CISG Articles 7173 contain legal rules on anticipatory breach. Article 77 contains rules on the mitigation of

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CISG Articles 71–73 contain legal rules on anticipatory breach. Article 77 contains rules on the mitigation of damages. These articles can be found in the appendix. Consider the following case: A contract provided that Mexicana Fabricators, S.A., would deliver 1,000 personal computer housings by December 1 to AES Computer, Inc., in Austin, Texas, for a total price of $50,000. On July 1, Mexicana faxed AES that due to a rise in prices they could not deliver for less than $60,000. AES replied that it would insist that Mexicana deliver at the $50,000 price. From July 1 through September, AES could have bought the housings from other suppliers for $55,000 for December 1 delivery. On December 1, AES covered and purchased the housings for $64,000 for delivery on February 1. Because of the delay until February 1, AES Computer suffered additional damages of $2,000. What is the measure of AES’s damages? Was AES under any duty to mitigate damages? Why or why not?

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International Business Law and Its Environment

ISBN: 978-0324649659

7th Edition

Authors: Richard schaffer, Filiberto agusti, Beverley earle

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