1. Chapter7: General obligation of the seller & the buyer
Generally:
The seller must provide the goods.
The buyer must pay to the seller.
Under D#38:
Seller’s obligation (Art.36 to 49)
Disclose information: The seller must inform the buyer of all the essential qualities and all the other substantial condition relating to the sale item, particularly information concerning rights that others have in the item. (Art.39 )
Maintain the goods until time of delivery: The seller to “maintain the sale item in good condition until the due date for delivery”. (seller may not change or modified sale item until delivery.) (Art.36)
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Deliver goods as provided in the contract:
The seller must provide the goods as provide in the K calling as Confirming goods. (Art.34 & 40 )
The seller also must deliver all relevant documents to the buyer along with the actual goods. (Art.39 )
Question#19 (p:56)
Derivative rights: “The seller shall hand over not only the original item but also derivatives & accessories of the original item” (Art. 40)
Derivative rights include a right to produce copies of the original goods. (Look example p:57 )
Derivative rights such as:
Natural: tree (fruit)
Civil: to rent for doing business
Industry: machine produce a product
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Buyer’s obligations (Art.50 to 55)
Buyer must pay for goods of contract price on the day and at the place as provided in contract. (Art.50)
If payment is late, the buyer must pay interest rate but not exceed 5% per year and must be expressly stated in the contract or no interest can be charged. (Art.51)
If payment is to be made at the time of delivery, the seller is entitled to retain possession of the sale item until the buyer delivers payment to the seller. (Art.53)
If no payment or only a partial payment is made, the seller can either rescind the contract or sue for breach. (Art.54)
If the K is rescinded, both parties must return anything they have received from another party (Art.55)
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Under CISG
The seller’s obligations
Deliver the goods including handing over any documents relating to the goods and transferring the property in
the goods to the buyer. (Art.31 to 34)
Ensure that the goods confirm to
the description in the contract. (Art.35 to 40)
Ensure that the goods are free from any right
of a third party unless the buyer agrees.
This doesn’t include intellectual property & industrial property rights.(Art )
The buyer’s obligations
Pay the price of the goods. (Art.53 to 59)
Take delivery of the goods. (Art.60) $
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