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CISG CASE PRESENTATION

Denmark 3 May 2006 Højesteret [Supreme Court]
[Cite as: http://cisgw3.law.pace.edu/cases/060503d1.html]

Primary source(s) of information for case presentation: Joseph Lookofsky

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Case identification

DATE OF DECISION: 20060503 (3 May 2006)

JURISDICTION: Denmark

TRIBUNAL: Højesteret [Supreme Court of Denmark]

JUDGE(S): Unavailable

CASE NUMBER/DOCKET NUMBER: Unavailable

CASE NAME: Unavailable

CASE HISTORY: Earlier proceeding: Decision rendered by an (ad hoc) arbitral tribunal in Denmark on 10 November 2000

SELLER'S COUNTRY: Denmark

BUYER'S COUNTRY: Canada

GOODS INVOLVED: Machine designed to mass produce concrete slabs for pig sties


Classification of issues present

APPLICATION OF CISG: Yes

APPLICABLE CISG PROVISIONS AND ISSUES

Key CISG provisions at issue: Article 7 [Also relevant: Articles: 35 ; 49 ]

Classification of issues using UNCITRAL classification code numbers:

7C22 [Gap-filling (recourse to general principles on which Convention is based): estoppel]

Descriptors: General principles ; Estoppel

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Editorial remarks

EDITOR: Joseph Lookofsky

Decision by the Danish Supreme Court (Højesteret), 3 May 2006, as reported in UfR 2006.2210 (H), including excerpts from the award rendered by an (ad hoc) arbitral tribunal in Denmark on 10 November 2000.

In the dispute underlying these proceedings, which involved the interpretation of the relevant CISG rules, as well as Nordic standard terms of agreement (Nordiske Leveringsbetingelser), a Danish seller (S) had supplied a large machine (designed to mass-produce concrete slats for pig sties) to a Canadian buyer (B). The machine delivered proved unfit (Article 35(2)(a-b)), and after S's failure to repair, B declared the contract avoided. When S refused to acknowledge its (fundamental) breach, B revoked (tilbagekaldte) its declaration (and pursued other remedies, including damages). In these circumstances, the arbitral tribunal held B entitled to revoke: see id., p. 2219.

Although the extract of the award included in the Supreme Court judgment (at id., rejecting a malpractice claim by S against its attorney) includes neither the tribunal's own reasoning nor references to secondary sources of CISG law on the revocation issue, Professor Schlechtriem has persuasively argued that the "matter" of whether a declaration of avoidance is binding upon the declaring party is "governed but not settled" by the Convention and that "estoppel," a CISG general principle, can be used to "settle" it: see Schlechtriem in Schlechtriem & Schwenzer, Commentary, Art. 27, para. 14; accord Müller-Chen, id., Art. 45, para. 15(bb).

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Citations to case abstracts, texts, and commentaries

CITATIONS TO ABSTRACTS OF DECISION

(a) UNCITRAL abstract: Unavailable

(b) Other abstracts

Unavailable

CITATIONS TO TEXT OF DECISION

Original language (Danish): UfR 2006.2210 (H)

Translation: Unavailable

CITATIONS TO COMMENTS ON DECISION

Unavailable

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Pace Law School Institute of International Commercial Law - Last updated November 5, 2007
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