- Arbitral Award
- International Arbitration Court of the Chamber of Commerce and Industry of the Russian Federation
CHOICE OF LAW IN FAVOUR OF THE LAW OF A CONTRACTING STATE - PARTIES SITUATED IN CONTRACTING STATES - CISG APPLICABLE
DELIVERY OF ONLY PART OF THE GOODS - ADVANCE PAYMENT OF PRICE - RESTITUTION OF PRICE PAID FOR GOODS NOT RECEIVED (ART. 81 CISG) - RULE SET OUT IN ART. 81 CISG AS REFLECTING AN UNIVERSALLY ESTABLISHED APPROACH CONFIRMED ALSO BY ARTS. 7.2.1, 7.2.2 AND 1.3 OF UNIDROIT PRINCIPLES
An Estonian company (seller), entered into a contract with a Kazakhstani company (buyer), for the purchase of certain goods.
When the buyer delivered only part of the goods, the seller claimed damages for breach of contract and since it had paid in advance the full price of the goods, it claimed restitution of the sum corresponding to the price of the undelivered goods.
The contract provided that Russian law was the law governing the contract but since both parties had their places of business in States parties to the Vienna Sales Convention (CISG) the Arbitral Tribunal applied CISG.
As to the merits the Arbitral Tribunal decided in favor of seller. In so doing it referred to Art. 81 CISG stating that this provision expressed the universally established approach in dealing with situations such as that of the case in hand. In addition the Arbitral Tribunal pointed out that this approach was also confirmed in Arts. 7.2.1, 7.2.2 and 1.3 of the UNIDROIT Principles of International Commercial Contracts.
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