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Achieving good result in the international trade contract dispute

In 2023, our client purchased 500 tons of seamless steel pipes from supplier, after the end buyer received the cargos, and inspected by SGS international, found the parts of cargos were weld pipes. After buyer noticed and demanded supplier for compensations, it was failed. The supplier argued that they purchased and arranged qualified goods from the factory. At last, we filed this case in court, after strong arguments in court, the judge considered that that supplier did not have evidence to certify that the cargos qualified, and the SGS report at the destination port can certify that the cargos were not quailed according the specifics. According to the United Nations Convention on Contracts for the International Sale of Goods, CISG, the court judged the purchase contract shall be void, and the supplier shall pay all loses/fees to buyer. Our client is satisfied with the court judgment.

The United Nations Convention on Contracts for the International Sale of Goods, CISG

Article 25
A breach of contract committed by one of the parties is fundamental if it results in such detriment to the other party as substantially to deprive him of what he is entitled to expect under the contract, unless the party in breach did not foresee and a reasonable person of the same kind in the same circumstances would not have foreseen such a result.

Article 74 Damages for breach of contract by one party consist of a sum equal to the loss, including loss of profit, suffered by the other party as a consequence of the breach. Such damages may not exceed the loss which the party in breach foresaw or ought to have foreseen at the time of the conclusion of the contract, in the light of the facts and matters of which he then knew or ought to have known, as a possible consequence of the breach of contract.




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