CISG – The Concept of Breach

In international sales transactions, the parties commonly choose to let the UN Sales Conventon (CISG) govern their rights and obligations under the contract. However, sometimes parties from different jurisdictions have a different understanding regarding the interpretation of certain rights and obligations under the contract. Case law has shown that with the availability of published CISG decisions on the internet, the interpretation of the Convention by judges in different countries have become more harmonized and predictable which is good news for a legal practitioner who must advise the client contemplating such a transaction in advance as to the risks involved and the likely outcome of litigation.

In the year 2000, the author had published an article analyzing German and US interpretations of the concept of fundamental breach under the CISG. See: The Concept of Fundamental Breach as an International Principle to Create Uniformity of Commercial Law, 19 J.L. & Com. 221 (2000). Since then, case law both in Germany and the US has clarified previous erroneous decisions and we now have more certainty in the law.