Case brief p262 - by the CISG. 2. Stated in article 14 of...

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Metropolitan Court of Budapest, 13 Bp. P.O.B. 16 (1991) Facts: Defendant and plaintiff carried on negotiation about the sale of jet engines. Plaintiff sent a written proposal to defendant and defendant accepted the proposal within the deadline on December 21, 1990. But defendant informed plaintiff that they no longer planned to buy plaintiff’s engine. Issue: Whether or not was engine covered under the CISG? Whether or not was the proposal without a fixed price an offer? Whether or not was the defendant’s response an acceptance? Holding: The defendant’s response established an acceptance and he was against the provision in CISG. Rationale: 1. The parties are a Hungary company and a US company, so their sale should obey CISG and the CISG is to be a standard to judge who really violated the contract. According to the article 3 of CISG, supply of goods to be manufactured or produced are to be considered sales, so the engine as a part of aircraft is covered
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Unformatted text preview: by the CISG. 2. Stated in article 14 of CISG, a proposal considered to be an offer if it is sufficiently definite and indicates the intention of the offeror to be bound in case of acceptance. In this case, obviously, the defendant accepted the proposal within the deadline of the proposal, which accorded with the description in CISG. So the proposal was an offer. 3. The article18 of CISG noted, an acceptance of an offer becomes effective at the moment the indication of assent reaches the offeror. The case described the defendant accepted and the plaintiff received this acceptance. The article 23 of CISG states that a contract is concluded at the moment when an acceptance of an offer becomes effective in accordance with provisions of this Convention. The acceptance and the offer has been proved effective before, so the contract can be judged valid....
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This note was uploaded on 11/22/2011 for the course BUS 401 taught by Professor Terrywilson during the Spring '11 term at Solano Community College.

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