CISG price reduction
The buyer may reduce the price in the same proportion as the value of goods actually delivered bore to the value conforming goods would have had at delivery. The rule is subject to its statutory limitations, including the seller’s cure rights and the buyer’s refusal of valid cure. This differs from a freely negotiated discount and from automatically deducting the cost of repair.
Worked example
The contract price is $1,000; conforming goods would have been worth $1,000 at delivery but the non-conforming goods were worth $800. Subject to article 50 conditions, the reduced price is $1,000 × $800 ÷ $1,000 = $800.
Common mistake
Subtracting the defect’s repair cost without applying the proportionate-value formula.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | LW (GLO) | Direct | September 2026–June 2027 |