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

Veltro Ltd (seller) agreed to sell machine parts to Marenza SA (buyer) under a contract governed by the CISG. The contract is silent on the price payment date and place. Veltro has not handed over any documents. Which statement correctly describes the buyer's basic obligations under the CISG?

The buyer must pay the price and take delivery of the goods as required by the contract and the CISG. Taking delivery is a genuine buyer duty, and there is no default rule requiring prepayment or payment only after resale.

  1. AMarenza must pay the price and take delivery of the goods as required by the contract and the ConventionCorrect
  2. BMarenza must pay only after it has resold the goods to its own customers
  3. CMarenza's only obligation is to pay, as taking delivery is solely the seller's concern
  4. DMarenza must pay the price in advance of delivery in all cases

Explanation

Under the CISG the buyer must pay the price and take delivery of the goods as required by the contract and the Convention. Taking delivery is a buyer obligation, so the option saying payment alone is wrong. There is no rule requiring advance payment or payment only after resale.

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