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In 1980, the United Nations proclaimed formally the convention on the International Sale of Goods to bring an identical laws for transactions of international commercial contracts. The main objective was to develop the competence of these transactions and encourage growth of international trade. Today, more than sixty countries supporting the convention which includes Australia, China, France, Germany, Russia and the United States. Albeit the CISG has successfully proven at various extent. It has not been very successful in the field which is very critical to disputing parties (damages for breach of contract). Undoubtedly of all the CISG articles, the articles related to economic remedies are the most written about and largely prosecuted. Because of inadequacy in uniform guidelines, equivalently at times positioned parties are presented with enormous decisions; such inequality sabotage the scope of the CISG and may compel parties to embrace and implement a sales law rather than the CISG. Primary reasons for such situation is that these CISG means does not ensure any precise economic remedies. Rather it only explains basic regulatory provisions for recovery of damages. This is so indisputable. As John Honnold, who played vital role in the CISG drafting stated, “a breach of contract can occur in an almost infinite variety of circumstances and thus no statute can specify detailed rules for measuring damages in all possible cases.” Whereas the provisions of the CISG only describes basic guidelines to regulate compensation in the event of breach of contract. These guideline allows court of justice to resolve afflicted party’s deprivation depending upon particular case circumstances.Unfortunately, such inadequate precision resulted in great dispute and apparently increasing consequences.There have been many debates that intermissions in the provisions of CISG damages should be covered by UNIDROIT Principles of International Commercial Contracts. In my view, principles of the UNIDROIT should not be used as a gap-filler measure for the CISG. Yet, the UNIDROIT principles may still play important role in the CISG. These provisions helps to understand basic CISG principles that provides guidelines to tribunals and court of justice to settle issues which are not clearly dealt with in the convention. Furthermore, they provide assistance for solution to widely open matters held out of analysis of the convention itself.In my view, the UNIDROIT principles should not be used as formal scope of regulatory to form principles that cannot be acquired from the CISG. They may play vital role in decoding the convention.Ø USE OF THE UNIDROIT PRINCIPLES AND THE CISGThe principles of UNIDROIT encourages basic guidelines for international commercial transactions. Their aim “is to establish a balanced set of rules designed for use throughout the world irrespective of the legal traditions and the economic and political conditions of the countries in which they are to be applied.”The founders of the UNIDROIT principles expected them to implement in a wide variety of circumstances. The preamble explains that:They shall be applied when the parties have agreed that their contract be governed by them.They may be applied when the parties have agreed that their contract be governed by general principles of law, the lex mercatoria or the like.They may be applied when the parties have not chosen any law to govern their contract.They may be used to interpret or supplement domestic law.They may be used as a model for national and international legislators.Although the principles of UNIDROIT follow perceptions found in various regulatory systems, as well as they “embody what are perceived to be the best solution even if still not generally adopted.” Thus, clearly they do not summarize already existing guidelines found in most regulatory system.In numerous circumstances, the guidelines in the UNIDROIT principles are based upon or similar to articles found in the CISG. Such as, the principles of UNIDROIT Article 1.9(1), which states “the parties are bound by any usage to which they have agreed and by any practices which they have established between themselves,” is almost similar to Article 9(1) of the CISG. Furthermore, Article 5.1.7(1) of the UNIDROIT principles, which deals with the general guidelines for deciding the contract price when the agreement does not make arrangement for deciding the contract price is identical to Article 55 of the CISG. At some instances, the UNIDROIT principles follows basic means which are generally found in the CISG, but adopt the guideline “to reflect the particular nature and scope of the principles.” For instance, Article 7.2.2 of the UNIDROIT principles which deals with the right to require accomplishment of non-monetary responsibilities follows the basic guidelines of Article 46 of the CISG but involves “certain qualifications.”The damages provisions of the UNIDROIT principles are comparable to the provisions of the CISG in numerous ways.Article 74 of the CISG states general provisions for recovery of damages. It grants:Damages for breach of contract by one party consist of a sum equal to the loss,    including loss of profit, suffered by the other party as consequence of the breach. Such damages may not exceed which the party in breach foresaw or ought to have foreseen at the time of the conclusion of the contract, in the light of the facts and the matters of which he then knew or ought to have known as a possible consequence of the breach of contract.Thus Article 74 of the CISG not only provides recovery for actual suffered loss but also for net profit forbidden. Yet it does not provide certain rules for calculations of damages. Rather Article 74 of the CISG allows court of justice to resolve the afflicted party’s loss depending upon the circumstances in certain cases. The objective of the Article 74 of the CISG is to provide “benefit of bargain” to the afflicted party. Thus, Article 74 of the CISG is adequately interpreted to compensate an afflicted party all damages suffered as an outcome of the breach of contract. Though all damages claims comprised in Article 74 of the CISG are liable to conventional restrictions enforced on the damages recovery for breach of contract, such as, the principle of foreseeability and mitigation.Articles 75 and 76 of the CISG provides very narrow substitutes to Article 74 of the CISG. Article 75 of the CISG states procedure for calculating damages when the afflicted party has refrained the contract and tried to get into alternative transactions. The afflicted party here “may recover the difference between the contract price and the price in the substitute transaction as well as any further damages recoverable under Article 74.” On the contrary Article 76 of the CISG sets forth that when an afflicted party has refrained the contract but has not made an alternative transaction under Article 75 of the CISG. It is only available to damages measured by “the difference between the prices fixed by the contract and the current price at the time of avoidance as well as any further damages recoverable under Article 74.”In various ways, provisions for the damages in the UNIDROIT principles are very much similar to the principles of the CISG. Alike Article 74 of the CISG, the UNIDROIT principles states general proposition that the party breaching contract is liable to compensate the afflicted party for all damages suffered by the afflicted party. The UNIDROIT principles moderate damages to those which were foreseeable, similar to the CISG. However, UNIDROIT principles comprises more precise guidelines and in the case of nature and extent of compensation, the principles of UNIDROIT are wider than the CISG.The principles of UNIDROIT comprises provisions similar to Articles 75 and 76 of the CISG. Similar to CISG Article 75, Article 7.4.5 of the UNIDROIT principles sets forth: “where the aggrieved party has terminated the contract and has made a replacement transaction within a reasonable time and in a reasonable manner it may recover the difference between the contract price and the price of the replacement transaction as well as damages for any further harm.” Furthermore like Article 76 of the CISG, UNIDROIT principles Article 7.4.6 sets forth: “where the aggrieved party has terminated the contract and has not made a replacement transaction but there is a current price for the performance contracted for, it may recover the difference between the contract price and the price current at the time the contract is terminated as well as damages for any further harm.”The precise difference which should be noted is that Article 5 of the CISG particularly sets out claims for damages arising from personal injury or death, whereas the principles of UNIDROIT cover them.There are some issues which damages provisions in the CISG does not specifically state but are covered by the principles of UNIDROIT. First is that the CISG provisions do not specifically mandate that damages consist of any compensation received by the afflicted party arising from the breach of contract. Whereas, the principles of UNIDROIT precisely comprises these compensations. Second is that Article 74 of the CISG does not state the scope and extent to which the afflicted party must determine in order to recover damages that it suffered loss. On the contrary, the UNIDROIT principles Article 7.4.3 address that “compensation is due only for harm, including future harm that is established with a reasonable degree of certainty.” The CISG has no provision for the currency to be used in loss calculation as well. Whereas, the UNIDROIT principles expressly address that damages must be determined either in the currency in which contract was expressed or in the currency in which loss was suffered, whichever is more convenient

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