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

Ostrava plc agrees to buy 2,000 units from Lindqvist AB under the CISG. The contract fixes a price but gives no payment date, and no other rule on timing is agreed. Lindqvist places the goods at Ostrava's disposal on 10 May. Under the CISG, when must Ostrava pay?

Ostrava must pay when Lindqvist places the goods or the documents controlling them at its disposal in accordance with the contract. The CISG sets no fixed period such as 90 days, and resale or year end is irrelevant to timing.

  1. AWithin 90 days of the contract being made
  2. BWhen Lindqvist places the goods or documents at Ostrava's disposal in accordance with the contractCorrect
  3. COnly after Ostrava has fully inspected and resold the goods
  4. DOn the last day of the calendar year in which the contract was concluded

Explanation

Where no date is fixed, the buyer must pay when the seller places either the goods or documents controlling their disposal at the buyer's disposal. The seller may make payment a condition of handing over. There is no automatic 90-day or year-end term, and resale is irrelevant.

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