A Chinese seller and a US buyer entered into 14 contracts for the sale of hats. A dispute arose between the parties, concerning the payment of the price, which, according to the seller, had not been fully paid.
The Arbitral Tribunal held that, lacking both an agreement on the applicable law, and an express exclusion of CISG, the contract was governed by CISG since both parties had their place of business in two contracting States (Art. 1(1)(a) CISG).
As to merits, the Court considered that the seller had a right to obtain payment of the price because it had performed the contract, while the buyer (according to Arts. 25 and 53 CISG ) had not fulfilled its contractual obligations. Therefore the Arbitral Tribunal stated that the seller was entitled to the outstanding payments pursuant to Art. 74 and Art. 78 CISG, awarding interests at the rate claimed by the seller, while the buyer should be liable for all the costs of the arbitration proceedings.
|