- Arbitral Award
- Arbitration Court of the Hungarian Chamber of Commerce and Industry
SALES CONTRACT - BETWEEN AN AUSTRIAN COMPANY AND AN HUNGARIAN COMPANY
RATE OF INTEREST - STATUTORY RATE OF DEBTOR'S STATE MUCH HIGHER THAN STATUTORY RATE OF STATE OF CURRENCY OF PAYMENT - INFLATION RATE IN THE LATTER STATE MUCH LOWER THAN IN THE FORMER - RATE OF INTEREST OF THE LATTER APPLIED (ART. 7.4.9(2) UNIDROIT PRINCIPLES)
The dispute concerned a sales contract between an Austrian and a Hungarian company. One of the issues to be decided was the rate of interest to be applied. Since the rate of inflation in Austria at that time was approximately 3% as compared to more than 20% in Hungary, the Court decided to disregard Art. 301(1) of the Hungarian Civil Code which fixes the statutory interest rate at 20% and instead applied the Austrian statutory rate of interest as the rate of the State of the currency of payment. In support of its solution, the Court did not expressly refer to Art. 7.9.4(2) of the UNIDROIT Principles, but cited a note by P. SCHLECHTRIEM on two arbitral awards in which this provision was applied.