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| A Swiss company sold shoes to a German buyer. The shoes were delivered in four instalments with the purchase price falling due on fixed monthly dates. The buyer paid the price only ten weeks after the last instalment was due. The seller commenced an action to recover interest and legal costs. The buyer argued that apart from the invoices it had never received any request for payment. It also alleged that the goods were delivered late, thereby impairing the seasonal sales.
The Court held that the seller was entitled to interest on the purchase price accruing from the dates on which the different payments were due (Arts. 59 and 78 CISG). The Court pointed out that pursuant to Art. 59 CISG the buyer must pay the price on the agreed date without the need for any request on the part of the seller. With respect to the interest rate, the Court held that it was to be determined by the domestic law otherwise governing the contract. Thus German private international law rules led to the application of the Swiss statutory interest rate, Swiss law being the law of the seller's place of business. The Court further awarded the seller recovery of its attoreny's fees as damages (Art. 74 CISG). As to the buyer's exception for late delivery, the Court found that the buyer had lost the right to rely on late delivery of the goods, since it had not given notice within a reasonable time (Art. 39 CISG). In particular, the Court stated that any non-conformity of seasonal merchandise, including late delivery, had to be notified within a maximum period of one month, running from the time of discovery of the breach of contract. |