Data

Date:
17-06-1997
Country:
Hungary
Number:
12.G.76.237/1996/14
Court:
Metropolitan Court of Budapest
Parties:
Unknown

Keywords

PROMISSORY ESTOPPEL - APPLICATION OF DOMESTIC LAW

Abstract

[Abstract: CLOUT Case 173]

The Canadian plaintiff concluded a distribution contract with the Hungarian defendant. The contract was to expire on 31 December 1991. After the contract's expiry, the parties discussed and corresponded about extending the distribution contract into 1992. However, the defendant failed to deliver any goods in 1992. The plaintiff demanded damages based on either breach of contract or, alternatively, on the doctrine declaring that a promise may also be enforced if the making of the promise reasonably induced another person to change position in reliance on the promise ('promissory estoppel').

The Court, pursuant to Art. 19(3) CISG, found that there was no clear agreement between the parties and therefore no distribution contract for 1992 and rejected the claim for damages based on the 'breach of contract theory'. Moreover, the Court adjudicated the claim for damages based on the 'promissory estoppel theory' in conformity with the Hungarian Civil Code and rejected the claim.

Fulltext

[Not yet available]}}

Source

Original in Hungarian:
- unpublished

Abstract: CLOUT Case 173, in A/CN.9/SER.C/ABSTRACT/13, 23
October 1997, reproduced with kind permission of Secretary,
United Nations Publications Board}}