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CISG CASE PRESENTATION

Belarus 10 April 2008 Economic Court of the City of Minsk (Mineral water and soft drinks case)
[Cite as: http://cisgw3.law.pace.edu/cases/080410b5.html]

Primary source(s) of information for case presentation: Case abstract

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Case identification

DATE OF DECISION: 20080410 (10 April 2008)

JURISDICTION: Belarus

TRIBUNAL: Economic Court of the City of Minsk

JUDGE(S): Unavailable

CASE NUMBER/DOCKET NUMBER: Unavailable

CASE NAME: Unavailable

CASE HISTORY: Unavailable

SELLER'S COUNTRY: Belarus (Plaintiff)

BUYER'S COUNTRY: Russia (Defendant)

GOODS INVOLVED: Mineral water and soft drinks


UNCITRAL case abstract

BELARUS: Economic Court of the City of Minsk 10 April 2008

Case law on UNCITRAL texts [A/CN.9/SER.C/ABSTRACTS/96],
CLOUT abstract no. 961

Reproduced with permission of UNCITRAL

Abstract prepared by Viktor S. Kamenkov, National Correspondent

The plaintiff, a Belarusian company, contracted to sell mineral water and soft drinks to the defendant, a Russian company. The contract stipulated for payment of the purchase price within 14 days following the shipment of the goods and it also contained a penalty clause, according to which the buyer was to pay the seller a penalty amounting to 0.15 per cent of the price to be paid per day late. If the buyer defaulted on the payment for more than 90 days after the date of shipment, the penalty was to amount to 2.00 per cent per day late (for the entire period). Since, according to the seller, the buyer had failed to perform its obligation, the seller brought action against it asking for the purchase price and damages. The defendant made no appearance in court.

Pursuant to the agreement between the Republic of Belarus and the Russian Federation on settling disputes relating to business activities (Kiev, 20 March 1992), the rights and obligations of the parties to business transactions are governed by the law of the place where the transaction was concluded. Hence, the court stated that Belarusian law would apply. Furthermore, since both parties had their place of business in CISG Contracting States (Article (1)(a)) the Court held that the Convention would apply. The court referred to Article 7 CISG and stated that issues not directly governed by the Convention should be subject to settlement pursuant to the general principles of the CISG and, in their absence, to the rules applicable according to private international law.

Pursuant to Article 53 CISG, the court found that the defendant had not fulfilled its obligation to pay the price and upheld the seller's claim. The court however recalculated the damages due and based on the Belarusian Civil Code, which authorizes judges to reduce penalties, the judges limited the penalty due, finding the amount required by the contract to be excessive.

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Classification of issues present

APPLICATION OF CISG: Yes

APPLICABLE CISG PROVISIONS AND ISSUES

Key CISG provisions at issue: Articles 7 ; 53

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

Unavailable

CITATIONS TO TEXT OF DECISION

Original language (Russian): Unavailable

Translation: Unavailable

CITATIONS TO COMMENTS ON DECISION

Unavailable

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Pace Law School Institute of International Commercial Law - Last updated November 30, 2010
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