TEXT OF ARTICLE 37
If the seller has delivered goods before the date for delivery, he may, up to that date, deliver any missing part or make up any deficiency in the quantity of the goods delivered, or deliver goods in replacement of any non-conforming goods delivered or remedy any lack of conformity in the goods delivered, provided that the exercise of this right does not cause the buyer unreasonable inconvenience or unreasonable expense. However, the buyer retains any right to claim damages as provided for in this Convention.
OUTLINE OF ISSUES
Reproduced with permission of UNCITRAL
37A Seller may cure or remedy lack of conformity
37B Restrictions on cure 37B1 Time limit: up to date for delivery
37B2 Would cause buyer unreasonable inconvenience or expense 37C Buyer may recover damages (see arts. 74 to 77)
DESCRIPTORS
Cure
CASE ANNOTATIONS: UNCITRAL DIGEST CASES PLUS ADDED CASES
UNCITRAL cites one case in its Digest of Art. 37 case law: * Russia 25 April 1995 Arbitration award 200/1994 37C [translation available] The following additional citations are provided: Argentina 31 May 2007 Appellate Court, Buenos Aires (Sr. Carlos Manuel del Corazón de Jesús Bravo Barros v. Salvador Martínez Gares) [translation available]
Russia 23 March 2005 Arbitration Award 126/2004
Hungary 5 December 1995 Budapest Arbitration award Vb 94131 [translation available]
The UNCITRAL Digest of case law on the United
A/CN.9/SER.C/DIGEST/CISG/37 [8 June 2004]. Reproduced with the permission of UNCITRAL.
If the seller has delivered goods before the date for delivery, he may, up to that date, deliver any missing part or make up any deficiency in the quantity of the goods delivered, or deliver goods in replacement of any non-conforming goods delivered or remedy any lack of conformity in the goods delivered, provided that the exercise of this right does not cause the buyer unreasonable inconvenience or unreasonable expense. However, the buyer retains any right to claim damages as provided for in this Convention. Overview and case law
1. Article 37 of the CISG deals with deliveries made by the seller before the date specified in the contract. The first sentence of article 37 specifies that, in the case of a delivery of insufficient quantity, the seller can cure by "deliver[ing] any missing part" or by "mak[ing] up any deficiency in the quantity of the goods delivered." In the case of a delivery of goods deficient in quality, the seller can cure by delivering replacement goods [1] or by "remedy[ing] any lack of conformity in the goods delivered."[2] The second sentence of article 37 specifies that the buyer retains any right to damages provided by the Convention, although the amount of such damages presumably must reflect any cure accomplished by the seller under the first sentence of the provision. The second sentence of article 37 was invoked by an arbitral tribunal where a seller had made a delivery of confectionary products before the buyer had furnished a banker’s guarantee required by the contract.[3] Although the buyer accepted the delivery, it failed to pay for the goods, arguing that the seller had breached the contract by delivering before the guarantee was in place and that this default should be considered a fundamental breach of contract justifying the buyer’s non-payment. The arbitral tribunal, however, ruled that the breach by the seller did not permit the buyer to refuse to pay, noting that under the last sentence of article 37 the buyer could claim damages for any losses caused by the early delivery. FOOTNOTES
* The present text was prepared using the full text of the decisions cited in the Case Law on UNCITRAL Texts (CLOUT) abstracts and other citations listed in the footnotes. The abstracts are intended to serve only as summaries of the underlying decisions and may not reflect all the points made in the digest. Readers are advised to consult the full texts of the listed court and arbitral decisions rather than relying solely on the CLOUT abstracts.
