THE PROBLEM

3. The BUYER undertakes to purchase a minimum of at least 2,000 fan blades under this
Agreement, expressing at the same time the firm intention to purchase further units in
subsequent years.
Section 3 DELIVERY
1. The SELLER agrees to produce and deliver 2,000 TRF 192-I swept fan blades by 14
January 2015.
[…]
Section 4 PURCHASE PRICE
1. The purchase price is calculated on a cost-plus basis according to the following formula
• Production Costs per blade ≤ 9,500 US$: 9,975 US$
• Production Costs per blade: 9,500 – 10,500 US$: Costs + 475 US$ (5% of 9,500)
• Production Costs per blade: 10,501 – 11,500 US$: Costs + 420 US$ (4% of 10,500)
• Production Costs per blade: 11,501 – 12,000 US$: Costs + 345 US$ (3% of 11,500)
• Production Costs per blade: 12,001 – 12,500 US$: Costs + 240 US$ (2% of 12,000)
• Production Costs per blade: 12,501 – 13,000 US$: Costs + 125 US$ (1% of 12,500)
• Production Costs per blade ≥ 13,125 US$: 13,125 US$
The minimum price per fan blade irrespective of production costs is US$ 9,975 while the
maximum price to be charged per fan blade is US$ 13,125.
Should the production costs per fan blade exceed US$ 13,125 due to extraordinary
unforeseeable circumstances and result in unbearable hardship for the Seller the Parties will
enter into good faith negotiations to determine a price which is financially acceptable to
both parties.
2. The price is due upon delivery of the fan blades and payment should be confirmed by the
BUYER as soon as possible.
3. The BUYER will deposit the purchase price in full into the SELLER’s account at the
Equatorianian National Bank, Ocean Promenade 3, Equatoriana, IBAN 1209 3456 6798;
SWIFT EQXPL6. The bank charges for the transfer of the amount are to be borne by
the BUYER.
[….]
Section 20 CHOICE OF LAW
This Agreement is governed by the UN Convention on the International Sale of Goods
(“CISG”). For issues not dealt with by the CISG the UNIDROIT Principles are applicable.
© Association for the Organisation and Promotion of the Willem C. Vis International Commercial Arbitration Moot 10
Prof. Dr. Stefan Kröll