General Remedies Avoidance of the contract Specific performance Compensation

Liquidated Damages Liquidated damages are the amount agreed by the parties during the formation of a contract, which is for the injured party to collect as compensation upon a specific breach Part of the contract

Liquidated Damages Liquidated Damages Compensatory Punitive for the purpose to compensate the innocent party when breach happens Liquidated Damages Punitive designed to punish the wrongdoer. (penal, penalty clause)

Legal effect of liquidated damages Common law countries Compensatory: enforceable Punitive: unenforceable Civil law countries Both are enforceable International rule China

中国 《合同法》第一百一十四条规定： 约定的违约金低于造成的损失的，当事人可以请求人民法院或者仲裁机构予以增加; 约定的违约金低于造成的损失的，当事人可以请求人民法院或者仲裁机构予以增加; 　　 约定的违约金过分高于造成的损失的，当事人可以请求人民法院或者仲裁机构予以适当减少; 《最高人民法院关于适用中华人民共和国合同法〉若干问题的解释(二)》 第二十九条当事人主张约定的违约金过高请求予以适当减少的，人民法院应当以实际损失为基础，兼顾合同的履行情况、当事人的过错程度以及预期利益等综合因素，根据公平原则和诚实信用原则予以衡量，并作出裁决。 当事人约定的违约金超过造成损失的百分之三十的，一般可以认定为合同法第一百一十四条第二款规定的“过分高于造成的损失 第二十八条当事人依照合同法第一百一十四条第二款的规定，请求人民法院增加违约金的，增加后的违约金数额以不超过实际损失额为限。增加违约金以后，当事人又请求对方赔偿损失的，人民法院不予支持。

中国 《合同法》第一百一十六条规定“当事人既约定违约金，又约定定金的，一方违约时，对方可以选择适用违约金或者定金条款。” 违约金和损害赔偿 – 选择适用

甲公司与乙公司依法订立一份总货款为２０万元的购销合同。合同约定违约金为货款总值的５％。同时，甲公司向乙公司给付定金５０００元，后乙公司违约，给甲公司造成损失２万元。甲公司依法最多可要求乙公司偿付多少？     Ａ．２万元　　 Ｂ．３．５万元　　 Ｃ．２．５万元　　Ｄ．３万元 D

Other remedies: Early delivery and excess quantities Article 52 (1) If the seller delivers the goods before the date fixed, the buyer may take delivery or refuse to take delivery. (2) If the seller delivers a quantity of goods greater than that provided for in the contract, the buyer may take delivery or refuse to take delivery of the excess quantity. If the buyer takes delivery of all or part of the excess quantity, he must pay for it at the contract rate.  

The buyer failed to specify the form Article 65 (1) If under the contract the buyer is to specify the form, measurement or other features of the goods and he fails to make such specification either on the date agreed upon or within a reasonable time after receipt of a request from the seller, the seller may, without prejudice to any other rights he may have, make the specification himself in accordance with the requirements of the buyer that may be known to him. (2) If the seller makes the specification himself, he must inform the buyer of the details thereof and must fix a reasonable time within which the buyer may make a different specification. If, after receipt of such a communication, the buyer fails to do so within the time so fixed, the specification made by the seller is binding.

Remedies for the buyer to compel specific performance to compel deliver substitute goods to require the seller repair the goods to avoid the contract for fundamental breach or non-delivery. to reduce the price to refuse early delivery and excess quantities to claim money compensation

Remedies for the seller to compel specific performance to avoid the contract for fundamental breach or non-delivery. to fix the description of the goods to claim money compensation

Exemptions Article 79 Impediment – impossible to perform on time - Relief from liability for damages

Exemptions Common Law system: - - Frustration of the contract – 合同受挫 Civil Law system: Force Majeour – 不可抗力 Hardship/changed circumstances – 情事变更

Frustration of contract 1. Impossibility of performance 1)The death or injury of one party (When the purpose of the contract is for providing services ) Robinson v Davision 2)The destruction of the specific subject matter of the contract. Taylor v Caldwell

2. Frustration of purpose Krell v Henry - P leased a room to the defendant overlooking the coronation route of the king. The ceremony was canceled later. 3. Supervening illegality 4. Commercial impracticability - The nonbreaching party will be excused only if performance would result in extreme hardship, difficulty, or unreasonable expense as a result of an unforeseen event.

Limitation of frustration The event should not be foreseeable The event is caused by the fault of one party The contract could be partially perfomed.

The effect of frustration The price paid before the event should be returned The price which should have be paid before the event should be paid after the event The cost benefited the other party shall be compensated after the event

Civil law system Force Majeour Hardship/changed circumstances

Force Majeure Unforeseeable objective test + subjective test The impediment can not be overcome by the party The impediment is not induced by one of the parties

The effect of force majeour Avoidance of contract Delayed performance

Hardship/Changed circumstances Commercial impracticability Effect: Alteration of the contract Avoidance of the contract

CISG Article 79 A party is not liable for a failure to perform any of his obligations if he proves that the failure was due to an impediment beyond his control and that he could not reasonably be expected to have taken the impediment into account at the time of the conclusion of the contract or to have avoided or overcome it or its consequences. Could not forsee Could not avoid Could not overcome

Exempted due to the failure by a third person (2) If the party's failure is due to the failure by a third person whom he has engaged to perform the whole or a part of the contract, that party is exempt from liability only if: (a) he is exempt under the preceding paragraph; and (b) the person whom he has so engaged would be so exempt if the provisions of that paragraph were applied to him.

