Date: 21.09.1995
Country: Switzerland
Number: HG 930476
Court: Handelsgericht Z├╝rich
Parties: Unknown
A Swiss buyer and an Austrian seller concluded a contract for the sale of ventilation devices. The buyer did not pay the purchase price and the seller commenced an action against the buyer to obtain payment of the price with interest.

The Court stated that the buyer had to pay the purchase price and furthermore that interest was payable in compliance with Art. 78 CISG; according to the Court, the interest rate had to be determined, absent an express provision in CISG, by applying the private international law rules of the forum, which, in the case at hand, led to the application of Austrian law.

Although Austrian statutory interest rate amounted to 5%, the Court held that the seller was entitled to the higher interest rate of 9,75% as further damages (Arts. 78 and 74 CISG). In this respect, the Court observed that the seller had only to prove the recourse to bank loans since it can be assumed that companies normally resort to external sources of credit to finance their activities.