expires unused or if the buyer indicates that it will not perform. Art. 63(2), sentence 2 CISG makes it clear that the ﬁxing of an additional period is not an extension for payment; therefore, the seller may still claim any damages arising from the buyer’s non-compliance with the contract. Questions Q 63-1 In which cases will the seller proceed under Art. 63 CISG? Q 63-2 a) In what circumstances of non-compliance by the buyer may the seller ﬁx an additional period of time? b) In which cases does the expiration of an additional period, without action by the buyer, automatically amount to a fundamental breach of contract, thereby entitling the seller to avoid the contract? Q 63-3 Consider situations where a period, in order to be reasonable, will be rather short, and others where it will be longer. On what will such reasonableness usually depend? Q 63-4 Why is it not suﬃcient to request performance ‘soon’ or ‘promptly’, but rather to indicate a speciﬁc period or date? Cf. also sub Article 47 CISG. Q 63-5 Is it possible to combine an additional period under Art. 63(1) CISG with a declaration of avoidance in the event that the buyer fails to fulﬁl its contractual duties? Cf. also C 63-1.

doi:10.4324/9780203945445-165

Chapter

expires unused or if the buyer indicates that it will not perform. Art. 63(2), sentence 2 CISG makes it clear that the ﬁxing of an additional period is not an extension for payment; therefore, the seller may still claim any damages arising from the buyer’s non-compliance with the contract. Questions Q 63-1 In which cases will the seller proceed under Art. 63 CISG? Q 63-2 a) In what circumstances of non-compliance by the buyer may the seller ﬁx an additional period of time? b) In which cases does the expiration of an additional period, without action by the buyer, automatically amount to a fundamental breach of contract, thereby entitling the seller to avoid the contract? Q 63-3 Consider situations where a period, in order to be reasonable, will be rather short, and others where it will be longer. On what will such reasonableness usually depend? Q 63-4 Why is it not suﬃcient to request performance ‘soon’ or ‘promptly’, but rather to indicate a speciﬁc period or date? Cf. also sub Article 47 CISG. Q 63-5 Is it possible to combine an additional period under Art. 63(1) CISG with a declaration of avoidance in the event that the buyer fails to fulﬁl its contractual duties? Cf. also C 63-1.

Chapter

expires unused or if the buyer indicates that it will not perform. Art. 63(2), sentence 2 CISG makes it clear that the ﬁxing of an additional period is not an extension for payment; therefore, the seller may still claim any damages arising from the buyer’s non-compliance with the contract. Questions Q 63-1 In which cases will the seller proceed under Art. 63 CISG? Q 63-2 a) In what circumstances of non-compliance by the buyer may the seller ﬁx an additional period of time? b) In which cases does the expiration of an additional period, without action by the buyer, automatically amount to a fundamental breach of contract, thereby entitling the seller to avoid the contract? Q 63-3 Consider situations where a period, in order to be reasonable, will be rather short, and others where it will be longer. On what will such reasonableness usually depend? Q 63-4 Why is it not suﬃcient to request performance ‘soon’ or ‘promptly’, but rather to indicate a speciﬁc period or date? Cf. also sub Article 47 CISG. Q 63-5 Is it possible to combine an additional period under Art. 63(1) CISG with a declaration of avoidance in the event that the buyer fails to fulﬁl its contractual duties? Cf. also C 63-1.

ABSTRACT

Art. 64 CISG pools all cases together in which the seller may declare the contract avoided when the buyer is in breach of one of its obligations. It reﬂects Art. 49 CISG, which sets out the requirements for the buyer’s right to avoid the contract. The seller is entitled to avoid the contract if the buyer has committed a fundamental breach of contract (Art. 64(1)(a)). Where the buyer does not live up to its obligations to make payment or take over the goods, the seller may declare the contract avoided after expiration of an additional period of time within the meaning of Art. 63 CISG (Art. 64(1)(b)). If payment has been made but the buyer is late in the performance of one of its other obligations, the seller must avoid the contract before it learns of the buyer’s ultimate performance (Art. 64(2)(a)). In all other cases, its declaration of avoidance must be within a reasonable time after the seller knows or ought to have known of the buyer’s breach (Art. 64(2)(b)(i)), after the additional period has expired, or after the buyer has declared that it will not perform (Art. 64(2)(b)(ii)).