Law · International Trade Law (CISG)
Axel contracts to supply specialized sensors to Boris by 1 December. On 10 November, Axel informs Boris that due to global shortages, he will be unable to fulfill the contract. On 15 November, Boris procures substitute sensors elsewhere at a higher price. Under the CISG, what is Boris's legal position on 15 November?
- 1Boris can only claim the return of advance payments but cannot claim price difference for replacement goods.
- 2Axel is completely exempt from paying damages because semiconductor shortage is an unforeseen impediment.
- 3Boris may immediately declare the contract avoided and sue for damages due to fundamental anticipatory breach.✓
- 4Boris must wait until 1 December to take any legal action for breach of contract.
Correct answer
Boris may immediately declare the contract avoided and sue for damages due to fundamental anticipatory breach.
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