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United States September 4, 2026 District Court (Xiamen ITG Group Corp.Ltd. v. Peace Bird Trading Corp.) [1]

Descriptor tags: Damages, Formation of contract, Non-conformity

Source URL:https://iicl.law.pace.edu/cisg/search/cases?descriptors%5B0%5D=582&qt-social_feed_tabs=0

Links
[1] https://iicl.law.pace.edu/cisg/case/united-states-september-4-2026-district-court-xiamen-itg-group-corpltd-v-peace-bird

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Unavailable
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People's Supreme Court, Appeal Division In Ho Chi Minh City

Arbitral Tribunal under the MPC Conditions of the Vereniging Gemeenschappelijk Zuivelsecretariaat (Dutch Dairy Trade Association)
Arbitration Center of Mexico [CAM]
Arbitration Centre at the Russian Union of Industrialists and Entrepreneurs (RSPP) (Арбитражный центр при Российском союзе промышленников и предпринимателей (РСПП))
Arbitration Court of Chamber of Commerce and Agrarian Chamber of Czech Republic
Arbitration Tribunal of Bulgarian Chamber of Commerce and Industry
Beijing International Arbitration Center [BIAC]
Cairo Regional Center for International Commercial Arbitration (CRCICA)
CAM - Santiago [Arbitration and Mediation Centre of the Santiago Chamber of Commerce]
Cámara de Comercio de Bogotá (Chamber of Commerce Bogota)
Canadian International Trade Tribunal
Centro de Arbitragem e Mediação Brasil-Canadá (Center for Arbitration and Mediation of the Chamber of Commerce Brazil-Canada)
Chamber of Commerce, Industry and Services of Geneva
Chambre Arbitrale de Paris [Arbitration Chamber of Paris]
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Court of Arbitration at the Polish Chamber of Commerce in Warsaw
Danish Institute of Arbitration (DIA)
DIS (German Arbitration Institute)
Egyptian National Committee for International Chambers of Commerce Cairo
Foreign Trade Court of Arbitration attached to the Serbian Chamber of Commerce
Foreign Trade Court of Arbitration attached to the Yugoslav Chamber of Commerce
Fruit and Vegetables Dispute Resolution Corporation [DRC]
International Centre for Settlement of Investment Disputes [ICSID]
International Court of Justice (ICJ)
Korea Commercial Arbitration Board (KCAB)
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Madrid court of arbitration (Madrid CAM)
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SAC (Swiss Arbitration Centre formerly SCAI)
Schiedsgericht der Handelskammer [Hamburg]
Shanghai International Arbitration Center [SHIAC]
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Thailand Arbitration Center [THAC]
Thailand Arbitration Center [THAC]
Unified Patent Court of First Instance
Vietnam International Arbitration Centre [VIAC]
Waren-Verein - Hamburg Commodities Association of the Hamburg Exchange]
Waren-Verein Hamburg [Commodities Association of the Hamburg Exchange]
Shangwu Zhongcai Xiehui Business Arbitration Association
Internationales Schiedsgericht der Bundeskammer der gewerblichen Wirtschaft [Vienna]
Iran- United States Claims Tribunal
The Court of Arbitration of the Latvian Chamber of Commerce and Industry
The International Commercial Arbitration Court at the Russian Federation Chamber of Commerce and Industry
Zürich Chamber of Commerce
International Court of Arbitration of the Chamber of Commerce and Industry of the Republic Of Belarus
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Arbitration Institute of the Stockholm Chamber of Commerce
Chamber of Arbitration of Milan
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Alexandria Center for International Arbitration
China International Economic and Trade Arbitration Commission [CIETAC]
Comisión para la Protección del Comercio Exterior de México [Mexican Commission for the Protection of Foreign Trade]
International Centre for Dispute Resolution of the American Arbitration Association [ICDR]
International Chamber of Commerce [ICC]
Corte Cubana de Arbitraje Comercial Internacional [Cuban Court of International Commercial Arbitration]
Ad Hoc Arbitration
Maritime Commission at the Chamber of Commerce and Industry of the Russian Federation

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Article 2
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Article 3
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Article 9
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Article 10
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Article 16
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Article 17
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Article 32
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Article 33
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Article 34
Article 35
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Article 36
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Article 38
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Article 39
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Article 42
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Article 43
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Article 45
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Article 46
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Article 48
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Article 49
-Article 49(1)
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--Article 49(2)(a)
--Article 49(2)(b)
---Article 49(2)(b)(i)
---Article 49(2)(b)(ii)
---Article 49(2)(b)(iii)
Article 50
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Article 51
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Article 52
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Article 53
Article 54
Article 55
Article 56
Article 57
-Article 57(1)
--Article 57(1)(a)
--Article 57(1)(b)
-Article 57(2)
Article 58
-Article 58(1)
-Article 58(2)
-Article 58(3)
Article 59
Article 60
-Article 60(a)
-Article 60(b)
Article 61
-Article 61(1)
--Article 61(1)(a)
--Article 61(1)(b)
-Article 61(2)
-Article 61(3)
Article 62
Article 63
-Article 63(1)
-Article 63(2)
Article 64
-Article 64(1)
--Article 64(1)(a)
--Article 64(1)(b)
-Article 64(2)
--Article 64(2)(a)
--Article 64(2)(b)
---Article 64(2)(b)(i)
---Article 64(2)(b)(ii)
Article 65
-Article 65(1)
-Article 65(2)
Article 66
Article 67
-Article 67(1)
-Article 67(2)
Article 68
Article 69
-Article 69(1)
-Article 69(2)
-Article 69(3)
Article 70
Article 71
-Article 71(1)
--Article 71(1)(a)
--Article 71(1)(b)
-Article 71(2)
-Article 71(3)
Article 72
-Article 72(1)
-Article 72(2)
