- Russian Federation
- Tribunal of Int'l Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry
SELLER'S OBLIGATIONS - TIME OF DELIVERY - PERIOD FIXED BY CONTRACT (ART. 33 CISG)
BUYER'S OBLIGATIONS - PAYMENT OF PRICE (ART. 53 CISG)
SELLER'S RIGHT TO REQUIRE PAYMENT (ART. 62 CISG)
INTEREST (ART. 78) - INTEREST RATE AGREED UPON BY THE PARTIES
A Russian seller and a French buyer entered into a contract for the sale of equipment. According to the contract, the seller was bound to deliver the goods in May 2004, while the buyer had to provide the seller with the utilities of the firm within January 2004. When it became clear that the buyer would not deliver the utilities in due time, the parties agreed to pospone the date of delivery of the goods in proportion with the delay in delivery of the utilities. The utilities were delivered on 1 April 2004, and seller delivered the goods on 26 August 2004. When the buyer did not pay for the goods alleging that they were defective, the seller brought an action against it claiming for payment and interest.
First of all, the Arbitral Tribunal examined the question of the applicable law and declared CISG applicable pursuant to its Art. 1(1)(a).
Moreover, taking into consideration the parties' agreement aimed at extending the date of the delivery of the goods in proportion with the buyer’s delay in delivery of the utilities, the Court concluded that the goods had been delivered within the period agreed by the parties and in accordance with Art. 33(b) CISG.
The Arbitral Tribunal also held that the seller was entitled to recover the contractual price pursuant to Arts. 53, 61 and 62 CISG.
Finally, the Arbitral Tribunal found that the seller had the right to interest according to Art. 78 CISG, at the rate agreed upon by the parties.
Original in Russian:
- published in M.G. Rozenberg, Praktika Mezhdunarodnogo kommercheskogo arbitrazhnogo suda pri TPP ZA 2006 g., Statut, 2008, Case No. 15, pp. 129-148
- available at the University of Pace website, http://www.cisg.law.pace.edu/}}