This paper studies buyer's obligations under 1980 UN Convention on Contracts for the International Sale of Goods (CISG). Under CISG, as primary obligations, the buyer must pay the price for the goods and take delivery of them as required by the contra...
This paper studies buyer's obligations under 1980 UN Convention on Contracts for the International Sale of Goods (CISG). Under CISG, as primary obligations, the buyer must pay the price for the goods and take delivery of them as required by the contract and the Convention.
Where a contract does not expressly or implicitly fix or make provision for determining the price, impliedly the buyer is considered to have to pay the price objectively determined. If the price of the goods is expressed in the currency different from that of the place for payment, it seems that the buyer may be entitled to pay in the currency of the place for payment according to the applicable rate of exchange prevailing there when payment is due, provided that the currency is freely convertible.
Regarding the place where the price to be paid, except to the extend otherwise expressly or implicitly agreed between the parties, as a principle for the place of payment under CISG, the buyer must pay the price at the seller's place of business. However if the payment is to be made against the handing over of the goods or of documents, the place should be where the handing over takes place. Regarding the time the price to be paid, except to the extend otherwise expressly or implicitly agreed between the parties, the buyer must pay the price when the seller places either the goods or documents controlling their disposition at the buyer's disposal. The buyer must pay the price at the time when it becomes due without any request or compliance with any formality on the part of the seller.
Looking at the buyer's obligation to take delivery, first, the buyer must do all the acts which could reasonably be expected of him in order to enable the seller to make delivery, and further he must take over the goods delivered by the seller. Where the contract of sale involves carriage of the goods, depending on each situation of individual cases, the first obligation may covers the activities to enter into a contract of carriage and the loading of the goods on board and their storage during carriage or at the destination. The obligation to take over the goods is to take the physical possession of them. This obligation requires the buyer to take over the goods after carriage arranged by the seller as well as the goods that have been placed at the buyer's disposal at the seller's place of business or at another particular place.