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Hypothetical case - CISG FACTS On May 1, a German manufacturer of washing machines, A, dispatched to the New York branch of a Russian trading
Hypothetical case - CISG
FACTS
- On May 1, a German manufacturer of washing machines, A, dispatched to the New York branch of a Russian trading company, B a letter containing the following proposal: A will sell B a set of a specific type of washing machines at the price of 62,000; A will deliver the machinery to B by May 22; B must pay A the price of the machinery by May 22; the machinery will be transported by a German oceangoing vessel.
- The proposal reached B's company mailbox on May 5.
- On May 9, B called A over the phone and stated, 'I accept your offer. However, I want the machinery to be transported by an American container ship.'
- A delivered the washing machines to an American container ship at the port of Hamburg on May 20.
- B paid A 62,000 on May 22.
- The machines were delivered to B's New York branch on June 13.
- B examined the machines on June 16.
- On July 10, almost half of the machines malfunctioned because of some defective component.
- B notified A of the malfunction immediately.
- On July 15, B demanded that A repair the lack of conformity within one month.
- A did not repair the defect by August 15. As a consequence of this, B lost business at a value of $23,000 and made arrangements for the repair at a U.S. based company who charged B for $12,000.
Questions to address in your submission
1) Is there a contract between A and B? Please elaborate! (You should evaluate the communication of the parties based on the respective articles of the CISG)
2) Is there a breach of contract? Who breached the contract? Please elaborate!
3) What remedy/remedies B may claim from A? Please elaborate!
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