Disputes under the Vienna Sales Convention revolve around complaints, remedies, and the assessment of damages under CISG rules that differ from Dutch Civil Code. In our practice, we represent Dutch exporters and importers in CISG disputes on a daily basis. Those who know the time limits and remedies often win proceedings that would be lost without that knowledge. The convention is well-developed internationally — UNCITRAL CLOUT contains thousands of rulings.
What is at stake legally?
Under CISG, specific rules apply to complaints (Articles 39, 43), remedies (Articles 45-52, 61-65), damages (Article 74), and fundamental breach (Article 25). Without knowledge, buyers lose rights to claim or sellers lose claims for damages. The burden of proof regarding non-conformity, foreseeability, and causal link lies with the claimant.
What steps are you taking?
Time limits for complaint under CISG: within a reasonable time after discovery, at the latest two years after actual delivery (Article 39, paragraph 2). For third-party rights (IP), a similar provision applies under Article 43. Remedies include performance (Article 46), dissolution in the event of a fundamental breach (Article 49), price reduction (Article 50), and damages. Damages are limited by foreseeability under Article 74. The "Nachfrist" (after-effect) under Article 47 governs succession of defects with time limits.
Statute of limitations is not regulated by the CISG itself; national law (Article 7:23 paragraph 2 of the Dutch Civil Code two years after the complaint) or the UN Limitation Convention 1974 supplements this.
What risks and costs do you face?
A late complaint renders the claim forfeited under Article 39 of the CISG. Incorrect application of remedies (for example, dissolution without a fundamental breach under Article 49) leads to counterclaims. Unfamiliarity with the principle of foreseeability limits damages. Proceedings before state courts that do not recognize the CISG lead to erroneous outcomes. An awkward *Nachfrist* position can undermine dissolution rights.
How did a client handle this?
We represented a Dutch importer who received machines from Germany with hidden defects that became apparent after six months. He filed a complaint within two weeks of discovery. The German court recognized the complaint as timely under Article 39 of the CISG. Compensation for lost production of 380,000 euros was awarded under Section 74 CISG due to foreseeability in pre-contractual communication. A late complaint had invalidated the claim.
What is your first action?
Inspect products immediately upon receipt under Section 38 CISG. File a written complaint within a reasonable time, specifying defects under Section 39. Document discovery and communication carefully. Tailor remedies to the nature of the deficiency. For suppliers: incorporate an acceptance procedure. Combine this with limitation of liability and a short complaint period as an exclusion under Section 6 CISG. See also our article on International Sales Contracts and the Vienna Sales Convention.