Abstract:
This paper is dedicated to the remedy of reduction of price. It analyses and compares the corresponding provisions of the German Civil Code (BGB), the United Nations Convention on the International Sale of Goods (CISG) the Principles of European Contract Law (PECL) and the Draft Common Frame of Reference (DCFR). Special attention is paid to common law influence on the remedy. The comparison shows eventually that there was significant influence which resulted in a change of the reference point for the calculation of the reduced price to the time of delivery instead of the time of the conclusion of the contract. This change caused several disadvantages and was a mistake. Apart from this, the occurrence of the remedy constantly improved over time peaking in the very clear provision of the DCFR. The paper then outlines the advantages of the remedy in contrast to damages showing that the reduction of price is more beneficial for the buyer in several situations. The last chapter shows that the remedy is significantly less used by common law than civil law lawyers. This is because the remedy seems to be in discord with the common law’s view of contracts, especially the need for consideration. However, the remedy does not contravene the principles of the common law and barely noticed found its way into common law jurisdictions. The paper concludes that the common law should adopt the remedy and help to develop it further.
