An Italian seller and a Greek buyer had concluded a contract for the sale of cotton fabric. The buyer did not pay the contract price and the seller commenced a legal action to recover it. The buyer counter-claimed for avoidance of the contract on the ground that the goods delivered did not conform to contract specifications (different consistency of the fabric) as proved by a notice of lack of conformity given to the seller seven months after delivery of the goods.
In the Court's opinion the buyer was not entitled to avoid the contract since it had lost the right to rely on the alleged lack of conformity, not having given notice thereof within a reasonable time after it had discovered it or ought to have discovered it (Art. 39(1) CISG). The Court pointed out that the buyer ought to have discovered the alleged defects at the time of delivery and that in the light of the nature and quantity of the goods a notice given seven months later was not timely.
The Court awarded the seller the contract price plus interest at the Italian statutory rate and the additional damages exceeding the interest that the seller had proved to have suffered. |