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

Dornan Co sells 500 tonnes of grain to Kestrel Ltd under the CISG. The contract states no place for payment, and payment is not linked to handing over goods or documents at a particular location. Where must Kestrel pay, under the default CISG rule?

Kestrel must pay at Dornan's place of business. Where the contract does not fix another place and payment is not tied to handover of goods or documents, the CISG default is the seller's place of business.

  1. AAt Kestrel's place of business
  2. BAt the port of shipment, whatever the contract says
  3. CAt the seller's place of businessCorrect
  4. DAt the place where the goods are finally resold

Explanation

If the buyer is not bound to pay at another specific place, the CISG requires payment 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. Neither applies here, so the default applies. Buyer's premises is the wrong party's location.

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