A German seller and an Hungarian buyer concluded a contract for the sale of textiles. When, after delivery of the goods, the buyer refused to complete payment of the purchase price, the seller sued the carrier, an Italian company, claiming that it was the carrier's negligence which caused the buyer's refusal. This negligence was a mistake on a shipping document made by the carrier which caused the goods delivered to appear below weight when in fact they were not.
The seller argued that since the goods appeared to be non-conforming the buyer was then entitled to withhold a part of the purchase price under Art. 50 CISG.
The Court observed that Art. 50 CISG may permit a proportionate reduction in price for non conforming goods. However, in the case at hand, it was inconsistent for the seller to argue non conformity of the goods at this point in the dispute as the seller had always claimed that the buyer had received everything to which it was entitled under the contract and was pursuing the buyer for the remaining price. As to the negligence issue, since the seller had failed to give evidence of the causal connection between the carrier's error and the seller's loss, the Court dismissed the seller's claim. |