Determination and exemption of liability in international sales contract. Rules creation based on article 79 of the Vienna Convention on Contracts for the International Sale of Goods Construcción de las reglas a partir del artículo 79 de la Convención de Viena

Abstract

Liability in The Vienna Convention on Contracts for the International Sale of Goods ("CISG") arises with the failure of performance of the sales contract. The CISG gives a different treatment to payment of damages and other remedies provided to the injured party. Regarding the payment of damages, liability is determined on an objective evaluation (regardless of fault) with very few possibilities for the defaulting party to exempt itself from paying damages. Article 79 (1) of the CISG contains a liability rule based on the idea that the defaulting party is liable because its failure to perform was related to a risk that he/she should had controlled according to the contract and the CISG. Limits on liability take the form of exemption of liability when the failure is due to an impediment beyond the control of the defaulting party and he/she could not reasonably be expected to have taken into account at the time of the conclusion of the contract or to have avoided or overcome it or its consequences. Exemption refers to damage payments only, and not to other remedies provided to the injured party or to the rights of the defaulting party. Finally, exemption requires inability to perform but not the objective impossibility of performance and, in principle, the obligation continues to exist.