Learning targets

Introducing the buying party's possibilities when supplying part breaches contract. Definition of damage according to CISG and Unidroit principles are presented as well as alternative remedies and limitation of liability.

Remedies relating to the object of the contract.

  1. Performance, repair and re-delivery.
  2. Price reduction.
  3. Avoidance (termination) of the contract.


In the course you will learn about remedies and one example is LD. The purpose of, in general, liquidated damages (LD) in procurement contract is to increase certainty and avoid the legal costs of determining actual damages later if the contract is breached. But when should the clause be used and what can we expect to achieve?

If the supplier is unable to perform its obligation according to contract, there is a range of remedies available. In most cases buyer want to the supplier to preform according to contract, for example repair of a product which is damaged at delivery. 

In parallell to the remedies related to the goods, buyer should always have the possibility to be reimbursed due to damages caused by the suppliers inability to perform according to contract. These costs could be direct and indirect. 

If the costs due to supplier's non-performance is pre-defined in the contract, it is called liquidated damages.

One very common variant of reimbursement is cost incurred due to supplier delay and is defined in relation to the value of the Purchase order.


Course content

(62 minutes)

    1. Learning objectives

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    1. There are no free lunches - at least not if the parties can count.

    1. Suppliers obligation to repair and provide substitute goods - but what about damages?

    1. How to calculate price reduction and when have the buyer the right to terminate (avoid) the contract.

    1. Damages available and it's pre-conditions and limitations.

    1. How do Swedish Sales law differ from CISG - direct and indirect loss.

About this course

  • €40,00
  • 10 lessons
  • 1 hour of video content

Instructor

Advokat, LL.D Jon Kihlman

Jon Kihlman has been a member of the Swedish Bar Association since 2005. His dissertation Fel (Non-conformity, primarily in goods), was published in 1999. He has an independent legal practice in Tändstickspalatset on Västra Trädgårdsgatan 15 in Stockholm. Jon Kihlman works with Swedish and international commercial contract law. Within that field, his practice includes drafting, reviews, legal opinions, consultations, educations, writing of books and articles as well as litigation and arbitration (as counsel or arbitrator). The purpose of public procurement is to conclude contracts. Therefore, Jon Kihlman’s practice includes public procurement. Although primarily focused on drafting of what will eventually become such contracts, his work also simplifies the procurement process as such. He represents both purchasing authorities and suppliers in court when a procurement process is challenged.

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