CISG Articles 71–73 contain legal rules on anticipatory breach. Article 77 contains rules on the…

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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