ABSTRACT

VI. Applicable law The “usages of the market for farm products in Vienna” as well as “the following and overleaf conditions” are mentioned as the basis of the contracts in the clause introducing the text of both contracts and, under the heading “Jurisdiction, item 11, the [Seller]’s ‘standard terms’ printed on reverse of the contracts states that the Arbitral Court that shall have jurisdiction ‘must apply Austrian law’.” Thus, a choice-of-law agreement of the contracting parties concerning the law of obligations to be applied to their contractual relation is present [. . .], [which] leads to the application of Austrian material law to this dispute; [. . .]

VII. Issues of law present 1. The substance of the claim is a compensatory claim of the [Seller] against the [Buyer], which is based in two respects on “breach of contract” by the [Buyer] in the sense of para 50

et seq. of the “usages” of the market for farm products in Vienna: After delivery of two installments of barley with a total weight of 500 tons, the [Buyer] refused, as is undisputedly established, to accept further deliveries with the explanation that the goods delivered were defective and declared her “waiver” of further deliveries; after raising protest in the sense of para 50(1) and (2) of the “usages” and fixing an additional period of eight days for the performance of the contract [. . .]. Following the [Buyer]’s “waiver” of further deliveries of goods, the [Seller] finally declared the contract avoided. [. . .]

(Buyer’s request for the avoidance of contract pursuant to Art. 73(2) CISG found not to be justified.)

2. Practices established between the parties The parties are also bound by practices established between themselves. The Convention does not define the length or intensity that a particular practice must satisfy in order to fall within the definition of a ‘practice established between the parties’. However, it is generally acknowledged that the parties’ relationship must have lasted for some time and must have led to the conclusion of various contracts.