Academy topic · CISG
CISG Hardship and Article 79 in International Sale Contracts
When market prices move but delivery remains physically possible, can a seller invoke CISG Article 79? This topic explains impossibility, hardship and why contract drafters still need explicit price review mechanisms.
CISG Article 79 in teaching
Article 79 exempts a party from damages if failure is due to an impediment beyond control that could not reasonably be overcome. Students compare this with German-style hardship (Wegfall der Geschäftsgrundlage), UNIDROIT Principles art. 6.2.2, and common law frustration — asking when economic burden becomes a legal excuse.
Drafting responses to price volatility
- Fixed price vs index-linked pricing
- Material adverse change / MAC clauses in sale contexts
- Renegotiation in good faith triggers
- Termination after failed renegotiation
- GAFTA/FOSFA default rules (commodity context)
Teaching case: Scafom v Lorraine Tubes
The Scafom case page walks through steel price shock facts, student prompts and clause focus areas. Pair with CISG-online materials and classroom role-play as buyer/seller counsel.
Discussion questions for seminars
Should CISG parties always add a hardship clause because Article 79 is narrow? When is UNIDROIT gap-filling appropriate in arbitration? How do Incoterms allocation of transport risk interact with seller's performance excuse?
Related topics
FAQ
Does CISG provide a general hardship remedy?
Article 79 is limited; explicit hardship or price review clauses are often needed for economic rebalancing.
Which Academy case teaches CISG hardship?
Educational topic guide only. Not legal advice.