The objective of Article 50 of the United Nations Convention on Contracts for the International Sale of Goods (the “Convention” or “CISG”) is to give the buyer an opportunity to keep the received goods which, even though not entirely conforming to what had been agreed on in the contract, he may still make use of but may take the non-conformity into account when paying the purchase price. This means that price reduction is a remedy that is available to the buyer only if the goods are not in conformity with what the parties had agreed on in the contract and not, for example, in cases where the price of the contracted goods has gone down in the world market after the conclusion of the contract and the buyer feels trapped in a bad contract.

The case of Interag co Ltd vs Stafford phase corp, 2nd instance, 983 F 2d 1047, raises the issue of buyer’s right to reduce price for non-conforming good, and decides on a formula for price reduction. The paper has tried to analyse the case, by discussing binding precedents, and formulating a conlusion from the same.

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