Data
- Date:
- 07-11-2018
- Country:
- China
- Number:
- (2016) Su 11 Min Chu No. 337
- Court:
- Intermediate People’s Court Zhenjiang, Jiangsu Province
- Parties:
- Jiangsu Taiping Rubber Co., Ltd. v. Kumwoo Investment Co.
Keywords
BUYER'S OBLIGATION TO PAY THE PRICE (ART. 53 CISG)
RIGHT TO INTEREST IN CASE OF LATE PAYMENT OF PRICE (ART. 78 CISG) - INTEREST RATE - DETERMINED BY OTHERWISE APPLICABLE DOMESTIC LAW
Abstract
[Draft abstract prepared by Wu Zimeng, Wang Xusheng and Yang Zihan, ZUEL-SUR School of Law and Economics, Wuhan]
A Chinese seller and a Korean buyer entered a contract that provided for the seller to supply rubber products to the buyer at a total price of US$554,800, with delivery FOB Shanghai.
The seller shipped all the goods in four batches, but the buyer paid only part of the price. Therefore, the seller filed a lawsuit against the buyer to recover the outstanding amount plus interest. The buyer did not participate in the proceedings.
As to the applicable law, the Court established that CISG should apply as both parties' places of business were situated in Contracting States (Art. 1(1)(a)) and they had not excluded the application of the Convention (Art. 6 CISG). For matters outside the scope of the Convention, Chinese law should apply under Art. 41 of the Law Applicable to Foreign-related Civil Relations.
As to the merits, after determining that a valid contract had been concluded between the parties via fax (Art. 11, 23 CISG), the Court found that the buyer had to pay the outstanding price for the goods as well as interest on late payment under the People's Bank of China's loan interest rate of 5.58% per annum (Art. 78 CISG).
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