Scafom International BV v. Lorraine Tubes S.A.S.: a case review of changing circumstances under the United Nations Convention
Scafom International BV v. Lorraine Tubes S.A.S.: a case review of changing circumstances under the United Nations Convention

Summary/Abstract: This paper analyses the Belgium Supreme Court decision of Scafom International BV v. Lorraine Tubes S.A.S. The case involved a contract of sale of volatile goods ie steel tubes whereby a fixed-price contract caused it to be unenforceable because of the 70% market price increase just before the goods were delivered to the buyer. While the seller requested for renegotiation, for a higher contract price, the buyer refused to come to terms with the former. The court, by virtue of the United Nations sales law, held that renegotiation was the appropriate remedy in such a situation. In addition, the paper tests the different possible outcomes of this decision under the English Sale of Goods Act 1979, as well as the US Uniform Commercial Code. The finding of this test proves that these two sales laws would have tackled the issue of volatile market differently from that of the United Nations’.

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