Damages Under the CISG

by Zeller, Bruno

• ISBN13: 9780379215410
• ISBN10: 0379215411
• Format: Hardcover
• Copyright: 2005-08-29
• Publisher: Oxford University Press

Summary

This volume presents practical and detailed analysis of the methods used to determine and calculate damages under the United Nations Convention on Contracts for the International Sale of Goods (CISG). Incorporating both worldwide judicial and arbitral decisions, Damages Under the CISG is a unique and comprehensive guide to fully understanding this important area of law. Damages Under the CISG provides authoritative guidance on the differences that exist between uniform international instruments and domestic laws and offers comparative analysis of the calculation of damages under the civil and common law systems. The fault system and causation principle are compared with the foreseeability principle, one of the key considerations under Article 74 of the CISG. Where applicable to understanding damages issues, the UNIDROIT Principles and the Principles of European Contract Law are referenced in depth. Includes expert analysis of: · The mitigation principle · Exemptions, such as force majeure · The controversial topic of the allocation of attorney's costs · Fundamental breach or avoidance and its consequences in claiming damages

Table of Contents

Acknowledgments	xi
Abbreviations	xiii
Description of the Problem---Uniform Laws and Damages	1	(14)
Overview	1	(1)
Introduction	1	(2)
Harmonization of Conflict of Laws Rules	3	(2)
Global Community of Courts	5	(2)
Harmonization of Procedural Laws	7	(2)
Unification of Substantive Law	9	(4)
Concluding Argument	13	(2)
The Methodology of Interpretation of the CISG	15	(20)
Overview	15	(1)
Interpretation	15	(9)
Rules as to Interpretation	24	(8)
General Rule as to Interpretation	24	(1)
A Rule Regarding the Purpose of Good Faith	25	(2)
A Rule Regarding the Intent of Parties	27	(1)
A Rule Regarding Filling of Gaps	28	(3)
A Rule Regarding the Relationship between the CISG and National Law	31	(1)
Concluding Argument	32	(3)
Breach of Contract---an Overview	35	(24)
Overview	35	(1)
Introduction	35	(4)
Categories of Loss	39	(1)
Reliance Interest and Expectation Interest; An Overview	40	(3)
Reliance Interest	41	(1)
Expectation Interest	41	(2)
Setting the Limit of Recovery	43	(1)
Lost Volume	44	(2)
Discussion of Fault	46	(3)
Introduction	46	(1)
The Fault Principle---a Discussion	46	(3)
Causation	49	(8)
Causality and Foreseeability	54	(3)
Concluding Remarks	57	(2)
Breach of Contract---The CISG	59	(10)
Overview	59	(1)
Introduction	59	(2)
The Remedial Provisions of the CISG	61	(2)
The Remedial Scheme	62	(1)
Article 45	63	(3)
Concluding Remarks	66	(3)
Article 74---A General Overview	69	(18)
Overview	69	(1)
Introduction	69	(3)
Autonomous Interpretation	72	(2)
Sphere of Application of Article 74	74	(6)
Introduction	74	(1)
Extent of Damages	75	(1)
Subject Matter of Damages	76	(4)
Burden of Proof	80	(3)
Place and Time of Calculating Damages	83	(1)
Place of Calculating Damages	83	(1)
Time of Calculation of Damages	83	(1)
Concluding Remarks	84	(3)
Limitation on Claims	87	(32)
Overview	87	(1)
Introduction	87	(2)
The Foreseeability Rule	89	(13)
Introduction	89	(2)
Hadley v. Baxendale and the Foreseeability Rule	91	(4)