-Article 72(3)
Article 73
-Article 73(1)
-Article 73(2)
-Article 73(3)
Article 74
Article 75
Article 76
-Article 76(1)
-Article 76(2)
Article 77
Article 78
Article 79
-Article 79(1)
-Article 79(2)
--Article 79(2)(a)
--Article 79(2)(b)
-Article 79(3)
-Article 79(4)
-Article 79(5)
Article 80
Article 81
-Article 81(1)
-Article 81(2)
Article 82
-Article 82(1)
-Article 82(2)
--Article 82(2)(a)
--Article 82(2)(b)
--Article 82(2)(c)
Article 83
Article 84
-Article 84(1)
-Article 84(2)
--Article 84(2)(a)
--Article 84(2)(b)
Article 85
Article 86
-Article 86(1)
-Article 86(2)
Article 87
Article 88
-Article 88(1)
-Article 88(2)
-Article 88(3)
Article 89
Article 90
Article 91
-Article 91(1)
-Article 91(2)
-Article 91(3)
-Article 91(4)
Article 92
-Article 92(1)
-Article 92(2)
Article 93
-Article 93(1)
-Article 93(2)
-Article 93(3)
-Article 93(4)
Article 94
-Article 94(1)
-Article 94(2)
-Article 94(3)
Article 95
Article 96
Article 97
-Article 97(1)
-Article 97(2)
-Article 97(3)
-Article 97(4)
-Article 97(5)
Article 98
Article 99
-Article 99(1)
-Article 99(2)
-Article 99(3)
-Article 99(4)
-Article 99(5)
-Article 99(6)
Article 100
-Article 100(1)
-Article 100(2)
Article 101
-Article 101(1)
-Article 101(2)

- None -
Article 1. Basic Rules of Applicability
-1A Internationality: Parties' places of business in different States
--1A1 What constitutes place of business
---1A11 Temporary site for negotiation or conclusion of contract
---1A12 Party with multiple places of business (see art. 10)
--1A2 Party unaware other's place of business is foreign (art. 1(2))
---1A21 Relevant time for awareness
---1A22 Contract with agent of undisclosed foreign principal
--1A3 Contract with incorporated subsidiary of foreign company
-1B Relation to Contracting State
--1B1 Parties in different Contracting States (art. 1(1)(a))
---1B11 Private international law points to non-Contracting State
--1B2 Private international law points to Contracting State (art. 1(1)(b))
---1B21 Applicability of private international law of forum
---1B22 Reservation under art. 95 to exclude art. 1(1)(b)
----1B221 Forum has retained art. 1(1)(b); private international law points to State with art. 95 reservation
----1B222 Forum has excluded art. 1(1)(b); private international law points to State that has retained art. 1(1)(b)
--1B3 Possible exclusion of territorial unit of State (see art. 93)
--1B4 Possible exclusion of Part II or Part III (see art. 92)
--1B5 Relevant time for double requirement (1A and 1B, above)
-1C Civil or commercial character of parties (art. 1(3))
--1C1 Irrelevance of civil or commercial character of parties or contract
--1C2 Other irrelevant factors, nationality
-1D Other issues of applicability
Article 2. Exclusions from the Convention: Types of Transactions
-2A Purchases for personal, family or household use (art. 2(a))
--2A1 Exception: seller's lack of knowledge of buyer's purpose
--2A2 Burden of proof
-2B Sales by auction (art. 2(b)
-2C Sales on execution or otherwise by authority of law (art. 2(c))
--2C1 Exception: Resales by a party to contract in case of breach
-2D Shares, securities, money paper, money (art. 2(d)
-2E Ships, vessels, hovercraft, aircraft (art. 2(e))
-2F Electricity (art. 2(f))
-2G Other issues concerning exclusion
Article 3. Goods to be Manufactured, Services; "Goods"
-3A Goods to be manufactured (art. 3(1))
--3A1 Buyer supplies substantial part of necessary materials
-3B Services preponderant part of obligation (art. 3(2))
-3C "Sale of goods"
--3C1 "Goods"; intangibles (see also art. 2(d))
--3C3 Undivided shares
--3C2 Exchanges; barter
-3D Contract for construction of building
-3E Other questions of scope
Article 4. Issues Covered and Excluded; Validity; Property Interests
-4A Issues covered. See Part II (arts. 14-24); Part III (arts. 25-88)
-4B Issues excluded
--4B1 Validity under domestic law
---4B11 Remedies for fraud; party's capacity ("competency")
--4B2 Effect of contract on property. See Part II, Ch. IV, Risk of Loss
-4B3 Other issues not governed by this Convention
--4B31 See: Convention on the Limitation Period in the International Sale of Goods (1974), amended by 1980 Protocol
--4B32 See: Uniform Law on Agency of an International Character in the Purchase and Sale of Goods
Article 5. Death or Personal Injury
-5A Exclusion of claims based on death or personal injury
--5A1 Domestic law unaffected
--5A2 Legal effect of domestic labels
---5A21 Applicability of Convention to "product liability"
Article 6. Convention Yields to Contract; Agreements to Apply
-6A Exclusion or modification of Convention by contract
--6A1 Implied exclusion or modification
-6B Agreements to apply Convention
--6B1 Transactions or goods excluded under arts. 2, 3, 4 or 5
--6B2 Place of business of seller and buyer in same State (art. 1(1))
--6B3 Transaction not related to a Contracting State (art. 1(1(a) or (b))
--6B4 Other factual settings
Article 7. Interpretation of Convention
-7A Principles of interpretation
--7A1 International character (art. 7(1))
---7A11 Autonomous interpretation v. reliance on domestic law
--7A2 Uniformity in application of convention
--7A3 Observance of good faith
---7A31 As principle for interpreting Convention
---7A32 Relevance of international usages (art. 9)
---7A33 Applications of good faith standards
-7B Materials for interpretation
--7B1 International case law and scholarly studies
--7B2 Legislative history
--7B3 Domestic law
---7B31 Relevance of consensus applicable to international transactions
-7C Gap-filling
--7C1 Excluded areas (see arts. 2, 3, 4, and 5)
--7C2 Problems governed by Convention but not expressly settled
---7C21 Analogous application to areas not expressly regulated
---7C22 Recourse to general principles on which Convention is based
----7C221 Behavior of a reasonable person (see arts. 8(2), 16(2)(b), 25, 35(2)(b), 44, 79)
----7C222 Foreseeability (see arts. 25, 35(2)(b), 42(1)(a), 74)
----7C223 Communication and co-operation (see arts. 34, 37, 48(1))
----7C224 Other principles
---7C23 Gap-filling by domestic law
----7C231 Recourse to domestic law selected by Private International Law
----7C232 Consensus on rules for international transactions
-7D Other issues concerning interpretation
Article 8. Interpretation of Party's Statements or other Conduct
-8A Intent of party making statement or engaging in conduct (art. 8(1))
--8A1 Relevant if other party "knows" or "could not have been unaware"
-8B Interpretation based on objective standards (art. 8(2)):
--8B1 Understanding of reasonable person of same kind as other party
