Topic 6: CISG 3, Article 79 Exceptions to Contractual Liability

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Questions and Answers

What is the primary condition for a party to be exempt from liability under Article 79?

The party's deliberate actions caused the breach.

There was a lack of communication with the other party.

The breach occurred in a different country.

The breach was due to an impediment beyond the party's control. (correct)

A party is permanently exempt from obligations due to force majeure.

False

What must a party do if they fail to perform due to an impediment?

Give notice to the other party of the impediment and its effect on ability to perform.

A party is exempt from liability if the failure is due to the actions of a __________ engaged to perform the contract.

third person Signup and view all the answers

Under what conditions can a party invoke exemptions for breach of contract?

If they can demonstrate the impediment was beyond their control. Signup and view all the answers

Match the following terms with their correct definitions:

Force Majeure = Exemption due to uncontrollable circumstances Impediment = A physical or external barrier to performance Notice = Communication regarding an impediment Temporary Exemption = Relief that is not permanent Signup and view all the answers

A party must notify the other party of the impediment to avoid liability.

True Signup and view all the answers

The exemption provided by Article 79 has effect during the period in which the __________ exists.

impediment Signup and view all the answers

What must a party do if they face a force majeure event?

Inform the other party diligently Signup and view all the answers

The pandemic alone can be considered a force majeure event that automatically suspends contracts.

False Signup and view all the answers

What burden of proof lies on the party who breaches the contract?

The burden of proof lies on the party to produce sound evidence in court. Signup and view all the answers

A party must fulfill their obligations that they are able to carry out if the impediment is only __________.

partial Signup and view all the answers

Match the following terms with their definitions:

Force Majeure = An event beyond the control of contracting parties Diligence = The level of care and attention expected Burden of Proof = The obligation to prove one’s claim Impediment = A circumstance that prevents fulfilling a contract Signup and view all the answers

Which of the following is an example of a foreseeable event?

Economic crisis Signup and view all the answers

The interpretation of the rules regarding impediments should be broad and lenient.

False Signup and view all the answers

What must happen if an impediment exists according to article 79?

The impediment must only last as long as the barrier itself. Signup and view all the answers

In case of impediments, a party has the duty to __________ the existence of the impediment immediately.

inform Signup and view all the answers

What can the other party do besides claim damages?

Ask for any other sort of action Signup and view all the answers

Study Notes

Article 79 Exceptions to Contractual Liability

Extraordinary Circumstances: Article 79 outlines exceptions to contract breaches under extraordinary circumstances, preventing automatic liability for certain failures to perform.
Impediment Beyond Control: A party isn't liable if a failure to perform is due to an insurmountable impediment beyond their control. This includes events like earthquakes or floods.
Objective and Subjective Elements: The party must prove the impediment was truly beyond their control (objective) and that they couldn't reasonably have anticipated, avoided, or mitigated the impediment (subjective).
Third-Party Involvement: If a party fails due to a third-party's non-performance, they're only exempt if the third party would also be exempt under the same rules.
Temporary Exemption: The exemption only applies during the period of the impediment. Obligations resume once the impediment ends.
Notification Requirement: The breaching party must immediately notify the other party of the impediment and its impact. Failure to do so results in liability for any damages.
Restrictive Interpretation: Article 79 must be interpreted narrowly. The burden of proof lies with the breaching party to demonstrate the impediment truly met the criteria.
Foreseeability and Examples:
- Events like pandemics require demonstrably unforeseeable governmental restrictions, not the pandemic itself.
- Economic downturns, foreseeable as cyclical events, are less likely to qualify.
- Specific, recurring events (e.g., floods in a flood-prone area) require evidence of an exceptionally severe event outside reasonable expectations.
Key takeaway: The exception is highly restrictive, and the party claiming exemption must provide strong, demonstrable evidence of an unforeseen, uncontrollable event.

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Description

This quiz explores the exceptions to contractual liability as outlined in Article 79. It covers extraordinary circumstances, the criteria for proving impediments beyond control, and the implications of third-party involvement. Test your understanding of legal provisions that protect parties from liability under specific conditions.