An Italian company, the Seller, a German company, the Buyer entered into a contract for the Seller to deliver a consignment of wine to the Buyer in Germany. The German authorities seized the wine and destroyed it, since it contained a reasonable percentage of water with which the wine had been mixed. The Buyer refused payment. The Seller wants to start a claim.

2. Questions

2.1.- Is the Buyer liable?

2.2.- What CISG remedies are available to Buyer and/or Seller?

2.3.- Suppose, the sales contract had been CIF. Would the Buyer be liable?

Apply the CISG as well as the INCOTERMS 2010 and what you have studied about the bill of lading to the above contract between Buyer and Seller.

Your analysis and decision need to include the following:

1. Applicability of the CISG;
2. The rules on the goods;
3. Formation of the contract;
4. The buyers and sellers obligations;
5. Analyze the case from the sellers and buyers point of view;
6. Remedies of the seller and/or of the buyer;
7. Lack of conformity of the goods;
8. Avoidance of contract and damages;
9. Defenses;
10. The standard provisions and any other legal elements that you can think of.