Case number: 153
Article number: sales convention / 1(1)(a); 29(1); 31(a) and (c); 57(1); 78
Thessaurs issue:
Country of decision: France
Year of decision: 1995
Type of decision: Judicial decision

Case 153: CISG 1(1)(a); 29(1); 31(a) and (c); 57(1); 78
France: Court of Appeal of Grenoble (Commercial Division)

29 March 1995

Soci‚t‚ Camara Agraria Provincial de Guipuzcoa v. Andr‚ Margaron

Original in French

Published in French: [1995] UNILEX, E.95-2

Reported on in English: [1995] UNILEX, D.95-2

A French seller and a Spanish buyer concluded a number of contracts for the sale of maize. All the deliveries were made, but the buyer did not pay the full price. The seller brought an action against the buyer before a French court, demanding payment of the full price and interest accruing.

In the first instance, the Regional Court of Grenoble, without invoking CISG, ordered the buyer to pay the full price, but found that the seller was not entitled to claim interest.

The buyer lodged an appeal, objecting that the French court did not have jurisdiction and demanding a price reduction on the basis of an agreement emerging from a meeting of the parties after conclusion of the contract.

The Court of Appeal found that CISG was applicable since the contract in question was a contract for the international sale of goods concluded between two parties established in different States Parties to CISG.

In order to determine where the price was payable, the Court of Appeal cited article 57(1) and article 31(a) and (c) in their entirety, and accordingly found that the obligation to pay the price should be performed within the jurisdiction of the Regional Court of Grenoble, whether or not the payment had been made subject to delivery of the goods.

Regarding the price reduction requested by the buyer, the court found that, on the basis of article 29 CISG, a contract could be modified purely by agreement of the parties. However, it also found that the modification of the purchase price could not, as in the case in point, result from the general mood of a meeting.

The seller's entitlement to payment of the price and interest on arrears was recognized. The Court of Appeal made reference for this purpose to article 78 CISG and noted that, unlike under French law, the serving of notice was not necessary. Finally, the court ordered the capitalization of the interest requested by the buyer.