Facts
The appellant, an Italian joint-stock company, purchased rolled wire from the respondent, a Swiss joint-stock company. The sales contract provided for the delivery of 5,000 metric tons of rolled wire. The appellant claimed that the delivered rolled wire was defective and did not have a minimum tensile strength of 400 MPA. It refused to accept the goods and pay the purchase price.
The respondent sued for payment of the purchase price and claimed that the appellant had cancelled the sales contract without grounds. The lower court partially granted the claim and ordered the appellant to pay part of the purchase price.
Considerations
The Federal Court had to examine whether the appellant was entitled to cancel the sales contract due to the defective goods. It assumed that the appellant had rejected the goods not because of the delayed delivery, but because of the defective quality.
The court examined whether the appellant was entitled to cancel the sales contract due to the defective quality. It found that the appellant had not proven that the goods were not…