Exchange Rate Loss As Damage Under The United Nations Convention On Contracts For The International Sale Of Goods

In international commercial disputes,the compensation of economic loss caused by exchange rate risk is closely connected to the interest of both parties of contracts.However,it is indistinct whether the exchange rate loss can be compensated as damage in accordance with the damage clause article 74 of the convention,which leads to differences or disputes in practice and theoretical realm.According to the discussion about the compensation of exchange rate loss among various tribunals,this article reads up on the convention text and makes an investigation and reference on the three international commercial codes with wide application in the world,and then makes a brisk summing-up that the principle of full compensation should be applied to explain the damage under the convention.The exchange rate loss which meets the requirement under article 74 can be compensated as damage.Furthermore,this article gives the scope of compensation and the corresponding burden of proof.At length,this article does a research on the practice of compensation of exchange rate loss in China court and its reflection,by analyzing the relevant cases involving compensation of exchange rate loss in China,suggesting that more uniform specification should be applied in China.In terms of the cases which should apply the convention,the compensation of exchange rate loss should be explained under the article 74 of the convention.