An Italian company, the Seller, and 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.

Taking into account the fact that the agreement between the parties is regulated by the articles of the CISG, please indicate which party is right, on which ground and which damage is to be paid to whom, if any.