Fundamental breach under the CISG
CISG article 25 requires a substantial deprivation of the contractual expectation. A breach is not fundamental where the breaching party did not foresee, and a reasonable person of the same kind in the same circumstances would not have foreseen, that result. This classification matters to particular remedies, including avoidance in specified circumstances. It is not a condition for the Convention to apply in the first place.
Worked example
A specialist buyer makes its purpose clear and receives goods with an unrepairable defect that defeats that purpose. Assess whether the resulting deprivation and foreseeability requirements are met before deciding whether avoidance is available.
Common mistake
Calling every defect fundamental, or claiming a fundamental breach is needed before the CISG applies.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | LW (GLO) | Direct | September 2026–June 2027 |