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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]

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72
Article 63 [became CISG article 72 ]

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 63 [became CISG article 72 ]

"If prior to the date for performance of the contract it is clear that one of the parties will commit a fundamental breach, the other party may declare the contract avoided."

[Go to Secretariat Commentary on the above text]

B. Amendments

2. No amendments were submitted to article 63 [became CISG article 72 ] prior to the 27th meeting.

C. Proceedings in the First Committee

(i) Meetings

3. The First Committee considered this article at its [27th meeting, 34th meeting and 35th meeting] on 28 March and 3 and 4 April 1980 respectively, and its [37th meeting and 38th meeting] on 7 April 1980.

(ii) Consideration

4. At the 27th meeting, the UNCITRAL text was adopted.

5. At the 34th meeting, the Committee, by 27 votes in favour and 6 against, adopted a motion to consider an amendment by Egypt (A/CONF.97/C.1/L.250) submitted after the close of the deliberations on article 63 [became CISG article 72 ].

6. This amendment was to the following effect:

Egypt (A/CONF.97/C.1/L.250):

Replace article 63 [became CISG article 72 ] by the following text:

"(1) If the seller has already dispatched the goods before the grounds described in paragraph (1) of article 62 [became CISG article 72 ] become evident, he may prevent the handing over of the goods to the buyer even though the buyer holds a document which entitles him to obtain them. This paragraph relates only to the rights in the goods as between the buyer and the seller.

"(2) The seller who prevents the handing over of the goods to the buyer under paragraph (1) of this article must immediately give notice to the buyer of his intention to declare the contract avoided should the buyer fail, within a reasonable time, to provide adequate assurances of properly performing his obligations."

7. At the 35th meeting, the Committee considered together the amendments by Egypt to articles 62 and 63 [became CISG article 71 and CISG article 72 ] (A/CONF.97/C.1/L.249 and L.250). The amendments were rejected by 19 votes in favour and 19 against.

8. At the 35th meeting, the Committee established an ad hoc working group composed of the representatives of Argentina, Egypt, Finland, France, German Democratic Republic, Germany, Federal Republic of, Mexico, Republic of Korea and United States of America to consider articles 62 and 63 [became CISG article 71 and CISG article 72 ] and submit a proposed text of these articles to the Committee.

9. At the 37th meeting, the ad hoc working group submitted the following text for article 63 [became CISG article 72 ] (A/CONF.97/C.1/L.253):

Add new paragraphs (2) and (3) as follows:

"(2) If time allows, the party intending to declare the contract avoided must give notice reasonably in advance to the other party in order to permit him to provide adequate assurance of his performance.

"(3) The requirements of the preceding paragraph do not apply if the other party has declared that he will not perform his obligations."

10. At the 38th meeting an oral amendment to delete from the text submitted by the ad hoc working group the words "if time allows" was rejected by 17 votes in favour and 18 against. A further oral amendment to replace the phrase "give notice reasonably in advance" by the phrase "give reasonable notice" was adopted.

11. At the 38th meeting, the UNCITRAL text of paragraph (1) of article 63 [became CISG article 72 ] was adopted.

12. At the 38th meeting, articles 62 and 63 [became CISG article 71 and CISG article 72 ], as amended, were together adopted by 35 votes in favour and none against.

[D. Subsequent Proceedings]

[For subsequent Conference material on the development/approval of the final text of CISG article 72, go to Plenary Conference 10th 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]

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Pace Law School Institute of International Commercial Law - Last updated September 11, 2000
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