• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.54
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• pp.167-190
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• 2012

The purpose of this study is to find out some countermeasure to Korean companies entered Chinese market through analyzing an arbitration case resolved by CIETAC applied of Chinese Commission Agency Law and CISG. China create legal relationship between the principal and the third party under Chinese Consignment Contract Law. Korean companies so make sure whether this Contract is included when they conclude international commercial contract. If yes, they have to prove their recognition for the relationship between the principal and the commission agent when needed. If the parties agreed an additional period of time of delivery and the seller do not deliver the goods within this period, this breach might be regarded as fundamental nature and the buyer could declare the contract avoided. In addition, late delivery might also be regarded as fundamental breach when market price is fluctuated. It is understandable that attorney's fees is recoverable one, but it is not understandable that arbitrator's extra expenses such as travel and accommodation expenses is not recoverable with the reason that arbitrator comes outside of the country.

• International Commerce and Information Review
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• v.12 no.4
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• pp.385-404
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• 2010

The purpose of this article is to examine the Delays of Performance under UN Convention on Contracts for the International Sale of Goods. In theory, there exist three clearly distinguishable categories of breach of contract, namely non-performance, non-conforming performance and late performance. In particular, delays of performance are the most common breach of sales contract including late delivery, late payment or late performance of any other obligation. In this regard, this article examines how parties can, through careful drafting, avoid or minimize legal problems in case of delay in performance. Especially, the export perspective focuses on the seller's interests, which require that sanctions be as lenient as possible if the seller has breached the contract but that there are prompt and adequate sanctions if the buyer has breached the contract. Furthermore, the seller should ensure that a short or medium delay in delivery will not entitle the buyer to declare the contract immediately avoided and take precautions against late payment, including delayed opening of a letter of credit.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.69
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• pp.107-126
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• 2016

The parties in International Sale of Goods including Korean Firms Should note ; The buyer must pay the price for the goods and take delivery of them as required by the contract and CISG. The obligations mentioned in Article 53 are primary obligations which are to be fulfilled in the normal performance of the contract. The buyer has to take delivery at the respective place within a reasonable period after this communication since he cannot be required to take delivery immediately. Refusing to take delivery in case of delay not constituting a ground for avoiding the contract makes no sense, since this would lead to even later delivery. The buyer's obligation to pay the price includes taking such steps and complying with such formalities as may be required under the contract or any laws and regulations to enable payment to be made. International sales contracts frequently prescribe that the buyer has to act in advance, that is before the seller starts the process of delivery. Such acts may be either advance payments or the procurement of securities for payment as letters of credit guarantees. On the other hand, The seller deliver the goods hand over any documents relating to them and transfer the property in the goods, as required by the contract and CISG. The seller must deliver goods which are of the quantity, quality and description required by the contract and which are contained or packaged in the manner required by the contract. Except where the parties have agreed otherwise, the goods do not conform with the contract unless they are fit for the purposes for which goods of the same description would ordinarily be used are fit for any particular purpose expressly or impliedly made known to the seller at the time of the conclusion of the contract, except where the circumstances show that the buyer did not rely, or that it was unreasonable for him to rely, on the seller's skill and judgement. The buyer may declare the contract avoided if the failure by the seller to perform any of his obligations under the contract or CISG amounts to a fundamental breach of contract. The seller may declare the contract avoided if the failure by the buyer to perform any of his obligations under the contract or CISG amounts to a fundamental breach of contract.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.12
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• pp.253-276
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• 1999