--8B2 In the same circumstances as the other party
-8C Interpretation in light of surrounding circumstances (art. 8(3))
--8C1 Negotiations between parties to contract
--8C2 Practices established by the parties; agreements (see art. 9)
--8C3 Usages (see art. 9)
--8C4 Conduct subsequent to agreement
Article 9. International Usages; Practices Established by the Parties
-9A International usages: contracts or contract formation
-9B Implied agreement on international usage; standards (art. 9(2))
--9B1 Parties' knowledge or obligation to know
--9B2 Observance by parties of the same type
-9C Practices established by the parties (art. 9(1))
--9C1 Frequency or regularity of prior contracts
--9C2 Terms of prior contracts
--9C3 Practices and settlements not embodied in contracts
-9D Usages and practices: impact on provisions of Convention
--9D1 Parties bound by applicable usages and practices (art. 9(1))
--9D2 Usages impliedly made applicable to contract (art. 9(2))
---9D21 Article 6: Parties may derogate from Convention
-9E Other issues concerning usages or practices
Article 10. Place of Business
-10A Which of multiple places of business is relevant (art. 10(a))
--10A1 Closest relationship to contract and performance
--10A2 Knowledge by parties before or at conclusion of contract
-10B No place of business: habitual residence (art. 10(b))
Article 11. Formal Requirements
-11A Writing or other formality for conclusion of contract
--11A1 Inapplicability of domestic law (But see arts. 12 and 96)
-11B Proof of contract by any means, including witnesses
Article 12. Declaration by State Preserving Domestic Formal Requirements
-12A Effect of reservation under article 96 rejecting article 11
--12A1 Formalities of State of either party may be applicable
---12A11 Applicable formalities based on private international law
-12B Mandatory character of article 12
Article 13. Telegram and Telex as a "Writing"
-13A Application to requirement of "writing" in Arts. 21(2) and 29(2)
-13B Electronic communications similar to telegram or telex
Article 14. Criteria for an Offer
-14A Basic criterion - intention to be bound in case of acceptance
--14A1 Definiteness of key conditions
---14A12 Determination of quantity and price (see art. 55)
---14A11 Indication of goods
-14B Proposal to one or more specific persons:
--14B1 Public offers: invitation to make offer, unless clear intent to be bound
Article 15. When Offer becomes Effective; Prior Withdrawal
-15A Effective on reaching offeree (art. 15(1))
-15B Withdrawal of offer (art. 15(2))
--15B1 Withdrawal reaches offeree before or at same time as offer
Article 16. Revocability of Offer
-16A Revocation that reaches offeree prior to dispatch of acceptance
-16B Restriction on revocability (art. 16(2))
--16B1 Promise or indication of irrevocability
---16B11 Promise not to revoke
---16B12 Implied "indication" of irrevocability
----16B121 Offeree fixes time for acceptance
--16B2 Offeree reasonably acted in reliance on the offer
-16C Responsibility in tort for reliance on an offer
--16C1 Remedies under Convention
---16C11 Acceptance in spite of revocation
---16C12 Acceptance impractical after revocation
--16C2 Remedies under domestic law
-16D Other issues of revocability
Article 17. Rejection of Irrevocable Offer Followed by Acceptance
-17A Termination of offer by rejection
--17A1 Rejection of offer
---17A11 Express rejection
---17A12 "Acceptance" that modifies offer (see art. 19)
Article 18. Acceptance: Time and Manner
-18A Criteria for acceptance
--18A1 Statement of acceptance
--18A2 Other conduct indicating assent
---18A21 Acts of performance
---18A22 Acts of preparation for performance
--18A3 Silence or inactivity insufficient
---18A31 Effect of advance approval by offeror
-18B Effectiveness - time limits for acceptance (art. 18(2))
--18B1 Acceptance must reach offeror within time limits (see art. 24)
---18B11 Delay or loss in transmission; dispatch ineffective
--18B2 Time limits
---18B21 Within prescribed time
---18B22 Within reasonable time; circumstances of transaction
---18B23 Oral offer - acceptance immediately
----18B231 Exception: Circumstances indicate otherwise
-18C Assent by performing an act (art. 18(3))
--18C1 Circumstances authorizing:
---18C11 By virtue of offer
---18C12 As result of practices established between parties
---18C13 As result of usage (see art. 9)
--18C2 Need for knowledge by offeror, or notice by offeree
-18D Other issues concerning acceptance
Article 19. Acceptance with Modification
-19A Reply purporting to accept but containing additions or modifications
--19A1 In general, constitutes rejection and counteroffer (art. 19(1))
-19B "Acceptance" with immaterial modifications (art. 19(2))
--19B1 Acceptance with modifications unless offeror objects
--19B2 Offeror must object without undue delay
-19C Modifications that are material
--19C1 Modifications considered material listed in art. 19(3)
-19D Goods are accepted when "acceptance" differs materially from offer
--19D1 Possible approaches
---19D11 Contract based on last communication
---19D12 Convention supplies rule in place of conflicting terms
---19D13 Entire contract nullified
----19D131 Unsettled problem when defective goods have caused damage
-19E Other problems
Article 20. Interpretation of Offeror's Time-limits for Acceptance
-20A Period for acceptance fixed by the offeror
--20A1 When period begins (art. 20(1))
-20B Effect of holidays or non-business days (see art. 20(2))
Article 21. Late Acceptance; Response by Offeror
-21A Notice giving effect to late acceptance (art. 21(1))
-21B Acceptance arrives late because of transmission delays (art. 21(2))
--21B1 Cause of delay evident to offeror: duty to inform offeree
--21B2 Failure so to inform: acceptance is effective
Article 22. Withdrawal of Acceptance
-22A Permissibility of withdrawal
--22A1 Withdrawal must reach offeror before or at date of effectiveness
Article 23. Time of Conclusion of Contract
-23A Contract concluded when acceptance becomes effective
--23A1 Time when acceptance is effective: see art. 18(2)
Article 24. Time when Communication "Reaches" Addressee
-24A Oral communication
-24B Other means of communication
--24B1 Delivery to place of business or mailing address
-24C Delivery to addressee's habitual residence
-24D The time a communication "reaches" the other party may be relevant for art.15(1)-offer; art.15(2)-withdrawal of offer; art.16(1)-revocation of offer; art.17-rejection; art.18(2)-accept.; art.20(1)-fixed period for accept.; art.22-withdrawal of accept.
