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Basic Contract and Sales Law

Basic Contract Law according to the UN CISG 1980

- I bought a watch, the watch stopped. I bought a camera on the internet. My camera does not work

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- I bought a car, but the car stopped.
- I bought a dog, I bought a puppy on the internet, I bought a cat. The dog is not healthy.

These are common situations.

The buyer's right to have a socalled lack of conformity compensated, is basic contract law. A good source of such basic contract law is the UN sales convention (the CISG).

See page 71 in the booklet Overview of International CISG Contract Law.

Let us assume that there exists a lack of conformity. This means that the seller has committed a breach of contract. We will then ask what remedies are available to the buyer for such breach of contract by the seller. The buyer may, according to the CISG articles of remedies (articles 46 to 52 and 74 to 77), claim remedies. See the overview in article 45 (1):

«If the seller fails to perform any of his obligations under the contract or this Convention, the buyer may:
(a) exercise the rights provided in articles 46 to 52;
(b) claim damages as provided in articles 74 to 77».

Then we must look up these articles, where we can see that the seller may have to remedy by repair, pay a price reduction, or if the breach of contract is fundamental, pay back all the money the buyer has paid.

Observance of good faith in international tradeThe puppy was bought. The puppy was delivered. A few days later the puppy died.

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