Data
- Date:
- 16-04-2019
- Country:
- Turkey
- Number:
- 2019/566
- Court:
- 9th Commercial Court, Istanbul
- Parties:
- --
Keywords
CHOICE BY PARTIES OF THE LAW OF A CONTRACTING STATE - CISG APPLICABLE
SELLER'S FUNDAMENTAL BREACH OF CONTRACT - BUYER ENTITLED TO CONTRACT TERMIANTION (ARTS. 25 & 49 CISG)
Abstract
An Italian manufacturer and a Turkish buyer concluded a sales contract regarding an automatic capsule filling machine. Before being delivered, the machine was tested by a buyer’s representative at the seller’s facilities in Italy. As a result of the test, the machine showed some defects, of which the seller was informed without delay. Failing any attempt by the seller to remedy the defects after the delivery of the machine at the buyer's premises, the buyer brought an action against the seller seeking for contract termination, price refund and damages.
The Court stated that the contract was governed by Swiss law, as the law chosen by the parties. However, since Switzerland is a Contracting State of the Convention, CISG applied to the contract.
As to the merits, the Court found that the buyer had timely notified the seller about the defects in the machine sold. As the defectiveness amounted to a fundamental breach of contract, the Court concluded that the buyer could rightfully declare contract terminated and be repaid of the purchase price.
Fulltext
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Source
Original in Turkish and English Translation:
- available at www.cisg-online.org}}