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Source: Doc. B(1) Reproduced from UNCITRAL Yearbook VIII (1977), A/32/17, pages 25-64

EXCERPT FROM ANNEX I

Report of Committee of the Whole I relating to the
draft Convention on the International Sale of Goods

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CISG
number		 Art. 88

Article 63

520. The text of article 63, as adopted by the Working Group on the International Sale of Goods, is as follows:

"(1) If there has been an unreasonable delay by the other party in taking possession of the goods or in taking them back or in paying the cost of preservation and notice of his intention to sell has been given, the party who is under an obligation to preserve the goods in accordance with articles 60 or 61 may sell them by any appropriate means.
"(2) If the goods are subject to loss or rapid deterioration or their preservation would involve unreasonable expense, the party who is under an obligation to preserve the goods in accordance with articles 60 or 61 must take reasonable efforts to sell them. To the extent possible he must give notice of his intention to sell.
"(3) The party selling the goods has the right to retain out of the proceeds of sale an amount equal to the reasonable costs of preserving the goods and of selling them. He must account to the other party for the balance."

Paragraph (1)

521. The Committee did not retain a proposal to add a sentence to paragraph (1) to the effect that a seller under an obligation to preserve the goods in accordance with article 60 "must make reasonable efforts to resell the goods if the buyer so requests."

Decision

522. The Committee concludes that no change in substance is called for in respect of article 63. It therefore recommends that the Commission should adopt the following text:

"Article 63

"(1) The party who is bound to preserve the goods in accordance with articles 60 or 61 may sell them by any appropriate means if there has been an unreasonable delay by the other party in taking possession of the goods or in taking them back or in paying the cost of preservation, provided that notice of the intention to sell has been given to the other party.
"(2) If the goods are subject to loss or rapid deterioration or their preservation would involve unreasonable expense, the party who is bound to preserve the goods in accordance with articles 60 or 61 must take reasonable measures to sell them. To the extent possible he must give notice to the other party of his intention to sell.
"(3) The party selling the goods has the right to retain out of the proceeds of sale an amount equal to the reasonable expenses of preserving the goods and of selling them. He must account to the other party for the balance." [page 62]

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Pace Law School Institute of International Commercial Law - Last updated July 27, 2007
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