[Citations to cisgw3 case presentations have been substituted [in brackets] for the case citations provided in the UNCITRAL Digest. This substitution has been made to facilitate online access to CLOUT abstracts, original texts of court and arbitral decisions, and full text English translations of these texts (available in most but not all cases). For citations UNCITRAL had used, go to <http://www.uncitral.org/english/clout/digest_cisg_e.htm>.] 1. A seller’s right under article 37 to deliver goods to replace non-conforming goods should be compared to a buyer’s right under article 46(2) of the CISG to require the seller to deliver goods in substitution for non-conforming goods. 2. A seller’s right under article 37 to "remedy" non-conforming goods should be compared to a buyer’s right under article 46(3) of the CISG to require the seller to repair non-conforming goods. 3. CLOUT case No. 141 [RUSSIA Arbitration Award case No. 200/1994 of 25 April 1995 available at <http://cisgw3.law.pace.edu/cases/950425r1.html>]. Bertram Keller [*]
a. In the words of Art. 37 CISG, the seller may cure a "lack of conformity" "before the date for
delivery." Once the date of delivery has passed, the limitations of Art. 48 CISG apply. For
documents, Art. 34 CISG applies as lex specialis. Unlike the CISG, the UNIDROIT Principles
(UP) stipulate one general right to cure in Art. 7.1.4 regardless of object or time.[1] Any
interpretation of Art. 37 CISG in light of Art. 7.1.4 UP must take into consideration that the
norm is only one part of the curing constructions provided by the CISG. b. The legal history of Art. 37 CISG stretches from the nearly equivalent Art. 37 ULIS to the
first codified right to cure in sec. 2-508 UCC.[2] Especially the Civil Law tradition is less familiar
with the seller's right to "tender a second time" as the seller gave the goods autonomously
outside his disposal power.[3] However, the stated aim of CISG and UNIDROIT Principles is to
find concepts which transcend legal traditions. As part of an "International Restatement of
Contract Law"[4] Art. 7.1.4 UP encourages the worldwide acceptance of a general right to cure.[5] c. Comparing the legal context of Art. 37, the provisions in Art. 52(1) and Art. 72 CISG are
relevant for the system of early performance. Whereas under Art. 52(1) CISG the buyer may
deliberately refuse to take any early delivery, Art. 6.1.5 UP restricts this right, if he "has no
legitimate interest in so doing." However, the difference diminishes if one considers that the
option to refuse early delivery under the CISG is limited by "the observance of good faith"
under Art. 7(1) and the obligation "to preserve" the goods under Art. 86.[6] The provision of
anticipatory non-performance in Art. 72 CISG is very similar to the corresponding Art. 7.3.3
and 7.3.4 UP.[7] d. Even more common ground is offered by the ratio legis of the cure provisions. The CISG
and the UNIDROIT Principles support the principle of maintaining contracts (favor
contractus).[8] The possibility of cure in Art. 37 CISG and Art. 7.1.4 UP stabilizes the relations
between the parties even after a defect has occurred with the effect of preserving their deal.[9] A
second common principle underlying the cure provisions is the mitigation of damages, which is
reflected in Art. 77 CISG and Art. 7.4.8 UP.[10] Curing a defect minimizes economic waste.
Notwithstanding the slight systematic differences, these two principles offer a solid normative
basis for cross-interpretation and gap-filling.[11] e. The phrase "before the date for delivery" in Art. 37 CISG raises the question whether the
seller may cure up to the beginning or to the end of an agreed period of time (Art. 33(b),(c)
CISG). Considering the leading idea to maintain the contract and the justified expectations of
the other party, most scholars are in favor of the latter alternative.[12] Unfortunately, Art. 7.1.4
UP is of no help in the interpretation as it enables cure before and after the time of performance. f. The wording "lack of conformity" in Art. 37 CISG seems to exclude the legal defects set
forth by Art. 41, 42 CISG. Notwithstanding the different structure of the right to cure in the
CISG, the wording "any non-performance" in Art. 7.1.4(1) UP backs a wider interpretation.[13]
The literal evaluation from Art. 37 ULIS "any defect in the goods" to Art. 37 CISG "any lack
of conformity" supports this view. Considering such a more general right to cure, the next
question that arises is whether the seller should then also be allowed to cure a higher quality,
i.e., change the delivered goods.[14] Even if the wording of Art. 7.1.4 UP ("any non-performance") allows such an extensive interpretation, this issue is systematically closer to the
excess in quantity under Art. 52(2) CISG.[15] g. Whereas under Arts. 37 and 48 CISG only the "seller" is allowed to cure, Art. 7.1.4 UP
neutrally refers to the "non-performing party". The restrictive wording of Arts. 37, 48 CISG is a
function of their systematic place under Chapter II "Obligations of the Seller". In corresponding
constellations where the buyer breaches the contract before the date of performance (e.g.,
opening a wrong letter of credit), the occurring gap might be filled by analogy to Art. 37 CISG
in light of Art. 7.1.4 UP.[16] h. Under Art. 37 CISG, the right to cure is limited by "unreasonable inconvenience or
unreasonable expense" of the buyer. The identical formula is only used in Arts. 34 and 86(2).
