An economic analysis of the price reduction as remedy for contract breach under the United Nations Convention on contracts for the international sales of goods (CISG)
The CISG (also known as the Vienna Convention) is the result of decades of work, serves as an example of unification of different rules governing international transactions by the international conventions with a goal to eliminate, or at least to reduce, the potential dispute that might occur when an international transaction is concluded. Although the CISG has reached its objective to a certain extent, it has not fully met the desired unification due to the differences between the legal systems which are so deeply entrenched and sometimes very difficult to eliminate. This is the case of the injured party’s right to ask the price reduction as a remedy in the case of breach of contract, knowing that the ˮcommon lawˮ and ˮcivil lawˮ systems have different approaches to this issue, which make difficult finding a compromise on the application of a remedy or another within the Vienna Convention.