Q 79-10 Another category of impediment is a party’s ﬁnancial inability to perform. Most decisions have not found this contingency to lead to exemption. Why? Q 79-11 Can the parties agree on another ‘exemption of liability’ standard? How would you word such a clause? Q 79-12 Comparison with foreign law provisions: a) Which laws or sets of rules provide for a similar exemption rule to that in Art. 79 CISG? b) Which sales laws have adopted a diﬀerent concept of exemption from liability? Explain the diﬀerences. Q 79-13 Can you clarify which situations are governed by Art. 6:111 PECL, and which ones by Art. 8:108 PECL and Art. 79 CISG? Art. 79(2) CISG 79-2 : Art. 79(2) CISG states the principle that, where the party in default has engaged a third party to perform the contract, it is only exempt if Art. 79(1) applies to both the party in default and that third party. The provision applies to both the seller and the buyer, although, in practice, it is mostly the seller who relies on it. The requirements of Art. 79(1) CISG must be met by both the seller and its supplier in order the seller to be

doi:10.4324/9780203945445-222

Chapter

Q 79-10 Another category of impediment is a party’s ﬁnancial inability to perform. Most decisions have not found this contingency to lead to exemption. Why? Q 79-11 Can the parties agree on another ‘exemption of liability’ standard? How would you word such a clause? Q 79-12 Comparison with foreign law provisions: a) Which laws or sets of rules provide for a similar exemption rule to that in Art. 79 CISG? b) Which sales laws have adopted a diﬀerent concept of exemption from liability? Explain the diﬀerences. Q 79-13 Can you clarify which situations are governed by Art. 6:111 PECL, and which ones by Art. 8:108 PECL and Art. 79 CISG? Art. 79(2) CISG 79-2

Chapter

Q 79-10 Another category of impediment is a party’s ﬁnancial inability to perform. Most decisions have not found this contingency to lead to exemption. Why? Q 79-11 Can the parties agree on another ‘exemption of liability’ standard? How would you word such a clause? Q 79-12 Comparison with foreign law provisions: a) Which laws or sets of rules provide for a similar exemption rule to that in Art. 79 CISG? b) Which sales laws have adopted a diﬀerent concept of exemption from liability? Explain the diﬀerences. Q 79-13 Can you clarify which situations are governed by Art. 6:111 PECL, and which ones by Art. 8:108 PECL and Art. 79 CISG? Art. 79(2) CISG 79-2

ABSTRACT

Art. 79(2) CISG states the principle that, where the party in default has engaged a third party to perform the contract, it is only exempt if Art. 79(1) applies to both the party in default and that third party. The provision applies to both the seller and the buyer, although, in practice, it is mostly the seller who relies on it. The requirements of Art. 79(1) CISG must be met by both the seller and its supplier in order the seller to be exempt.