The issues in this case is
-- what is the governing law?
-- Does CISG apply?
-- Is there a breach of contract by (seller) as regards to (a) Delay of delivery (b) quality if wines?
-- What are the remedies available to (buyer)?
1. Is there a choice of law clause?
( Yes – Australian is the governing law )
( No- where there is no choice of law clause in the sale contract, courts will choose the law of nation which has the ‘ closest and most real link to the contract- The forum of the contract
Currency of payment
Place of performance of contract
Place where contract is concluded
Residency of parties to contract
Subject matter of contract
Contract concluded in Aus, using AUD$, Performance is in Australia therefore, governing law of this contract is Australia.
The governing law is determined following the steps laid down in John Kaldor v Mitchell Kotts .
Under Article 1(a) Vienna Convention 1980, both countries must be signatory of Vienna Convention. In fact, both (China and Australia) is signatory countries, there for VC will apply.
Moreover, under Article 1( b) Vienna Convention 1980, if the governing law of contract and the country is the signatory of VC, VC applied.
Furthermore, incoterm …
Offer and acceptance (Notes)
Under Article 23 of Vienna Convention, contract is concluded upon effective acceptance of an offer. Shown in the case of Societe Fauba v Siciete Fujitsu. In Article 14 and 15 of VC, the offer must be clear and communicated to the buyer.
Article 18 VC, acceptance is effective when it reaches the offeror within the time frame or reasonable time.
2. Buyer will argue that seller has breached
Delivery of goods from seller to buyer usually involves the passing of property and risk in the goods
a) Time of delivery of goods
Article 33 (a) – If a particular date of delivery is fixed in contract, goods must be delivered then OR (b)- If a period of time is fived in