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

Altura Ltd agreed to sell 500 machine parts to Brevik GmbH under a contract governed by the CISG. Altura delivered the parts, but they were slightly out of specification. Brevik can still use them with minor adjustments, and the lack of conformity is not a fundamental breach. Which remedy is NOT available to Brevik?

Brevik cannot avoid the contract. Under the CISG, avoidance requires a fundamental breach, meaning substantial deprivation of what the buyer expected. Because the parts are usable with minor adjustments, the breach is not fundamental, though Brevik may still claim damages or request repair.

  1. AClaim damages for loss caused by the non-conformity
  2. BRequire Altura to repair the goods, if this is reasonable in the circumstances
  3. CDeclare the contract avoided and return all of the goodsCorrect

Explanation

Under the CISG, avoidance is a last resort and is available for non-conforming goods only where the breach is fundamental. Here the goods are usable with minor adjustments, so the breach is not fundamental. Damages and repair (where reasonable) remain available.

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