Does Breach of Contract Pay? : The Disgorgement of Profits under the UN Sales Convention
type: CreativeWork
description: The theme of this study relates to the basic values of contract law: Is breach of contract a wrong? Is compensation the sole objective of contractual remedies? Does – and should – breach of contract pay? The themes reflect in the subject of the study, which is the disgorgement of profits under the United Nations Convention on Contracts for the International Sale of Goods (the “CISG” or “Convention”). The disgorgement of profits is a legal remedy that may come to question if breaching a contract is profitable to the defaulting party even though the aggrieved party is compensated. Disgorging profits denotes awarding the profit that arises out of the breach to the aggrieved party. The study discusses three research questions. The first question enquires whether a trend in domestic contract laws to expand the availability of disgorgement damages should be taken into account in the interpretation of the CISG. The issue revolves around the principle of uniform application. The principle entails that the interpreter should not read the Convention through the lenses of domestic law, but rather as an autonomous body of law. As a response to the first research question, the study suggests that the pro-disgorgement trend should not influence the interpretation of the CISG. The main reason for the conclusion is that the trend favouring disgorgement does not concern the majority of the CISG states, and taking such a trend into account in the interpretation of the CISG involves a significant risk of fragmenting the interpretation. The second research question asks if the CISG provides for disgorgement. The study reviews the wording and the legislative history of Article 74 CISG, as well as the principles underlying the Convention as regards contractual remedies, namely the economic benefits principle and performance principle. Following the examination, the study suggests that if the aggrieved party does not incur loss as a result of breach of contract, it is not in line with the…
abstract: The theme of this study relates to the basic values of contract law: Is breach of contract a wrong? Is compensation the sole objective of contractual remedies? Does – and should – breach of contract pay? The themes reflect in the subject of the study, which is the disgorgement of profits under the United Nations Convention on Contracts for the International Sale of Goods (the “CISG” or “Convention”). The disgorgement of profits is a legal remedy that may come to question if breaching a contract is profitable to the defaulting party even though the aggrieved party is compensated. Disgorging profits denotes awarding the profit that arises out of the breach to the aggrieved party. The study discusses three research questions. The first question enquires whether a trend in domestic contract laws to expand the availability of disgorgement damages should be taken into account in the interpretation of the CISG. The issue revolves around the principle of uniform application. The principle entails that the interpreter should not read the Convention through the lenses of domestic law, but rather as an autonomous body of law. As a response to the first research question, the study suggests that the pro-disgorgement trend should not influence the interpretation of the CISG. The main reason for the conclusion is that the trend favouring disgorgement does not concern the majority of the CISG states, and taking such a trend into account in the interpretation of the CISG involves a significant risk of fragmenting the interpretation. The second research question asks if the CISG provides for disgorgement. The study reviews the wording and the legislative history of Article 74 CISG, as well as the principles underlying the Convention as regards contractual remedies, namely the economic benefits principle and performance principle. Following the examination, the study suggests that if the aggrieved party does not incur loss as a result of breach of contract, it is not in line with the…
author: Riivari, Eeva
language: eng
date published: 2016
date modified: 2026-07-27T19:56:27Z
provider: University of Helsinki
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: Helsingfors universitet

PropertyValue
property ID: Handle
value: http://hdl.handle.net/10138/167110