- Chansha Intermediate Peoples' Court Economic Chamber
- Skandinaviska Metemo AB v. Hunan Co. for International Economy and Trade
BUYER'S OBLIGATION TO PAY THE PRICE
SELLER'S OBLIGATION TO DELIVER
The case concerned a contract of sale of molybdenum iron alloy to be delivered in two instalments between a Chinese seller and a Swedish buyer. An attempt was made to conclude a second contract, but the buyer refused to pay the balance for the first instalment and the seller refused to deliver the second instalment. A dispute arose as to the terms of the second contract. The buyer brought suit seeking damages for the seller's partial non-performance.
The Court found that neither party had proved its claims regarding the formation of the second contract.
The Court held that the buyer was bound to pay the remaining balance owed on the first instalment. This amount was then deducted from the total damages which the Court ordered the seller to pay the buyer, plus interest. In reaching its conclusion, the Court referred, without further explanation, to Arts. 1, 4, 18, 73, 74 and 77 CISG.
Published in Chinese:
- Zhongguo shenpan anli yaolan, University, Peking, Renmin daxue chubanshe, 1997, 380-382
Source and English translation: Dr. F. Münzel, Max Planck Institut für auslandisches- und internationals Privatrecht (Hamburg)}}