A Review on Anticipatory Contractual Breaches and Remedies under CISG

Abstract

Purpose – This research aims to explore the practical application of anticipatory breaches in international sale contracts, examine the legal framework, and analyze the impact on the parties involved. Design/Methodology/Approach – The research methodology involves analyzing a case study in which decisions were made applying articles 71, 72, and 73 of the CISG, which govern the issue of an anticipatory breach of contract. Findings – The findings suggest that a party intending to suspend its obligations or terminate a contract for an anticipatory breach must present objective evidence. However, if there are suspicions, but it is difficult to submit evidence, the party may, by notice, request the other party provide appropriate security for the performance of the contract. If the other party does not provide adequate security, that fact could be used as evidence. Research Implications – The anticipatory breach provisions set out in articles 71, 72, and 73 of the CISG help to adjust potential damages and allow both parties to take effective measures in case of a potential breach of contract. It may be necessary for both sellers and buyers to take effective measures without waiting until the breach materializes on the due date. The originality of the research lies in its examination of the practical application and legal framework of anticipatory breach, and its impact on the parties involved in international sale contracts.