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CISG CASE PRESENTATION

Spain 5 April 2006 Supreme Court
[Cite as: http://cisgw3.law.pace.edu/cases/060405s4.html]

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

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Case identification

DATE OF DECISION: 20060405 (5 April 2006)

JURISDICTION: Spain

TRIBUNAL: Tribunal Supremo, sección 1ª, sala de lo Civil

JUDGE(S): Doña Encarnación Roca Trías

CASE NUMBER/DOCKET NUMBER: No. 364/2006

CASE NAME: Banco Urquijo, S.A. v. Hispania Agropecuaria, S.L.

CASE HISTORY: Unavailable

SELLER'S COUNTRY: Spain

BUYER'S COUNTRY: Spain

GOODS INVOLVED: [-]


Case abstract

SPAIN: Tribunal Supremo, 5 April 2006

Case law on UNCITRAL texts (CLOUT) abstract no. 735

Reproduced with permission of UNCITRAL

Abstract prepared by Pilar Perales Viscasillas, National Correspondent

A Spanish creditor gave credit to a Spanish debtor, fixing the payment dates by instalment. When the last payment date elapsed, the debtor had only paid back part of the credit. Further, the debtor communicated to the creditor that it could not further pay its dues. The creditor avoided the contract for reason of default by the debtor.

The court examined whether the non-payment of the debtor's dues represented a fundamental breach of its obligation under the credit contract. The court observed that the failure of performance needed to constitute a fundamental breach, which had to take place intentionally. The court further noted that this definition had been progressively specified in the jurisprudence, i.e. the breach needed to frustrate the contract, leading to the failure of the legitimate expectations of the other contracting party. Additionally, the court observed that this refined interpretation adjusted to the principles of modern international instruments, referring to the definition of a fundamental breach under article 25 CISG and the European Contract Principles. The court concluded that, accordingly, the debtor had fundamentally breached its obligation by not paying its dues at the last payment date.

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Classification of issues present

APPLICATION OF CISG: No, dicta reference to CISG

APPLICABLE CISG PROVISIONS AND ISSUES

Key CISG provisions at issue: Article 25

Classification of issues using UNCITRAL classification code numbers:

Unavailable

Descriptors: Unavailable

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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/respan54.htm>

CITATIONS TO TEXT OF DECISION

Original language (Spanish): CISG-Spain and Latin America website <http://www.uc3m.es/cisg/sespan54.htm>

Translation: Unavailable

CITATIONS TO COMMENTS ON DECISION

Unavailable

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Pace Law School Institute of International Commercial Law - Last updated November 8, 2007
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