Case number: 164
Article number: sales convention / 7(2); 39(1); 49(1)
Thessaurs issue:
Country of decision: Hungary
Year of decision: 1995
Type of decision: Arbitral award

Case 164: CISG 7(2); 39(1); 49(1)

Hungary: Arbitration Court attached to the Hungarian Chamber of Commerce and Industry

Arbitral award in case No. VB/94131 of 5 December 1995

Original in German

Unpublished

The claimant, a Hungarian company, and the respondent, an Austrian company, signed a contract for the sale of containers. The respondent paid for only a part of the delivered goods. The claimant requested payment of the outstanding balance. The respondent refused payment owing to the poor quality of the goods.

The arbitral court applied the CISG since, in accordance with the contract between the parties, the law of the country of the claimant was applicable. It was held that the respondent had to pay since it had failed to give notification about the defect of the goods (article 39(1)CISG). In addition, the arbitral court found that the respondent could not declare the contract avoided on the basis that the terms of delivery had not been established by the parties (article 49(1) CISG). As to the interest rate, the arbitral court, referring to article 7(2) CISG, held that it had to be adjusted taking into account the currency in which the contract price had been agreed upon.