-24E Other problems
Article 25. Definition of Fundamental Breach
-25A Effect of a fundamental breach
--25A1 Avoidance of contract (see arts. 49(1)(a) and 64(1)(a))
-25B Definition: Substantial deprivation of expectation, etc.
--25B1 Exception: Foreseeability test (see art. 25)
-25C Other issues concerning definition
Article 26. Notification of Avoidance
-26A Effective declaration of avoidance
--26A1 Notice to the other party required
--26A2 Effectiveness of dispatch of notice (see art. 27)
Article 27. Delay or Error in Communications
-27A Dispatch of communication by appropriate means
--27A1 Effective in spite of delay, error or loss in transmission
-27B Exceptions to general rule (see arts. 47(2), 48, 63(2), 65(2), 79(4))
Article 28. Restrictions on Right to Require: Domestic Rules of Forum
-28A Forum would not require performance in similar domestic cases.
--28A1 Applicable law: domestic rules of forum
--28A2 Forum not bound by Convention to require performance
-28B Article 28 does not affect other remedies
--28B1 Examples: avoidance (arts. 49 & 64, damages (arts. 74-76), etc.
-28C Other issues
Article 29. Modification or Termination of Contract by Agreement
-29A Parties by agreement may modify or terminate the contract
-29B Written contract may require writing for modification or termination
--29B1 Agreement barring oral modification may not apply
---29B11 Conduct on which the other party has relied (but see arts. 12 & 96)
Article 30. Summary of Seller's Obligations
-30A Summary of seller's obligations under articles 30-44
Article 31. Place for Delivery
-31A Contracts involving carriage of goods (art. 31(a))
--31A1 Obligation to hand goods to first carrier
-31B Contracts not involving carriage and parties knew location of goods
--31B1 Goods to be placed at disposal at known place (art. 31(b))
-31C Other cases
--31C1 Goods at buyer's disposal at seller's place of business
-31D Other issues
Article 32. Shipping Arrangements
-32A Obligation to notify of consignment specifying goods (art. 32(1))
--32A1 Unless goods are otherwise clearly identified
-32B Seller's duties when obliged to arrange for carriage (art. 32(2))
--32B1 Transportation appropriate and according to usual terms
-32C Information necessary for insurance (art. 32(3))
-32D Other issues concerning shipping arrangements
Article 33. Time for Delivery
-33A On date fixed by or determinable from contract
-33B Contract provides period of time for delivery (art. 33(c))
--33B1 Seller may deliver at any time within period:
---33B11 Unless circumstances indicate buyer may choose a date
-33C Other cases: reasonable time after contract's conclusion (art. 33(c))
Article 34. Handing Over Documents
-34A Seller's obligation to hand over documents
--34A1 Obligation based on contract (see art. 9: usage and practices)
-34B Cure by seller of non-conforming documents (see also
--34B1 Time for cure limited by contract
--34B2 May not cause unreasonable inconvenience or expense
-34C Buyer has right to claim damages (see arts. 74-77)
-34D Other issues concerning documents
Article 35. Conformity of Goods to Contract
-35A Quality, quantity and description required by contract (art. 35(1))
-35B Requirements implied by law (art. 35(2)
--35B1 Fitness for purposes for goods of same description (art. 35(2)(a))
--35B2 Fitness for particular purpose made known to seller (art. 35(2)(b))
---35B21 Reliance on seller's skill and judgment
--35B3 Quality of goods held out as sample or model (art. 35(c))
--35B4 Packaging to protect goods in usual manner for similar goods
-35C Exception to seller's liability for non-conformity:
--35C1 Buyer's knowledge of non-conformity at time of contracting
--35C2 Parties have agreed otherwise (arts. 6, 35(2))
-35D Other issues concerning conformity of goods
Article 36. Time for Assessing Conformity of Goods
-36A Conformity determined as of time when risk passes to buyer
--36A1 On passage of risk see Chapter IV, arts. 66-70
--36A2 Seller responsible when lack of conformity becomes apparent later
-36B Lack of conformity occurring after passage of risk (art. 36(2)):
--36B1 Caused by seller's breach of any of his obligations
--36B2 Guarantee of continued conformity
--36B3 Other issues
Article 37. Early Delivery; Seller's Right to Cure Lack of Conformity
-37A Seller may cure or remedy lack of conformity
-37B Restrictions on cure
--37B1 Time limit: up to date for delivery
--37B2 Would cause buyer unreasonable inconvenience or expense
-37C Buyer may recover damages (see arts. 74 to 77)
Article 38. Time for Examining Goods
-38A Buyer's obligation to examine goods
-38B When contract involves carriage of goods, postponement until after arrival at destination (art. 38(2))
-38C Deferral of examination in case of redirection or redispatch
--38C1 Compliance with requirements specified in art. 38(3)
-38D Other issues
Article 39. Requirement to Notify Seller of Lack of Conformity: Sanctions
-39A Buyer must notify seller within reasonable time (art. 39(1))
--39A1 Specification of nature of non-conformity
---39A11 Degree of specificity required
--39A2 Within reasonable time (on dispatch of notice see art. 27)
--39A3 Exception in case of seller's knowledge (see art. 40). Excuse for failure to comply with art. 39(1): See art. 44
-39B Cut-off period of two years (art. 39(2))
--39B1 Starting point: actual handing over of goods
--39B2 Effect of time-limit: buyer loses right to rely on non-conformity
--39B3 Guarantee period (art. 36(2)); seller's knowledge (art. 40)
--39B4 Relationship to statutory limitation/prescription period
---39B41 See United Nations Convention on the Limitation Period in the International Sale of Goods (1974) and Protocol (1980)
---39B42 Independent effect of notice and limitation periods
-39C Other issues concerning notification
Article 40. Seller's Knowledge of Non-conformity
