ABSTRACT

In March 1994, an Italian seller and a Swiss buyer entered into a contract for the sale of Egyptian cotton, to be delivered by 5 June in four deliveries of five tons each. Since the seller did not inform the buyer in good time that the delay indicated in the first contract would not be respected, the buyer was forced to purchase substitute goods from other suppliers at a higher price. The buyer commenced a legal action, asking for damages. The First Instance Court held that the seller was liable for non-performance and ordered the seller to compensate the buyer for the loss it had suffered. The seller appealed.