The Right to Interest in General - Chapter 18 - 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 18
§18.1 Interest in the Modern World
“The modern institution of interest is deeply rooted in Roman Law in which interest existed as a penalty due from a debtor who delayed or defaulted in repayment of a loan. … In the modern world, interest generally acts as compensation for the loss of use of money.”
Most countries, either by statute or judicial decision, provide for the awarding of compensatory interest when a debtor has defaulted on a money payment. A few countries have laws that prohibit the payment of interest, primarily because it is inconsistent with their religious beliefs. Even in some of these countries, however, exceptions allow interest in certain commercial transactions. Indeed, it is a long-standing, recognized practice of arbitrators to award interest, particularly in international commercial disputes. As Lord Denning stated in The Finix ...
§18.1 Interest in the Modern World
§18.2 Right to Interest under the Convention
§18.3 Interest as a Claim Independent from Damages
18.3.1 No requirement for proof of actual loss
18.3.2 Recoverable even in case of an exempting impediment
18.3.3 Without prejudice to any general claim for general damages
18.3.4 A summary
§18.4 Prerequisite for the Recovery of Interest
18.4.1 Payment reminder notice not necessary
18.4.2 No need for a culpable default
18.4.3 A summary
§18.5 Accrual of Interest