-40A Seller fails to disclose known non-conformity
-40B Sanction: seller loses right to rely on articles 38 and 39
-40C Other issues concerning non-disclosure
Article 41. Third-party Claims to Goods
-41A Seller's obligation to deliver goods free from any third-party right or claim (e.g.: T claims ownership or security interest in goods S sold to B)
--41A1 Seller contends that third-party claim is erroneous
---41A11 Buyer's rights and remedies
-41B Buyer agreed to take goods subject to third-party right or claims
-41C Other issues concerning third-party claims
-41D Problems concerning intellectual property (see article 42)
Article 42. Third-party Claims based on Intellectual Property
-42A Sellers obligation to deliver goods free from third-party claim based, e.g., on copyright, patent, trademark
--42A1 Seller's knowledge of claim when contract was made
-42B Third-party claims in particular state or region
--42B1 State where goods will be resold or otherwise used
---42B11 Contemplation of resale or use in that state (art. 42(1)(a))
--42B2 State of buyer's place of business (art. 42(1)(b))
-42C Seller's obligation not applicable when:
--42C1 At time of contract buyer knew of right or claim
--42C2 Right or claim resulted from technical drawings, designs, etc. furnished by the buyer (art. 42(2)(b))
-42D Other issues
Article 43. Notice of Third-party Claim
-43A Buyer's obligation to notify seller:
--43A1 Specifying nature of claim under articles 41 or 42
--43A2 Within a reasonable time after buyer's awareness of claim
--43A3 Effect of buyer's failure to give notice:
---43A31 Loss of rights under arts. 41 or 42
-43B Effect of seller's knowledge of claim and its nature:
--43B1 Effect: No right to rely on art. 43(1)
-43C Other issues
Article 44. Excuse for Failure to Notify
-44A Excuse for failure to notify pursuant to art. 39(1) & art. 43(1):
--44A1 Remedies preserved: Reduction of the price (art. 50) and damages except loss of profit (see arts. 74-77)
-44B Remedies not preserved: See articles 46, 48, 49 and 50
Article 45. Remedies available to Buyer
-45A Summary of buyer's remedies for breach by seller (art. 45(1))
-45B Remedies under articles 46-52 do not bar damages (art. 45(2))
-45C No grace period to delay buyer's exercise of remedies (art. 45(3))
Article 46. Buyer's Right to Compel Performance
-46A Buyer's right to require performance (art. 46(1); cf. art. 62)
--46A1 Above right lost by resort to inconsistent remedy: e.g., avoidance
--46A2 See article 28 giving effect to rules of forum
-46B Requiring delivery of substitute goods:
--46B1 Remedy available only for fundamental breach (art. 46(2))
--46B2 Request in conjunction with notice of non-conformity (art. 39)
-46C Right to require repair of non-conforming goods (art. 46(3))
--46C1 Restrictions: reasonableness and notice requirements
-46D Other issues
Article 47. Notice Fixing Additional Final Period for Performance
-47A Buyer's right to fix additional period for performance
--47A1 Manifestation of buyer's concern over delay in delivery
--47A2 Basis for avoidance for delay in delivery under art. 49(1)(b)
--47A3 Content of notice as basis for avoidance
---47A31 Must set reasonable, specific and final period
-47B Buyer's remedies during period (art. 47(2))
--47B1 No resort to any remedy for breach of contract unless:
---47B11 Seller states that he will not comply with notice
--47B2 Buyer not deprived of right to damages for delay
-47C Other issues
Article 48. Cure by Seller after Date for Delivery
-48A Seller's right to remedy any failure to perform
--48A1 Examples: delivery, repair, providing substitute goods
--48A2 Restrictions on cure specified in art. 48(1`): unreasonable delay, inconvenience or uncertainty of reimbursement
-48B Seller inquires: Will buyer accept performance? (art. 48(2)
--48B1 Consequences of buyer's failure to reply: art. 48(2) & (3)
-48C Request or notice under art. 48(2) or (3) effective only when received -- an exception to "dispatch" rule of art. 27
Article 49. Buyer's Right to Avoid Contract
-49A Grounds for avoidance
--49A1 Fundamental breach of contract (art. 49(1)(a))
---49A11 Consequences of fundamental breach: art. 81
--49A2 Seller does not deliver or refuses to deliver:
---49A21 Within additional period set under art. 47 (art. 49(1)(b))
-49B Buyer's loss of right to declare avoidance after delivery (art. 49(2))
--49B1 Failure to avoid within periods specified in art. 49(2)(a)&(b)
Article 50. Reduction of Price
-50A Buyer's right to reduce price for non-conforming goods (see art. 35)
-50B This right available whether or not the price has been paid
--50B1 Formula for price reduction: art. 50 (first sentence)
-50C Buyer may not reduce price when:
--50C1 Seller remedies any failure to perform (arts. 37 or 48)
--50C2 Buyer refuses to accept seller's remedy under arts. 37 or 48)
Article 51. Non-conformity of Part of Goods
-51A Delivery or conformity of only part of goods
--51A1 Rules of 46-50 apply to part missing or non-conforming
-51B Avoidance as to entire contract
--51B1 Must be based on fundamental breach of contract as a whole
Article 52. Early delivery; excess quantity
-52A Early delivery: buyer may either take or refuse delivery
-52B Excess quantity: buyer may take delivery of all or refuse the excess
-52C Contract rate applies to the excess goods buyer received
Article 53. Summary of Buyer's Obligations
-53A Obligation to pay price of goods (see arts. 54-59)
-53B Obligation to take delivery of goods (see art. 60)
Article 54. Obligation to Pay Price; Enabling Steps
-54A Obligation to pay includes enabling steps
--54A1 Common examples: arranging for letter of credit
--54A2 Failure to take such steps may invoke remedies (arts. 61-65)
Article 55. Open-price Contracts
-55A Enforceability of agreements that do not make provision for the price; conflicting views:
