Question No 1:

Absinthe Ltd (seller) ships goods to Bismak Ltd (buyer), pursuant to a contract under the CISG. After Bismak take delivery, they discover some damage to the goods. They also discover the goods do not conform to their expectation. They contact Absinthe Ltd immediately who argues that the goods delivered were exactly as specified in the contract. Bismak Ltd's position is that if they had known the extent of the non-conformity they would not have taken delivery of the goods. Both parties agree a significant reduction in the sale price if the goods can be repaired and can therefore still be of use to Bismak, but are not able to come to a final agreement on the question of breach and damages thereof under the contract, if the goods cannot be repaired and are therefore found to be of no use to Bismak.

(a) Identify the issues arising above, and examine the legal position between the parties. Advise the parties on the possible remedies under the CISG.

(b) Examine the position of the parties if the contract was made pursuant to the UK Sale of Goods Act 1979. Advise them on the position under the Act including on the provisions relating to Scotland under S15 B.

Your answer should be a formal document with an introduction and a conclusion. References should be to appropriate legal authority - relevant legislation, case law, and where applicable, academic writing.