Q 59-1
Refer to C 58-2. How did Article 59 come into play there?
The payment obligation was to be fulfilled by 20% via bank transfer at contract signing, and the rest through a letter of credit. There was no time agreed for the letter of credit, so the Tribunal had recourse to Article 59, as the letter of credit was part of the payment obligation, stating “In this regard it is important to note that the obligation to open a letter of credit being an emanation of the buyer's obligation to take all requisite steps to enable payment under Art. 54 of the CISG is no different an obligation than the buyer's obligation to pay the price.”
Q 59-2
Which principle is embodied in Article 59 CISG?
The obligation to pay the price exists without any need for the seller to request it.
Q 59-3
Why will the buyer, in practice, usually be notified by the seller that payment is due?
Because it will receive notice that the goods have been delivered or will receive an invoice indicating that the payment is due.
Q 59-4
Use your understanding of Articles 54-59 CISG. Do you agree with the reasoning of the tribunal in C 59-1? Consider:
- Determinable period for payment if payment terms are adjusted during deliveries.
- Threshold for changes to delivery and payment schedules through communications during contract performance.
- Misunderstandings and notice as form of clarification.
Points that can be considered: Determinable period: Article 59 permits dates determinable from the contract and delivery schedule. After temporary adjustments, payments again fell due monthly per the original schedule, as no clear, mutual amendment fixed different future payment dates. Deviations for early deliveries didn’t alter future terms.
