Questions and Answers
When does the buyer lose the right to rely on a lack of conformity of the goods?
What is the subjective time period for notifying the seller of a lack of conformity?
What is required for a notice of lack of conformity to be considered sufficiently specific?
In the example given, why did the buyer refuse payment and declare contract avoidance?
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What is the objective time period under Art 39 (2) CISG for notifying the seller of a lack of conformity?
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What time limit applies for notifying the seller of a lack of conformity if inconsistent with a contractual guarantee period?
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What is the consequence if the buyer fails to notify the seller about a defect under Article 44 CISG?
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When can the seller rely on the provisions of Articles 38 and 39 under CISG, even if the lack of conformity relates to facts of which they knew or could not have been unaware?
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What is the purpose of the inspection and notification duties under CISG?
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What is the significance of the seller's knowledge or awareness of the defect under Article 40 CISG?
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Which of the following is a requirement for the buyer to claim damages under Article 44 CISG if they failed to notify the seller about a defect?
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According to Article 35(1) CISG, what is the seller's obligation regarding the delivered goods?
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Under what circumstances is the seller liable for any lack of conformity according to Article 36(1) CISG?
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What does the passing of risk refer to in Article 36(1) CISG?
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What are the determinate characteristics of the goods as per Article 35 CISG?
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What is the seller's liability under Article 36(2) CISG for any lack of conformity that occurs after the passing of risk?
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What are the main obligations of the seller in a sale of goods contract, as per the text?
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In which situation can examination of goods be deferred until after they have arrived at their new destination?
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What is the time limit for inspection according to Article 38(1) CISG?
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What is a factor that determines the reasonable opportunity to examine the goods on a case-by-case basis?
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Why was an earlier examination of the deep frozen cheese not possible in the example?
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What determines the complexity of the inspection of goods?
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When must the buyer notify the seller of potential nonconformity?
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What is the consequence if the buyer fails to give notice of the lack of conformity by the time the risk has passed?
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What is the primary reason why the duty to inspect and notify is important from the seller's perspective?
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What is the purpose of Article 38(1) in a sale of goods contract?
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When can the examination of goods be deferred according to Article 38(2)?
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What is the buyer's obligation regarding the inspection of goods in a sale of goods contract?
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What is the outcome in the scenario where company B discovers that almost all the glasses are broken after storing them for a month?
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In a sale of goods contract, the buyer is always required to notify the seller of potential nonconformity within an objective time period specified by CISG.
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In the example of the Dutch company contracting for deep frozen cheese, the buyer argued that the cheese was contaminated with worms.
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Under the CISG, the examination of goods is considered simple when the goods are food products.
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The buyer in the scenario involving the deep frozen cheese claimed that they couldn't examine the cheese earlier because it was delivered melted.
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If the seller knew or ought to have known of the possibility of redirection or redispatch of goods, the buyer must always defer examination until after the goods have arrived at the new destination.
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The nature of the alleged defects in the goods always determines whether the buyer has had a reasonable opportunity to inspect the goods under Article 38(1) CISG.
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Under Article 38(3) CISG, if the goods are redirected in transit and then re-dispatched to their final destination, the examination period always starts from the time the goods have arrived at their final destination.
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The Court held that the duty to examine the steel sheets lay with the German steel merchant, even though the sheets were rolled up and required examination only by the end purchaser.
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If the goods are redirected in transit, the examination can be deferred until after the goods arrive at their original destination, according to Article 38(3) CISG.
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According to the rationale behind Article 38(3) CISG, the need to open the goods' packaging before they arrive at their new destination is mandatory.
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The duty to examine the goods falls solely on the end purchaser when the goods are redirected in transit and are economically viable for examination only by the end purchaser.
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For goods transported and redirected in transit, the examination of the goods can be carried out by any of the parties involved in the transaction.
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The buyer has the burden of proof that the goods lacked conformity before the passing of risk only if they have given notice of the lack of conformity.
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According to Article 38(1), the buyer must examine the goods within a reasonable period that is determined by the seller.
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The duty to inspect and notify is only important from the buyer's perspective.
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Company B can request the money back from company A because they inspected the goods within a reasonable period.
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The seller's knowledge or awareness of the defect is relevant in determining the buyer's burden of proof.
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Examination of goods can be deferred until after the goods have arrived at their destination only if the contract does not involve carriage of the goods.
