In July 1991 a French seller and a Belgian buyer concluded a contract for the sale of iron sheets. The payment of the price was guaranteed by a Belgian bank. As the buyer did not pay at the due date, the seller commenced action before a French court against the buyer and its guarantor, claiming payment of the price as well as damages. At first instance the French court declined its jurisdiction in favour of a Belgian court. The seller appealed, arguing that the French court had jurisdiction.
The appellate court applied Art. 5(1) of the EC Convention on Jurisdiction and the Enforcement of Judgements in Civil and Commercial Matters (Brussels 1968), pursuant to which a person domiciled in a Contracting State [i.e. the buyer] may be sued in the court for the place of performance of the obligation in question (payment of the price). The court applied CISG to determine the place of payment of the price. The court held that in the absence of a contrary agreement between the parties, in accordance with Art. 57(1)(a) CISG the price had to be paid at the seller's place of business (France). The court therefore affirmed its jurisdiction. |