Matchup of CISG Article 74 with ULIS Go to Database Directory || Go to CISG Table of Contents || Go to full text of CISG || Go to full text of ULIS

LEGISLATIVE HISTORY

CISG ANTECEDENTS


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.

  

ULIS Article 82

Where the contract is not avoided, damages for a breach of contract by one party shall consist of a sum equal to the loss, including loss of profit, suffered by the other party. Such damages shall not exceed the loss which the party in breach ought to have foreseen at the time of the conclusion of the contract, in the light of the facts and matters which then were known or ought to have been known to him, as a possible consequence of the breach of the contract.


Comments on the match-up

"The Convention differs from ULIS in that it summarizes in one basic rule the main elements of, and limits to, the liability to pay damages pursuant to other provisions of the Convention. This basic rule is placed directly before just two supplementary rules which apply in particular cases (Articles 75 and 76). However, the basic rule conforms to the principles underlying the damages rules in ULIS (Articles 82-89).

"Article 82 ULIS provides -- in almost the same terms as Article 74 CISG -- that, where the contract has not been avoided, liability to pay damages extends to the loss, including loss of profit, suffered (first sentence) and confines liability to the loss which the party in breach ought to have foreseen at the time of the conclusion of the contract as a possible consequence of the breach of the contract (second sentence). [emphasis added]

"Articles 86 and 87 ULIS then supplement those principles in cases where the contract has been avoided. In contrast, the basic rule in Article 74 CISG applies to all cases of loss, whether or not the contract has been avoided. . . ." Stoll in Commentary on the UN Convention on the International Sale of Goods, Peter Schlechtriem ed. (Oxford 1998) 553 [citations omitted].

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Illustrative ULIS case precedents that can aid in the interpretation of CISG Article 74

ULIS case law referred to below comes from the chapter on CISG Article 74 in Commentary on the UN Convention on the International Sale of Goods, Peter Schlechtriem ed. (Clarendon Press: Oxford 1998)

The author of this chapter is Hans Stoll, Emeritus Professor, University of Freiburg. ULIS case annotations provided are his. [Bracketed] material following each case citation identifies the page of his chapter and the footnote he provides. Click here for schedule of abbreviations contained in his case citations.

Interpretation and ULIS case support

The material we have excerpted pertains only to case law under the Uniform Law that preceded the CISG -- jurisprudence that parties have regarded as relevant because the CISG drafting process commenced with that Law. See the cited chapter of the Schlechtriem Commentary for a comprehensive analysis of CISG Article 74.


Pace Law School Institute of International Commercial Law - Last updated June 12, 1998
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