Data

Date:
19-02-2020
Country:
Arbitral Award
Number:
170/2019
Court:
International Arbitration Court of the Chamber of Commerce and Industry of the Russian Federation
Parties:
--

Keywords

SALES CONTRACT - BETWEEN A RUSSIAN BUYER AND A BELGIAN SELLER - CHOICE OF LAW CLAUSE REFERRING TO "THE PROVISIONS OF THE CONTRACT INTEGRATED BY THE PRINCIPLES OF LAW, WHICH ARE WIDESPREAD IN THE INTERNATIONAL TRADE AND WHICH ARE APPLICABLE TO THE CONTRACTS OF THE SALE OF THE GOODS" - ARBITRAL TRIBUNAL DECIDED TO APPLY CISG AND, FOR QUESTIONS NOT PROVIDED FOR IN THE CISG, THE UNIDROIT PRINCIPLES, SINCE THE PARTIES EXPRESS THEIR INTENTION TO EXCLUDE THE APPLICATION OF ANY NATIONAL LAW

TIME OF PERFORMANCE - WITHIN A REASONABLE TIME PERIOD AFTER THE CONCLUSION OF THE CONTRACT - REFERENCE TO ART. 33 CISG TOGETHER WITH ART. 6.1.1 UNIDROIT PRINCIPLES

Abstract

Claimant, a Russian buyer, and Respondent, a Belgian seller, entered into a contract for the sale of goods. The Claimant paid a pro-forma invoice in full, whereas the Respondent did not ship the goods, nor did he return the advance payment.

Since the Parties had not agreed upon a time limit for the goods delivery, the Claimant referred to the Art. 33 CISG, asking for a reasonable time period. However, since more than a year had passed, the Claimant did not need the goods anymore and asked the Respondent to return its prepayment.

In the contract there was an imprecise arbitration clause in favour of the ICC of the Chamber of Industry of the Russian Federation, Moscow. In the contract the parties also agreed upon the law applicable to the dispute, i.e. the provisions of the contract integrated by the principles of law, which are widespread in the international trade and which are applicable to the contracts of the sale of the goods. The parties expressly excluded the national laws of their countries.

However, as the tribunal ascertained, none of the Parties excluded the legal systems of their countries from the source of law applicable to the dispute, which meant that they would accept the application of the international agreements ratified by their countries, namely, the CISG (with its modificatory Articles 6 and 12).

The Claimant referred to the CISG and the Respondent did not object to it.

The Arbitral Tribunal decided to refer also to the Unidroit Principles in order to supplement the CISG.

The Tribunal, in deciding in favour of the Cliamant, applied Art. 33 CISG (shipping goods within a reasonable time period after the conclusion of the contract) and its equivalent Art. 6.1.1 of the Unidroit Principles, as well as Art. 1.3 of the Unidroit Principles on the binding nature of the terms of the contract.

Abstract in English kindly provided by Julia Shabalina.

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