Friday, March 16, 2012

Which article is the basis for the partial termination of contract in Cambodian Civil Code??


Which article is the basis for the partial termination of contract?

In the new Cambodian CC, there is no article that stipulates “partial termination of contract” explicitly.

In Japanese CC, there is no article that stipulates “partial termination of contract” explicitly, either. But the partial termination of contract is considered to be possible in Japan and in fact Japanese Supreme Court has admitted the partial termination of contract.

Japanese Supreme Court rendered the judgment to the effect that the buyer cannot terminate the entire contract if a part of contract has been performed by the seller and this partial performance by seller has value to the buyer. In other words, the buyer can terminate only a part of contract which has not been performed by the seller if the partial performance by seller has value to the buyer.

The partial termination of contract is also admitted in the United Nations Convention on Contracts for the International Sale of Goods (CISG), from which the drafters of the new Cambodian CC got a lot of idea. The Art.51(1) of CISG says “ If the seller delivers only a part of the goods or if only a part of the goods delivered is in conformity with the contract, articles 46 to 50 apply in respect of the part which is missing or which does not conform.” And the Art.49 of CISG stipulates the termination of contract.

Therefore, it thinks the partial termination of contract is possible under the new Cambodian CC even though there is no article that stipulates “partial termination of contract” explicitly.
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