Understanding Remedies for Breach of Contract

in International Sales Law

It is crucial to understand the remedies available to buyers in the event of a breach of contract. International sales contracts, often governed by frameworks like the United Nations Convention on Contracts for the International Sale of Goods (CISG), provide specific remedies for buyers to ensure fair dealing and compensation.

Identifying Breach of Contract

A breach occurs when one party fails to fulfill their contractual obligations. This can include delivering goods late, delivering defective or non-conforming goods, or failing to deliver at all.

Remedies Under International Sales Law

  • Right to Demand Specific Performance: Under CISG, buyers can demand specific performance unless the buyer has resorted to a remedy inconsistent with this requirement. This means asking the seller to fulfill their contractual duties, such as delivering the goods as agreed.
  • Right to Repair or Replacement: If the goods delivered are non-conforming, buyers have the right to request repair or replacement, provided it can be done without undue inconvenience or cost.
  • Price Reduction: Buyers can claim a reduction in the price of the goods if they are not as described or are of lesser quality/value than contracted.
  • Damages for Loss Suffered: Buyers are entitled to compensation for any loss suffered due to the breach, including lost profits or additional costs incurred in obtaining substitute goods.
  • Avoidance of Contract: In cases of fundamental breach (a breach that substantially deprives the buyer of what they were entitled to expect under the contract), the buyer may declare the contract avoided. This releases both parties from their contractual obligations, and the buyer may seek restitution for goods already paid for.
  • Interest on Late Payments: If there’s a delay in payment, the buyer is entitled to interest. The rate is generally determined based on the seller's country's laws.

Practical Considerations

  • Timely Notification: Buyers should notify the seller of the breach within a reasonable time frame, failing which they may lose the right to exercise these remedies.
  • Documentation: Maintain thorough documentation of all communications, contractual terms, and evidence of the breach to support your claim.
  • Legal Advice: Consider seeking legal advice, especially in complex situations or where substantial amounts are involved.

For buyers in international trade, understanding these legal remedies is vital. They provide a framework for recourse in the event of a breach of contract, ensuring that buyers can seek fair compensation and enforcement of contractual obligations. Being well-versed in these rights and remedies under international sales law not only empowers buyers in negotiations but also equips them with the tools needed to handle disputes effectively. It is an essential aspect of risk management and strategic procurement in a globalized market.

Learning targets

Introducing the buying party's possibilities when supplying part breaches contract. Definition of damage according to CISG and Unidroit principles are presented as well as alternative remedies and limitation of liability.

Remedies relating to the object of the contract.

  1. Performance, repair and re-delivery.
  2. Price reduction.
  3. Avoidance (termination) of the contract.


    1. There are no free lunches - at least not if the parties can count.

    1. Suppliers obligation to repair and provide substitute goods - but what about damages?

    1. How to calculate price reduction and when have the buyer the right to terminate (avoid) the contract.

    1. Damages available and it's pre-conditions and limitations.

    1. How do Swedish Sales law differ from CISG - direct and indirect loss.

About this course

  • €60,00
  • 10 lessons
  • Advanced level - Tactical buyer
  • 62 min
  • Quiz and Certificate


Advokat, LL.D Jon Kihlman

Jon Kihlman has been a member of the Swedish Bar Association since 2005. His dissertation Fel (Non-conformity, primarily in goods), was published in 1999. He has an independent legal practice in Tändstickspalatset on Västra Trädgårdsgatan 15 in Stockholm. Jon Kihlman works with Swedish and international commercial contract law. Within that field, his practice includes drafting, reviews, legal opinions, consultations, educations, writing of books and articles as well as litigation and arbitration (as counsel or arbitrator). The purpose of public procurement is to conclude contracts. Therefore, Jon Kihlman’s practice includes public procurement. Although primarily focused on drafting of what will eventually become such contracts, his work also simplifies the procurement process as such. He represents both purchasing authorities and suppliers in court when a procurement process is challenged.

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Course is included in following bundle

International Sales Law for Procurement Professionals by Jon Kihlman

Are you a procurement professional looking to expand your knowledge and skills in international sales law? Look no further than Jon Kihlman's online course, "International Sales Law for Procurement Professionals."

About Learn How to Source

Learn How to Source is an online platform based in Sweden, offering a range of procurement courses accessible globally. It serves as a community where procurement experts share their knowledge through online courses, designed for various experience levels from introductory to expert. Courses are concise, about 30 minutes each, and cover different aspects of procurement, tailored for different buyer roles. The courses focus on practical knowledge, presented by seasoned professionals, and include quizzes and certificates. They can be accessed from any device, emphasizing microlearning for flexibility and efficiency.