--55A1 Article 14 denies enforcement for lack of definiteness
--55A2 Article 14 denies enforcement only when lack of provision for price indicates that parties do not intend to be bound
--55A3 When parties intend to be bound, Article 55 upholds the agreement
---55A31 Implied agreement on price generally charged for such goods
----55A312 Problem: No general price; see art. 9 (practices and usages)
--55A4 "Validly concluded" in art. 55 refers to applicable domestic law outlawing such agreements
Article 56. Net Weight
-56A Price based on weight, in case of doubt:
--56A1 "Net" (not "gross") weight -- thus excluding packaging
--56A2 Possible applicability of practices of parties and usage (art.9)
Article 57. Place for Payment
-57A In absence of agreement, payment at seller's place of business (art. 57(1)(a)
--57A1 Importance: exchange controls governing buyer
-57B Agreement for payment in exchange for goods or documents (art. 57(1)(b))
-57C Change of seller's place of business (art. 57(2))
--57C1 Seller bears added expense resulting from change
Article 58. Time for Payment
-58A Buyer to pay when goods placed at buyer's disposition (art. 58(1))
--58A1 Seller not obliged to hand over goods until buyer pays price
-58B Contracts involving carriage (art. 58(2))
--58B1 Seller may arrange for delivery in exchange for price
---58B11 Place for documentary exchange
-58C Buyer is entitled to examine goods before payment (art. 58(3))
--58C1 Exception: agreed procedures are inconsistent with inspection
Article 59. Payment due without Request
-59A Payment due at time fixed or determinable by contract or Convention
-59B No need for request by seller or other formality
Article 60. Buyer's Obligation to Take Delivery
-60A Includes acts reasonably expected to aid seller (art. 60(a))
--60A1 Cooperation with seller (see art. 7: good faith)
-60B Buyer's obligation to take art. 60(b)
--60B1 Failure to take delivery: see seller's rights arts. 61-64
Article 61. Seller's Remedies for Breach by Buyer
-61A Summary of seller's remedies (cf. similar summary art. 45)
--61A1 Exercise rights provided in arts. 62 to 65
--61A2 Claim damages as provided in arts. 74 to 77
-61B Seller may claim damages in addition to other remedies (art. 61(2))
-61C Tribunal may not grant grace period (art. 45(3))
Article 62. Seller's Right to Compel Performance
-62A Seller may compel performance of any of buyer's obligations:
--62A1 Unless seller has exercised inconsistent remedy
---62A11 For example, avoidance of contract (see art. 64)
-62B Exceptions to remedy to compel performance
--62B1 Law of forum (art. 28)
--62B2 Seller's obligation to dispose of goods: arts. 85 and 88(2)
Article 63. Notice Fixing Additional Final Period for Performance
-63A Additional final period for buyer's performance (art. 63(1))
-63B Seller's remedies during period (art. 63(2))
--63B1 No resort to any remedy for breach of contract unless:
---63B11 Buyer refuses to perform within fixed period
Article 64. Seller's Right to Avoid Contract
-64A Grounds for avoidance
--64A1 Fundamental breach of contract (art. 64(1)(a))
---64A11 Buyer's obligations: arts. 54-60; fundamental breach: art. 25
--64A2 Buyer does not pay or take delivery:
---64A21 Within an additional period set by the seller under art. 63
-64B Loss of right to avoid when aware buyer has paid (art. 64(2))
--64B1 In respect of any other breach:
---64B11 Following periods specified in Art. 64(2)(a)&(b))
-64C Other problems
Article 65. Seller's Notice Supplying Missing Specifications
-65A Buyer fails to perform obligation to supply specifications
-65B Seller may make specifications (art. 65(1))
--65B1 Duty to inform buyer and invite modification (art. 65(2))
--65B2 Effect of buyer's failure to reply (art. 65(2))
Article 66. Loss or Damage after Risk has Passed to Buyer
-66A Conformity of goods determined as of time risk passes
--66A1 Prior damage or deterioration at seller's risk
-66B Loss or damage after risk passed
--66B1 Buyer not relieved of obligation to pay unless:
---66B12 Damage due to seller's act or omission (e.g., latent defect)
-66C Other problems
Article 67. Risk when Contract Involves Carriage of Goods
-67A Risk passes on handing goods over to first carrier (art. 67(1)
--67A1 Exception: Seller bound to hand over goods at a different place
-67B Seller's right to hold documents controlling disposition of goods:
--67B1 Does not affect passage of risk
-67C Risk passes only when goods are identified to contract (art. 67(2))
-67D Other problems
Article 68. Passage of Risk - Goods Sold during Transit
-68A Goods sold during transit: General rule on passage of risk
--68A1 Risk passes on conclusion of contract
-68B Circumstances indicating agreement on risk transfer as of shipment
--68B1 Usage (art. 9)
--68B2 Transfer to buyer of documents - e.g., insurance policy
-68C Seller did not disclose knowledge that goods had been lost or damaged:
--68C1 Risk remains on seller
-68D Other problems
Article 69. Passage of Risk in Other Cases
-69A Buyer is to collect goods at seller's place (art. 69(1)
--69A1 Risk passes when buyer takes goods
--69A2 But if buyer does not take goods by contract date
---69A21 Risk passes to buyer at time of breach
-69B Buyer to take goods other than at seller's place of business (art. 69(2))
--69B1 Risk passes when delivery is due
---69B11 And buyer is aware goods are at his disposal
-69C Risk does not pass until goods are clearly identified (art. 69(3))
-69D Other problems
Article 70. Risk when Seller in Fundamental Breach
-70A Seriously defective shipment (art. 25) is damaged in transit:
--70A1 Although transit risk is on buyer under article 68:
--70A11 Buyer may avoid for fundamental breach
--70A12 Effect of avoidance to place transit risk on seller
-70B Breach with respect to the goods is not fundamental
--70B1 Buyer may not avoid contract; transit risk remains on buyer
