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The purpose of this study is to contribute to the enhancement of the understanding of theapplication of fundamental breach of contract in the international sale of goods. For thispurpose, the concept of fundamental breach of contract in CISG, the standing rules of courtprecedents and several cases which are connected with fundamental breach of contract wereanalyzed. CISG article 25 gives the definition of fundamental breach of contract. Accordingto this, A breach of contract committed by one of the parties is fundamental if it results insuch detriment to the other party as substantially to deprive him of what he is entitled toexpect under the contract, unless the party in breach did not foresee the event and areasonable person of the same kind in the same circumstances would not have foreseen sucha result. The concept of fundamental breach of contract is the essential of avoidance andremedy system in the CISG, but it is somewhat abstract. For that reason, it is desirable forthe parties to make agreement on the requirements of fundamental breach of contract andremedies specifically. This paper will be helpful for the parties to understand and applyfundamental breach of contract in the international sale of goods under CISG.
