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Article 70. Risk when Seller in Fundamental Breach

TEXT OF ARTICLE 70

If the seller has committed a fundamental breach of contract, articles 67, 68 and 69 do not impair the remedies available to the buyer on account of the breach.


OUTLINE OF ISSUES

Reproduced with permission of UNCITRAL

70A Seriously defective shipment (art. 25) is damaged in transit:

70A1 Although transit risk is on buyer under article 68:

70A11 Buyer may avoid for fundamental breach

70A12 Effect of avoidance to place transit risk on seller

70B Breach with respect to the goods is not fundamental

70B1 Buyer may not avoid contract; transit risk remains on buyer

70B2 Buyer may recover damages for defects at shipment

70C Buyer receives seriously defective goods:

70C1 Damage without fault by buyer does not bar avoidance

70C11 Avoidance may be barred by delay (art. 49(2)(a))

70C12 On need to return goods in same condition: art. 82(2)(a)

70D Other problems


DESCRIPTORS

Passage of risk ; Fundamental breach ; Avoidance


CASE ANNOTATIONS: UNCITRAL DIGEST CASES PLUS ADDED CASES


 UNCITRAL does not report any case law applications of Art. 70 and no case law applications of Art. 70 are reported here.
 


UNCITRAL CASE DIGEST

The UNCITRAL Digest of case law on the United
Nations Convention on the International Sale of Goods

A/CN.9/SER.C/DIGEST/CISG/70 [8 June 2004]. Reproduced with the permission of UNCITRAL.

ARTICLE 70

     If the seller has committed a fundamental breach of contract, articles 67, 68 and 69 do not impair the remedies available to the buyer on account of the breach.           

DIGEST OF ARTICLE 70 CASE LAW

1. Article 70 provides that, notwithstanding the passing of the risk of loss or damage in the previous three articles, the buyer retains its remedies unimpaired if the seller has committed a fundamental breach of contract. There are no reported cases applying this article.


Pace Law School Institute of International Commercial Law - Last updated July 26, 2005
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