Corporate and Business Law (Global) · Obligations of the seller and buyer, and provisions common to both

Buyer's Obligations under CISG Explained

Updated 11 October 2026 · Fact-checked

Under the CISG, the buyer has two core duties: pay the price and take delivery of the goods (Article 53). The buyer must also take steps to enable payment, such as complying with formalities. Place and time of payment follow the contract, or the default rules in the Convention.

Understand Buyer's Obligations under CISG

The CISG is the UN Convention on Contracts for the International Sale of Goods. It sets rules for sales between parties in different contracting states. It has rules for both the seller and the buyer. This page covers the buyer.

Article 53 sets the two main duties. The buyer must pay the price for the goods and take delivery of them, as the contract and the Convention require. If the buyer fails in either duty, the seller has remedies.

Paying the price has several parts. The buyer must take the steps and comply with the formalities the contract or any law requires to make payment possible. Examples are arranging a letter of credit or obtaining exchange-control approval. If the contract is valid but does not state a price, the parties are taken to have agreed the price generally charged at the time the contract was made for such goods sold in comparable circumstances in the trade concerned. If the price is fixed by weight, then unless the contract says otherwise, the net weight decides it.

Place of payment. If the contract does not say, the buyer must pay at the seller's place of business. If payment is to be made against handing over the goods or documents, payment is made at the place where that handover happens. If the seller changes their place of business after the contract, the seller bears any extra expense that causes.

Time of payment. If the contract sets no date, the buyer must pay when the seller places the goods or the documents controlling them at the buyer's disposal. The seller may make payment a condition of handing them over. The buyer need not pay until they have had a chance to examine the goods, unless the agreed delivery or payment arrangements do not allow this. Payment is due without the seller having to ask for it or comply with any formality.

Taking delivery has two parts. The buyer must do the acts that could reasonably be expected to enable the seller to make delivery, such as nominating a ship or collecting at the agreed place. The buyer must also take over the goods.

Key formulas to remember

Core buyer duties (Article 53): Buyer must: (1) pay the price + (2) take delivery; Both duties come from the contract and the Convention. Learn them as a pair.
Price not stated: Price = price generally charged at contract date for such goods in comparable circumstances in the trade; Applies where a contract is validly made but the price is not fixed or fixable.
Price fixed by weight: Unless agreed otherwise, the net weight decides the price; So packaging weight is not charged for.
Place of payment (default): Seller's place of business, or the place of handover if payment is against goods or documents; Only applies if the contract is silent. Any increase in expense from the seller moving is for the seller.
Time of payment (default): When the seller places goods or documents at the buyer's disposal; No reminder or formality is needed from the seller. The buyer may first examine the goods unless the arrangements exclude this.
Taking delivery: Do acts reasonably expected to enable delivery + take over the goods; Includes cooperation such as nominating a vessel or collecting at the agreed place.

How to solve Buyer's Obligations under CISG questions

Use this method for any question on the buyer's duties under the CISG.

1Check the CISG applies: the parties' places of business must be in different states, and the contract must be for the sale of goods.
2Read the contract terms first. The CISG rules on price, place and time only fill gaps.
3Identify which duty is in issue: paying the price, taking delivery, or the steps needed to enable payment.
4If the price is missing, apply the rule on the price generally charged at contract date in comparable trade circumstances.
5For place of payment, decide whether payment is against goods or documents. If so, pay where handover occurs. If not, pay at the seller's place of business.
6For time of payment, use the date the goods or documents are placed at the buyer's disposal, and allow for the buyer's chance to examine the goods.
7State the conclusion clearly, naming the duty and whether the buyer is in breach.
8If breach is found, say that the seller's remedies would follow, and name them only if asked.

Quickest way: Two duties, then three defaults

When to use it: Use this for Section A or Section B objective questions where you have about a minute per question.

Spot the duty: pay or take delivery.
If the contract states the point, the contract wins.
If silent, apply the default: price is the usual market price, place is the seller's business (or handover place), time is when the goods or documents are at the buyer's disposal.
Eliminate options that require the seller to send a demand or invoice first. No formality is needed.
Choose the option that matches the Convention wording, not local domestic law.

