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| A Dutch seller sold beef to a Belgian buyer. A third party, to whom the seller had assigned its claim for payment, commenced an action for payment of the price. The buyer invoked its right to a set off.
The Court found that since the Dutch private international law rules led to the application of the law of the Netherlands, the contract was governed by CISG, if necessary supplemented by Dutch domestic law (Art. 7 CISG). In order to establish jurisdiction the Court applied Art. 5(1) of the EC Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters (Brussels 1968) which states that a person domiciled in a Contracting State may be sued in the Court for the place of performance of the obligation in question (in the case at hand payment of price). Art. 57 CISG was applied to determine the place of payment of the price. As to the buyer's claim for set-off, the Court held that, since CISG does not contain any rule on set-off, Dutch domestic law was applicable (Art. 7 CISG), under which set-off was not to be granted. |