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!