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Excerpt from John O. Honnold, Uniform Law for International Sales under the 1980 United Nations Convention, 3rd ed. (1999), page 526. Reproduced with permission of the publisher, Kluwer Law International, The Hague.

Article 87

Deposit in Warehouse

§456 Article 85 and 86, supra, established a duty "to preserve" goods. Article 87 and 88 authorize two types of action that may fulfill this duty—storage and sale.

Article 87 [1]

"A party who is bound to take steps to preserve the goods may deposit them in a warehouse of a third person at the expense of the other party provided that the expense incurred is not unreasonable."

Deposit of goods in a warehouse is such a common way to "preserve goods" that this article might seem unnecessary, except for doubt as to whether storage by one party would authorize the warehouse to assert a possessory lien for storage charges and recover those charges from the other party to the sales contract. Unless the storage contract provides otherwise, the party who deposits the goods in primarily liable to the warehouse but may seek reimbursement from the other party to the sales contract, and can stop the accumulation of storage charges by selling the goods, as authorized by Article 88, which follows.[2] [page 526]

FOOTNOTES: Chapter on Article 87

1. This article is the same as Art. 76 of the 1978 Draft. Cf. ULIS 93.

2. UCC 2–604 similarly gives a rejecting buyer the option to "store the rejected goods for the seller’s account." UCC 7–209 gives the warehouseman a lien against (sub (1)) "the bailor" and (sub (3)) certain third persons.

Pace Law School Institute of International Commercial Law - Last updated March 1, 2005