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CISG CASE PRESENTATION

Spain 22 September 2003 Appellate Court Navarra (Motors case)
[Cite as: http://cisgw3.law.pace.edu/cases/030922s4.html]

Primary source(s) of information for case presentation: CISG-Spain and Latin America website

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Case identification

DATE OF DECISION: 20030922 (22 September 2003)

JURISDICTION: Spain

TRIBUNAL: Audiencia Provincial de Navarra, Sección 3

JUDGE(S): Aurelio Vila Duplá

CASE NUMBER/DOCKET NUMBER: 15/2003

CASE NAME: Waukesha Engine Division/Dresser Industrial Products, B.V. v. Ceramicas Utzubarm, S.A.

CASE HISTORY: 1st instance Juzgado de Primera Instancia No. 4 de Pamlona 13 September 2001

SELLER'S COUNTRY: [-]

BUYER'S COUNTRY: Spain

GOODS INVOLVED: Motors for production of electricity


Case abstract

SPAIN: Audiencia Provincial de Navarra 22 September 2003

Case law on UNCITRAL texts (CLOUT) abstract no. 547

Reproduced with permission of UNCITRAL

Abstract prepared by María del Pilar Perales Viscasillas, National Correspondent

In relation to the CISG, the court referred to the principle of good faith, pointing out that the Convention ascribed considerable importance to that principle "in that the content of a contract should be as anticipated by the parties, in accordance with the principle of reasonable expectation, which would be gravely undermined if, as the defendant claims, the clause on referral to arbitration contained in the contract of guarantee should be applied." The facts showed that there were two contracts: one a contract of sale, under which the parties were subject to the Spanish courts, and the second a contract of guarantee, ancillary to the contract of sale, whose general provisions had been drafted unilaterally by the seller and which provided for referral to arbitration by the American Arbitration Association. The court, relying on the aforementioned rule in the CISG, held that there had been no express submission by the Spanish party to an arbitration agreement. In other words, it considered that there was not an unequivocal intent on the part of the buyer to submit to arbitration as required by article 6, paragraph 2, of the Law on Arbitration of 1988 and article II, paragraph 2, of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) of 1958. It also applied the principle of autonomy or separability of the arbitration clause in pointing out that the buyer could rely on the remaining provisions of the contract.

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Classification of issues present

APPLICATION OF CISG: [-]

APPLICABLE CISG PROVISIONS AND ISSUES

Key CISG provisions at issue: Article 7(1)

Classification of issues using UNCITRAL classification code numbers:

7A33 [Application of good faith standards]

Descriptors: Good faith

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Editorial remarks

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Citations to other abstracts, case texts and commentaries

CITATIONS TO OTHER ABSTRACTS OF DECISION

Spanish: CISG-Spain and Latin America website <http://www.uc3m.es/cisg/respan37.htm>

CITATIONS TO TEXT OF DECISION

Original language (Spanish): CISG-Spain and Latin America website <http://www.uc3m.es/cisg/sespan37.htm>; JUR 2004\112848

Translation: Unavailable

CITATIONS TO COMMENTS ON DECISION

Unavailable

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Pace Law School Institute of International Commercial Law - Last updated December 21, 2005
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