Analysis of fundamental breach in respect of non-conformity of goods under the CISG

Abstract

This thesis concerns the issue regarding CISG Article 25 conjunction with article 35, namely the fundamental breach in respect of non-conformity of goods. Research will encompass the core principles and interpretation of fundamental breach and non-conformity of goods separately and eventually will analyse the application of Article 25 (fundamental breach) in respect of conconformity of goods (Article 35). Furthermore, paper will concentrate on two objectives, namely the threshold of fundamental breach in respect of non-conformity of goods and the available remedies and protections provided by CISG to the seller and buyer concerning the question in subject. Fundamental breach permits buyer to use influential remedies (substitute goods, contract avoidance), consequently this research is vital for the parties related to international trade of goods, taking into account that the threshold is subjective from the text of Article 25. More particular threshold and certain range of remedies and protections available would provide the parties with more certain strategy in disputes involving non-conformity. Breach of contract in sense of Article 25 applies to breaches of contract obligations that fall under CISG scope or are incorporated into the contract implicitly by CISG. Substantial detriment is a difficult concept to interpret. Quantitative data facilitates the evaluation of substantiality of breach, however such data is not accessible frequently.