Abstract
This article addresses the duty to mitigate damages in activities relating to the international sale of goods that are governed by the 1980 United Nations Convention on Contracts for the International Sale of Goods (CISG), which is performed by the creditor in the event that the debtor breaches the contract. It is based on a dogmatic understanding of Article 77 of the CISG. The paper examines legal theory in order to establish the concept and legal character of mitigation of damages, and, through this, the scope. Court decisions and arbitration awards have also been studied, which, when implemented, have established what type of mitigating behavior should be undertaken by the creditor if the debtor breaches the contract.
Highlights
Is article addresses the duty to mitigate damages in activities relating to the international sale of goods that are govern by the 1980 United Nations Convention on Contracts for the International Sale of Goods (CISG), which is performed by the creditor in the event that the debtor breaches the contract
It is based on a dogmatic understanding of Article 77 of the CISG. e paper examines legal theory in order to establish the concept and legal character of mitigation of damages, and, through this, the scope
Is article addresses the duty to mitigate damages in activities relating to the international sale of goods that are governed by the 1980 United Nations Convention, hereina er the Convention on the International Sale or CISG (United Nations Convention on Contracts for the International Sale of Goods), which is performed by the creditor in the event that the debtor breaches the contract
Summary
Is article addresses the duty to mitigate damages in activities relating to the international sale of goods that are governed by the 1980 United Nations Convention, hereina er the Convention on the International Sale or CISG (United Nations Convention on Contracts for the International Sale of Goods), which is performed by the creditor in the event that the debtor breaches the contract. 3 Sections 50 and 51 of the Sales of Goods Act establishes that the buyer or seller has the duty to minimize damages if the other party breaches contract by signing an alternate contract, and, if this duty is breached, the compensation for breach can be reduced. JORGE CUBIDES-CAMACHO has commented in the Colombian legal theory that the mitigation of damages should be seen as a demonstration of the “responsibility of indemnity”, which is, in turn, derived from the duty to act in good faith when implementing a contract that is established in Article 1603 of the Colombian Civil Code. E suggested rule sets out that the debtor will not respond for damages that the creditor could have avoided or reduced by adopting the measures required by good faith but will compensate for the expenses reasonably incurred by the creditor, even if the measures have been unsuccessful It is worthwhile mentioning that in the modernization proposal of the Spanish Civil Code, in terms of obligations and contracts, the duty to mitigate damages was included in Article 1211. e suggested rule sets out that the debtor will not respond for damages that the creditor could have avoided or reduced by adopting the measures required by good faith but will compensate for the expenses reasonably incurred by the creditor, even if the measures have been unsuccessful
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