MEMORANDUM FOR CLAIMANT

Rheinische Friedrich-Wilhelms-Universität Bonn
96. Art. 7 CISG supports this conclusion. Since there is no explicit reference to interest on
damages in Art. 78 CISG, it has to be interpreted according to Art. 7(1) CISG. In doing so,
particular regard is to be had to the purpose of the provision. The intended purpose is to
prevent the debtor’s unjust enrichment and to protect the creditor [Thiele, J. of Int. Com. Law
and Arb. 1998, III.B.5.]. To serve this purpose in cases of breach of contract, the party that
has suffered a loss has to be granted interest on this loss from the time of the breach.
Likewise, gap-filling according to Art. 7(2) CISG would lead to the application of the general
principle of full compensation as expressed in Art. 74 CISG and, thus, to the same conclusion
[Lookofsky, (CISG in Europe) p. 106, note 165]. After all, CLAIMANT is entitled to interest
on its loss of profit.
B. CLAIMANT is entitled to interest from the date payment was due
97. The duty to pay pre-award interest begins when the payment of the sum becomes due
[Honsell, Art. 78 note 8; Staudinger et al/Magnus, Art. 78 note 9]. Payment of damages
becomes due when the damage occurs [Schlechtriem et al, Art. 78 note 15; Staudinger et
al/Magnus, Art. 78 note 10; LG Heidelberg, 3 July 1992 (Germany)]. In the case at hand, the
damages occurred when RESPONDENT failed to pay the price for the goods though payment
was due.
98. The time payment was due has to be determined separately for each of the nine
installments. Each payment was due 30 days after the date CLAIMANT had to deliver an
installment under the contract with RESPONDENT [CLAIMANT’s Exhibit No. 2]. The dates
agreed on for CLAIMANT’s deliveries were the 10 th of each month from May 2001 through
January 2002 [CLAIMANT’s Exhibit No. 3].
99. Every time a certain amount was to pay and RESPONDENT failed to do so, the damages
CLAIMANT has suffered increased by the loss of the profit CLAIMANT would have
generated from the pertinent installment. Consequently, CLAIMANT is entitled to interest on
each fraction amount of damages from the time each installment was due, i.e. 30 days from
the 10 th day of each month from May 2001 through January 2002.
100. If the Tribunal considers it not appropriate to award interest corresponding to the dates
specified above, interest should be awarded from the beginning of the arbitration proceedings.
With commencement of the arbitration against RESPONDENT, CLAIMANT has taken an
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