the Law of the International Sale of Goods, On the example of a fundamental breach of contract according to the UN Convention on Contracts for the International Sale of Goods] Podgorica. Downloaded 2021, March 12 from http://www.cisg.law.pace.edu/cisg/biblio/spaic.pdf

Convention relating to a Uniform Law on the International Sale of Goods (1964). The Hague

UNCITRAL Yearbook VIII (1977). Excerpt from annex I, Report of Committee of the Whole I relating to the draft Convention on the International Sale of Goods, Article 9. Downloaded 2021, April 15 from http://www.cisg.law.pace.edu/cisg/legislative/B01-25.html

UNCITRAL Digest of case law on the United Nations Convention on the International Sale of Goods, Digest of Article 25 case law [reproduced with permission of UNCITRAL]. (2012). Downloaded 2021, April 15 from http://cisgw3.law.pace.edu/cisg/text/digest-2012-25.html#*

United Nations Convention on Contracts for the International Sale of Goods. (1980).

Vilus J., Carić S., Šogorov S., Đurđev D., & Divljak D.. (2012). Međunarodno privredno pravo [International Commercial Law]. Novi Sad: Pravni fakultet u Novom Sadu

Vilus, J. (1981). Komentar Konvencije Ujedinjenih nacija o međunarodnoj prodaji robe [Commentary on the United Nations Convention on the International Sale of Goods]. Zagreb: Informator

Vilus, J. (1980). Predgovor, Konvencija Ujedinjenih nacija o ugovorima o međunarodnoj prodaji robe [Foreword, United Nations Convention on Contracts for the International Sale of Goods]. Serija E – broj 59 [Serie E – No. 59]. Beograd: Institut za uporedno pravo

Vukadinović, R. (2012). Međunarodno poslovno pravo [International Business Law] Kragujevac: Udruženje za evropsko pravo, Centar za pravo EU

Will, M. (1987). Article 25. Cite as Will, in Bianca-Bonell Commentary on the International Sales Law, Giuffrè: Milan. pp. 205-221. Reproduced with permission of Dott. A Giuffrè Editore, S.p.A.. Downloaded 2021, March 10 from http://www.cisg.law.pace.edu/cisg/biblio/will-bb25.html

Ziegel, S. J. (1998). The Remedial Provisions in the Vienna Sales Convention: Some Common Law Perspectives. Downloaded 2021, March 21 from http://www.cisg.law.pace.edu/cisg/biblio/ziegel6.html#903