Back to category: Business

Limited version - please login or register to view the entire paper.

Buyer's Right to Withhold Performance and Termination [Avoidance] of Contract under the UN Sales Convention

1. Withholding Performance
1.1 Introduction
1.1.1. Concept of the Right
Withholding performance under the Convention, as in English law, means that the buyer is entitled to refuse to perform his obligation without being required or even being entitled to terminate [avoid] the contract. Obviously, if the requisites for the latter remedy are met and the buyer, before fulfilling his obligations, has declared the contract avoided in accordance with Arts. 49, 51, 72 or 73 of the Convention, he is no longer obliged to perform his obligations (Art. 81(1)). But such requisites may not be met or the buyer may not wish to declare the contract terminated, but rather demand goods fully conforming with the contract.
In the provisions regulating the buyer's remedies for seller's breach, although the Convention gives specific rights to withhold performance in certain cases, it does not make a general statement that the buyer is entitled to withhold performance of his obligations. The question...

Posted by: William Katz

Limited version - please login or register to view the entire paper.