Document Type

Article

Publication Title

Georgia Journal of International and Comparative Law

Abstract

From what has been discussed thus far, one conclusion can be drawn: the formula to calculate the interest rate is determined by the law of the country of the seller, at least where the rules of private international law of the forum are based upon the criteria comparable to those set forth by the 1980 EEC Convention on the Law Applicable to Contractual Obligations. Absent a choice of law, the Rome Convention makes applicable the law with which the contract has the closest connection: this is presumed to be the law where the party who is to effect the "characteristic performance" has its place of business or habitual residence. As one author states, "[A]s a rule, the characteristic performance of a contract is not the payment of money. However, in the case of a sales contract, it is the delivery of the goods... which characterizes the contract. It is, therefore, the seller's law which applies. What if the seller's law does not allow interest? In this line of cases, the claim does not become unenforceable as several authors suggest. On the contrary, there should be recourse to the level of interest generally applied in international commerce in the particular trade concerned.

First Page

467

Volume

24

Publication Date

1995

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