The objective standard "reasonable", however, is the general and therefore most indefinite
weighing tool of the CISG.[17] In contrary, the UNIDROIT Principles provide a set of
differentiated limits in Art. 7.1.4(1)(a)-(d). The key formula "legitimate interest" in
subparagraph (c) sets a subjective standard, which is presumed [18] and limited by the objective
elements of a notice (a), appropriateness (b) and prompt effect (d). The objective
"reasonableness" aims to protect the buyer if the right to cure unduly tilts the balance in favor of
the seller. Nonetheless, reasonableness always includes an inter-subjective element when it is
applied to a special case. This personal "appropriateness" can only be determined by examining
the concrete circumstances of the individual case.[19] The subjective element "legitimate interest"
in Art. 7.1.4(1)(c) UP might therefore offer a helpful additional formula. i. Even if not specifically required by Art. 37 CISG, an attempt to cure without notice is likely
to cause unreasonable inconvenience.[20] In Art. 7.1.4(1)(a) UP, the notice is an essential
prerequisite for cure regardless of the time of performance. As cure is inherently uncertain,[21] the
buyer needs a clue to rely on. Also if delivery is too early, he has to adjust his dispositions to
the situation. To enable reasonable business transactions, the seller has to "seasonably" (sec. 2-508 UCC) notify the buyer of his intent to cure.[22] It is therefore considered unreasonable under
Art. 37 CISG, if seller "surprises" the buyer by curing the defect without notice.[23] Bearing in
mind the adjusted dispositions of the buyer, the cure must additionally be effected promptly as
provided in Art. 7.1.4(1)(d) UP even before the agreed date of delivery. j. Considering the forms of cure available under Art. 37 CISG, the seller is free to choose any
method of cure regardless of the buyer's consent.[24] However, replacement or repair might be
inadequate as far as goods which are already in the buyer's possession are concerned.[25] The
corresponding Art. 7.1.4(1)(b) UP requires the cure to be "appropriate in the circumstances".
Appropriateness depends on the nature of the contract and takes into account whether or not
the proposed cure promises to be successful.[26] These elements also provide for a more distinct
formula to determine the possible number of attempts to cure. Even though each new attempt
increases the inconvenience,[27] the reasonable number may vary with the prospect of success. k. Closely connected is the question of a slightly imperfect cure. The seller has to restore the
goods to a fully sound condition.[28] Under Art. 7.1.4(1)(b) UP, repairing is only "appropriate" if
there is no evidence left.[29] Nevertheless, the language and idea of Art. 37 CISG indicate that
perfection is not required, unless "unreasonable inconvenience" is caused.[30] In this context, the
subjective standard of the buyer's "legitimate interest" as provided in Art. 7.1.4(1)(c) UP might
help. The buyer has a legitimate interest in refusing, "if it is likely that, when attempting cure,
the non-performing party will cause damage to person or property."[31] In light of the "legitimate
interest", immaterial impacts might also cast doubt on the reasonableness of cure.[32] However,
every such indication is limited by the basic principles of Art. 37 CISG. Where the seller is
seriously seeking to maintain the contract and minimize the damage, the buyer may have to
accept a cure that is even more than slightly imperfect.[33] l. A separate issue is whether partial delivery causes "unreasonable inconvenience" under
Art. 37 CISG. As fractioned delivery always constitutes an inconvenience for the buyer, his
approval might generally be considered necessary.[34] However, the buyer has no remedies for
fractioned early performance since both Art. 51 CISG (reference to Arts. 46 to 50) and Art.
6.1.3 UP presuppose that the time for performance is due. As a result at this systematic
structure, the seller may complete partial delivery before the consigned date of delivery without
the permission of the buyer.[35] Once again the subjective standard of the buyer's "legitimate
interest" provided not only in Art. 7.1.4(1)(c) but also in Art. 6.1.3(1) UP may serve as an
adequate limit. m. The seller has to cure the non-performance at his own expense. His corresponding
obligation under Art. 48 CISG is a fortiori effective under Art. 37 CISG and stipulated in Art.
