Matchup of CISG Article 58 with ULIS/ULF

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LEGISLATIVE HISTORY

CISG ANTECEDENTS


     CISG Article 58                       ULIS Article 71 
                                                      
1. If the buyer is not bound to     Except as otherwise 
pay the price at any other          provided in Article 72, 
specific time, he must pay it       delivery of the goods and 
when the seller places either       payment of the price shall 
the goods or documents              be concurrent conditions. 
controlling their disposition       Nevertheless, the buyer 
at the buyer's disposal in          shall not be obliged to pay 
accordance with the contract        the price until he has had an 
and this Convention.  The seller    opportunity to examine the 
may make such payment a             goods. 
condition for handling over    
the goods or documents.       
                                            ULIS Article 72 
2. If the contract involves   
carriage of the goods, the          1. Where the contract involves 
seller may dispatch the goods       carriage of the goods and where 
on terms whereby the goods,         delivery is, by virtue of paragraph 2
or documents controlling their      of Article 19, effected by handing 
disposition, will not be handed     over the goods to the carrier, 
over to the buyer except against    the seller may either postpone 
payment of the price.               despatch of the goods until he 
                                    receives payment or proceed to 
3. The buyer is not bound to pay    despatch them on terms that 
the price until he has had an       reserve to himself the right of 
opportunity to examine the goods,   disposal of the goods during 
unless the procedures for delivery  transit.  In the latter case, he may
or payment agreed upon by the       require that the goods shall not 
parties are inconsistent with his   be handed over to the buyer 
having such an opportunity.         at the place of destination except 
                                    against payment of the price and 
                                    the buyer shall not be bound to 
                                    pay the price until he has had an 
                                    opportunity to examine the goods. 
 
                                    2. Nevertheless, when the contract 
                                    requires payment against documents, 
                                    the buyer shall not be entitled to refuse 
                                    payment of the price on the ground 
                                    that he has not had the opportunity to 
                                    examine the goods. 


Comments on the match-up

"The rules governing the time of payment and the principle that payment and the handing over the goods are concurrent conditions are set out in different articles of ULIS (Article 60 and Articles 71 and 72). The Working Group altered that approach in two respects. First, there was a departure from ULIS' central concept of 'delivery'. The obligation to pay the price arose when the goods were placed at the buyer's disposal. Secondly, since the time of payment and the principle of payment concurrently with the placing of the goods at the buyer's disposal were interconnected, they were brought within one rule. The seller's right to postpone dispatch of the goods until he receives payment (Article 72(1) ULIS) was dropped. It conflicted with usage in a number of countries." Hager in Commentary on the UN Convention on the International Sale of Goods, Peter Schlechtriem ed. (Oxford 1998) 41 [citations omitted].


Pace Law School Institute of International Commercial Law - Last updated June 22, 1998
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