Common mistakes in Buyer's Obligations under CISG

Saying the buyer pays at the buyer's own place of business.
Students assume the buyer decides how and where to pay.
Fix: Remember the default: the seller's place of business, or the place of handover if payment is against goods or documents.
Saying the buyer need not pay until the seller sends a demand.
Domestic law often relies on invoices and reminders.
Fix: Under the CISG the buyer must pay on the due date without a request or formality from the seller.
Forgetting that taking delivery is a separate duty from paying.
Students focus on money only.
Fix: Always list both duties from Article 53. A buyer who refuses to collect goods can be in breach even if willing to pay.
Saying a contract with no price is void.
Domestic law may demand a fixed price.
Fix: State the default: the price generally charged at contract date for such goods in comparable circumstances in the trade.
Ignoring the buyer's right to examine goods before paying.
Students only remember that payment is due on handover.
Fix: Add that the buyer need not pay until they have had the chance to examine the goods, unless the delivery or payment arrangements are inconsistent with this.
Applying the default rules when the contract already covers the point.
Students memorise the defaults and apply them automatically.
Fix: Check the contract first. The defaults apply only if the contract is silent.

Worked examples

Example 1

Alba Ltd (Country X) sells machine parts to Brio Ltd (Country Y). Both states are contracting states to the CISG. The contract says nothing about where or when payment is to be made, and no documents are exchanged. The parts are placed at Brio's disposal on 10 May. Where and when must Brio pay?

Show the solution

The CISG applies: places of business are in different contracting states and the contract is for goods.
The contract is silent on place, so the default applies. Payment is not against goods or documents handover in a way that fixes a different place, so the default is the seller's place of business.
The contract is silent on time, so the default applies: payment is due when the goods are placed at the buyer's disposal, which is 10 May.
No demand or invoice is needed from Alba for the duty to arise.
Brio may first examine the goods, unless the arrangements are inconsistent with that.

Answer: Brio must pay at Alba's place of business, due from 10 May when the goods are placed at its disposal, without any demand from Alba.

Example 2

Corvo Ltd agrees to buy a quantity of grain from Dena Ltd, in different contracting states. The contract is valid but states no price. Corvo says there is no contract because the price is missing. Advise Dena.

Show the solution

The CISG applies as the parties are in different contracting states and the contract is for goods.
A contract can be valid without a stated price. The Convention fills the gap.
The default price is the price generally charged at the time the contract was made for such goods sold in comparable circumstances in the trade concerned.
So Corvo must pay that market price and cannot escape on the ground that no price was stated.
Corvo must also take delivery of the grain, as Article 53 requires. Refusing to collect would be a further breach.

Answer: Dena can insist on the contract. Corvo must pay the price generally charged at contract date for such grain in comparable trade circumstances, and must take delivery.

Exam tips

Learn Article 53 as two duties: pay and take delivery. Many objective options test only one of them.
Always check whether the contract overrides the default. 'Unless otherwise agreed' is the key phrase.
Watch for options that add a demand or formality before payment is due. They are wrong under the CISG.
In a written answer, set out the facts, state the default rule, apply it, then conclude in one line.
Do not give article numbers other than Article 53 unless you are sure of them. State the rule in plain words.

Practice questions from Obligations of the seller and buyer, and provisions common to both

Buyer's Obligations under CISG: frequently asked questions

What are the buyer's main obligations under the CISG?

The buyer must pay the price and take delivery of the goods, as the contract and the Convention require. This is set out in Article 53. The buyer must also take steps to enable payment, such as complying with required formalities.

Where must the buyer pay under the CISG?

If the contract is silent, the buyer pays at the seller's place of business. If payment is against handing over goods or documents, payment is made where the handover takes place. The seller bears any extra cost if they move their place of business after the contract.

When must the buyer pay under the CISG?

If the contract sets no date, payment is due when the seller places the goods or the documents controlling them at the buyer's disposal. The seller does not need to make a request first. The buyer may usually examine the goods before paying.

What if the contract does not fix a price?

A valid contract can still exist. The parties are taken to have agreed the price generally charged at the time the contract was made for such goods in comparable circumstances in the trade concerned.