An Italian seller and a Swiss buyer concluded a contract for the sale of granite materials. Since the purchase price remained unpaid, the seller commenced an action to recover the contract price. Although the seller invoiced the payment of the price in Italian lire, in its claim it requested the payment in Swiss francs.
The Court held that CISG was applicable to the contract and found the seller entitled to the payment of the purchase price. As CISG does not determine the currency of payment, which in the claim was different to that stated in the invoice, the Court applied Swiss private international law rules which led to the application of the laws of Italy. Under the applicable Italian civil code rules, in the absence of a different agreement, the currency of payment is the Italian legal currency. Therefore, the Court awarded the seller the purchase price in the Italian currency.
The Court finally found that the seller was entitled to interest on the unpaid price (Art. 78 CISG). With respect to the interest rate, as CISG does not determine the interest rate, the Court applied the law otherwise applicable to the contract (in the case at hand: the law of Italy) and awarded interest at the Italian statutory rate. |