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CISG CASE PRESENTATION

Iran / U.S. Claims Tribunal 28 July 1989 (Watkins - Johnson v. Islamic Republic of Iran)
[Cite as: http://cisgw3.law.pace.edu/cases/890728i2.html]

Primary source(s) for case presentation: Text of case


Case Table of Contents


Case identification

DATE OF DECISION: 19890728 (28 July 1989)

JURISDICTION: Iran/U.S. Claims Tribunal

TRIBUNAL: Arbitral proceeding

JUDGE(S): Karl-Heinz Böckstiegel, Assadollah Noori, Howard M. Holtzmann (arbitrators)

CASE NUMBER/DOCKET NUMBER: 370 (429-370-1)

CASE NAME: Watkins-Johnson Co., Watkins-Johnson Ltd. v. Islamic Republic of Iran, Bank Saderat Iran

CASE HISTORY: Unavailable

SELLER'S COUNTRY: U.S.A. (claimant)

BUYER'S COUNTRY: Iran (defendant)

GOODS INVOLVED: Electronic communications equipment


Classification of issues present

APPLICATION OF CISG: No

APPLICABLE CISG PROVISIONS AND ISSUES:

Key CISG provisions at issue: Articles 77 ; 88 [Also cited: Articles 1(1) ; 74 ; lex mercatoria ]

Classification of issues using UNCITRAL classification code numbers:

77A [Obligation to take reasonable measures to mitigate damages];

88A1 ; 88A3 ; 88C [Preservation of the goods: party obliged to preserve goods may sell them when other party unreasonably delays; Reasonable notice of intention; Right to retain reasonable expenses from proceeds of sale]

Descriptors: Preservation of goods ; Resale of goods ; Mitigation of loss

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Editorial remarks

EDITOR: Albert H. Kritzer

CISG issues ruled upon:

Preservation of the goods, sale of goods/Mitigation of damages. The case involved a reduction in monetary relief sought by seller as a result of seller's sale of goods not paid for by the buyer. The relief sought was thereby reduced to proceeds of the sale, less completion and modification expense, less selling cost. After ruling on this matter under the applicable law (which was not the CISG), the tribunal stated:

"Moreover [seller's] right to sell undelivered equipment in mitigation of its damages is consistent with recognized international law of commercial contracts. The conditions of Article 88 of the [CISG] are all satisfied in this case: there was unreasonable delay by the buyer in paying the price and the seller gave reasonable notice of its intention to sell."

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Citations to case abstracts, texts, and commentaries

CITATIONS TO ABSTRACTS OF DECISION

(a) UNCITRAL abstract: Unavailable

(b) Other abstracts

English: Unilex database <http://www.unilex.info/case.cfm?pid=1&do=case&id=38&step=Abstract>

Italian: Diritto del Commercio Internazionale (1994) 846 No. 23

CITATIONS TO TEXT OF DECISION

Original language (English): IRAN-U.S.C.T.R. 22 (1990) 218-338 [244 para. 95]; Yearbook of Commercial Arbitration XV (1990) 220-232 [226 para 95]; Unilex database <http://www.unilex.info/case.cfm?pid=1&do=case&id=38&step=FullText>

Translation: Unavailable

CITATIONS TO COMMENTS ON DECISION

English: Ferrari, International Legal Forum (4/1998) 138-255 [180 n.353 (criticism of application of CISG to contract concluded before CISG came into effect)]; Honnold, Uniform Law for International Sales (1999) 528 [Art. 88]; Winship in: Contemporary International Law Issues: Opportunities at a Time of Momentous Change (1994) 122 [12]; Petrochilos, Arbitration Conflict of Laws Rules and the CISG (1999) n.115; [2005] Schlechtriem & Schwenzer ed., Commentary on UN Convention on International Sale of Goods, 2d (English) ed., Oxford University Press, Art. 77 para. 1; Schwenzer & Fountoulakis ed., International Sales Law, Routledge-Cavendish (2007) at p. 608

German: Schlechtriem, Internationales UN-Kaufrecht (1996) 192-193 n.333

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Pace Law School Institute of International Commercial Law - Last updated February 15, 2007
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