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Win the case of cargo quality dispute

Our European client purchased 100 tons of seamless steel pipes from supplier in Hebei province, China, after client received the cargos, and inspected by SGS local, found the cargos were weld pipes, not seamless pipe. After buyer negotiated with supplier for compensations, it was failed. The supplier argued that they shipped the qualified goods without problems. 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 were seamless pipe, and the SGS report can certify that the cargos were weld. According to the United Nations Convention on Contracts for the International Sale of Goods, CISG, the court judged the purchase contract shall be rescinded, and the supplier shall refund all payment to buyer and pay other loses/fees. 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 81
(1) Avoidance of the contract releases both parties from their obligations under it, subject to any damages which may be due. Avoidance does not affect any provision of the contract for the settlement of disputes or any other provision of the contract governing the rights and obligations of the parties consequent upon the avoidance of the contract.
(2) A party who has performed the contract either wholly or in part may claim restitution from the other party of whatever the first party has supplied or paid under the contract. If both parties are bound to make restitution, they must do so concurrently.



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