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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 contracted under the CISG to buy 1,000 tonnes of grain from Dalmar Ltd, delivery by 1 March. Dalmar has not delivered by that date. Corvin does not want to avoid the contract yet but wants to give Dalmar more time. What may Corvin do?

Corvin may fix an additional reasonable period for delivery. If Dalmar still fails to deliver within that period, or says it will not, Corvin may then avoid the contract. Late delivery alone is not automatically a fundamental breach, and the CISG has no automatic termination rule.

  1. AFix an additional period of reasonable length for performance, and avoid if Dalmar does not deliver within itCorrect
  2. BAvoid the contract immediately because any late delivery is a fundamental breach
  3. CTreat the contract as automatically terminated after seven days of delay

Explanation

The CISG allows the buyer to fix an additional period of reasonable length (Nachfrist). If the seller fails to deliver within that period, or declares it will not, the buyer may avoid. Late delivery alone is not automatically fundamental, and there is no automatic termination after seven days.

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