Convention on the International Sales of Goods and Transportation of Goods - Case resolution

1. Facts

A senior manager of a US company agreed to sell and install a jet engine CPT Madrid Barajas Airport, Spain, to a Spanish company in Madrid which is a subsidiary of a UK multinational company. During the negotiations, prior to the signing of the agreement, it was agreed that payment will bemade upon receipt of the cargo and that the price will be set at a later stage being approximately 2 to 2.5 million US dollars.The jet engine arrived at the buyer's warehouse in Madrid on the 7^th September 2022 and two months later when installing the jet engine, a defect was discovered. The buyer now sues Seller for failure to comply with his obligation. Moreover, the buyer has not met his obligation of payment.

2. Question

Apply the CISG and INCOTERMS 2020 to the above contract between Buyer and the Seller.

2.1.- Is Seller liable? Is the Buyer liable?

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 seller's obligations;
5. Analyse the case from the sellers and buyer's point of view;