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

Gantry Ltd sold goods to Holm SA under the CISG. Holm's market for the goods then collapsed and Holm refused to accept delivery, wrongly. Gantry has not yet resold the goods and the price has not been paid. Which course of action is open to Gantry?

Gantry may require Holm to pay the price and take delivery, provided it has not chosen an inconsistent remedy such as avoidance. The CISG gives sellers this right, so damages are not the only route, and a buyer's breach does not make the contract void.

  1. ARequire Holm to pay the price, unless Gantry has resorted to an inconsistent remedy such as avoidanceCorrect
  2. BClaim only damages, because the CISG never allows a seller to require payment
  3. CKeep the goods and treat the contract as void because Holm acted in breach

Explanation

The CISG allows the seller to require the buyer to pay the price and take delivery, unless the seller has resorted to a remedy inconsistent with this, such as avoiding. Specific performance is therefore available in principle, although a court is not bound to order it unless it would do so under its own law. A breach does not make the contract void.

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