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

Delta Ltd sells 200 tonnes of grain to Evo Co under the CISG. The contract states no place of delivery and does not involve carriage of the goods. Delta and Evo both know the grain is stored at a particular warehouse and the goods are to be taken from there. Where must Delta deliver?

Delta must place the grain at Evo's disposal at the warehouse. Under the CISG, where no carriage is involved and both parties knew where the specific goods were located when contracting, delivery takes place there.

  1. AAt Delta's place of business, whatever the location of the warehouse
  2. BAt Evo's place of business
  3. CBy placing the goods at Evo's disposal at the warehouse where both knew they were storedCorrect
  4. DAt the first carrier's premises nearest to Evo

Explanation

Where the contract does not involve carriage and no place is stated, but the goods are identified and both parties knew where they were located at contract time, the seller must place them at the buyer's disposal at that place. Option A applies only when the goods are not at a known location.

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