ABSTRACT
A German seller and an English buyer concluded a contract for the sale of Iron-molybdenum with a molybdenum content of at least 64%. The price agreed upon by the parties was 9,70 US$/Kg molybdenum. The standard terms of the seller contained a force majeure clause which exempted the seller for any responsibility following a failure and/or delay in delivery of the goods. A few days after the conclusion of the contract, the buyer refused a seller’s proposal to increase the purchase price following a rise in market price. The seller further invited the buyer to accept a reduction of the molybdenum content together with a time delay. The buyer accepted the percentage reduction but fixed a shorter period of time for delivery. The seller informed the buyer that it needed an additional period of time and offered to pay the buyer a compensation. As the seller did not perform within the fixed period of time the buyer had to make a substitute purchase at a higher price in order to be able to perform a contract already concluded with a third party. The buyer commenced an action claiming damages and interest.
