The Obligee’s Right to Invoke Price Reduction Thereupon Imposing Commercial Sanctions According to the United Nation Convention on the Contracts for the International Sale of Goods

A sanction which is imposed after the conclusion of a contract has various effects on the performance of the obligations arising out the contract. In such situation, if obligor of an international commercial contract refused to perform his/her contractual obligations due to the imposition of a sanction, the obligee would have the right to invoke some of the remedies for breach of the contract. The main question of the this research is that in the disputes and contracts which are under scope of application of the United Nation Convention on the Contracts for the International Sale of Goods, even if because of a sanction the obligor was granted an exemption from paying damages for breaching of a contract by a competent authority (the court, arbitrator or arbitral tribunal) could obligee invoke the right to declare price reduction as remedy? In general, the answer is yes. However, in order to explain the conditions, specifications, and the effects of this remedy three assumptions have been distinguished in this paper: 1) the sanction affects entire performance, 2) the sanction affects the performance partially and the performance is inseverable, and 3) the sanction affects the performance partially and the performance is severable.