This page uses so called "cookies" to improve its service (i.e. "tracking"). Learn more and opt out of tracking
I agree
Principles
1620
Bibliography
1032
Materials
86
Archive
65
History & Modern Evolution of Transnational Commercial Law

Schlechtriem, Peter, Schwenzer, Ingeborg (ed.), Commentary on the UN Convention on the International Sale of Goods (CISG), Comment on Art. 81 by Christiana Fountoulakis, Fourth Edition 2016

Title
Schlechtriem, Peter, Schwenzer, Ingeborg (ed.), Commentary on the UN Convention on the International Sale of Goods (CISG), Comment on Art. 81 by Christiana Fountoulakis, Fourth Edition 2016
Content
(b) A right of set-off under the Convention? The Convention does not expressly provide for a right of set-off. The correct view in this respect is that, from the concept of concurrent performance provided in Articles 81(2), 58(1), it is possible to extract a general principle stating that claims arising from the same contract may be set off if the contract is governed by the CISG (and, it must be added, if the CISG governs the matter out of which the claim arises, cf Article 4). Case law61 and literature62 have approached the question differently. In particular, concerns have been expressed as to that the CISG does not provide for detailed rules for the requirements, operation, and effects of a set-off, in particular for the question of whether set-off is exercised ipso iure or by way of a declaration and at which point in time the claims that have been set off cease to exist.63 These concerns cannot be shared. Article 88(3) allows for a set-off of reciprocal claims by ordering that only the balance should be paid out. Thus, it implicitly requires the party intending to set off its claims to articulate and thereby assert them. This can be generalized to the effect that a set-off permitted by Article 81(2) must be declared (Article 7(2)).64 To require a declaration of set-off suggests itself also because the CISG has subscribed to the concept that rights granted under the Convention will only have legal effect if declared to the other party.65

61Holding that the Convention applies to a set-off of claims arising out of the same contract that is itself governed by the CISG: BGH, 24 September 2014, CISG-online 2545, note 54 et seq, NJW 2015, 867; OLG München, 19 October 2006, CISG-online 1394, note 3, IHR 2007, 30, 32 et seq; OLG Düsseldorf, 21 Aprifl 2004, CISG-online 915, note II.2, IHR 2005, 24 (impliciter); OLG Hamburg, 26 November 1999, CISG-online 515, note I.b), IHR 2001, 19; KGer Zug, 14 December 2009, CISG-online 2026, note 12, SZIER 2011, 544. For case law holding that set-off is governed by the applicable domestic law, cf OLG Köln, 19 May 2008, CISG-online 1700, IHR 2008, 26; Juzgado de Primera Instancia de Badalona, 22 May 2006, CISG-online 1391; HGer St Gallen, 3 December 2002, CISG-online 727, IHR 2003, 181, SZIER 2003, 107; Polimeles Protodikio Athinon, 4505/2009, CISG-online 2228, note 2.2.6; Trib Padova, 25 February 2004, CISG-online 819, IHR 2005, 31; LG Mönchengladbach, 15 July 2003, CISG-online 813, note II.2, IHR 2003, 229, 230.
62In favour of the view expressed here: CISG-AC, Op 9 Bridge, Opinion 3.3, Comment 3.24; Magnus, Aufrechnung, pp 209, 221 et seq; Staudinger/Magnus, Art 81, para 15; CL Witz, D 2015, 881, 887; Kröll, (2005) 25 J L èr Com 39, 52, 53; Honsell/Weber, ARt 81, para 19; Brunner/Zuber, Art 81, para 6; Bamberger/Roth/Saenger, Art 4, para 19 (only with regard to set-off in the context of restitution); Saenger/Sauthoff, IHR 2005, 189, 190. For the opposite view, see, eg 6th German edition of this work, Art 4, para 39; Ferrari et all/Ferrari, Int VertragsR, Art 81, para 20; Ferrari, (2003) 7 VJ63, 88; Bianca/Bonell/Tallon, Art. 81, notes 2.6, 2.7; Honnold/Flechtner, Art 81, para 444; MünchKomm/P Huber, Art. 81, para 13; Förster, NJW 2015, 830, 831 et seq.
63See Schlechtriem/Schroeter, para 199, who hold that a set-off should always be governed by the applicable domestic law, even if both claims are subject to the Convention, because it would not be possible to derive a general principle from the CISG to solve all questions in connection with a set-off. Cf also Honnold/Flechtner para 444A in fine; 6th German version of this work, Art 4, para 39.
64BGH, 24 September 2014, CISG-online 2545, note 58, NJW 2015, 867; Magnus, Aufrechnung, pp 209, 221 et seq.
65Cf only Arts 14 et seq, 26 (in contrast to the previous avoidance of contract ipso facto), 39, 48 (2)-(4), 65, 71, 72, 73, 75, 76, 85-88.

Referring Principles
Trans-Lex Principle: III.1 - Set-off
How to search - Contact - Team - Trustees - Disclaimer / Legal information / Privacy - Twitter - Facebook
A project of CENTRAL, University of Cologne.