|An Italian seller and a German buyer concluded a contract for the sale of shoes to be paid for within 60 days of being charged. Following conclusion of the contract, the parties reached an agreement for the restitution of part of the goods sold. The buyer refused to pay the price of the remaining shoes and the seller instituted legal action to recover the balance with interest.
The Court argued that the buyer had to pay the balance (Art. 53 CISG), and further that interest was payable according to Art. 78 CISG. In determining the applicable rate of interest the Court awarded a rate of 10% as the statutory rate usually adopted in the seller's country (Italy) for unsecured bank loans.
According to the Court, the seller was not entitled to the higher interest rate of 16,5% as further damages, since it should have applied for obtaining a bank loan at the average market rate.