Matchup of CISG Article 58 with ULIS/ULF

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LEGISLATIVE HISTORY

CISG ANTECEDENTS


CISG Article 58

1. If the buyer is not bound to pay the price at any other specific time, he must pay it when the seller places either the goods or documents controlling their disposition at the buyer's disposal in accordance with the contract and this Convention. The seller may make such payment a condition for handling over the goods or documents.

2. If the contract involves carriage of the goods, the seller may dispatch the goods on terms whereby the goods, or documents controlling their disposition, will not be handed over to the buyer except against payment of the price.

3. The buyer is not bound to pay the price until he has had an opportunity to examine the goods, unless the procedures for delivery or payment agreed upon by the parties are inconsistent with his having such an opportunity.

  

ULIS Article 71

Except as otherwise provided in Article 72, delivery of the goods and payment of the price shall be concurrent conditions. Nevertheless, the buyer shall not be obliged to pay the price until he has had an opportunity to examine the goods.

ULIS Article 72

1. Where the contract involves carriage of the goods and where delivery is, by virtue of paragraph 2 of Article 19, effected by handing over the goods to the carrier, the seller may either postpone despatch of the goods until he receives payment or proceed to despatch them on terms that reserve to himself the right of disposal of the goods during transit. In the latter case, he may require that the goods shall not be handed over to the buyer at the place of destination except against payment of the price and the buyer shall not be bound to pay the price until he has had an opportunity to examine the goods.

2. Nevertheless, when the contract requires payment against documents, the buyer shall not be entitled to refuse payment of the price on the ground that he has not had the opportunity to examine the goods.


Comments on the match-up

"The rules governing the time of payment and the principle that payment and the handing over the goods are concurrent conditions are set out in different articles of ULIS (Article 60 and Articles 71 and 72). The Working Group altered that approach in two respects. First, there was a departure from ULIS' central concept of 'delivery'. The obligation to pay the price arose when the goods were placed at the buyer's disposal. Secondly, since the time of payment and the principle of payment concurrently with the placing of the goods at the buyer's disposal were interconnected, they were brought within one rule. The seller's right to postpone dispatch of the goods until he receives payment (Article 72(1) ULIS) was dropped. It conflicted with usage in a number of countries." Hager in Commentary on the UN Convention on the International Sale of Goods, Peter Schlechtriem ed. (Oxford 1998) 41 [citations omitted].


Pace Law School Institute of International Commercial Law - Last updated June 22, 1998
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