Duty to Mitigate the Damage under Convention on Contracts for the International Sale of Goods

Document Type : Research Article

Authors

1 Associate Professor, Faculty of Law and Political Sciences, Allameh Tabataba'i University, Tehran, Iran

2 Ph.D Student, Faculty of Law and Political Sciences, Allameh Tabataba'i University, Tehran, Iran

Abstract

Under the Convention on Contracts for the International Sale of Goods (CISG), the injured party as a result of a breach of contract shall take reasonable measures in order to reduce the damage, and if, while having the ability, he fails in this regard, it will not be compensated for the damages that can be avoided. Taking inadequate and unreasonable measures will have the same result. Also, the costs of reasonable measures incurred injured party in reducing of damage are also considered as damages resulting from breach of contract, even if these measures do not provide the desired result. Based on the "reasonableness" condition that is considered in relation to the injured party actions in order to reduce the damage, these measures should indicate a reasonable effort and cost less than possible damages. This article aims to explain the concept of duty to mitigate the damage and to investigate related issues in CISG.

Keywords


  1. ابهری، حمید و حسین کاویار (1392). «نظریة تقلیل خسارت در کنوانسیون بیع بین‌المللی کالا (1980 وین) و حقوق ایران»، دانش حقوق مدنی، 2 (1)، صص 79 ـ 94.
  2. حاضری، جواد (1385). «قاعدة کاهش خسارت در کامن‌لا و کنوانسیون بیع 1980»، گواه، ش 6 و 7، صص 82 ـ 89.
  3. داراب‌پور، مهراب (1374). تفسیری بر حقوق بیع بین‌المللی، تهران، گنج دانش.
  4. شعاریان، ابراهیم و یوسف مولایی (1392). «شرایط و موانع اعمال قاعدة تقلیل خسارت»، پژوهش حقوق خصوصی، 2 (3)، صص 35 ـ 64.
  5. صادقی، محسن (1383). «شیوه‌های جبران خسارت ناشی از نقض تعهد قراردادی در کنوانسیون بیع بین‌المللی کالا»، پژوهش‌های حقوقی، 5، صص 153 ـ 177.
    1. Barnett, K. (2016). Substitutive Damages and Mitigation in Contract Law, Singapore Academy of Law Journal, 28, pp. 795-824.
    2. Bernstein, H. & Lookofsky, J. M. (1997). Understanding the CISG in Europe: a compact guide to the 1980 United Nations Convention on Contracts for the International Sale of Goods, Kluwer Law International.
    3. Bradford, S. (2015). Contracts for the International Sale of Goods: The Convention and the Code, Michigan State International Law Review, 23,pp. 753-822.
    4. Ciurtin, H. (2015). A Hermeneutical Perspective Upon the ‘Mitigation of Damages’ Principle: The Metamorphosis of a Concept in International Law, Transnational Dispute Management, 12 (6), pp. 1-19.

10. Cooter, R. D. (1989). The Best Right Laws: Value Foundations of the Economic Analysis of Law, Notre Dame Law Review, 64, pp. 817-837.

11. DiMatteo, L. A., Dhooge, L. J., Greene, S., Maurer, V. G., & Pagnattaro, M. A. (2005). International Sales Law: A Critical Analysis of CISG Jurisprudence, Cambridge University Press.

12. Dyson, A. & Kramer, A. (2014). There Is No 'Breach Date Rule' Mitigation, Difference in Value and Date of Assessment, Law Quarterly Review, 130, pp. 259-281.

13. Eiselen, S. (2005). Unresolved Damages Issues of the CISG: A Comparative Analysis, Comparative and International Law Journal of Southern Africa, 38, pp. 32-46.

14. Honnold, J. O. (2009). Uniform Law for International Sales Under the 1980 United Nations Convention, Kluwer Law International.

15. Knapp, V. (1998). Article 77, Commentary on the International Sales Law: The 1980 Vienna Sales Convention-edited by C Massimo Bianca and Michael Joachim Bonell, Giuffre, pp. 545-573.

16. Lookofsky, J. (2008). Understanding the CISG, A Compact Guide to the 1980 United Nations Convention on contract for the International Sale of Goods, Kluwer Law International.

17. Magnus, U. (2014). Damages Rules in the Common European Sales Law and in the Principles of European Tort Law, International Trade and Business Law Review, 17, pp. 224-240.

18. McGregor, H. (2016). McGregor on Damages, 19th Ed, Sweet and Maxwell.

19. Peel, E. (2011). Treitel on the Law of Contract, Sweet and Maxwell.

20. Rizink, P. (2010). Some Aspects of Loss Mitigation in International Sale of Goods, Vindobona Journal of International Commercial Law and Arbitration, 14, pp. 267-282.

21. Rizink, P. (2009). Article 77 CISG: Reasonableness of the Measures Undertaken to Mitigate the Loss, Thesis for M.A. Degree.

22. Rigaudeau, Baptiste. (2010), The Calculation of Damages in Arbitration: towards more Flexibility in Assessing Mitigation?, Versailles International Arbitration and Business Law Review, 1, pp. 43-49.

23. Saidov, D. (2002). Methods of Limiting Damages under the Vienna Convention on Contracts for the International Sale of Goods, Pace International Law Review, 14, pp. 307-378.

24. Saidov, D. (2008). The Law of Damages in International Sales: The CISG and other International Instruments, Hart Publishing.

25. Schlechtriem, P. & Butler, P. (2009). UN Law on International Sales: The UN Convention on the International Sale of Goods, Springer-Verlag.

26. Schlechtriem, P. & Schwenzer, I. H. (2005). Commentary on the UN Convention on the International Sale of Goods (CISG), Oxford University Press.

27. Shippey, K. C. (2003). A Short Course in International Contracts: Drafting the International Sales Contract: For Attorneys and Non-Attorneys, World Trade Press.

28. Stoll, H. (1998). Article 77, Commentary on the International Sales Law: The 1980 Vienna Sales Convention-edited by C Massimo Bianca and Michael Joachim Bonell, Giuffre, pp. 574-682.

29. Yan, M. (2011). Remedies under the Convention on Contracts for the International Sale of Goods and the United Kingdom's Sale of Goods Act: A Comparative Examination, City University of Hong Kong Law Review, 3, pp. 111-140.

30. Zeller, B. (2007). CISG and the Unification of International Trade Law, Routledge-Cavendish.

31. Zimmermann, R. (2014). Limitation of Liability for Damages in European Contract Law, Edinburgh Law Review, 18, pp. 193-224.