8 - BREACH OF CONTRACT BY SELLER

The remedies for breach of a contract by the seller are addressed in CISG Articles 45 through 52. Article 45 outlines the basic remedies of the buyer for the seller's breach. Article 45's remedial framework does not distinguish between material and nonmaterial breaches. Therefore, Article 45 must be read in conjunction with the notion of a fundamental breach described in Article 25. Enforcing its rights to substituted goods, extension of time, and avoidance found in Articles 46 through 52 does not prevent the buyer from subsequently seeking damages under Articles 74–6 (reviewed in Chapter 10). To this end, the following sections will review the range of buyer remedies outlined in Article 45.

RIGHT TO SUBSTITUTED OR REPAIRED GOODS

Article 46 gives the buyer the right to demand performance of the unperformed elements of a contract, which is a concept that draws from the civil law system but is considered an extraordinary remedy in the common law system. Under Article 46, the buyer may demand delivery of substitute goods if the lack of conformity of the goods constitutes a fundamental breach if he gives notice under article 39 or within a reasonable time thereafter. However, this right may be limited in some countries by Article 28, which relieves a court of the obligation to order specific performance if such a remedy would not be granted under domestic law. Finally, unless it is unreasonable under the circumstances, the buyer may require the seller to remedy the lack of conformity by repair.