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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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74
Article 70 [became CISG article 74 ]

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 70 [became CISG article 74 ]

"Damages for breach of contract by one party consist of a sum equal to the loss, including loss of profit, suffered by the other party as a consequence of the breach. Such damages may not exceed the loss which the party in breach foresaw or ought to have foreseen at the time of the conclusion of the contract, in the light of the facts and matters which he then knew or ought to have known, as a possible consequence of the breach of contract."

[Go to Secretariat Commentary on the above text]

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

[In addition, as CISG article 74 was a carry-forward of ULIS article 82 (go to match-up of CISG article 74 with ULIS article 82), it may be helpful to examine material on the legislative history, doctrine and jurisprudence on ULIS article 82]

B. Amendments

2. Amendments were submitted to article 70 [became CISG article 74 ] by Norway (A/CONF.97/C.1/L.230) and Pakistan (A/CONF.97/C.1/L.235).

3. These amendments were to the following effect:

Articles 70 to 73 [became CISG article 74 , CISG article 75 and CISG article 76 ].

Norway (A/CONF.97/C.1/L.230):

Section IV - Damages, chapter IV (arts. 70 to 73) [became CISG article 74 , CISG article 75 and CISG article 76 ] should be grouped together with section II - Exemptions (art. 65) [became CISG article 79 ] and placed in a separate chapter between present chapters III and IV.

[Referred to Drafting Committee: see Consideration, 5, below.]

Article 70 [became CISG article 74 ].

Pakistan (A/CONF.97/C.1/L.235):

The second sentence of article 70 [became CISG article 74 ] may be amended to read as follows:

"Such damages may not exceed the reasonable expectation of loss which the party in breach foresaw or ought to have foreseen at the time of the conclusion of the contract, in the light of the facts and matters which he then knew or ought to have known, as a possible consequence of the breach of contract."

[Rejected: see Consideration, 6, below.]

C. Proceedings in the first Committee

(i) Meetings

4. The First Committee considered article 70 [became CISG article 74 ] at its 30th meeting on 31 March 1980 [see also 32nd meeting and 37nd meeting of First Committee].

(ii) Consideration

Articles 70 to 73 [became CISG article 74 , CISG article 75 and CISG article 76 ].

5. At the 30th meeting, the amendment by Norway (A/CONF.97/C.1/L.230) was referred to the Drafting Committee.

Article 70.

6. At the 30th meeting, the amendment by Pakistan (A/CONF.97/C.1/L.235) was rejected, and the UNCITRAL text adopted.

[D. Subsequent Proceedings]

[For subsequent Conference material on the development/approval of the final text of CISG article 74, 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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