- V CSK 63/08
- Supreme Court of Poland
SALES CONTRACT - BETWEEN A GERMAN COMPANY AND A POLISH COMPANY - CONTRACT GOVERNED BY THE CISG - REFERENCE TO THE UNIDROIT PRINCIPLES AS A MEANS FOR SUPPLEMENTING THE CISG - DENIED
BREACH OF CONTRACT - RIGHT TO INTEREST - RATE OF INTEREST - TO BE DETERMINED ACCORDING TO LEX CAUSAE - REFERENCE TO UNIDROIT PRINCIPLES DENIED BECAUSE EXTERNAL TO THE CISG
"Company A, a Germany entity, and company B, a Polish entity, were in dispute regarding an international sales of goods contract. A was seeking damages for breach of contract, together with interest. The Supreme Court had to decide which rate of interest applied. It ruled that this had to be determined according to the lex contractii stipulated by the conflict of laws rules for the seat of the court.
The justification of the judgment showed that B tried to rely on UNIDROIT Principles (although the specific provision was not mentioned) to justify its position on the level of interest.
The court ruled that private codifications, such as the UNIDROIT Principles or the Principles of European contract law, may not be used, even as a secondary source of law, that they are external to CISG, and that they are not relevant for a state court which must rule based on the law. If the court had applied Articles 7.4.9 and 7.4.10 of the UNIDROIT Principles, it would have assessed the applicable interest rate differently."
(cf. T. Wardyński / K. Przygoda in "Perspectives in Practice of the UNIDROIT Principles 2016", IBA Publication 2019, p. 293)