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Rules Limiting the Recovery of Damages - Chapter 14 - Remedies in International Sales

Author(s): 
Chengwei Liu
Page Count: 
48 pages
Media Description: 
1 PDF from "Remedies in International Sales"
Published: 
June, 2007
Author Detail: 

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.

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Originally from Remedies in International Sales - Hardcover
                           Remedies in International Sales - PDF

Preview Page from Chapter 14

§14.1 Foreseeability Rule

14.1.1 Overview
“One of the methods of limiting damages, which has received an extensive application in various legal systems and international acts, is the principle of foreseeability.” The principle of excluding the recovery of damages for unforeseeable losses is found in the majority of legal systems. This principle has a long history: “It was first established in Roman law. Much later, it was established in the Code Napoleon and, consequently, adopted by a number of legal systems.” On the other hand, foreseeability of damages in common law systems is to a large extent based on an often cited case from 1854, namely Hadley v. Baxendale, and was further restated in Victoria Laundry v. Newman Industries, [1949] 2 K.B.

Table of Contents: 

Section
§14.1 Foreseeability Rule
14.1.1 Overview
14.1.2 Essentials in the evaluation
(a) Party concerned: “the party in breach”
(b) Relevant time: “the time of the conclusion of the contract”
(c) Double test: “foresaw or ought to have foreseen”
(d) Supplementary factors: knowledge and trade usage
14.1.3 Contents of the foreseeability
(a) The focus: “the loss … as a possible consequence of the breach of contract”
(b) Pertinence of the type and amount of damages
14.1.4 Burden of proof
14.1.5 Applicability of the foreseeability rule in case of intentional breach
§14.2 Mitigation Rule
14.2.1 Overview
14.2.2 Reasonable measures to be taken
14.2.3 Reduction following the failure to mitigate loss
14.2.4 Reimbursement of expenditures incurred in mitigation
14.2.5 Burden of proof regarding the failure
14.2.6 Parameters of the rule
14.2.7 Dichotomy between the contribution to and mitigation of harm
§14.3 Contribution Rule
14.3.1 The rule in general
14.3.2 Remedies affected “to the extent”
§14.4 Deduction of Compensating Gains and Saved Costs
14.4.1 The rule in general
14.4.2 In particular: the deduction of saved costs