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Art. 25 CISG–UP, by Robert Koch [Germany]

Published online by Cambridge University Press:  20 October 2009

Robert Koch
Affiliation:
Professor in Commercial Law Corporate Law, and International Trade Law, Institute of Business Law at Nürtingen University (Germany)
John Felemegas
Affiliation:
University of Technology, Sydney
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Summary

INTRODUCTION

The concept of fundamental breach under Article 25 CISG plays a crucial role within the remedial system of the CISG because it determines the availability of the avoidance remedy in respect of any breach other than late performance (Articles 49(1)(a), 64(1)(a), 72(1), and 73(1) CISG) and of the substitute delivery remedy (Article 46(2) CISG). Fundamental breach is also important for the transfer of risk (Article 70 CISG). Its UNIDROIT Principles counterpart, fundamental non-performance, is defined in Article 7.3.1(2) of the UNIDROIT Principles. Unlike Article 25 CISG, its scope is limited to the termination of a contract. Before addressing the issue of whether or not Article 7.3.1(2) of the UNIDROIT Principles may be used to interpret or supplement Article 25 CISG, it is necessary to first take a closer look at the elements constituting fundamental breach, because recourse to the UNIDROIT Principles is only admissible where the language of the CISG provision gives rise to doubts as to the precise meaning of its content.

ELEMENTS CONSTITUTING FUNDAMENTAL BREACH

Article 25 provides that a breach is fundamental if

… it results in such detriment to the other party as substantially to deprive him of what he is entitled to expect under the contract, unless the party in breach did not foresee and a reasonable person of the same kind in the same circumstances would not have foreseen such result.

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  • Art. 25 CISG–UP, by Robert Koch [Germany]
    • By Robert Koch, Professor in Commercial Law Corporate Law, and International Trade Law, Institute of Business Law at Nürtingen University (Germany)
  • Edited by John Felemegas, University of Technology, Sydney
  • Book: An International Approach to the Interpretation of the United Nations Convention on Contracts for the International Sale of Goods (1980) as Uniform Sales Law
  • Online publication: 20 October 2009
  • Chapter DOI: https://doi.org/10.1017/CBO9780511511417.018
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  • Art. 25 CISG–UP, by Robert Koch [Germany]
    • By Robert Koch, Professor in Commercial Law Corporate Law, and International Trade Law, Institute of Business Law at Nürtingen University (Germany)
  • Edited by John Felemegas, University of Technology, Sydney
  • Book: An International Approach to the Interpretation of the United Nations Convention on Contracts for the International Sale of Goods (1980) as Uniform Sales Law
  • Online publication: 20 October 2009
  • Chapter DOI: https://doi.org/10.1017/CBO9780511511417.018
Available formats
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To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • Art. 25 CISG–UP, by Robert Koch [Germany]
    • By Robert Koch, Professor in Commercial Law Corporate Law, and International Trade Law, Institute of Business Law at Nürtingen University (Germany)
  • Edited by John Felemegas, University of Technology, Sydney
  • Book: An International Approach to the Interpretation of the United Nations Convention on Contracts for the International Sale of Goods (1980) as Uniform Sales Law
  • Online publication: 20 October 2009
  • Chapter DOI: https://doi.org/10.1017/CBO9780511511417.018
Available formats
×