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LEGISLATIVE HISTORY

Legislative history of CISG article 74: Match-up with 1978 Draft to assess relevance of Secretariat Commentary


1978 Draft article 70

Damages for breach of contract by one party consist of a sum equal to the loss, including loss of profit, suffered by the other party as a consequence of the breach. Such damages may not exceed the loss which the party in breach foresaw or ought to have foreseen at the time of the conclusion of the contract, in the light of the facts and matters which he then knew or ought to have known, as a possible consequence of the breach of contract.

  

CISG article 74

Damages for breach of contract by one party consist of a sum equal to the loss, including loss of profit, suffered by the other party as a consequence of the breach. Such damages may not exceed the loss which the party in breach foresaw or ought to have foreseen at the time of the conclusion of the contract, in the light of the facts and matters of which he then knew or ought to have known, as a possible consequence of the breach of contract.


Editorial comments

Except for changing "which" to "of which" in its last clause, CISG article 74 is identical to 1978 Draft article 70. The Secretariat Commentary on 1978 Draft article 70 should therefore be relevant to the interpretation of CISG article 74. To be noted is the addition to the Official Text of a new provision, CISG article 78, which states: "If a party fails to pay the price or any other sum that is in arrears, the other party is entitled to interest on it, without prejudice to any claim for damages recoverable under article 74."


Pace Law School Institute of International Commercial Law - Last updated July 12, 1999
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To examine 1978 Draft provisions in context, go to the full-text of the 1978 Draft || To examine CISG provisions in context, go to the full text of the CISG