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ACCA Applied Skills · Corporate and Business Law (Global) · Introduction to the UN Convention on Contracts for the International Sale of Goods and ICC Incoterms

Kestrel Ltd (State A) agreed to sell machine parts to Bruna SA (State B). Both states are CISG contracting states and the contract does not exclude the CISG. Kestrel delivered parts that did not match the contract description. Which statement best describes Kestrel's position under the CISG?

Kestrel is in breach. The CISG requires the seller to deliver goods of the quantity, quality and description required by the contract, so parts that do not match the contract description are non-conforming goods, whatever the buyer could have checked.

  1. AKestrel is in breach because it must deliver goods of the quantity, quality and description required by the contractCorrect
  2. BKestrel is not in breach, because the buyer bears the risk of checking quality before shipment
  3. CKestrel is in breach only if the parts were unfit for every possible use

Explanation

Under the CISG the seller must deliver goods that are of the quantity, quality and description required by the contract. Delivering non-conforming parts is therefore a breach. The second option wrongly puts the burden of quality on the buyer, and the third imposes a test the Convention does not use.

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