Article 74 and the Foreseeability Rule	95	(1)
The Subject Matter of Foreseeability	96	(1)
Foreseeability and the Terms of the Contract	97	(2)
Trade Usage	99	(1)
Type of Knowledge	100	(1)
Relevant Time to Evaluate Foreseeability	100	(2)
Causation and Article 74	102	(7)
The ``But-for'' Test and Foreseeability	105	(2)
Hadley vs. Baxendale and the Concept of Causation	107	(2)
Further Observations on Damages	109	(1)
Limitation to Full Compensation	109	(1)
Extension of Damages	110	(1)
Mitigation of Losses	110	(6)
General Comments	110	(2)
Question of Reasonableness	112	(4)
Exemptions---Introduction to Articles 79 and 80	116	(1)
Concluding Argument	117	(2)
Calculation of Losses under Article 74	119	(14)
Overview	119	(1)
Introduction	119	(3)
Direct Losses	122	(2)
Incidental Losses	124	(1)
Consequential Losses	124	(3)
Loss of Profits	127	(4)
Future Profits	128	(1)
Loss of Chance	129	(2)
Concluding Argument	131	(2)
Special Damages---Interest Rates	133	(10)
Overview	133	(1)
Introduction	133	(2)
History of Article 78	135	(1)
Article 78---a Discussion	136	(3)
Article 78 and Article 74	139	(2)
Concluding Argument	141	(2)
Attorney's Fees	143	(24)
Overview	143	(1)
Introduction	143	(2)
Zapata Hermanos	145	(7)
The Federal District Court	146	(1)
Circuit Court of Appeal	147	(1)
The Issues	148	(4)
Conclusion	152	(1)
Issues of Terminology	152	(8)
Introduction	152	(2)
Definition of Losses	154	(1)
Anomalies	155	(1)
Substantive vs. Procedural Issues	156	(4)
Case Law	160	(2)
The Argument of Consequences	162	(2)
Concluding Argument	164	(3)
Exemptions	167	(24)
Overview	167	(1)
Introduction	167	(2)
The Concepts of Force Majeure and Hardship	169	(4)
Application in Domestic Law	171	(2)
Problem of Approaches to the Interpretation of Article 79	173	(5)
Changed Circumstances and the CISG	175	(3)
Reasonable Steps to Avoid an Impediment	178	(9)
Beyond Control	178	(2)
Unforeseen	180	(2)
Unavoidable	182	(1)
Responsibility for Third Parties	183	(3)
Temporary Impediment	186	(1)
Duty to Notify	186	(1)
Effect of Article 79	187	(2)
The Problem of Damages	187	(1)
The Problem of Performance	188	(1)
Concluding Argument	189	(2)
Fundamental Breach and the CISG	191	(20)
Overview	191	(1)
Introduction	191	(4)
The Common Law Experience	195	(3)
The CISG and Fundamental Breach	198	(7)
Introduction	198	(1)
Interpretation of Article 25	199	(4)
Function of Article 25	203	(2)
Article 76	205	(4)
Calculation of Damages	206	(1)
Current Price	207	(1)
Timing of Calculation of Damages	208	(1)
Conclusion	208	(1)
Concluding Argument	209	(2)
Conclusion and Observations	211	(12)
Overview	211	(1)
Introduction	212	(3)
The CISG as an International Code	215	(1)
Breach of Contract	216	(1)
Article 74	216	(3)
Place and time of calculating damages	218	(1)
Limitation on Claims	219	(1)
The Foreseeability Rule	220	(1)
Article 79---Exemption	220	(1)
Concluding Argument	221	(2)
Bibliography	223	(10)
Books	223	(2)
Articles	225	(7)
Official Documents	232	(1)
Case Law and Arbitral Awards	233	(8)
Australia	233	(1)
Austria	234	(1)
Argentina	234	(1)
Belgium	234	(1)
Canada	234	(1)
China	234	(1)
England	234	(1)
Finland	235	(1)
France	235	(1)
Germany	235	(2)
Hungary	237	(1)
Italy	237	(1)
Netherlands	237	(1)
Spain	237	(1)
Switzerland	238	(1)
United States of America	238	(1)
International Arbitration	239	(2)
Index	241