--70B2 Buyer may recover damages for defects at shipment
-70C Buyer receives seriously defective goods:
--70C1 Damage without fault by buyer does not bar avoidance
--70C11 Avoidance may be barred by delay (art. 49(2)(a))
--70C12 On need to return goods in same condition: art. 82(2)(a)
-70D Other problems
Article 71. Suspension of Performance
-71A Apparent that a party will not perform substantial part of obligations
--71A1 Grounds for suspension by other party (art. 71(1))
---71A11 Serious deficiency in ability to perform or credit-worthiness
---71A12 Conduct in performing or preparing to perform contract
-71B Grounds for seller's stoppage of goods in transit (art. 71(2))
--71B1 Apparent after dispatch that buyer will not pay
--71B2 Seller may prevent handing over of goods although
---71B21 Buyer holds document which entitles buyer to obtain goods
---71B22 Above rule applies only to rights between buyer and seller
---71B23 Controls whether carrier should deliver to buyer or seller
-71B3 Stoppage in relation to third parties
--71B31 Governed by applicable domestic law
-71C Obligations of party suspending performance (art. 71(3))
--71C1 Immediately notify other party
-71D Continuation of performance on receipt of adequate assurance
--71D1 Adequacy of assurance
--71D2 Extension of time because of suspension
--71D3 Consequences of failure to provide adequate assurance
-71E Other problems
Article 72. Avoidance Prior to Date for Performance
-72A When clear that party will commit fundamental breach (art. 25)
--72A1 Grounds: Repudiation; obvious disability
--72A2 Other party may declare avoidance (art. 72(1))
-72B Advance notice of intent to avoid (art. 72(2))
--72B1 Notice by party intending to declare avoidance
-72C Reason: Opportunity for assurance of performance
-72D Party has declared it will not perform (art. 72(3))
--72D1 No need for advance notice under art. 72(2)
Article 73. Avoidance in Installment Contracts
-73A Fundamental breach with respect to installment (art. 73(1))
--73A1 Declaration of avoidance with respect to defective installment
-73B Refusal of future installments (art. 73(2))
--73B1 When breach in one installment gives grounds to expect:
---73B12 Fundamental breach with respect to future installments
--73B2 Declaration of avoidance for future within reasonable time
-73C Defect in one delivery prevents use of other deliveries
--73C1 Avoidance for both past and future installments (art. 73(3))
-73D Other problems
Article 74. Damages - General Rules for Measuring
-74A Loss suffered as consequence of breach
--74A1 Includes loss of profit
---74A11 Computation: loss of volume; overhead costs
-74B Outer limits of damages; foreseeability of loss
--74B1 As possible consequence of breach
--74B2 At time of conclusion of contract
-74C Other problems
Article 75. Avoidance: Damages Established by Substitute Transaction
-75A Substitute transaction after avoidance
--75A1 Resale by aggrieved seller
--75A2 Repurchase by aggrieved buyer
-75B Relationship between avoidance and substitute transaction
--75B1 Reasonable substitute transaction
--75B2 Reasonable period after avoidance
-75C Damages recoverable
--75C1 Difference between contract price and price in substitute transaction
-75D Other problems
Article 76. Avoidance: Damages Based on Current Price
-76A Avoidance without purchase or resale under article 75
-76B Damages recoverable based on current price
--76B1 At time of avoidance (art. 76(1))
---76B11 Avoidance after taking over goods:
----76B111 Current price at time of taking over the goods
-76C Reference-point as to place (art. 76(2))
--76C1 Place where delivery should have been made (see art. 31)
--76C2 Other place as reasonable substitute
---76C21 Allowance for differences in cost of transportation
-76D Other damages under article 74; loss of profit
-76E Other problems
Article 77. Mitigation of Damages
-77A Obligation to take reasonable measures to mitigate damages
--77A1 Problems concerning scope of obligation:
---77A11 Obligation to stop wasteful production on repudiation
---77A12 Effect of right to require performance (arts. 28, 46, 62)
---77A13 Effect of right to recover for loss of profit
--77A2 Other problems
Article 78. Interest
-78A Interest on delay in receiving price or any other sum in arrears
--78A1 Must sum be "liquidated"? Delay in paying damages
-78B Rate of interest
--78B1 Provided by contract
--78B2 Aggrieved party's loss from borrowing; current interest rates
--78B3 Applicable domestic law; compounding
-78C Other problems
Article 79. Impediment Excusing Party from Damages
-79A Central issue: exemption from liability for damages (art. 79(1))
--79A1 Excuse not applicable to defects in goods (art. 35)
---79A11 Or refunds of payments not earned
-79B Impediments excusing party
--79B1 General elements for excusing
---79B11 Impediment beyond party's control
---79B12 Impediment not foreseeable
---79B13 Impediment not avoidable or overcomeable
--79B2 Types of impediments
-79C Non-performance attributable to third-party contractor (art. 79(2))
--79C1 Party claiming exemption meets standards of article 79(1)
--79C2 Third party also meets exemption standards (art. 79(2)(b))
--79C3 Problems: E.g., default by general supplier
-79D Temporary impediment (art. 79(3)
--79D1 Delay during extended period; change of circumstances
-79E Notice of impediment (art. 79(3))
--79E1 Non-receipt of notice within reasonable time; damages
-79F Preservation of remedies other than damages (art. 79(5))
--79F1 Normal remedy is avoidance (art. 49, 64)
--79F2 Problem: Suit to compel excused performance (see arts. 48, 62)
---79F21 Available following temporary impediment (art. 79(3))
-79G Other problems
Article 80. Failure of Performance Caused by Other Party
-80A Party causing non-performance: loss of rights
--80A1 Relation to article 79
