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Arts. 78/84(1) CISG–PECL, by Francesco G. Mazzotta [Italy]

Published online by Cambridge University Press:  20 October 2009

Francesco G. Mazzotta
Affiliation:
Associate of the Institute of International Commercial Law, Pace University School of Law
John Felemegas
Affiliation:
University of Technology, Sydney
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Summary

INTRODUCTION

The main goal of this chapter is to establish whether the Principles of European Contract Law (PECL) may be of assistance in construing the meaning of Article 78 of the United Convention on Contracts for the International Sale of Goods (CISG). I believe that the method for calculating interest rate as determined by the PECL may not be used under the CISG.

CISG ARTICLE 78

Background

It is well known that Article 78 is “more conspicuous for the questions it fails to answer than the questions it answers.” Because it was impossible to reach an agreement among the delegations at the Vienna Convention, the present version of Article 78 does not fix any rate of interest. It should be noted, however, that although considered as a “headless corpse,” Article 78 introduces a far-reaching principle of a general entitlement to interest, which is still rather important because it makes clear that a fixed interest rate (however, one not set by the Convention) must be applied to sums paid with delay (normativity feature) and that the entitlement to interest is not limited by grounds for release as provided for by CISG Article 79 (absoluteness feature).

Operation of CISG Article 78

Failure to pay the price or any other sum that is in arrears is the condition to be satisfied under Article 78. Failure refers to a failure to comply with the obligation to pay the price by a specific time, whether the time is set by contract or by the CISG (Article 58).

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  • Arts. 78/84(1) CISG–PECL, by Francesco G. Mazzotta [Italy]
    • By Francesco G. Mazzotta, Associate of the Institute of International Commercial Law, Pace University School of Law
  • Edited by John Felemegas, University of Technology, Sydney
  • Book: An International Approach to the Interpretation of the United Nations Convention on Contracts for the International Sale of Goods (1980) as Uniform Sales Law
  • Online publication: 20 October 2009
  • Chapter DOI: https://doi.org/10.1017/CBO9780511511417.075
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  • Arts. 78/84(1) CISG–PECL, by Francesco G. Mazzotta [Italy]
    • By Francesco G. Mazzotta, Associate of the Institute of International Commercial Law, Pace University School of Law
  • Edited by John Felemegas, University of Technology, Sydney
  • Book: An International Approach to the Interpretation of the United Nations Convention on Contracts for the International Sale of Goods (1980) as Uniform Sales Law
  • Online publication: 20 October 2009
  • Chapter DOI: https://doi.org/10.1017/CBO9780511511417.075
Available formats
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Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • Arts. 78/84(1) CISG–PECL, by Francesco G. Mazzotta [Italy]
    • By Francesco G. Mazzotta, Associate of the Institute of International Commercial Law, Pace University School of Law
  • Edited by John Felemegas, University of Technology, Sydney
  • Book: An International Approach to the Interpretation of the United Nations Convention on Contracts for the International Sale of Goods (1980) as Uniform Sales Law
  • Online publication: 20 October 2009
  • Chapter DOI: https://doi.org/10.1017/CBO9780511511417.075
Available formats
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