Hardship Theory under the United Nations Convention on Contracts for the International Sale of Goods (CISG) 1980
Abstract
This study examines whether hardship falls within the scope of Article 79 of the United Nations Convention on Contracts for the International Sale of Goods (CISG), which addresses the concept of an “impediment.” The absence of a specific provision in the Convention governing hardship has left considerable room for divergent approaches in comparative legal scholarship and jurisprudence, with no specialized Arab contributions to this debate. This study therefore seeks to address a gap in Arabic legal literature. It adopts a descriptive-analytical and inductive methodology, with particular emphasis on the various approaches in comparative legal scholarship and case law, as well as the opinions of the CISG Advisory Council.
The study finds that the divergence of views as to whether an impediment encompasses hardship stems from the inadequacy of an interpretive approach adopted by some scholars, which examines the concept of an impediment through the concepts of force majeure and hardship as recognized in national legal systems. The study concludes that an impediment has a distinct legal nature and identity independent of analogous concepts, and that its meaning should therefore be understood within the context of the provisions of the CISG alone, in a manner that serves the objective of unifying the substantive rules governing the international sale of goods in their interpretation and application.
Given the difference between the legal effects stipulated in Article (79) and those of force majeure or hardship in comparative legal systems, the meaning of impediment cannot be confined to either of these two concepts. Impediment, thus, is a flexible term responds to diverse changing circumstances. The study recommends that the United Nations Commission on International Trade Law (UNCITRAL) amend Article (79) to explicitly state the case of hardship, in order to put an end to the differences in the opinions of courts and arbitral awards, which would contribute positively to promoting the idea of unifying interpretation, achieving stability in transactions and legal security.
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ImpedimentChanged circumstancesForce majeureInternational sale of goodsInternational trade law
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IV. Reports, Working Papers & Opinions
CISG-AC Opinion No 7, ‘Exemption of Liability for Damages under Article 79 of the CISG’ (Rapporteur: Alejandro M Garro, adopted at the 11th meeting in wuhan, 12 October 2007).
CISG- AC Opinion No 20, ‘Hardship under CISG’ (Rapporteur: Edgardo Muñoz, adopted 2-5 February 2020, Puerto Vallarta, Mexico).
CISG- AC Opinion No 21, ‘Delivery of substitute Goods and Repair under the CISG’, (Rapporteurs: Ingeborg Schwenzer and Ilka H Beiml, 3-4 February 2020).
UNCITRAL, ‘Outline of the CISG (The UNCITRAL Thesaurus)’ (UN Doc A/CN.9/SER.C/ GUIDE/1 ,12 September 1995).
V. Case law
Arbitration Court attached to the Hungarian Chamber of Commerce and Industry case No. VB/96074 (10 December 1996) https://www.unilex.info/cisg/case/424
Iron molybdenum case (Oberlandesgericht Hamburg, Case No 1 U 167/95, 28 February 1997) cisg-online.org/files/cases/6235/translationFile/261_22831831.pdf
Nuova Fucinati SpA v Foudmetall International AB, Tribunale di Monza (14 January 1993) Case No 4267/88, https://cisgonline.org/files/cases/6082/fullTextFile/102_73321989.pdf
Scafom International BV v Larraine Tubes SAS, Belgian supreme Court (2009) https://cisg-online.org/files/cases/6633/fullTextFile/694_82136276.pdf
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العربية
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https://orcid.org/0009-0001-8121-0127