Fundamental Breach and the CISG

Abstract

Abstract The purpose of this book is to discuss the regime of damages available under the CISG. It is important to understand that the remedy of fundamental breach or avoidance of contract is an additional or perhaps unique remedy available to the aggrieved party. This chapter offers an explanation of the basic aspects of avoidance and hence fundamental breach and points to the connection whereby the principles link in with the remedy of damages. In brief, the CISG offers two different approaches to a breach of contract. If the breach is “minor,” the aggrieved party simply concludes the contract and asks for damages. If the breach is “major”—that is, if the party is deprived entirely of what he expected under the contract—the contract can be avoided, or terminated, and remedies for breach of contract can be sought.