• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.69
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• pp.63-84
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• 2016

Article 77 of CISG requires an aggrieved party, the promisee, claiming damages to take reasonable measures to mitigate losses. The reasonable measures required hereunder are limited to those that can be expected under the circumstances having regard to the principle of good faith. When taking such measures, the aggrieved party must do so within a reasonable time under the circumstances. The expenses incurred in taking such measures are recoverable from the promisor. If the aggrieved party fails to do so, the damages recoverable from the promisor are reduced in the amount the loss that should have been mitigated. The aggrieved party's duty to mitigate damages applies to claim for damages only. That is, the violation of this duty should not be invoked against other remedies available under CISG, such as the right to claim specific performance, the right to claim for the price or the right of reduction of price. In practice, under the provision of article 77, the aggrieved party, the seller or the buyer, is often required to enter into a substitute transaction as a measure to mitigate losses and many cases involving a substitute transaction are internationally reported. Therefore this paper intends to provide a certain understanding of the aggrieved party's duty to take measures to mitigate losses based on such cases reported.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.55
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• pp.3-32
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• 2012

CISG article 74 establishes the general formula applicable in all cases where an aggrieved party is entitled to recover damages. It provides that damages for breach of contract comprise all losses, including loss of profits, caused by the breach, to the extent that these losses were foreseeable by the breaching party at the time the contract was concluded. An aggrieved party may claim under article 74 even if entitled to claim under article 75 or 76. The latter articles explicitly provide that an aggrieved party may recover additional damages under article 74. Articles 75 and 76 apply only in cases where the contract has been avoided. Article 75 measures damages concretely by reference to the price in a substitute transactions, while article 76 measures damages abstractly by reference to the current market price. Article 76 (1) provides that an aggrieved party may not calculate damages under article 76 if it has concluded a substitute transaction under article 75. If however, an aggrieved party concludes a substitute transaction for less than the contract quantity, both articles 75 and 76 may apply. Pursuant to article 77, damages recoverable under articles 74, 75 or 76 are reduced if it is established that the aggrieved party failed to mitigate losses. The reduction is the amount by which the loss should have been mitigated. Article 78 entitles a party to interest on the price and any other sum that is in arrears.

• The Journal of Society for e-Business Studies
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• v.4 no.2
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• pp.81-94
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• 1999

This paper shows the architecture of IPS(Intermarket Payment System), an implementation of the electronic payment function for internet-shopping merchant system. Because the original purpose of commerce transaction is the exchange of money for goods or services, it is very important to prepare an exchangeable economic value or method. The electronic payment system is the hardware or software or both to process an electronic payment transaction. It has two type, the broker type and the electronic value type. The broker type means an intermediator between real bank network and internet commerce transaction. The electronic value type means a substitute for money in the real world. This paper shows the architecture and the function to implement the broker type electronic payment system. The system has two parts. One is the mediator part to support multiple payment systems and to offer common access methods for merchant system database. The other is the executor part to implement the payment protocol and to process payment transaction.

• Journal of Arbitration Studies
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• v.23 no.4
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• pp.191-209
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• 2013

The amount of international trade conducted through Hong Kong (HK) is increasing, thus rendering the legal framework governing contracts of sale between Mainland China (China) and HK is of particular importance. The status of HK under the CISG is currently unclear, however. First, the CISG entered into force in China in 1988. This important development had no legal effect for HK though as China lacked the power to enter into international conventions for HK. Second, the "Letter of Notification" deposited to the Secretary-General of the UN referred a list of treaties to be applied to HK, taking effect from July 1, 1997. This list, however, made no mention of the CISG. Third, China made a reservation in Article 95 of the CISG. Pursuant to Article 1(1)(b) of the CISG, the CISG cannot apply to HK. As a result, the Chinese Arbitral Tribunal apply the Chinese law according to the closest connection principle with the contract. In this case, attention must be given to the different result to which the CISG is applied. Liability for damages pursuant to the Chinese Contract Law (CCL) is just the same as Article 74 CISG, but CCL does not govern the case with substitute transaction and without substitute transaction when the contract is avoided. Therefore, the contract should be governed by the CISG from a business perspective when a contract is concluded between China and HK; otherwise, a promisee could not be fully compensated for all loss incurred.

• 한국경영정보학회:학술대회논문집
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• 2007.06a
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• pp.646-651
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• 2007

Secure digital payment is critical in the successful shaping of global digital business. Digital payments are increasingly being used as a substitute to traditional payments, contributing markedly to the efficiency of the economy. The focus of every digital business transaction is to minimize risks arising from transactions. It is essential to ensure the security of digital payment whether used in internal networks or over wireless Internet. This paper analyses secure digital payment methods from the viewpoint of systemic security and transaction security. According to comparative analysis of digital payment models, this paper proposes a comparative analysis framework to investigate and evaluate secure digital payment. In conclusion, the comparative analysis framework, comparison of digital payment models and mobile payment models proposes a useful academic and practical foundation to enhance the understanding of secure digital payment methods. It also provides academic background and practical guidelines for the development of secure digital payment systems.

