Ch.7 Non-performance, s.3: Termination, Introduction to Section 7.3 of the PICC
Section 7.3 of the UNIDROIT Principles of International Commercial Contracts (PICC) deals with the aggrieved party's right to terminate the contract if the other party does not perform. However, the PICC also severely restrict the scope of termination as a remedy. The crucial question is not whether there is a right to terminate, but rather when it will be available to the aggrieved party. Art 7.3.1(1) accepts the doctrine of fundamental breach as the basic rule for the availability of termination. For cases of delay, Art 7.3.1(3) introduces the Nachfrist mechanism. The basic structure of the system of remedies in Section 7.3 bears a strong resemblance to both the Commission on European Contract Law, Principles of European Contract Law (1998), and the United Nations Convention on Contracts for the International Sale of Goods (CISG) regimes.