A German buyer and an Argentinian seller concluded two contracts for the purchase of Argentinian beef. As far as the first contract was concerned the buyer paid the whole purchase price but the beef could not be delivered because according to the German medical and nutrition authorities it did not correspond to European standards. As to the second contract the beef was delivered but the buyer only paid a small amount of the requested price. The seller commenced an action against the buyer claiming the rest of the price and interests. The buyer set off with the price paid for the goods of the first contract and alternatively counterclaimed alleging the non-conformity of the goods of the first contract. The seller denied the jurisdiction of the court over the counterclaim.
The court stated that the contract was governed by CISG as the parties had their places of business in contracting states (Art.1 (1) (a) CISG). Furthermore, it held that the buyer was obliged to pay the price of the second contract according to Art. 53 CISG. As far as the set off and the counterclaim were concerned the court stated that it did not have jurisdiction over these questions under German domestic law.
As to the interests the court held that the seller was entitled to interests. Since CISG does not determine the rate of interest the court stated that the rate was to be determined in accordance with the domestic law applicable in the seller's country (Argentina) |