A Swiss seller and a German buyer concluded a contract regarding the sale of safe boxes to be manufactured by the seller following the buyer's specifications. A dispute arose when the buyer refused to pay the price.
Both the Court of first instance and the appellate Court decided in favor of the seller. They argued that the buyer, by requesting the seller to pay damages of an amount corresponding to the difference between the loss allegedly suffered and an invoice still to be paid, had itself recognized its debt vis-à-vis the seller.
The Supreme Court confirmed the deisions of the lower courts. As to the objection put forward by the buyer that those courts have failed to apply CISG as the law governing the contract, the Supreme Court left the question open whether the contract at hand was a contract for the sale of goods to be manufactured (and as such governed by CISG in accordance with Art. 3(1)), or a work contract, arguing that the issue at stake, i.e. whether the buyer had recognised its debt, was not covered by CISG and had therefore in any case to be decided according to the otherwise applicable domestic law (Swiss law). |