7.1.4 (1) UP. The limit of "unreasonable expense" addresses further financial disadvantages
for the buyer arising out of the cure (e.g., storage costs). Although the buyer may claim these
expenses as damages under Art. 37 CISG, he has to pre-finance the costs and bears the risk of
insolvency. The cure might be unreasonable if the seller offers no safety or pre-payment of the
costs.[36] A possible solution is a "right of retention"[37] which fits the concept of "legitimate
interest" in Art. 7.1.4(1)(c) UP. n. In general, early delivery very seldom amounts to a fundamental breach as the buyer may
refuse it.[38] Nevertheless, as a consequence of the pending cure, remedies under Art. 45 et seq.
are excluded.[39] In line with Art. 7.1.4(3) UP, the rights under Art. 72 CISG are also suspended
upon an effective notice of cure. There might be some rare cases where a right of the buyer to
withhold his own performance as provided in Art. 7.1.4(4) UP is helpful even before the
consigned time of performance is due. Corresponding to Art. 7.1.4(5) UP, Art. 37 CISG covers
not only unreasonable but also reasonable expenses caused by the cure [40] in line with the
principle of full compensation underlying Art. 74 CISG and stipulated in Art. 7.4.2 UP. o. If the buyer refuses cure under Art. 37 or Art. 48 CISG, only the right to price reduction is
expressly excluded in Art. 50. The duty of cooperation in Art. 5.3 UP requires the buyer to
cooperate and permit cure under Art. 7.1.4 UP.[41] Consequently, the buyer loses his remedies
for non-performance if he refuses groundlessly to accept cure under Art. 37 CISG.[42] Moreover,
the buyer is obliged to examine the goods under Art. 38 CISG and to give notice under Art. 39
specifying the nature of the lack of conformity to enable cure.[43] However, it is not clear whether
the duty of examination under Art. 38 CISG arises only with the date of delivery. Without
knowledge of the non-conformity, the seller would be deprived of his right to repair. In line
with the general principle of cooperation in Art. 5.3 UP, the obligation of the buyer in Arts. 38,
39 CISG is therefore not dependent on the date of delivery.[44] FOOTNOTES * The Author studied law and philosophy in Heidelberg, Cambridge (U.K.), Paris and Vienna
and is now writing a Ph.D. thesis on the theoretical foundations of contract law at Munich
University. 1. UNIDROIT, Principles of International Commercial Contracts (1994), Comment to
Art. 7.1.4, no. 1, available online at <http://cisgw3.law.pace.edu/cisg/principles/uni37.html#official>.
2. Ulrich Magnus in Heinrich Honsell (ed.) Kommentar zum UN-Kaufrecht (1997), Art. 37,
no. 1; Jacob S. Ziegel, Report to the Uniform Law Conference of Canada on CISG, available
online at <http://cisgw3.law.pace.edu/cisg/text/ziegel37.html>.
3. Herbert Stumpf in Hans Dölle (ed.), Kommentar zum Einheitlichen Kaufrecht. (1976); C.M.
Bianca in C.M. Bianca/ M.J. Bonell (eds.), Commentary on the International Sales Law
(1987), Art. 37, no. 1.3; Karl H. Neumayer/ Catharine Ming, Convention de Vienne sur les
contrats de vente internationale de marchandise (1993) Art. 37, p. 292. Cf. also Ingeborg H.
Schwenzer in Peter Schlechtriem (ed.), Commentary on the UN Convention on the
International Sale of Goods. English Translation (1998), Art. 37, no.2. (the right to cure was
unknown in Roman Law).
4. M.J. Bonell, An International Restatement of Contract Law. The UNIDROIT Principles of
International Commercial Contracts (1997); E.A. Farnsworth, An International Restatement:
the UNIDROIT Principles of International Commercial Contracts (1997) 26 University of
Baltimore Law Review 1-7.
5. E.g., the recent German reform of contract law newly introduced a right to cure after
delivery for sale contracts in §§ 437, 439 BGB.
6. Fritz Enderlein/ Dietrich Maskow, International Sales Law (1992), Art. 52, no.2, available
online at <http://cisgw3.law.pace.edu/cisg/biblio/enderlein.html>; Secretariat Commentary on Art.