CISG articles 34 and 37 clearly allow the seller to cure any nonconformity in documents of sale or performance prior to the date for delivery if it does not cause the buyer unreasonable inconvenience or unreasonable expense. CISG article 48 allows a seller to cure the performance even after the date for delivery if it does not cause the buyer unreasonable delay, unreasonable inconvenience or unreasonable uncertainty of reimbursement by the seller of expenses advanced by the buyer. The wording any failure to perform is broad enough to include a delay. The seller's right to cure relates to all his obligations. The seller may remedy 'any failure to perform his obligations'. This language is broad enough to include a defect in documents. In some cases the fact that the seller is able and willing to remedy the non-conformity of the goods without inconvenience to the buyer, may mean that there would be no fundamental breach unless the seller failed to remedy the non-conformity within an appropriate time. It cannot generally be said what unreasonable inconvenience means. This can only be decided on a case-by-case basis. The seller must bear the costs involved in remedying a failure to perform. The curing of a failure to perform may have influence on the amount of the damage claimed. Insofar as the seller has the right to cure, the buyer is in that case obliged to accept the cure. If he refuses to do so, he can neither avoid the contract nor declare a reduction in price. This rule clearly shows the underlying concept of the CISG, to keep to the contract, if possible. Should the buyer requires delivery of substitute goods and the seller offers repair, it depends on the expense each case. The buyer must receive the request or notice by the seller. The relationship between the seller's right to cure and the buyer's right to avoid the contract is unclear. The buyer's right to avoid the contract should not nullify the seller's right to cure if the offer is reasonable. In addition, whether a breach is fundamental should be decided in the right of the seller's offer to cure.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.47
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• pp.49-78
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• 2010

The seller has to deliver goods and hand over documents as required by the contract. It is very important that ownership of goods shall be transferred by the documents from the seller to the buyer. Where terms of payments is made under documentary payment such as negotiable order Bill of lading or any transport documents for symbolic delivery of goods shall be more important between the parties concerned. The buyer may withdraw or cancel the contract where the buyer accept the foul Bill of Lading and demand damages where the buyer accept the other documents which are not in accordance with requirements by the buyer. Withdraw or cancel of contract can be made where discrepancy of documents comes into fundamental breach of contract. In conclusion transport documents by the seller will be used to determine appropriation of transport document to the contract. Therefore the seller has to deliver the proper shipping documents to the buyer. Where the breach of the seller's obligations to deliver documents the buyer has the right of requiring performance, contract avoided, claiming damage to recover the contract under CISG. The significance of transport documents has been focused in this study and careful examination of documents shall be needed to prevent any dispute or differences between the parties.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.64
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• pp.3-37
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• 2014

The purpose of this paper is to examine thoroughly on passing of risk in contracts for the international sale of goods. Articles 66~70 of the CISG contain provisions on passing of risk. Article 66 states the main effect of passing risk to the buyer. Article 67~69 determine the decisive point in time which the risk passes from the seller to the buyer and article 70 attempts to explain the relation between passing of risk and fundamental breach of contract by the seller. As in the case corresponding Incoterms rules, the main issue to be resolved is which party should bear the economic consequences in the event that the goods are accidentally lost, damages or destroyed. Many cases also apply CISG articles 66~70 to contracts in which parties not agree on the use of trade terms such as CIF, CFR, FOB and FCA in Incoterms[R] 2010 Rule that provide for when the risk passes. In order to minimize disputes that may arise under contract, when drawing up a contracts for the international sale of goods, the specifics of agreement should be clearly stipulated. Consequently, the parties of contracts for the international sale of goods should take adequate measures, and it is required to prepare the contracts clearly as the specific terms to prevent and resolve contractual disputes on passing of risk.

• Korea Trade Review
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• v.43 no.4
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• pp.27-50
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• 2018

This study focuses on the judgement of Seoul High Court' regarding the formation and performance of contracts applying the CISG. The purpose of this study is to provide legal understanding to contracting parties involved in contract for the international sale of goods that can be considered in raising the understanding of the CISG within the scope of the subject. This study aimed at the legal validity of judgments, the defects in reason for judgments and legal standards that could be established. The main contribution of this study is summarizing the facts of judgments and arguments of the parties and furthermore, in accordance with the order, the judgment order of the court and the decision criteria of the application law, the CISG articles comment and interpretation on the formation of the contract, legal bases of fundamental breach of contract, termination of contract, concurrent fulfillment and other supplementary matters and so on.

