Source: https://moodle.moot.academy/mod/page/view.php?id=28
Timestamp: 2020-07-06 18:12:13
Document Index: 507768422

Matched Legal Cases: ['Art. 16', 'Art. 16', 'Art. 9', 'Art. 8', 'Art. 16', 'Art. 72']

EssentialsCourse: 5. Revocation
In its Art. 16(1) the CISG takes a middle ground between the principle of free revocability as is known in many common law jurisdictions and the principle of a binding offer known in many civil law jurisdictions:
Thus, the general rule is that an offer is freely revocable. However, once the offeree has dispatched its acceptance, the offeror is bound to its offer. Furthermore, by way of exception an offer can also be irrevocable under Art. 16(2):
As can be taken from the wording of lit. a and is also confirmed by the drafting history, fixing a time for acceptance can merely be an indication and thus creates a rebuttable presumption that the offer is irrevocable (disputed). Clearer indications are phrases like “firm offer” or “fest” or – at least as concerns particular trades via Art. 9 – “option” or “guarantee”. In case of doubt, an interpretation according to Art. 8 is required.
Art. 16(2) continues:
Under this provision an offer is irrevocable if the offeror has either itself induced or at least become aware of circumstances leading to reasonable reliance in its offer to be irrevocable on the part of the offeree and the latter took action based on this reliance. Examples for circumstances in which reliance of the offeree is reasonable include situations in which the offeree has made clear to the offeror that it has a substantial interest in being able to rely on the offer, e.g. due to its own delivery obligations towards third parties, or situations in which assessing the offer in order to decide whether or not to accept it in itself takes significant financial effort.
Acts based on this reliance can for example be starting the production process, hiring additional personnel, or procuring or negotiating for necessary raw materials. Acting in that sense also includes omissions like deviating from one’s usual practice by not searching for alternative offers.
If a revocable offer is revoked it can no longer be accepted and thus cannot result in a contract. Making use of this possibility given by the CISG cannot lead to damage claims under domestic law (e.g. via the civil law notion of culpa in contrahendo) since the CISG exhaustively regulates the consequences of the revocation of an offer. If on the other hand an irrevocable offer is revoked it can still be accepted and result in a binding contract. In case the offeror keeps relying on its ineffective revocation in order to escape its duties under the contract this behavior forms an anticipatory breach of contract and the offeree can exercise its rights under Art. 72. Again, there is no room for damage claims based on domestic law.
Last modified: Monday, 19 September 2016, 4:35 PM
◄ 4. Withdrawal
Jump to... Jump to... Welcome to the Moot Academy Essentials Course! A. Introduction Video: Historic Overview B. Part I of the Convention - Sphere of Application and General Provisions I. Sphere of Application and General Provisions Video: Sphere of Application 1. Contract for the Sale of Goods a. Sale b. Goods 2. Internationality II. Party Autonomy Video: Freedom of Contract Video: CISG in Practice III. Matters Covered, Interpretation and Gap-filling 1. Matters Covered 2. Interpretation of the Convention 3. Gap-filling IV. Interpretation of Party Statements V. Usages and Practices VI. Freedom of Form C. Part. II of the Convention - Formation of the Contract I. Offer 1. Sufficiently Definite 2. Intention to be Bound 3. Effectiveness and Reaching 4. Withdrawal 6. Termination 7. Standard Terms II. Acceptance 1. Indication of Assent 2. Assent With Modifications a. Generally New Offer b. Exception in Case of Immaterial Alterations c. Battle of the Forms 3. Period of Time for Acceptance III. Modification or Termination of Contract D. Part III of the Convention – Sale of Goods VII. Damages Video: Damages 1 1. Calculation of Damages a. General Principles b. Concrete Calculation c. Concrete Calculation After Avoidance d. Abstract Calculation After Avoidance Video: Damages 2 2. Duty to Mitigate 3. Exemption a. Impediments to Performance aa. Scope of Application bb. Requirements cc. Third Persons dd. Temporary Impediments ee. Legal Consequences ff. Specifically: Hardship gg. Burden of Proof b. Failures to Perform Caused by the Other Party VIII. Interest Video: The Right to Avoid the Contract 1 Video: The Right to Avoid the Contract 2 A. Introduction Video: Main Characteristics B. Main Characteristics of Arbitration I. Party Autonomy II. The Freedom to Choose the Laws Governing the Arbitration and to Choose Between Ad Hoc and Institutionalized Proceedings III. Appointment of the Arbitrators IV. Confidentiality of the Proceedings V. No Appellate Level Video: Distinction From Other Types of Dispute Resolution VI. Distinction from other Means of Alternative Dispute Resolution Video: Advantages and Disadvantages C. Advantages and Disadvantages of Arbitration Video: Validity of the Arbitration Agreement D. The Arbitration Agreement Video: Drafting an Arbitration Agreement Video: The Applicable Law E. The Applicable Law I. To the Arbitration Agreement II. To the Arbitration Proceedings III. To the Substance of the Dispute Video: The Arbitral Tribunal F. The Arbitral Tribunal Video: The Arbitral Proceedings G. The Arbitral Proceedings I. Initiation of the Proceedings II. Preliminary Measures III. Hearing IV. Taking of Evidence Video: Discovery V. Interim and Conservatory Measures VI. Rendering the Award Video: Attacking the Arbitral Award H. Attacking the Award I. Setting Aside Procedure II. Refusal of Enforcement About the author Further Resources Tutorial Legal Research and Writing Video: Introduction Video: Establishing the Basis Video: Judicature Video: Statutes and Regulations Video: Legal Doctrine Video: Legal Writing In Focus: CRAC In Focus: Structure In Focus: Responsiveness Video: Citations Video: Sources of Further Information and Concluding Remarks Vis Moot Specifics Content of a Memorandum Formal Requirements Useful Resources for Research Video: Vis Moot Dos and Don'ts Overview: Vis Moot Dos and Don'ts Video: Mock Arbitrations Video: Q&A with Prof. Dr. iur. Ingeborg Schwenzer, LL.M. Video: Harry Flechtner's CISG Song Feedback Moot Academy
6. Termination ►