Case number: 173
Article number: sales convention / 19(3)
Thessaurs issue:
Country of decision: Hungary
Year of decision: 1997
Type of decision: Judicial decision

Case 173: CISG 19(3)

Hungary: Metropolitan Court (No. 12.G.76.237/1996/14)
17 June 1997
Original in Hungarian
Unpublished



The Canadian plaintiff concluded a distribution contract with the Hungarian defendant. The contract was to expire on 31 December 1991. After the contract's expiry, the parties discussed and corresponded about extending the distribution contract into 1992. However, the defendant failed to deliver any goods in 1992. The plaintiff demanded damages based on either breach of contract or, alternatively, on the doctrine declaring that a promise may also be enforced if the making of the promise reasonably induced another person to change position in reliance on the promise ("promissory estoppel").



The court, pursuant to article 19(3) CISG, found that there was no clear agreement between the parties and therefore no distribution contract for 1992 and rejected the claim for damages based on a breach of contract theory. Moreover, the court adjudicated the claim for damages based on the promissory estoppel theory in conformity with the Hungarian Civil Code and rejected the claim.