A Danish seller and a German buyer concluded a sales contract. The seller brought an action against the buyer to recover the purchase price and a question of jurisdiction arose.
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). The Court held that Danish law and as such CISG was the applicable law to determine the place of payment.
Under Art. 57(1)(a) CISG, in the absence of a contrary agreement between the parties, the buyer must pay the price at the seller's place of business; therefore, Danish courts had jurisdiction to hear the case. |