Mayflower Corp (China) manufactured flat screen televisions. Southern Cross Corp was a Peruvian distributor of electronic goods. In January 2020, the parties entered into a FOB (Shanghai) sale contract for 100,000 flat screen TVs at the price of Renminbi 300,000 - the goods to arrive in Peru on or before 1 May 2021. Southern Cross expressly made clear that the goods must arrive before that date because the purchase was made in anticipation of the forthcoming football season in June, which invariably increased the demand for flat screen TVs.

Mayflower's production line was disrupted when a major machinery broke down. Consequently, the goods were only completed on 5 February. In choosing the vessel, Mayflower made enquiries withThe Sojourner. The carrier assured Mayflower that the duration of the voyage from China to Peru would be between 68 to 72 days. AsThe Sojournerwould be departing from Shanghai on 15 February, the goods would arrive before 1 May. Mayflower agreed to send the goods withThe Sojourner.

A clean bill of lading was issued in respect of five containers of 60-inch flat screen TVs. Unknown to the carrier, the TVs were not securely packed. In particular, the foam casings that secured the edges of the TV were of poor quality. Consequently, some of the casings became brittle and disintegrated during the voyage. This meant that some of the goods were susceptible to damage from vibrations and handling.

The Sojournerencountered poor weather during the voyage. The containers were much shaken by the waves and the winds. However, no container was washed overboard. Persistent bad weather caused delay. Consequently, The Sojourner arrived at the port of destination on 3 May.

Southern Cross took delivery of the goods after a cursory inspection at the port of destination. Two week later, when Southern Cross wanted to appropriate part of the goods for its buyers, it discovered that 30% of the TVs were damaged. Southern Cross immediately contacted Mayflower and said that it would treat the damaged TVs as a wrongful repudiation of the contract on Mayflower's part, which entitled Southern Cross to treat the contract as terminated. Mayflower assured Southern Cross that it would replace the damaged TVs and deliver the replacement through air carriage. Southern Cross would rather terminate the contract, since it recently discovered that the demand for flat screen TVs has plummeted, due to the trend of viewing football matches from smart devices.

Advise Southern Cross of its rights against Mayflower. Take note that both China and Peru are signatories of The Vienna Convention on the International Sale of Goods 1980 (CISG).