Data
- Date:
- 04-08-2017
- Country:
- Switzerland
- Number:
- No. HG170107-O
- Court:
- Handelsgericht des Kantons Zürich
- Parties:
- --
Keywords
PAYMENT OF PRICE - CURRENCY OF PAYMENT - UNDER CISG, SELLER NOT ENTITLED TO REQUEST PAYMENT IN A CURRENCY OTHER THAN THAT AGREED UPON
Abstract
[CLOUT CASE no. 2227. Abstract prepared by Prof. Ulrich G. Schroeter, National Correspondent.]
A Belgian seller sold veal to a Swiss buyer for a price of EUR 45,051.51. After the meat had been delivered, the buyer did not pay. The seller brought suit against the buyer for payment of the price in the Commercial Court Canton Zurich. In doing so, the seller did not request payment of the price in EUR (the currency mentioned in the
sales contract and in the subsequent invoice), but rather payment of the equivalent sum in Swiss currency (CHF 48,430.35).
The Commercial Court Zurich held that the CISG does not explicitly address the question whether a creditor can request payment in a currency other than the one agreed upon in the contract. The Court therefore applied Swiss rules of private international law and held that the law at the place of payment governs currency issues. In determining the place of payment in the current case, the Court applied Art. 57(1)(a) CISG and held that the place of payment was the seller’s place of business in Belgium. In doing so, it made reference to an earlier decision by the Austrian Supreme Court interpreting article 57(1)(a) CISG. The Court concluded that there is no rule in Belgian law that allows a creditor to require its debtor to pay in a currency other than the contractual currency. According to Belgian law, the seller accordingly would have had to request payment in EUR.
The Court then explained that the result would be the same if one were to treat currency issue as a question governed by the CISG. The CISG does not contain any
explicit provision addressing the relevant currency, and authors have only ever discussed the question whether a debtor may choose to pay a sum in the local currency
at the place of payment instead of paying in the contractual currency. (Most authors argue that no such right of the debtor exists under the CISG.) In any case, the Court
held that there is nothing in the CISG that would support a creditor’s right to request payment in a different currency.
Accordingly, the Court dismissed the seller’s claim for payment of the price in Swiss Francs.
Fulltext
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Source
CASE LAW ON UNCITRAL TEXTS (CLOUT) (http://www.uncitral.org/uncitral/en/case_law.html), A/CN.9/SER.C/ABSTRACTS/CISG/2227}}