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Master Thesis
to be awarded the degree
Master of Laws in South East European Law and European Integration (LL.M.)
at the Faculty of Law at the
University of Graz
The United Nations Convention on Contracts
for the International Sale of Goods in the
Courts and Arbitral Tribunals of the Successor
States of the SFRY
First Supervisor: Tratnik Matjaz, Univ.-Prof. Dr.
Second Supervisor: Lurger Brigitta, Univ.-Prof. Mag. Dr. iur. LLM (Harvard)
by
Flutra Ademi
Switzerland, August 2014
II
Statement of Authorship
I hereby certify that this Master Thesis has been composed by myself, and describes my own
work, unless otherwise acknowledged in the text. All references and verbatim extracts have
been quoted, and all sources of information have been specifically acknowledged. This
Master Thesis has not been accepted in any previous application for a degree.
Flutra Ademi
Switzerland, 20 August 2014
III
Table of contents
LIST OF ABBREVIATIONS ............................................................................................................................. V
TABLE OF CASES ........................................................................................................................................... VII
TABLE OF LEGISLATION ............................................................................................................................... X
I. INTRODUCTION ........................................................................................................................................... 1
II. THEORETICAL PART ................................................................................................................................. 4
1. THE UNITED NATIONS CONVENTION ON CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS
(CISG) ............................................................................................................................................................................... 4
1.1 Historical development.......................................................................................................................................... 5
1.2 Structure of the CISG .............................................................................................................................................. 9
1.3 Role and Meaning of the CISG ......................................................................................................................... 11
1.4 Applicability of the CISG ..................................................................................................................................... 13
2. THE CISGS IMPACT ON EX-JUGOSLAV COUNTRIES .......................................................................................... 17
2.1 Former Socialist Republic of Yugoslavia and the impact of the CISG on the successor states
............................................................................................................................................................................................... 17
2.1.1 Slovenia .................................................................................................................................................................. 20
2.1.2 Bosnia and Herzegovina ................................................................................................................................ 21
2.1.3 Croatia .................................................................................................................................................................... 22
2.1.4 Serbia and Montenegro .................................................................................................................................. 23
2.1.5 Macedonia ............................................................................................................................................................. 24
III. PRACTICAL PART ................................................................................................................................... 26
1. ELABORATION OF THE CASES PRESENTED IN THE UNCITRAL DIGEST OF CASE LAW ON THE UNITED
NATIONS CONVENTION ON CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS ....................................... 26
2. APPLICATION OF THE CISG BY THE FORMER YUGOSLAV COURTS .................................................................... 26
2.1.1 Sphere of application ....................................................................................................................................... 26
2.1.1.1 Contract for sale of goods and place of business ............................................................................. 33
2.1.1.2 Exclusion of the CISG .................................................................................................................................... 34
2.1.1.3 Party autonomy .............................................................................................................................................. 37
2.1.2 General provisions ............................................................................................................................................. 41
2.1.2.1 Interpretation of the UN Convention and gap-filling ................................................................... 41
2.1.2.1.1 Interpretation of the UN Convention ................................................................................................ 41
2.1.2.1.2 Gap-filling ...................................................................................................................................................... 43
IV
2.1.2.2 Interpretation of statements and other conducts of the parties ............................................. 44
2.1.2.3 International trade usages ........................................................................................................................ 46
2.2 Formation of the contract ................................................................................................................................. 46
2.3 Sale of goods ............................................................................................................................................................ 49
2.3.1 Fundamental breach of a contract and declaration of avoidance ............................................. 49
2.3.2 Payment of the price and delivery of the goods .................................................................................. 51
2.3.3 Conformity of the goods and third party claims ................................................................................. 54
2.3.4 Avoidance .............................................................................................................................................................. 62
2.3.5 Damages ................................................................................................................................................................ 66
2.3.6 Interest ................................................................................................................................................................... 72
2.3.7 Force majeure ..................................................................................................................................................... 78
2.3.8 Preservation of the goods .............................................................................................................................. 79
IV. CONCLUSION ............................................................................................................................................. 82
BIBLIOGRAPHY .............................................................................................................................................. 88
V
List of abbreviations
Art(s) Article(s)
cf confer
cp compare
CISG United Nations Convention on Contracts for the International Sale of
Goods of 11 April 1980
CMR Convention on Contract for the International Carriage of Goods by
Road
DEM Deutsche Mark (former official currency of Germany)
doc document
d.o.o. drutvo s ogranienom odgovornou (Serbian for limited liability
company, LLC)
CLOUT Case Law on UNCITRAL Texts
ECB European Central Bank
ed(s) editor(s)
edn(s) edition(s)
eg for example
et al and others
et seq and following
etc etcetera (and so forth)
Esq esquire (title used by attorneys in the United States)
EU European Union
FTCA Foreign Trade Court of Arbitration at the Serbian Chamber of
Commerce
f(f) and the following page(s) or section(s)
GAOR General Assembly Official Records
GmBH Gesellschaft mit beschrnkter Haftung (German for limited liability
company)
i.a. inter alia, among other things
ibid ibidem, the same place
i.c. in casu
i.e. id est (that is, meaning that)
Jr. junior
VI
LIBOR London Interbank Offered Rate
LCT Serbian Law on Contracts and Torts
lit litera
n/nn footnote/footnotes
No number
OHADA Organisation pour l'Harmonisation en Afrique du Droit des Affaires
(Organisation for the Harmonization of Commer