Remedies for Breach of Contract
(合同的违约救济）
Remedies for breach of contract under the
CISG
 The
remedies outlined in the CISG include
(1) avoidance of the contracts,
(2) sellers’ right to remedy or cure,
(3) sellers’ additional time to perform,
(4) price reduction,
(5) money damages,
(6) specific performance.
Money damages
Under the common law
(1) Money damages make the injured party be placed
in the position they would have occupied if the
contract had been fully performed.
(2) Types of damages ( T or F statements)
A. Consequential damages are to make the injured
party whole and these damages compensate the
injured party only for injuries actually sustained.

B. When a seller does not deliver goods, knowing that
a buyer is planning to resell those goods
immediately, compensatory damages are awarded
for the loss of profits from the planned resale.
C. Consequential damages differ from compensatory
damages in that they are caused by special
circumstances beyond the contract itself.
D. If a nonbreaching party wants to recover
consequential damages, the breaching party does
not need to know the special circumstances will
cause the nonbreaching party to suffer an additional
E. When an innocent party suffers some
financial loss, nominal damages can be
awarded.
F. Nominal damages are often small, such as a
dollar, but they do establish the fact that the
defendant acted wrongfully.
G. Exemplary damages are designed to punish
a guilty party where an intentional tort may
be tied to a breach of contract.

(1)
Money damages under the CISG (Art. 74----77)
What damages does the CISG recognize?
The CISG provides that a breaching party shall be
liable for damages in an amount sufficient to
make the injured party whole in the event of a
breach.
Article 74 states that damages to an injured party
shall consist of a “sum equal to the loss.”
Thus, under the CISG, both the compensatory
damages and consequential damages can be
awarded.
(2) How to measure money damages?
A. The method of measuring damages depends on
----whether the buyer has been able to purchase
substitute goods from another supplier.
a. If the seller fails to perform and the buyer does
purchase substitute goods ,
damages = the substitute goods price–the contract
price
b.If the buyer has not purchased substitute goods,
damages = the current market price – the contract
price
B. As under the UCC, damages under the CISG may
also include an amount for lost profits and other
consequential damages arising as a “reasonable
foreseeable” consequence of the breach.
Art.74 sets limits for the consequential damages,
which are those that the parties “foresaw or ought
to have foreseen at the time of the conclusion of
the contract.”
Case analysis: Delchi Carrier Spa v.
Rotorex Corporation
(1) background and facts
(an Italian Com.)
(a N.Y. corp.)
Delchi
Rotorex
(buyer) air compressor (seller)
(for use in producing Ariele air conditioners)
2. Legal issue
(1) whether Roterex breached the contract
(2) what damages Delchi should recover
3. Legal principle:
The CISG is the governing law of this
case (Art. 74, 77 of the CISG).
4. Decision:
(1) the decision of the district court:
The defendant breached the contract; the plaintiff
was awarded compensatory damages and those
incidental and consequential damages were denied.
(2) the decision of the circuit court:
The circuit court agreed the district court decision
regarding breach of contract and the district court’s
award of damages for lost profits, but disagreed
with the denial of incidental and consequential
damages.