• International Commerce and Information Review
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• v.12 no.3
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• pp.79-98
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• 2010

The National Conference of Commissioners on Uniform State Laws promulgated the Uniform Computer Information Transactions Act (UCITA) in 1999. In 2000 and 2002, this Act was also Amended. UCITA provides a comprehensive set of rules for licensing computer information, whether computer software or other clearly identified forms of computer information. Computerized databases and computerized music are other examples of computer information that would be subject to UCITA. It would also govern access contracts to sites containing computer information, whether on or off the Internet. UCITA would not govern contracts, even though they may be licensing contracts, for the traditional distribution of movies, books, periodicals, newspapers, or the like. Part 8 of UCITA provides a remedy structure somewhat modeled on that of Article 2 but adapted in significant respects to the different context of a computer information transaction. For example, 808 of UCITA recognizes the focus in a license context for a licensor's remedy should properly be on recovery for benefit conferred or for lost profit, rather than on damage measurement by a substitute transaction, where the license is non-exclusive so additional transactions are permitted and there is very little cost in reproduction of the information and its redistribution. Section 816 of UCITA also contains very important limitations on the generally recognized common law right of self-help as applicable in the electronic context.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.16
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• pp.59-81
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• 2001

There are two methods of quantifying the damages when the contract is avoided. One is 'concret' assessment, the other is 'abstract' assessment. The former looks to the actual cost incurred by the aggrieved party in concluding a contract for the substitute transaction, while the latter is based on the market price. The concrete method of assessment forms the starting point in the Civil Law systems. In the Common Law systems, it is likewise available. The aggrieved party is entitled to recover the difference between the cost of cover or (as the case may be) the proceeds of resale and the contract price. Both systems also recognize the abstract method of assessment. If the aggrieved party does not resell or cover, damages are equal to the difference between the price fixed by the contract and the market price. The CISG and the UNIDROIT Principles recognize expressly both concrete and abstract methods. Under the relevant articles, the aggrieved party can recover the damages assessed by one of the methods as well as any further damages such as loss of profit, incidental and consequential damages.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.20
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• pp.343-365
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• 2003

Dispute plays a key role in maintaining the desirable performance of trade transaction. In an effort to stay competitive in a global marketplace, the Korean companies need to become more aware of alternatives to costly and time-consuming litigation. Korean companies, therefore, should be more concerned with ADR(Alternative Dispute Resolution) system and should utilize ADR to settle their disputes effectively and efficiently. ADR encompasses all process of dispute resolution as a substitute for the traditional litigation. Generally, three kinds of ADR are available in Korea: Negotiation, mediation, and arbitration. This article investigates reasons why ADR isn't used well in Korea and suggests ways how ADR can work best in international trade disputes. To expand ADR system in international trade disputes, it is very important for both the company and the scholar to recognize the concept and usefulness of ADR system. The Korean Commercial Arbitration Board also must help both Korean companies and scholars recognize the mechanism of dispute resolution and utilize ADR system in international trade disputes.

• Journal of Arbitration Studies
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• v.15 no.2
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• pp.93-123
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• 2005

As the international commercial transaction has drastically grown up with the mainland China, commercial disputes that are required to settle through ADR have tremendously increased during the last decade. Since China has not been fully exposed to the Free World for a long period of time, there would have been a great amount of misunderstanding about their competency and integrity to deal with internationally oriented commercial transactions with a view to internationally acceptable manner. This arbitration case was related to the contract in dispute of C&A Inc. as the importer v. China XX Importation Co. as the exporter for the sale of Silicon Metal. But after the contract were formed, exporter(respondent) declined to deliver the goods under the contracts because the market price of Silicon Metal increased according to the argument of the importer(claimant). Importer had to purchase alternative goods from other companies to substitute for the goods subject to the contracts in dispute. Importer purchased silicon metal of the same quality as under the contracts from two other Chinese companies as the necessary measure to mitigate the loss, paying prices higher than the contract price. Since exporter had breached the contracts, importer's loss should be compensated by the exporter as the Arbitration Tribunal decided for supporting importer's claim of loss for the substitute goods. This study is aiming at analyzing the rationale of the arbitral awards made by the Shanghai Commission in terms of (l)Place of Arbitration, (2)Applicable Law, (3)Validity of the Contracts, (4)Doctrine of Frustration, (5)Responsibility for the Mitigation of Damage by the Importer.

• Korean Institute of Interior Design Journal
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• v.14 no.2 s.49
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• pp.104-111
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• 2005

Environment problem has proposed in the world at large, the desire for environment conservation and one's value change which lay emphasis on lasting human sensibility are increasing. Constant human mind and ecology centered in space is presenting as future space design substitute plan which is based on fundamental material quality in the space such as environment and human ,naturalist or Green Design, pro-environment construction, sense design and etc. So, we intend to anthropocentric value and get out of satisfaction of function as the past physical environment equipment which is applied the elements of ecology based on the organized body and interaction with human. A form of sensitive space is divided into sentient space, expressing method and material, change of space according to the flow of time, and is expressed in a more segmented form of sensuality by being replaced into a new sensitive space through transaction with human, who occupy within the space. The space embodiment which is satisfied human sense regards as alternative plan intention for the future, through two subjects relativity between the elements of ecology and sense, we will find the influence of sense as each space trait of the elements of ecology, examine sense form in the space with the synthetic summary. It is significant presentation for the lasting space based on anthropocentric delightfulness as the design which moves human mind while designing the space for this pattern of sense space.