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ANNOTATED TEXT OF CISG
Article 25

A breach of contract committed by one of the parties is fundamental if it results in such detriment to the other party as substantially to deprive him of what he is entitled to expect under the contract, unless the party in breach did not foresee and a reasonable person of the same kind in the same circumstances would not have foreseen such a result.

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Legislative history


Case law

1. Nature of the contractual obligation

a. Quality of the goods

AUSTRIA: OLG Innsbruck 1 July 1994 [235-236 n.201]

GERMANY: LG Ellwangen 21 August 1995 [236 n.202]

b. Timely delivery

GERMANY: AG Ludwigsburg 21 December 1990 [237 n.206]

GERMANY: LG Stuttgart 13 August 1991 [237 n.206]

GERMANY: OLG Munchen 8 February 1995 (7 U 1720/94) [236-237 n.204]

GERMANY: LG Oldenburg 27 March 1996 [237 n.205]

GERMANY: OLG Hamburg 28 February 1997 [236 n.203]

HUNGARY: Arbitration Vb 94131 of 5 December 1995 [236-237 n.204]

c. Disregard of the seller's distribution system

FRANCE: CA Grenoble 22 February 1995 [237-238 n.207, 351- 352 n.602]

d. Aggrieved party's special interest made clear in contract

GERMANY: OLG Hamburg 28 February 1997 [259 n.269]

2. Gravity of the consequences of the breach

a. Contract's overall value and the monetary loss suffered by the aggrieved party

GERMANY: OLG Hamm 22 September 1992 [240 n.213]

GERMANY: OLG Munchen 2 March 1994 [241 n.216]

GERMANY: LG Landshut 5 April 1995 [239 nn.210, 211]

ICC: Arbitration 7531 of 1994 [239-240]

RUSSIA: Arbitration 200/1994 of 25 April 1995 [240-241]

UNITED STATES: Delchi v. Rotorex (District Court) 9 September 1994 [239 n.208]

UNITED STATES: Delchi v. Rotorex (Circuit Court of Appeals) 6 December 1995 [239 n.209]

b. Frustration of the purpose of the contract

FRANCE: CASS. [Supreme Court] 23 January 1996 [242 nn.219, 220]

GERMANY: LG Darmstadt 22 December 1992 [241-242 n.217]

GERMANY: OLG Frankfurt 20 April 1994 [241-242 n.217]

GERMANY: BGH [Supreme Court] 8 March 1995 [241-242 n.218]

c. Remedy-oriented approach

GERMANY: LG Heidelberg 3 July 1992 [243 n.224]

GERMANY: OLG Frankfurt 18 January 1994 [243-244 nn.222, 225]

GERMANY: OLG Hamburg 14 December 1994 [244 n.226]

GERMANY: BGH [Supreme Court] 3 April 1996 [243-245 nn.223, 227; 294 n.431; 351 n.600]

3. (In)ability of performance

AUSTRALIA: Roder v. Rosedown 28 April 1995 [246-247]

GERMANY: OLG Düsseldorf 18 November 1993 [245-246 n.231]

GERMANY: BGH 15 February 1995 [245-246 n.232]

4. (Un)willingness of performance

GERMANY: OLG Düsseldorf 10 February 1994 (6 U 119/93) [247 n.236]

5. No-reliance on the other party's future performance

a. Violation of exclusive rights by the seller or the buyer

FRANCE: CA Grenoble 22 February 1995 [249-250]

GERMANY: LG Frankfurt 16 September 1991 [248-249, 351-352 n.603]

GERMANY: OLG Frankfurt 17 September 1991 [247-248 n.237; 351-352 n.601]

GERMANY: OLG Koblenz 31 January 1997 [249 nn.240, 242]

b. Uncertainty as to the seller's future performance

GERMANY: OLG Hamburg 28 February 1997 [250 n.245]

ICC: Arbitration 7585 of 1992 [251 n.246]

ITALY: Pr. Parma 24 November 1989 [251 n.246]

c. Failure to provide security for the purchase price

GERMANY: OLG Dusseldorf 14 January 1994 [252 n.248; 305 n.458]

d. Making delivery dependent on an unjustified condition

GERMANY: LG Berlin 30 September 1992 [252-253 nn. 249, 251; 305 n.458]

GERMANY: Hamburg arbitration 21 March 1996 [253 n.252]

6. Offer to cure/possible cure

FRANCE: CA Grenoble 26 April 1995 (Marques Roque) [254-255 nn.258-259]

GERMANY: LG Baden-Baden 14 August 1991 [256 n.264]

GERMANY: OLG Munchen 2 March 1994 [255 n.260]

GERMANY: OLG Oldenburg 1 February 1995 [256 n.265]

GERMANY: BGH [Supreme Court] 3 April 1996 [258-259 n.267]

GERMANY: OLG Koblenz 29 November 1995 [253-254 n.254]

GERMANY: OLG Koblenz 31 January 1997 [259 n.269]

SWITZERLAND: HG Zürich 26 April 1995 [255-256 nn.261-262]


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Pace Law School Institute of International Commercial Law - Last updated January 22, 2001
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