- Russian Federation
- Fourth circuit Arbitrazh Court of Appeal
LONG-TERM CONTRACTS - SUPPLY CONTRACT - BETWEEN A RUSSIAN COMPANY AND A CHINESE COMPANY - UNIDROIT PRINCIPLES APPLIED AS MEANS FOR INTERPRETING DOMESTIC LAW (RUSSIAN LAW)
UNIDROIT PRINCIPLES APPLIED TOGETHER WITH ARTICLE 58 (1) OF THE CISG
FREEDOM OF CONTRACT - REFERENCE TO ARTICLE 1.1. OF THE UNIDROIT PRINCIPLES
Claimant, a Russian food company, entered into a contract with a Chinese company, for the delivery of non grinded shelled pumpkin seeds. Claimant commenced an action with the court of first instance, asking to render the decision of Respondent, the Customs office in Chita (Russia), correcting the price of the imported goods, null and void. Both the court of first instance and the court of appeals declared Respondent´s decisions null and void. In support of its decision the Court of Appeals referred to the Agreement between the Governments of the Belorussia Republic, the Kazakhstan Republic and the Russian Federation on the rules of declaration of customs value of goods, and invoked also Art 1.1 of the UNIDROIT Principles of the International Commercial Contracts, which states that the parties are free to enter into a contract and determine its content. The Court also applied Art 58 (1) of the CISG, which provides that if the buyer is not bound to pay the price at any other specific time, he must pay it when the seller places either the goods or documents controlling their disposition at the buyer's disposal in accordance with the contract and the Convention. The Court also found that in the case at hand, the parties had entered into a long-term business relationship, so that there was no need to establish the price of each particular shipment.