--80A2 As general principle
Article 81. Effect of Avoidance on Obligations: Arbitration, Restitution
-81A Obligations of both parties under Convention
--81A1 Exception: damages for breach (see arts. 74-76)
-81B Contract clauses not terminated by avoidance:
--81B1 Clauses on settlement of disputes; arbitration
--81B2 Clauses on rights of parties consequent upon avoidance
-81C Restitution by each party of benefits received (art. 81(2))
--81C1 Return of defective goods
---81C11 Right to require substitute goods under art. 46(2)
--81C2 Conforming goods resold; right to recover damages
---81C21 Problems: Right to proceeds of resale; interest (art. 78)
--81C3 Avoidance for non-payment; right to return of goods
---81C31 Domestic law of forum denies specific relief (art. 28)
-81D Restitution by both parties; concurrent exchange
-81E Other problems
Article 82. Buyer's Inability to Return Goods in Same Condition
-82A Buyer would have right to avoid contract except:
--82A1 Inability to return goods in same condition (art. 82(1))
-82B Loses right to avoid unless:
--82B1 Inability not due to buyer's act or omission (art. 82(2)(a)) or:
--82B2 Goods modified as result of examination (art. 82(2)(b)) or:
--82B3 Goods sold or transformed by buyer in normal use (art. 82(2)(c)):
---82B31 Before discovery of lack of conformity
-82C Compare restitution of benefits (art. 84(2))
-82D Other problems
Article 83. Preservation of Other Remedies
-83A Buyer who has lost right to avoid or require substitute goods (art. 82)
-83B Retains also other remedies under the contract and Convention, e.g.:
--83B1 Reduction of price (see art. 50)
--83B2 Remedy lack of conformity by repair (see art. 46(3))
--83B3 Claim damages (as provided in arts. 74-77)
Article 84. Restitution of Benefits Received
-84A Seller bound to refund price must pay interest (art. 84(1))
-84B Buyer must account to seller for benefits from goods (art. 84(2))
--84B1 When required to make restitution of goods
--84B2 When impossible to return goods in same condition (art. 84(2)(b))
-84C Other claims for restitution
Article 85. Seller's Duty to Preserve Goods
-85A When buyer delays taking delivery or making concurrent price payment:
-85B Seller in possession or controlling disposition of goods:
--85B1 Must take reasonable steps to preserve goods
---85B11 Reasonable steps: deposit in warehouse (art. 87)
--85B2 Passage of risk to buyer irrelevant (see art. 69)
-85C Right to retain goods until reimbursed for reasonable expenses
-85D Other problems
Article 86. Buyer's Duty to Preserve Goods
-86A Duty of buyer who has received goods and intends to reject:
--86A1 Obligation to take reasonable steps to preserve goods (art. 86(1))
---86A11 Reasonable care; deposit in warehouse
-86B Right to retain goods until reimbursed for expenses
-86C Buyer exercises right to reject:
--86C1 Dispatched goods at buyer's disposal at destination
--86C2 Buyer must take possession of goods on behalf of seller
---86C21 Exceptions: buyer must pay price or incur unreasonable inconvenience or expense
---86C22 Presence of seller or authorized person
-86D Buyer's obligation to preserve goods
-86E Other problems
Article 87. Deposit in Warehouse
-87A Preservation of goods (arts. 85 & 86) by deposit in warehouse
--87A1 Provided expenses are reasonable
Article 88. Sale of Goods
-88A Party obliged to preserve goods may sell them (art. 88(1))
--88A1 When other party unreasonably delays:
---88A11 Taking possession, paying price on cost of preservation
--88A2 Appropriateness of method of sale
--88A3 Reasonable notice of intention
-88B Duty to sell (art. 88(2))
--88B1 When goods are subject to rapid deterioration, or
--88B2 Preservation involves unreasonable expense
--88B3 Reasonable measures for sale and
--88B4 If possible, notice of intention to sell
-88C Right to retain reasonable expenses from proceeds of sale (art. 88(3))
-88D Other problems
Article 89. Depositary for Convention
-89A Functions of depositary (see e.g. art. 99(6))
--89A1 Annual publication of Convention's status
Article 90. Relationship to other Conventions
-90A Conventions with provisions governing same matters
Article 91. Implementation
-91A Signature (art. 91(1))
-91B Ratification, acceptance or approval
-91C Accession by non-signatory States
-91D Deposit of instruments with Secretary-General
Article 92. Ratification, Acceptance, Approval or Accession in Part
-92A Declarations not to be bound by Part II (Formation of Contracts, arts. 14-24) or Part III (Sale of Goods, arts. 25-88)
Article 93. Contracting States with Two or More Territorial Units
-93A Declarations concerning Convention's application to territorial units
Article 94. Declarations by States with Closely Related Rules
-94A Declarations that the Convention (or Part II or III) will not apply when parties have their places of business in declaring States
-94B Procedures for effectiveness in two or more declaring States
Article 95. Declaration Not to be Bound by Article 1(1)(b)
Article 96. Declaration Preserving Domestic Formalities: Written Form
Article 97. Declarations: Procedures and Effectiveness
-97A Procedures for declarations under arts. 92, 93, 94 and 96
Article 98. Permitted Reservations
-98A Only reservations expressly authorized in Convention
Article 99. Entry into Force
-99A Date of entry into force (articles 99(1) & (2)
-99B Denunciation of 1964 Hague Conventions on Sale (ULF & ULIS) (articles 99(3),(4),(5)&(6))
Article 100. Applicability: Time of Proposal and Conclusion of Contract
-100A Part II. Formation of Contract:
--100A1 Applicability based on date of proposal or offer (art. 100(1))
-100B Part III. Sale of Goods
--100B1 Applicability based on date of contract (art. 100(2)
Article 101. Denunciation of Convention
-101A Procedure for denouncing Convention (art. 101(1))
-101B Effective date of denunciation (art. 101(2))