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CISG
number


LEGISLATIVE HISTORY
1980 Vienna Diplomatic Conference

G. Report of the First Committee
[Outline of committee proceedings]
Document A/CONF.97/11 [Original: English 7 April 1980]

(. . .)

41, 43
Article 39 [became CISG article 41 and CISG article 43 ]

A. UNCITRAL text [1978 draft]
B. Amendments
C. Proceedings in the First Committee
D. Subsequent proceedings
E. Overview comments

A. UNCITRAL text

1. The text of the [1978 draft of the ] United Nations Commission on International Trade Law provided as follows:

"Article 39 [became CISG article 41 and CISG article 43 ]

"(1) The seller must deliver goods which are free from any right or claim of a third party, other than one based on industrial or intellectual property, unless the buyer agreed to take the goods subject to that right or claim.

"(2) The buyer does not have the right to rely on the provisions of this article if he does not give notice to the seller specifying the nature of the right or claim of the third party within a reasonable time after he became aware or ought to have become aware of the right or claim."

[Go to Secretariat Commentary on the above text; Go also to Secretariat Commentary on paragraph (2) of this text ]

[See also pre-Conference observations and proposals by Governments and International Organizations]

B. Amendment

2. Amendments were submitted to article 39 [became CISG article 41 and CISG article 43 ] by Finland (A/CONF.97/C.1/L.133), Singapore (A/CONF.97/C.1/L.145), Nigeria (A/CONF.97/C.1/L.159), Norway (A/CONF.97/C.1/L.127), Norway (A/CONF.97/C.1/L.77) and Canada (A/CONF.97/C.1/L.128).

3. These amendments were to the following effect:

Paragraph (1).

(i) Finland (A/CONF.97/C.1/L.133):

Amend the drafting of articles 39 and 40 [became CISG article 41 and CISG article 42 ] by replacing the expression "industrial or intellectual property" by the words "industrial property or other intellectual property".

[Withdrawn: see Consideration, 6, below.]

(ii) Singapore (A/CONF.97/C.1/L.145):

Revise paragraph (1) of article 39 [became CISG article 41 ] to read as follows: "(1) Subject to the provisions of article 40 [became CISG article 42 ], the seller must deliver goods free from any right or claim of a third party, unless the buyer agreed to take the goods subject to that right or claim."

[Withdrawn: see Consideration, 6, below.]

(iii) Nigeria (A/CONF.97/C.1/L.159):

Paragraph (1) of article 39 [became CISG article 41 ] and paragraph (1) of article 40 [became CISG article 42 ] should be remitted to the Drafting Committee with a view to merging both articles into one.

[Withdrawn: see Consideration, 6, below.]

Paragraph (2).

(iv) Norway (A/CONF.97/C.1/L.127):

In paragraph (2) of article 39 [became CISG article 43 ], replace the words "the buyer does not have the right" by the words "the buyer loses the right".

[Referred to the Drafting Committee: see Consideration, 7, below.]

New paragraph (3).

(v) Norway (A/CONF.97/C.1/L.77):

Add the following as a new paragraph (3):

"(3) If the seller fails to perform any of his obligations under this article, the goods are deemed not to conform with the contract for the purposes of applying the provisions of articles 41 to 47 [became CISG article 45 , CISG article 46 , CISG article 47 , CISG article 48 , CISG article 49 , CISG article 50 and CISG article 51 ]."

[Rejected: see Consideration, 8, below.]

New paragraphs (3) and (4).

(vi) Canada (A/CONF.97/C.1/L.128):

Add new paragraphs (3) and (4) as follows:

"(3) Where the buyer gives notice to the seller of such a right or claim of a third party the seller shall have a reasonable opportunity:

"(a) to discharge or settle such right or claim or to provide satisfactory proof that such claim is ill-founded; or

"(b) to offer the buyer a satisfactory form of indemnity against any loss he may incur by reason of such claim, if the delay involved will not cause serious prejudice or inconvenience to the buyer.

"(4) A seller who meets the requirements of paragraph (3) (a) or (b) shall not be deemed to have committed a fundamental breach of contract."

[Withdraw: see Consideration, 9, below.]

C. Proceedings in the First Committee

(i) Meetings

4. The First Committee considered this article at its 17th meeting on 21 March 1980 [see also 37th meeting of First Committee].

(ii) Consideration

Paragraph (1).

5. At the 17th meeting, the Committee, by 15 votes in favour and 11 against, adopted and referred to the Drafting Committee, an oral amendment by Mexico that a sentence on the following lines should be added to paragraph (1):

"The rights or claims based on intellectual or other industrial property are governed by article 40 [became CISG article 42 ]."

6. The amendments by Finland (A/CONF.97/C.1/L.133), Singapore (A/CONF.97/C.1/L.145) and Nigeria (A/CONF.97/C.1/L.159) were withdrawn, and the UNCITRAL text adopted subject to the amendment set forth in paragraph 5 above.

Paragraph (2).

7. At the 17th meeting, the amendment by Norway (A/CONF.97/C.1/L.127) was referred to the Drafting Committee with a view to harmonizing the similar language used in this paragraph, in article 37 [became CISG article 39 ], paragraph (2), and in article 40, paragraph (3) [became CISG article 43(1) ]. The UNCITRAL text was adopted.

New paragraph (3).

8. At the 17th meeting, the amendment by Norway (A/CONF.97/C.1/L.77) was rejected.

New paragraphs (3) and (4).

9. At the 17th meeting, the amendment by Canada (A/CONF.97/C.1/L.128) was withdrawn.

[D. Subsequent Proceedings]

[For subsequent Conference material on the development/approval of the final text of CISG article 41 and of article 43, go to Plenary Conference 7th meeting]

[E. Overview Comments]

[English translation of report on the significance of the deliberations on this article at the Diplomatic Conference: prepared by Peter Schlechtriem, based on notes taken at the conference and published shortly thereafter]

(. . .)


Pace Law School Institute of International Commercial Law - Last updated September 8, 2000
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