• Journal of Distribution Science
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• v.21 no.9
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• pp.115-121
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• 2023

Purpose: This study aimed to deal with disputes between the seller and the buyer in connection with the Letter of Credit (LC) in a sales contract. The Contracts for the International Sale of Goods (CISG) provides the rules on the fundamental breaches which can lead to termination of the sales contract but the CISG is not enough to govern issues arising from the LC disputes when the sales contract is not clear about the payment terms. This paper tried to find some solutions to the disputes by considering international rules, such as the Principles of European Contract Law (PECL). Research design, data and methodology: The methodology applied in this study was an analysis of some court decisions and extended literature review. Results: The study revealed that in contracts for the sale of international goods, the buyer was obliged to open an LC as manner of payment. If the buyer failed to open an LC or amend the terms of the LC, the seller could avoid the contract because this could deprive the seller's expected interest. Conclusions: Few studies in Korea have been comprehensively analyzed in terms of the obligations of regarding the LC with respect to the CISG in court cases. This study suggests safeguarding the buyer and seller when the LC is considered absolute or conditional.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.42
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• pp.163-186
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• 2009

On April 11, 1980, the "United Nations on Contracts for the International Sale of Goods" ("CISG") was prepared by the United Nations Commission on International Trade Law (UNCITRAL) and approved by a diplomatic conference in Vienna providing uniform law for international sales of goods. It took effect as of March 1, 2005, in Korea. It is set forth on the seller's remedies for breach by the buyer Section III (Art. 61 - 65) under the CISG. In this study, the focus is only on the seller's notice fixing additional final period for performance (Art. 63) and the right to avoid the contract (Art. 64), with examination on some relevant foreign arbitral awards rendered by the ICC and the CIETAC together. Article 63 provides that the seller may fix an additional period of time for reasonable length for performance by the buyer of his obligation. It was found from the above arbitral awards that the concept of 'reasonable length' should be decided on a case-by-case basis, given the specific circumstances in the case [Art. 63(1)]. It is provided that unless the seller has received a notice that he will not perform within the period so fixed, the seller may not, during that period, resort to any remedy for breach of contract in accordance with Article 63(2). Article 64(1) provides the means and grounds for avoidance of the contract, which can be avoided 1) when the breach of the buyer amounts to a fundamental breach of contract, or 2) when the additional period of time is fixed by the seller, unless the buyer declares that he will not perform so within the period of fixed time. As we examined in the above arbitral awards, it was held that the contract is avoided when the seller sends the final notice stating that he will avoid the contract, after the expiration of the additional period of time fixed by the seller in the ICC award. On the contrary, it was held that the contract should be deemed to be avoided exactly when the expiration of additional period noted in the avoidance notice is elapsed in the CIETAC award. Article 64(2) sets time limits for avoidance.

• International Commerce and Information Review
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• v.14 no.3
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• pp.231-251
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• 2012

The remedies available to a seller that has suffered a breach of contract by the buyer are addressed in Section III of Chapter III of Part III. The first provision in the section, 61, catalogues those remedies and authorizes an aggrieved seller to resort to them. The remaining provisions of the section address particular remedies or prerequisites to remedies. The subject matter of the current section remedies for breach of contract by the buyer obviously parallels that of Section III of Chapter II of Part III remedies for breach of contract by the seller. Many individual provisions within these sections form matched pairs. Thus 61, which catalogs the seller's remedies, which catalogs the buyer's remedies. Other provisions in the current section that have analogues in the section on buyer's remedies include 62, seller's right to require buyer's performance 63, seller's right to fix an additional period for buyer to perform and 64, seller right to avoid the contract. As was the case with the provisions on buyers' remedies, the articles governing sellers' remedies operate in conjunction with a variety of provisions outside the current section. Thus the seller's right to require performance by the buyer is subject to the rule in 28 relieving a court from the obligation to order specific performance in circumstances in which it would not do so under its own law. The authorization in 61 for a seller to claim damages for a buyer's breach operates in connection with 74-76, which specify how damages are to be measured. 49, stating when an aggrieved seller can avoid the contract, is part of a network of provisions that address avoidance, including the definition of fundamental breach, the requirement of notice of avoidance, provisions governing avoidance in certain special circumstances, measures of damages available only if the contract has been avoided and the provisions of Section V of Part III, Chapter V on effects of avoidance.