Abstract
The COVID-19 pandemic has caused difficulties and created disruptions to human lives worldwide, including commercial lives. It is not surprising that parties to international sales transactions agreed upon according to the United Nations Convention on Contracts for the International Sale of Goods (CISG) will try to invoke the exception in Article 79 to exempt their liability for damages. However, this article argues that Article 79 is hard to apply in practice and is almost not available to the contracting parties. To do so, it examines Article 79 and moves on to attempt to apply it to various difficulties the contracting parties are likely to face in this time of global pandemic. Finally, this article argues that the best way for the contracting parties to protect themselves is to resort to the use of appropriate force majeure or hardship clauses.
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Notes
- 1.
World Health Organisation (2020a).
- 2.
World Health Organisation (2020b).
- 3.
Laschon et al. (2020).
- 4.
Feld (2020).
- 5.
AAP (2020).
- 6.
These remedies include the right for performance suspension as per Article 71, the right for price reduction as per Article 50, the right to avoid the contract as per Article 48, 64, or 73, the right to claim interest as per Article 78, and the right to claim for expenses used in goods preservation as per Articles 85 and 86. CISG-AC Opinion No. 20 (2020), para 9.1.
- 7.
Zeller (2018) paras 12.23–12.28.
- 8.
Ibid., para 12.30.
- 9.
Schwenzer (2016), p. 1133.
- 10.
CISG-AC Advisory Opinion No. 7 (2007), paras 26–40.
- 11.
See in general CISG-AC Advisory Opinion No.20 (2020).
- 12.
Sooksripaisarnkit and Garimella (2019), para 1.07.
- 13.
CISG-AC Advisory Opinion No.20 (2020), para 4.2.
- 14.
Ibid., Black letter text 7.
- 15.
CISG-AC Advisory Opinion No. 7 (2007), paras 18 and 19.
- 16.
Ibid., 18.
- 17.
Zeller (2018), para 12.23.
- 18.
See Annex I CISG-AC Opinion No 20 (2020).
- 19.
Scafom International BV v Lorraine Tubes S.A.S (Hof van Cassatie, 19 June 2009).
- 20.
Case number 1 U 167/95 (Oberlandesgericht Hamburg, 28 February 1997).
- 21.
The Western Australian Government (2020).
- 22.
Department of Home Affairs (2020).
- 23.
Savage (2020).
- 24.
Assuming the manufacturer’s business does not fall within the exemption of essential business that is allowed to operate during the lockdown.
- 25.
L-Lysine case (2005).
- 26.
Centers for Disease Control and Prevention (2004).
- 27.
Ibid.
- 28.
World Health Organisation (2003).
- 29.
Goh (2020).
- 30.
Jankowicz (2020).
- 31.
Laschon and Menagh (2020).
- 32.
Ibid.
- 33.
In the Al Kuwait incident itself, the Australian government granted an exemption to the Al Kuwait and the vessel departed from Fremantle with the sheep on 18 June 2020. The first half of the incident is taken here as an example to assess the application of Article 79. See Department of Agriculture, Water, and the Environment (2020).
- 34.
CISG-AC Advisory Opinion No. 20 (2020), para 7.6.
- 35.
Ibid., para 7.7.
- 36.
Ibid.
- 37.
Ibid., 7.9.
- 38.
Ibid.
- 39.
Ibid., paras 7.12–7.13.
- 40.
Ibid., para 7.13.
- 41.
Ibid., para 7.14.
- 42.
Ibid., para 7.15.
- 43.
[1999] 1 Lloyd’s Rep. IR 116.
- 44.
The International Chamber of Commerce (2020).
- 45.
Ibid.
- 46.
Ibid.
- 47.
Ibid.
- 48.
Ibid.
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So, L.K., Sooksripaisarnkit, P., Garimella, S.R. (2021). COVID-19 in the Context of the CISG: Reconsidering the Concept of Hardship and Force Majeure. In: Meškić, Z., Kunda, I., Popović, D.V., Omerović, E. (eds) Balkan Yearbook of European and International Law 2020. Balkan Yearbook of European and International Law, vol 2020. Springer, Cham. https://doi.org/10.1007/16247_2020_15
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