Case Brief--CISG 2 - Huan Long Case Brief: Pratt &...

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Huan Long Facts: The plaintiff, Pratt & Whitney, negotiated with the defendant, Malev Airlines, to sell jet engines to it. After negotiation, on December 14, 1990, the plaintiff sent a proposal to defendant, with a deadline for the proposal of December 21, 1990. The defendant accepted the proposal on December 21, 1990. However, on March 25, 1991, the defendant informed the plaintiff that it would not buy the jet engine from plaintiff anymore. Issues: 1. Given the condition that the aircraft is excluded from the coverage of CISG, should the aircraft parts be covered under the CISG? 2. Whether the proposal without a fixed price or quantity was an offer? 3. Whether the defendant’s response on December 21, 1990, was an acceptance? Holdings: 1. Yes. According to Article 3 of the CISG, “such component parts are covered as contracts relating to the production of goods”. 2. Yes. According to the Article 14 of the CISG, “plaintiff’s proposal of December 14, 1990, was a legal offer under the CISG”. 3. Yes. According to the Article 23 of the CISG, the court believed that “defendant’s response of December 21, 1990, established a valid agreement”, that is, it was an acceptance. Rationale: 1. According to the Article 2 of CISG, the sale of “ships, vessels, hovercraft, or aircraft” is not covered. However, in this case, the goods is a component of the aircraft, which should not be bound in the Article to. Thus, it should be covered under the CISG. 2. According to the Article 14 of the CISG, as long as a proposal is “addressed to one
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Case Brief--CISG 2 - Huan Long Case Brief: Pratt &...

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