An Explanation Of CISG Damage Compensation System In China 's Case

The damage system is the core of the United Nations Convention on Contracts for the International Sale of Goods (or CISG for short), as whether the claims of aggrieved parties or the results of proceedings both centre on it in the cases of trade disputes. The international character of CISG makes it to be a convention which is independent of any domestic law, but the application of its damage system can not be separated from the relevant interpretation. China as a big trading nation in the world, its courts and arbitration bodies apply CISG to a large number of cases every year, so the interpretation of them has a great impact on the vitality of CISG. The best way to ensure that judges and arbitrators will make the same sentences in the similar cases, and the contract parties will not make wily choices about possible courts or arbitration bodies is that we should pay close attention to the research about the interpretation on the damage system of CISG in the judicial practice of China. Only with the uniform interpretation which meets the purposes of CISG can it be applied more correctly in China and all over the world.This thesis mainly studies the interpretation of CISG’s damage system in the judicial practice of China. The damage system is decomposed to four aspects, including the cause-and-effect relationship, the scope and the amount of damages, and the restrictive terms which should be concerned when identifing damages under CISG. What’s more, it analyses in detail that how does the damage system of CISG applied and interpreted by the courts and arbitration bodies of China through studing 26 representative cases, and points out the existing defects in the interpretation of these cases, including sharing loss between parties according to the fault, the disunity standard of the interpretation of predictability, the unclear understanding of the relationship between CISG article 75 and 76, the wrong interpretation of the current price, the inaccurate judgment on the rationality of the mitigation measures, the wrong application of CISG article 79 and the inaccurate interpretation of the applicable situation of "dirty hand rule". In addition, this thesis sums up the contributing factors of those defects as the neglect of the international character of CISG under the influence of the inherent thinking, the interpretation deviation under the single method, the lack of the consistency of the judgment of the excessive discretion, and puts forward the corresponding improvement measures in the end.