, LJU4804 Assignment 2 (COMPLETE ANSWERS)
Semester 1 2025 (166975) - DUE 16 April 2025 ; 100%
TRUSTED Complete, trusted solutions and
explanations.
Computec (Pty) Ltd is a South African company with its principal place of
business in Johannesburg, South Africa. Computec manufactures and exports
computer hardwarecomponents. Technologie GmbH is a German company with its
principal place of business in Hamburg, Germany. Technologie regularly
purchases large consignments of computer hardware from Computec. It has
become standard practice between the companies that the goods are shipped CIF
(Hamburg) (Incoterms 2020). Payment is always made by means of confirmed
letters of credit, issued by Deutsche Bank (Berlin) and confirmed by Rand
Merchant Bank, (Johannesburg).
The contract contains a choice of law clause in favour of German law. During June
2023, a dispute arose as to the quality of a shipment of computer components
received in May of that year. Technologie argued that the quality of the hard drives
received in that shipment, were not of the same quality as those received in
previous orders and demanded that the hard drives be replaced. Computec refused,
arguing that the goods were in conformity with the contract. In February 2024,
Technologie instituted a claim against Computec in the South Gauteng High Court.
1.1 Germany is a CISG contracting state. Should the CISG be applied to the
dispute between the parties? (Refer to the applicability criteria of the CISG and
your prescribed journal article on the topic). (3)
To determine whether the United Nations Convention on Contracts for the
International Sale of Goods (CISG) applies to the dispute between Computec
(Pty) Ltd and Technologie GmbH, we need to consider the applicability criteria
under the CISG and relevant case law and scholarly commentary.
1. Applicability Criteria under the CISG:
The CISG applies to contracts for the international sale of goods under Article
1(1), when:
(a) The parties have their places of business in different contracting states; or
Semester 1 2025 (166975) - DUE 16 April 2025 ; 100%
TRUSTED Complete, trusted solutions and
explanations.
Computec (Pty) Ltd is a South African company with its principal place of
business in Johannesburg, South Africa. Computec manufactures and exports
computer hardwarecomponents. Technologie GmbH is a German company with its
principal place of business in Hamburg, Germany. Technologie regularly
purchases large consignments of computer hardware from Computec. It has
become standard practice between the companies that the goods are shipped CIF
(Hamburg) (Incoterms 2020). Payment is always made by means of confirmed
letters of credit, issued by Deutsche Bank (Berlin) and confirmed by Rand
Merchant Bank, (Johannesburg).
The contract contains a choice of law clause in favour of German law. During June
2023, a dispute arose as to the quality of a shipment of computer components
received in May of that year. Technologie argued that the quality of the hard drives
received in that shipment, were not of the same quality as those received in
previous orders and demanded that the hard drives be replaced. Computec refused,
arguing that the goods were in conformity with the contract. In February 2024,
Technologie instituted a claim against Computec in the South Gauteng High Court.
1.1 Germany is a CISG contracting state. Should the CISG be applied to the
dispute between the parties? (Refer to the applicability criteria of the CISG and
your prescribed journal article on the topic). (3)
To determine whether the United Nations Convention on Contracts for the
International Sale of Goods (CISG) applies to the dispute between Computec
(Pty) Ltd and Technologie GmbH, we need to consider the applicability criteria
under the CISG and relevant case law and scholarly commentary.
1. Applicability Criteria under the CISG:
The CISG applies to contracts for the international sale of goods under Article
1(1), when:
(a) The parties have their places of business in different contracting states; or