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The seller is only liable for any lack of conformity which exists at the time when the risk passes to the buyer if the buyer was aware of the defect.
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The passing of risk happens when the goods are delivered to the buyer.
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The seller's main obligations include delivering the goods, transferring the property, and providing a guarantee for the quality of the goods.
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The buyer can inspect the goods at any time after delivery and notify the seller of any defects.
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The seller is liable for any lack of conformity that occurs after the time the risk passes to the buyer, unless it is due to a breach of the buyer's obligations.
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The buyer can claim damages under Article 44 CISG without notifying the seller about a defect if the seller was aware of the defect.
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The buyer has to give notice to the seller specifying the nature of the lack of conformity within a specific time period after he has discovered it or ought to have discovered it.
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The seller is liable for any lack of conformity of the goods if the buyer does not give notice to the seller within a reasonable time.
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The reasonable time for notice is determined solely by the terms of the contract.
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The buyer has to inspect the goods immediately after they are received.
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The notice of lack of conformity is considered sufficiently specific if it is given orally.
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The buyer's right to rely on a lack of conformity of the goods is not affected if he gives notice to the seller after a reasonable time.
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Study Notes
Buyer Rights and Duties
- The buyer loses the right to rely on a lack of conformity if they fail to notify the seller within the specified timeframes.
- Subjective time period for notifying the seller of a lack of conformity generally aligns with when the buyer discovers or ought to have discovered the issue.
- A notice of lack of conformity is considered sufficiently specific when it clearly identifies the nature of the defect, rather than being vague.
Contract Avoidance and Payment
- A buyer may refuse payment and declare contract avoidance if substantial defects impact the usability or quality of the goods received.
Objective Time Period for Notification
- The objective time period under Article 39(2) CISG for notifying the seller of a lack of conformity is within two years from the date of delivery.
Inconsistent Contractual Guarantees
- If a lack of conformity notification is inconsistent with a contractual guarantee period, the time limit for notice is determined by the guarantee period instead.
Consequences of Notifying Defects
- Failure to notify the seller about a defect under Article 44 CISG can result in the buyer losing the right to claim damages unless the seller was aware of the defect.
Seller's Knowledge and Provisions
- Sellers can still rely on Articles 38 and 39 CISG provisions concerning defects, even if they knew or should have known about the conformity issues unless specified otherwise.
Inspection and Notification Duties
- Inspection and notification duties under CISG aim to ensure prompt communication of defects, allowing for potential remedies.
- The seller's knowledge of the defect under Article 40 CISG can impact the buyer's ability to claim damages.
Seller's Obligations and Liability
- According to Article 35(1) CISG, sellers must deliver goods that conform to the contract in terms of quantity, quality, and specifications.
- Under Article 36(1) CISG, the seller is liable for any lack of conformity if it exists at the time risk passes to the buyer.
Passing of Risk
- Passing of risk refers to the moment the buyer acquires the risk of loss or damage to the goods, typically occurring upon delivery.
Determinants of Goods Characteristics
- Determinate characteristics of goods in Article 35 CISG include compliance with contractual specifications, quality, and fitness for purpose.
Seller’s Liability After Passing of Risk
- Under Article 36(2) CISG, sellers are liable for defects post-passing of risk only if those defects arise from a breach of their obligations.
Inspection Obligations
- Buyers must inspect goods and notify the seller of nonconformity within a reasonable time, typically starting from delivery.
- Article 38(1) CISG mandates that goods must be examined within a reasonable period, impacted by the nature of the goods and inspection complexities.
Deferral of Inspection
- Goods can be inspected after reaching their new destination if circumstances, such as re-dispatch in transit, apply under Article 38(2) and (3) CISG.
Buyer’s Burden of Proof
- The buyer must prove nonconformity existed before risk passed only if they notified the seller of such nonconformity.
Significance of Timely Notification
- Timely notification by the buyer is crucial, as failure to notify can lead to loss of rights and remedies associated with defects.
Conclusion on Buyer’s Rights and Seller’s Obligations
- The seller's main obligations include delivering compliant goods, transferring property, and assuring quality, while the buyer has the duty to inspect and notify of any defects promptly.
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Description
Learn about the main obligations of a seller in a sale of goods contract, including delivering the purchased goods, transferring property, and handing over related documents. Understand the requirement for the delivered goods to conform to the contract as per Article 35(1) CISG.
