Skip to content

ACCA Applied Skills · Corporate and Business Law (Global) · Introduction to the UN Convention on Contracts for the International Sale of Goods and ICC Incoterms

Brightwave Ltd (State A) agreed to sell 500 industrial pumps to Costa SA (State B). Both states are Contracting States to the CISG and the contract does not exclude it. Brightwave delivered the pumps on time, but they were a different model from the one specified. Under the CISG, which statement best describes Costa's position?

Costa can treat the delivery of the wrong model as a breach. The CISG requires the seller to deliver goods that match the contract's quantity, quality and description, and timely delivery does not cure non-conforming goods. Costa therefore has remedies against Brightwave.

  1. ACosta has no remedy because the pumps were delivered on time
  2. BCosta may rely on the seller's failure to deliver goods conforming to the contract description, which is a breach by BrightwaveCorrect
  3. CCosta may only claim a price reduction and never any other remedy
  4. DCosta must accept the goods because the CISG does not govern conformity of goods

Explanation

Under the CISG the seller must deliver goods of the quantity, quality and description required by the contract. Delivery of a different model is a lack of conformity and so a breach, giving the buyer remedies. Timely delivery does not cure a lack of conformity.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to the UN Convention on Contracts for the International Sale of Goods and ICC Incoterms shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to the UN Convention on Contracts for the International Sale of Goods and ICC IncotermsFree diagnostic mock

More Introduction to the UN Convention on Contracts for the International Sale of Goods and ICC Incoterms questions