Rate of Interest - Chapter 20 - Remedies in International Sales
About the Author:
Chengwei Liu has practiced as a PRC lawyer in international trade and arbitration, FDI, M & A and IPO since his graduation from Renmin University of China. He has contributed to a CISG comparative review book published by Cambridge University Press and has authored over ten journal articles that have appeared in the Pace Review of the CISG, China Law & Practice, etc.
About the Editor:
Marie Stefanini Newman is the Director of the Pace University School of Law Library and an Associate Professor of Law. She also serves as Database Manager of the Pace website devoted to the United Nations Convention on Contracts for the International Sale of Goods.
Originally from Remedies in International Sales - Hardcover
Remedies in International Sales - PDF
Preview Page from Chapter 20
§20.1 General
The right to interest on the unpaid sum is expressly provided by Article 78 of the Convention, which states:
If a party fails to pay the price or any other sum that is in arrears, the other party is entitled to interest on it, without prejudice to any claim for damages recoverable under article 74.
From the reading of this provision it is easily ascertained that it does not resolve all the problems related to the interest on the sums not paid. In fact, as is often emphasized in doctrine and judicial decisions, the aforementioned Article only forecasts a “general right to interest”; other issues, among those the applicable rate of interest, were not addressed by the drafters of the Convention.
Indeed, interest was a very controversial matter in the negotiations ...
§20.1 General
§20.2 Gap-filling under the Convention
20.2.1 Overview
20.2.2 External gap (lacuna intra legem)
20.2.3 Internal gap (lacuna praeter legem)
20.2.4 A summary
§20.3 Rate Determined by Domestic Law
20.3.1 The law otherwise applicable
20.3.2 The law of interest-creditor
20.3.3 The law of interest-debtor
20.3.4 The law of payment currency
20.3.5 Other approaches referring to domestic law
§20.4 Rate Determined by Approaches Aiming at Uniformity
20.4.1 General principles underlying the Convention
20.4.2 International usages
20.4.3 Independent LIBOR
§20.5 Rate Determined under Parties’ Disposition
§20.6 Higher Rate Awarded as Further Damages
§20.7 Concluding Remarks