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

Corvin Co (buyer) has agreed to buy machine parts from Delmar Co under a CISG contract. The contract does not state where payment is to be made, and payment is not linked to handing over goods or documents. Where must the buyer pay?

Where the contract does not fix the place of payment and payment is not tied to handing over goods or documents, the CISG requires the buyer to pay at the seller's place of business, not the buyer's premises or the factory location.

  1. AAt the buyer's place of business
  2. BAt the seller's place of businessCorrect
  3. CAt the place where the goods are manufactured, wherever that is

Explanation

Under the CISG, if the place of payment is not agreed, the buyer must pay the seller at the seller's place of business. If payment is to be made against handing over goods or documents, it is made at the place of that handover. Here there is no such link, so the seller's place of business applies.

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