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CISG CASE PRESENTATION

Belarus 29 April 2008 Economic Court of the Grodno Region (Potatoes and beet roots case)
[Cite as: http://cisgw3.law.pace.edu/cases/080429b5.html]

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

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Case identification

DATE OF DECISION: 20080429 (29 April 2008)

JURISDICTION: Belarus

TRIBUNAL: Economic Court of the Grodno Region

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: Potatoes and beet roots


UNCITRAL case abstract

BELARUS: Economic Court of the Grodno Region 29 April 2008

Case law on UNCITRAL texts [A/CN.9/SER.C/ABSTRACTS/96],
CLOUT abstract no. 960

Reproduced with permission of UNCITRAL

Abstract prepared by Viktor S. Kamenkov, National Correspondent

The plaintiff, a Belarusian Consumer Association, contracted to sell potatoes and beet roots to the defendant, a Russian company. The contract required the buyer to pay for the goods within 5 calendar days of shipment. Failing such payment, the buyer was obligated to pay 0.15 per cent of the purchase price per day late after the payment became due. Moreover, the parties stipulated that the buyer was obligated to provide the seller with the documents certifying the buyer's VAT payment to the Russian Federation authorities for the purchased goods and that, failing delivery of such documents within 60 days of receipt of the goods, the buyer was to pay the seller a penalty amounting to 18 per cent of the purchase price. The parties chose Belarusian law to govern the disputes arising from the contract.

The plaintiff claimed that the defendant had failed to pay for the goods and sought judgment for the purchase price, penalty charges for late payment and for the failure to issue certification of the buyer's VAT payment. The defendant made no appearance in court.

The court held that since, under Belarusian law, international treaties ratified by the Republic of Belarus become part of the Belarusian civil legislation, the CISG should apply to the dispute, because the parties' places of business were in different Contracting States (Article (1)(a)). The court also noted that the buyer was obligated to pay for the delivered goods within the period specified in the contract and that it had failed to perform accordingly. Therefore, the seller was entitled to receive the purchase price. However, the court rejected the plaintiff's claim of penalties for late payment, because the contract only provided for penalties for late discharge of the prepayment obligation, not for late payment of the purchase price. In its submission the plaintiff had referred only to the contract provisions on the late payment of the purchase price and not on those relating to the prepayment. For this reason the plaintiff was not entitled to any damage for failure of payment by the seller. The court, however, granted the plaintiff the damages on the VAT payment to the Russian authorities stating that the buyer had failed to prove that it had made this payment within the period stated in the contract.

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Classification of issues present

APPLICATION OF CISG: Yes [Article 1(1)(a)]

APPLICABLE CISG PROVISIONS AND ISSUES

Key CISG provisions at issue: Articles [-]

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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