RECOVERABILITY OF THE BUYER'S LOST RESALE PROFIT UNDER CISG

Abstract

It is a common conjuncture that the right to claim damages as a result of a breach of contract plays the most pivotal role among the remedies available to an aggrieved party.1 Hence, the importance of taking a better look at damages that can be recovered for a particular type of loss. In this essay an attempt is made to identify some of the problems that arise before the courts when granting damages for buyer’s lost resale profit under the UN Convention on the Contracts for the International Sale of Goods.2 The practice in the area seems to be far from clear or consistent and academic literature is not always lending a helping hand. The purpose of the first part of the essay is to sketch the notion of lost resale profit against a broader background of the law of damages. Further and more detailed analysis will oscillate around three issues which in practice appear to be central to the recoverability of the lost resale profit by the buyer, namely the foreseeability, calculation and mitigation of that loss. It is fascinating to see how the concrete and abstract considerations, general principles and their detailed applications are all masterfully interwoven in the colourful fabric of the lost resale profit issue. The author hopes to shed some light on the various patterns embellishing this fine material and, if possible single out the most prominent strands.