Declaration of Avoidance - Chapter 10 - 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.
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Preview Page from Chapter 10
§10.1 General
As demonstrated in the previous chapters, under the Convention, a number of articles provide a right to avoidance in the following instances: (a) avoidance based on the occurrence of a fundamental breach under Art. 49(1)(a)/64(1)(a) (see Chapters 6, 7); (b) avoidance through a Nachfrist notice according to Art.
49(1)(b)/64(1)(b) (see Chapter 3); (c) avoidance against anticipatory fundamental breach under Art. 72 (see Chapter 8); and (d) avoidance due to partial breach under Art. 51 or breach in respect of installment(s) under Art. 73 (see Chapter 9).
However, these aforementioned articles identify only the various situations where a right to avoidance may be justified in case of a breach. “The breach of a contractual obligation never leads to the automatic avoidance of the contract by law — even if, […], one party is substantially deprived of what she is entitled to expect under the contract (Art. 25 CISG; [citations omitted]).” “To the contrary, it is always mandatory to declare the avoidance of the contract [citations omitted].” That is to say, after the first step in avoiding a contract — the proper identification of the relevant grounds for avoidance under the Convention — a party choosing the avoidance route must continue to issue a declaration of avoidance by providing proper notice to the other party to the contract.
Section
§10.1 General
§10.2 Avoidance by Declaration through a Notice
10.2.1 Ipso facto avoidance excluded
10.2.2 Advance notice excluded
10.2.3 No need for judicial assistance
10.2.4 Exceptions to the declaration rule
(a) Final refusal to perform: observance of good faith
(b) Avoidance agreed by the other party: prevailing of party autonomy
(c) The declaration combined with a Nachfrist notice
(d) Automatic avoidance in the event of permanent exempting impediment
§10.3 Form and Content Requirement for the Notice
10.3.1 No requirement for specific form
10.3.2 Clarity of the content
10.3.3 Implicit notice of the declaration
10.3.4 A summary
§10.4 Declaration “within a reasonable time”
10.4.1 Introduction
10.4.2 Underlying ideas
10.4.3 Reasonable length of the time limit
10.4.4 Triggering dates of the time limit