48, no. 3 and 4; available online at <http://cisgw3.law.pace.edu/cisg/text/secomm/secomm-48.html>;
M. Will in Bianca/Bonell, Art. 52, no. 2.1.3; Ulrich Huber in Schlechtriem, Art. 52, no. 3;
Neumayer/Ming, Art. 52, no. 1. But criticized by Vincent Heuzé, La vente internationale de
merchandises (2000), no. 244; John O. Honnold, Uniform Law for International Sales under
the 1980 United Nations Convention (1999), Art. 52, no. 319 ("the buyer could gain little by
an unreasonable refusal to take an early delivery").
7. Cf. Sieg Eiselen, Editorial remarks on the manner in which the UNIDROIT Principles of
International Commercial Contracts may be used to interpret or supplement Articles 71 and 72
of the CISG; available online at <http://cisgw3.law.pace.edu/cisg/principles/uni71,72.html#er>.
8. CISG: M.J. Bonell in Bianca/Bonell, Art. 7, 2.3.2.2; Ulrich Magnus, Die allgemeinen
Grundsätze im UN-Kaufrechts, 59 Rabels Zeitung (1995) 469 (477), in English: General
Principles of UN-Sales Law; available online at
<http://cisgw3.law.pace.edu/cisg/biblio/magnus.html>; Bernard Audit, La vente internationale de
marchandise (1990) 51; Schlechtriem/Huber, Art. 45; reflected also in German
Bundesgerichtshof (3.4.1996), Zeitschrift für Wirtschaftsrecht 1996, 1044. UNIDROIT Principles: UNIDROIT Comment to Art. 1.3 and Art. 6.2.1.; M.J. Bonell, The
UNIDROIT Principles of International Commercial Contracts, Nature, Purposes and First
Experiences in Practice, available online at <http://www.unidroit.org/english/principles/pr-exper.htm>; cf. also Klaus-Peter Berger, The Creeping Codification of the Lex Mercatoria
(1999).
9. Art. 37 CISG: A.E. Farnsworth in Swiss Institute of Comparative Law, The 1980 Vienna
Convention on the International Sale of Goods, Lausanne Colloquium (1985) 84 et seq.; Hans
van Houtte/ Patrick Wautelet, The Duties of Parties and the Sanctions for Non-Performance
under the CISG, 3-4 International Business Law Journal (2001) 293 (302);
Schlechtriem/Schwenzer, Art. 37; Ulrich Magnus in M. Martinek (ed.), J. von Staudingers
Kommentar zum Bürgerlichen Gesetzbuch: Wiener UN-Kaufrecht (1999 Berlin), Art. 37,
no. 3. Art. 7.1.4 UP: UNIDROIT Comment to Art. 7.1.4, no. 1.
10. UNIDROIT Comment to Art. 7.1.4, no. 1; Honnold, no. 244 and 245.1; Rex J. Ahdar,
Seller cure in the sale of goods, Lloyd's Maritime and Commercial Law Quarterly 1990, 370.
11. Alejandro M. Garro, The Gap-Filling Role of the UNIDROIT Principles in
Internationational Sales Law: Some Comments on the Interplay between the Principles and the
CISG, 69 Tulane Law Review (1995) 1149 (1185).
12. For a right to cure under Art. 37 CISG up to the end of the period of time, cf. Fritz
Enderlein, Rights and Obligations of the Seller under the UN Convention on Contracts for the
International Sale of Goods, in Petar Sarcevic / Paul Volken (eds.), International Sale of
Goods, Dubrovnik Lectures (1996) 163; also available online at
<http://cisgw3.law.pace.edu/cisg/biblio/enderlein1.html>; Honnold, no. 245;
Schlechtriem/Schwenzer, Art. 37, no. 5; Heuzé (2000) 263. Different Rolf Herber/ Beate
Czerwenka, Internationales Kaufrecht (1991) Art. 37, no. 3; cf. also Uta Gutknecht, Das
Nacherfüllungsrecht des Verkäufers bei Kauf- und Werklieferungsverträgen.
Rechtsvergleichende Untersuchung zum CISG, zum US-amerikanischen Uniform Commercial
Code, zum deutschen Recht und zu dem Vorschlag der Kommission zur Überarbeitung des
deutschen Schuldrechts (1997) 44 et seq.
