Damages under the CISG
CISG article 74 provides damages equal to loss, including lost profit, caused by a breach, limited to loss the breaching party foresaw or ought to have foreseen at contract conclusion as a possible consequence. Article 77 requires reasonable measures to mitigate loss and permits a reduction for loss that should have been avoided. Causation, evidence, alternative calculation provisions and the facts require careful analysis; the rules apply only where the Convention governs.
Worked example
A seller breaches a sale contract, causing the buyer a documented replacement cost. The parties assess causation, what was foreseeable when the contract was made and whether the buyer took reasonable steps to limit the loss.
Common mistake
Measuring foreseeability only at breach, or assuming an injured party must take unreasonable steps to mitigate loss.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | LW (GLO) | Direct | September 2026–June 2027 |