(3) The exemption provided by this article has effect for the period during which the impediment exists. (4) The party who fails to perform must give notice to the other party of the impediment and its effect on his ability to perform. If the notice is not received by the other party within a reasonable time after the party who fails to perform knew or ought to have known of the impediment, he is liable for damages resulting from such non-receipt. (5) Nothing in this article prevents either party from exercising any right other than to claim damages under this Convention.

PASSING OF RISK Risk - incidents, which are not caused by one of the parties to the contract or by persons for whom they are responsible, but incidents which are caused by independent third parties or incidents which are not caused by human persons. It must be casual loss or damage. Article 66 Loss of or damage to the goods after the risk has passed to the buyer does not discharge him from his obligation to pay the price, unless the loss or damage is due to an act or omission of the seller.

卖方（一奶酪生产商）， 买方（一食品加工商） 标的：一级奶酪 价款： １００,０００美元 交货时间 - ６月１日，交货地点 - 买方港口(卖方公司船舶运输) 卖方依约发货，货物质量和包装都符合合同 途中- 意外事故耽搁了两个月 ８月１日到达目的港时, 船上的奶酪的品质己降至四级品, ８月１日一级品奶酪价值１００,０００美元（同6月1日） 四级品值２０，０００ 美元（同6月1日） 卖方的交货迟延以及为使这批奶酪符合使用标准而花费的额外时间导致买方食品加工厂停工损失及其他费用损失共计１５,０００美元。 买方可要求卖方支付多少损害赔偿？

PASSING OF RISK - When involve carriage 1. If involves carriage of the goods and the seller is not bound to hand them over at a particular place, the risk passes to the buyer when the goods are handed over to the first carrier for transmission 2. If the seller is bound to hand the goods over to a carrier at a particular place - the risk does not pass to the buyer until the goods are handed over to the carrier at that place. risk.

中国－　甲公司　－　卖方 美国　－　乙公司　－　买方 合同约定：甲公司出售一批衣料给乙公司 履行方式为：甲公司于7月份将该批衣料自重庆交铁路发运至大连，后由大连船运至美国纽约，乙公司支付相应对价。 7月份，甲公司没有履行。 8月3日，乙公司通知甲公司，该批衣料至迟应在8月20日之前发运。8月10日，甲公司依约将该批衣料交铁路运至大连。 但该批衣料在自大连至纽约的运输途中因海难损失80%。由于双方对货物灭失的风险约定不明遂发生争执。 乙公司认为，甲公司未于7月份履行合同违约在先，应承担损害赔偿责任。合同因甲公司未按时履行义务已终止，故货物损失的风险理应由甲公司承担。 乙公司拒绝支付价款。  1. 乙公司认为本案合同因甲公司违约已经终止的观点是否正确，为什么？ 2. 如果衣料在8月25日才发运，此时乙公司可否主张合同已经终止？ 3. 本案中，货物损失的风险应由谁承担，为什么？ 4．乙公司是否有权拒绝支付价款，要求甲公司承担损害赔偿责任，为什么？

甲出售1000吨小麦给乙， 承运人装运甲的3000吨散装小麦运往乙国家。 受载船只在途中遇到风险，货物损失1200吨，另有1800吨安全到达目的港。 甲宣称出售给乙的1000吨小麦全部损失，并认为依据CFR合同，甲对此项风险不承担任何责任。 　　在这种情况下，小麦毁损的风险应由谁来承担？

PASSING OF RISK EXCEPTION the risk does not pass to the buyer until the goods are clearly identified to the contract, whether by markings on the goods, by shipping documents, by notice given to the buyer or otherwise.

天津某公司于2009年7月12日由天津发运电脑5000台，预计7月27日货物可以抵达日本。 货物启运后，天津公司在因特网上发布电子公告一份，将这批电脑的技术指标、价格、预计到港时间等情况一一公示。 7月14日日本某公司在网上获得这一信息后，立即以电子邮件通知天津公司要求转让该批电脑。 7月19日，双方在网上就电脑价格等问题达成协议，为了稳妥起见又用传真互致加盖公司公章的确认书。 7月29日，货物抵达日本后，日本公司提货时，发现因轮船底舱进水，部分电脑包装遭海水浸泡，影响正常销售。 日本公司提出，电脑在运抵日本之前已经进水，据此要求天津公司赔偿因部分电脑不能正常销售造成的损失。

The passing for risk with goods in transit. Article 68 Goods sold in transit The risk passes to the buyer from the time of the conclusion of the contract. However, if the circumstances so indicate, the risk is assumed by the buyer from the time the goods were handed over to the carrier who issued the documents embodying the contract of carriage.

The risk passes to the buyer when he takes over the goods Article 69 Other situations: The risk passes to the buyer when he takes over the goods The risk passes to the buyer when delivery is due and the buyer is aware of the fact that the goods are placed at his disposal at that place.

Article 70  If the seller has committed a fundamental breach of contract, articles 67, 68 and 69 do not impair the remedies available to the buyer on account of the breach.