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Chateau des Charmes Wines Ltd. V. Sabaté             328 F.3d. 528 (9th Cir. 2003)  United States Court of Appeals (9th Ci...
The Contract• Between Sabaté France and Chateau Winery, a Canadian winery• Agreed to by Telephone• Agreement included quan...
CISG as applied to the Contract• CISG is valid and binding• Sale of goods between businesses in different countries• Contr...
Breach of Contract Overview• Sabaté Companies advertises superior pure corks• Tainted corks ruins wine• One-million bottle...
Start of Legal ProceedingsChateau des Charmes alleges breach of contract     against Sabaté France & Sabaté USA     Files ...
Remedies for Breach of Contract• Avoidance of the contract• Right to remedy or cure• Set additional time or extension for ...
Fundamental Breach• Breach of contract committed by one party• Is a detriment to the other party• Deprives other party of ...
Anticipatory Breach                   • Right to suspend performance                • Right to avoid for anticipatory brea...
The Resolution• No evidence of Chateau agreeing to the terms of the selection clause.• Chateau performed under oral contra...
Opinions on the Case All three in the learning team were in agreement that   the court made the right decision. Sabaté d...
ReferencesAspen Law School. (n.d.). Chateau Des Charmes Wines Ltd. v. Sabate USA Inc.   Ninth Circuit Court of Appeals . 3...
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Chateau des Charmes Wines Ltd. V. Sabaté

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Chateau des Charmes Wines Ltd. V. Sabaté

  1. 1. Chateau des Charmes Wines Ltd. V. Sabaté 328 F.3d. 528 (9th Cir. 2003) United States Court of Appeals (9th Cir.) Case Study Presentation Jo Ellen Kano International Law May 30, 2011
  2. 2. The Contract• Between Sabaté France and Chateau Winery, a Canadian winery• Agreed to by Telephone• Agreement included quantity, price, payment, and shipping• 2nd order also by Telephone• Eleven shipments totaling 1.2 million corks• Invoice accompany shipment
  3. 3. CISG as applied to the Contract• CISG is valid and binding• Sale of goods between businesses in different countries• Contract need not be in writing• An offer exists if it indicate the goods fixes or makes provision for determining price and quantity• Demonstrates intention of offeror to be bound• Concluded when offer is accepted
  4. 4. Breach of Contract Overview• Sabaté Companies advertises superior pure corks• Tainted corks ruins wine• One-million bottles of wine affected• Remedies of breach• Fundamental breach – CISG Article 25• Anticipatory BreachJune 28, 2012 University of Phoenix/BUS430 4
  5. 5. Start of Legal ProceedingsChateau des Charmes alleges breach of contract against Sabaté France & Sabaté USA Files lawsuit in Federal District Court in California Claims strict liability Breach of warranty False advertising Unfair competition
  6. 6. Remedies for Breach of Contract• Avoidance of the contract• Right to remedy or cure• Set additional time or extension for performance known as Nachfrist Period• Price reduction• Money and consequential damages• Specific performance
  7. 7. Fundamental Breach• Breach of contract committed by one party• Is a detriment to the other party• Deprives other party of what they are entitled• If breach was not foreseeable under the circumstances
  8. 8. Anticipatory Breach • Right to suspend performance • Right to avoid for anticipatory breach • Avoidance of installment contractsJune 28, 2012 University of Phoenix/BUS430 8
  9. 9. The Resolution• No evidence of Chateau agreeing to the terms of the selection clause.• Chateau performed under oral contract guidelines• The district court had nothing to enforce, the dismal was an abuse of discretion• The 3rd Circuit reverses the decision and remands the decision.
  10. 10. Opinions on the Case All three in the learning team were in agreement that the court made the right decision. Sabaté did not properly follow CISG guidelines when adding to the original contract. The original contract should stand
  11. 11. ReferencesAspen Law School. (n.d.). Chateau Des Charmes Wines Ltd. v. Sabate USA Inc. Ninth Circuit Court of Appeals . 328 F.3d 528 (2003). OPINION. PER CURIAM Retrieved from www.aspenlawschool.com/books/knapp_contracts/updatPace Law School Institute of International Commercial Law. (2007). Guide to Article 25. Retrieved from http://www.cisg.law.pace.edu/cisg/text/peclcomp25.htmlOsgoode Hall Law School York University. (2006). Chateau Des Charmes Wines Ltd. v. Sabate, USA, Inc. Retrieved from http://www.osgoode.yorku.ca/cisg/ChateauDesCharmesWinesv.Sabate.ht mSchaffer, R., Agusti, F., & Earle, B. (2009). International business law and its environment (7th ed.). Mason, OH: Cengage.June 28, 2012 University of Phoenix/BUS430 13

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