ABSTRACT

An Italian seller and a French buyer concluded a contract for the sale of a printing press which the buyer intended to install in its new factory. The buyer made a partial payment but it failed to pay the balance and to take delivery of the press at the agreed date. Two months after the date for taking delivery and payment had passed, the seller, relying on a provision of the Italian Civil Code (diffida ad adempiere), sent a notice to the buyer demanding performance within the following 15 days and declaring that, in the event of non-performance by the buyer, the contract would be considered as avoided (terminated). The buyer failed to perform within the additional 15-day period and, after a few days, the seller sent a further notice of the same contents. As the buyer, again, failed to perform within the second additional period of time, the seller commenced legal action alleging avoidance (termination) of the contract for breach by the buyer and claiming damages.