It is common in commercial contractual negotiations for there to be numerous correspondences and McKendrick highlights the fact that commercial contractual negotiations will often result in offers and counter offers being communicated10. In addressing this conundrum, the decision in Hyde v Wrench11 determined that any counter offer during negotiations will result in a termination of the original offer. This position is reiterated by Article 19(1) of the UN Convention, which provides that:However, Article 19(2) of the UN Convention makes a distinction and provides that if a reply to an offer includes additions that do not “materially alter” the terms of the offer, then unless the offeror objects to such additions; this scenario will not constitute a counter offer. In providing further guidance as to what will constitute a material addition for the purposes of falling within the counter offer category, Article 19(3) of the UN Convention provides that additions and alterations relating to price, delivery, liability and dispute resolution will constitute material additions. In order to consider the potential liability of both parties under the UN Convention, it is necessary to evaluate the Convention provisions on conformity of goods, remedies for breach of contract by the seller and remedies for breach of contract by the seller.As an initial observation it is evident from the outset that whilst part of the consignment provided by Beni was the wrong colour and therefore prima facie in breach of contract; Axel has been able to use the material and sell the product at no apparent loss and the essence of breach of contract claims against a. The UN Convention on Contracts for the International Sale of Goods.
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Furmston, M. P. (20070 Cheshire, Fifoot & Furmston’s Law of Contract. 15th Edition Oxford University Press
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The UN Convention on Contracts for the International Sale of Goods 1980 available at www.uncitral.org/pdf/english/texts/sales/cisg/CISG.pdf accessed February 2010.
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