Source: http://cisgw3.law.pace.edu/cisg/text/peclcomp76.html
Timestamp: 2018-01-20 05:31:08
Document Index: 164343352

Matched Legal Cases: ['art. 7', 'art. 1518', 'art. 76', 'art. 6', 'art. 298', 'art. 76', 'art. 1518']

Guide to Article 76
Match-up of Article 76 with the European Principles
Go below to PECL notes for Continental and Common Law comparatives
Match-up of CISG Article 76 with PECL Article 9:507
(1) If the contract is avoided and there is a current price for the goods, the party claiming damages may, if he has not made a purchase or resale under article 75, recover the difference between the price fixed by the contract and the current price at the time of avoidance as well as any further damages recoverable under article 74. If, however, the party claiming damages has avoided the contract after taking over the goods, the current price at the time of such taking over shall be applied instead of the current price at the time of avoidance. PECL Article 9:507 [Damages: Current Price Where No Substitute Transaction]
Comment and notes on PECL 9:507
Like the commentary to the UNIDROIT Principles and the U.S. Restatements, the comments to the PECL help explain the text. The PECL notes identify civil law and common law antecedents and related domestic provisions. With the permission of the Commission on European Contract Law, these comments and notes are presented below. The source of this material is Ole Lando & Hugh Beale eds., Principles of European Contract Law: Parts I and II, Kluwer Law International (2000) 449-450.
COMMENT AND NOTES: PECL Article 9:507: Current Price
Where the aggrieved party has terminated the contract and has not made a substitute transaction but there is a current price for the performance contracted for, it may recover the difference between the contract price and the price current at the time the contract is terminated as well as damages for any further loss so far as these are recoverable under this Section.[page 449]
Damages measured by current price
Insofar as the cost of substitute performance fairly measures the shortfall in the value of the non-performing party's performance it is recoverable as such whether or not the aggrieved party actually incurs the expenditure.
Illustration 1: S agrees to sell 50 tons of coffee to B at �1,800 a ton for delivery on 1st July. S fails to deliver the coffee. The market price on 1st July is �2,000 a ton. B is entitled to damages of �10,000 (i.e. 50 x �200 = �10,000) even if he does not make a substitute purchase on the market.
Illustration 2: S sells a car to B promising that it is in good condition. In fact it has engine defects which would cost �500 to rectify. Assuming that it would not be uneconomic to repair the car at this cost, B is entitled to �500 damages even though he decides not to have the repairs carried out.
1. Current price as a measure of loss
As in Article 9:507 this "abstract" way of assessing the amount of loss is used in all the legal systems. The relevant provisions are mostly found in the provisions on sales, see DANISH SGA �� 25, 30(1) and 45; DUTCH BW art. 7:36; FINNISH and SWEDISH Sale of Goods Acts, � 69; GERMAN and AUSTRIAN HGB � 376(2); ITALIAN CC art. 1518; U.K. Sale of Goods Act 1979, �� 50(3) and 51(3); and in IRELAND see Forde � 1.207. A provision similar to Article 9:507 is found in CISG art. 76.
Though not provided in the legislation, the assessment of damages on the basis of the current price is admitted in FRANCE, BELGIUM and in the NETHERLANDS, where it is covered by the general clause in BW art. 6:97 under which the court evaluates the damages in the manner best corresponding to its nature. The assessment is also admitted in SPAIN (TS 27 March 1974, 30 January 1976, 31 March 1977, 14 November 1977, 28 February 1978; see (Vicent Chuliá, II, 106; see also Diez Picazo, II, 683-684 and Carrasco 670) and in GREECE with respect to commercial transactions, Ligeropoulos in Erm.AK II/1, art. 298 nos. 23-29, 83-86 (1949).
2. Time of assessment
As in Article 9:507, in CISG art. 76 and the FINNISH and SWEDISH SGA, the current price is generally that at the time of termination. In several other laws it is, however, the price at the time when performance was due, see UNITED KINGDOM SGA s. 51(3); IRELAND, see Forde � 1.206; ITALIAN CC art. 1518; GERMAN and AUSTRIA HGB � 376(2); DANISH SGA � 25; and SPANISH Commercial Code arts. 329, 363 and 371 (see Vicent Chuliá, II, 106).
Literature: see notes to Article 9:506 above. [page 450]