Methods of Restitution of Contractual Obligation Breach in the International Sales of Goods Convention

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Abstract

Articles 74 to 77 of the International Sales of Goods Convention 1980 are allocated to "breach of contract damages". Declaring a general rule, article 74 speaks about necessity of resorting damages and art. 75 & 76 consider the substitute transaction and the current price as two methods of restitution. Art. 77 points to "mitigation of loss". According to this rule, if the damaged party fails to mitigate, he is not liable to claim damages in the amount by which the loss should have been mitigated. Principles of UNIDROIT, PECL, French and Iranian Law about compensation of contractual obligation breach are different from the provisions of the Convention.