- Russian Federation
- Tribunal of Int'l Commercial Arbitration at the Russian Federation Chamber of Commerce
APPLICATION OF CISG - BASED ON PRIVATE INTERNATIONAL LAW (ART. 1(1)(B) CISG)
MATTERS GOVERNED BUT NOT EXPRESSLY SETTLED BY CISG (ART. 7(2) CISG)
SELLER’S OBLIGATION TO DELIVER THE GOODS (ART. 30 CISG)
INTEREST - RIGHT TO INTEREST IN CASE OF REFUND OF PRICE PAID (ART. 84 CISG) - INTEREST RATE OF THE SELLER'S PLACE OF BUSINESS
A Turkish firm bought goods from a Russian company. While the buyer made an advance payment for the entire lot, the seller delivered only part of the goods. Then the buyer brought an action against the seller, claiming refund of the sum paid in advance plus interest.
The parties failed to determine the applicable law. In the absence of such an agreement, according to the Civil Code of the Russian Federation, the law of the country with which the contract is most closely connected shall apply. Therefore, since Russian law was to be considered applicable in the case at hand, CISG had to be applied to the dispute, the Russian Federation being a Contracting State (Art. 1(1)(b)).
By applying Arts. 30, 78 and 84(1) CISG, the Tribunal ruled in favour of the seller. As to the issue of interest on the refunded price, after recalling that CISG does not deal with the matter, the Tribunal had recourse to the otherwise applicable law (i.e. Russian law).
Original in Russian:
- published in M.G. Rozenberg, Praktika Mezhdunarodnogo kommercheskogo arbitrazhnogo suda pri TPP RF 3z 2005 g, Statut, 2006, Case No. 37, pp. 305-310
- available at the University of Pace website, http://www.cisg.law.pace.edu/}}