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| A Danish flower dealer and a German buyer concluded a contract for the sale of plants. After delivery and further to the buyer's refusal to pay the price, the seller commenced an action claiming payment of the price plus interest and costs for entrusting an agent with the power to collect the outstanding amount.
The Court held that since one of the parties had its place of business in Denmark, and Denmark has excluded application of part II of CISG (Art. 92 CISG), CISG was applicable except as concerns questions regarding the formation of contract, which would be governed by the domestic law referred to by private international law rules. According to the Court, a valid contract had been concluded. The seller was entitled to payment of the price (Art. 53 CISG), and interest accruing from the date the price was due (Arts. 78 and 58(1) CISG). As CISG does not determine the applicable interest rate, the Court held that the rate had to be determined in accordance with the law otherwise applicable to the contract (in the case at hand, Danish law as the law at the seller's place of business). The Court finally held that recovery of damages arising from mandating an agent with the power to collect debts is a question excluded by CISG. |