13. For a wide interpretation, cf. Staudinger/Magnus, Art. 37, no. 13; H. Ercüment Erdem, La
livraison des merchandises selon la convention de Vienne (1990) 161; for a corresponding
"global concept of conformity", cf. Houtte/Wautelet (2001) 306. Cf. also Honnold, no. 245.1;
Schlechtriem/Schwenzer, Art. 37, no. 6; Enderlein (1996) 164.
14. Heiko Lehmkuhl, Das Nacherfüllungsrecht des Verkäufers im UN-Kaufrecht (2001) 115 et
seq. favors a solution under the right to cure (Arts. 37, 48 CISG).
15. For an analogy to Art. 52(2) CISG in case of "higher quality", cf. Staudinger/Magnus, Art.
48, no. 9 and Art. 52, no. 27 et seq; Herber/Czerwenka, Art. 39, no. 15; Amin Dawwas, Die
Gültigkeit des Vertrages und das UN-Kaufrecht (1998) 83 et seq. Different
Schlechtriem/Huber (1998) Art. 52, no. 11 (CISG not applicable).
16. Cf. Lehmkuhl (2001) 81 for Art. 48 CISG in light of Art. 7.1.4 UP. For general reflections
on the right to cure for the buyer based on English Law, cf. Antonia Apps, The Right to cure
defective performance, Lloyd's Maritime and Commercial Law Quarterly (1994) 525 (527); cf.
also Enrico Frust & Co v. W.E. Fischer Ltd. (1960) 2 Lloyd's List Law Reports 340;
Kronman & Co v. Steinberger (1922) 10 Lloyd's List Law Reports 39.
17. For a general definition of the standard, cf. Albert H. Kritzer, Resonableness, available
online at <http://cisgw3.law.pace.edu/cisg/text/reason.html#over>.
18. UNIDROIT Comment to Art. 7.1.4, no. 4.
19. For the determination in the individual case, cf. Schlechtriem/Schwenzer, Art. 37, no. 13;
Staudinger/Magnus, Art. 37, no. 16. Cf. also Bianca/Bonell, Art. 37, 2.5 ("Unreasonable is an
inconvenience exceeding in an intolerable way the normal prejudice brought about to the buyer
by the replacement or repair of the goods.").
20. Henry Gabriel, Practitioner's Guide to the CISG and UCC (1994) 113; Olga Gonzalez,
Remedies Under the UN Convention for the International Sale of Goods, 2 International Tax
& Business Lawyer (1984) 89; Enderlein/Maskow, Art. 37, no. 6. Different Neumayer/Ming,
Convention de Vienne, Art. 37, 292.
21. Michael Bridge, The International Sale of Goods. Law and Practice (1999) no. 3.32 and
3.34.
22. Eric C. Schneider, The Seller's Right to Cure, in 7 Arizona Journal of International and
Comparative Law (1989) 76 (under reference to sec. 2-508(1) UCC); William A. Hancock
(ed.), Guide to the International Sale of Goods Convention, UCC/CISG Case Comparisons on
the Right to Cure: A Comparison of CISG Articles 37 and 48 with UCC § 2-508 (1999)
103.503, analysing E.L.E.S.C.O. v. Northern States Power Co. (Minnesota Court of Appeal,
1985) in light of Art. 37 CISG; cf. also James M. Klotz/ John A. Barrett, International Sales
Agreements. An Annotated Drafting and Negotiating Guide (1998) 169 et seq.
23. Schlechtriem/Schwenzer, Art. 37, no. 13; Staudinger/Magnus, Art. 37, no. 16.
24. Dölle/Stumpf, Art. 37 ULIS, no. 5; Staudinger/Magnus, Art. 37, no. 12;
Schlechtriem/Huber, Art. 48, no. 9 and Schlechtriem/Schwenzer , Art. 37, no. 11; Ahdar
(1990) 375; Neumayer/Ming Convention de Vienne, Art. 37, p. 291. Cf. Hancock (1999)
103.502, analysing Allied Semi-Conductors International Limited v. Pulsar Components
International, Inc (E.D.N.Y., 1993) in light of Art. 37 CISG.
25. Bianca/Bonell, Art. 37, 2.6 and 2.1; Enderlein/Maskow, Art. 37, no. 5.
26. UNIDROIT Comment to Art. 7.1.4, no. 3.
27. Schlechtriem/Schwenzer, Art. 37, no. 11. Cf. also Hancock (1999) 103.501, analysing
Traynor v. Walters (M.D.Pa., 1972) in light of Art. 37 CISG.
28. Binaca/Bonell, Art. 37, 2.6. For corresponding comments on the "perfect tender rule" (sec.
2-601 UCC) cf. James J. White/ Robert S. Summers, Uniform Commercial Code (2000) §8-3b;
William H. Lawrence, Cure under Article 2 of the Uniform Commercial Code: Practices and
Prescriptions, 21 U.C.C. Law Journal (1988) 138 (167).
29. UNIDROIT Comment to Art. 7.1.4, no. 6.
30. Honnold, no. 247.
31. UNIDROIT Comment to Art. 7.1.4, no. 4.
32. Schlechtriem/Huber, Art. 48, no. 8. Cf. also the "shaken-faith" doctrine under the UCC:
White/Summers (2000) 323; Ahdar (1990) 375 with reference to the leading case Zabriskie
Chevrolet Inc. v. Alfred J. Smith (Superior Court of New Jersey, 1968). Lehmkuhl (2001) 44
et seq. applies the "shaken-faith" doctrine directly to the CISG.
33. Cf. Bridge (1999) no. 3.37.
34. Enderlein/Maskow, Art. 37, no. 3.
35. Enderlein (1996) 164; similar Staudinger/Magnus, Art. 37, no. 16.
36. Audit (1990) no. 132; Erdem (1990) 164.
37. Schlechtriem/Schwenzer, Art. 37, no. 10; Bianca/Bonell, Art. 37, 3.1 ("right to refuse the
handing back"); Herber/Czerwenka, Art. 37, no. 7 (idea of Art. 86(1) CISG). Different
Staudinger/Magnus, Art. 37, no. 17; Ahdar (1990) 378.
38. Cf. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of
Commerce and Industry (25 April 1995) CLOUT abstract no. 141, available online at
<http://cisgw3.law.pace.edu/cases/950425r1.html>.
39. Schlechtriem/Schwenzer, Art. 37, no. 15; Staudinger/Magnus, Art. 37, no. 19; Enderlein
(1996) 163; Herbert Bernstein/ Joseph Lookofsky, Understanding the CISG in Europe (1997)
§ 6-9; Heuzé (2000) 263. Different but without any reasons, Gonzalez (1984) 89.
40. Ahmad H. Al-Rushoud, The Right to Cure Defects in Goods and Documents, Lloyd's
Maritime and Commercial Law Quarterly 1999, 458; Enderlein (1996) 165. Cf. also
UNIDROIT Comment to Art. 7.1.4, no. 9.
41. UNIDROIT Comment to Art. 7.1.4, no. 10; cf. also M. Darin Hammond, When a Buyer
Refuses the Seller's Right to Cure, 27 Idaho Law Review (1990/91) 562.
42. Bianca/Bonell, Art. 37, 3.2; Schlechtriem/Schwenzer, Art. 37, no, 17 (general principle
underlying Art. 80 CISG); Heuzé (2000) 264 (also recurring on Art. 80 CISG);
Neumayer/Ming, Art. 37, 294. Cf. also Hancock (1999) 103.503, analysing Uchitel v. F. R.
Trippler & Co (New York Supreme Court, 1980) in light of Art. 37 CISG.
43. Secretariat Commentary, Art. 35 (draft counterpart of CISG Article 37), footnote 2,
available online at <http://cisgw3.law.pace.edu/cisg/text/secomm/secomm-37.html>; Neumayer/ Ming,
Art. 37, 292; Bridge (1999) no. 3.38. Cf. also Arbitration Court of the Chamber of Commerce
and Industry of Budapest, Hungary (5 December 1995), CLOUT no. 164, available online at
<http://cisgw3.law.pace.edu/cases/951205h1.html>.
44. Houtte/Wautelet (2001) 293 (302); Enderlein (1996) 163. Different Staudinger/Magnus,
Art. 38, no. 21, 37; Herber/Czerwenka, Art. 38, no. 8; Gutknecht (1997) 46.
Nations Convention on the International Sale of Goods [*]
ARTICLE 37
ANNOTATED COMPARATIVES
Article 37 CISG and UNIDROIT Principles Comparative
June 2004
Pace Law School
Institute of International Commercial Law - Last updated June 19, 2008
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