Remedies IV—Damages, Exemption, and Interest

Abstract This chapter examines the contractual defence of exemption and the remedies of damages and interest for breach of contract under the CISG and the PICC. It analyses the principle of strict liability and the full compensation standard, addressing the calculation of damages—including non-performance, incidental, consequential, and loss of profit—and the role of mitigation. The chapter explores exemptions to liability due to force majeure, hardship, or the creditor’s own conduct, detailing their definitions, thresholds, and practical implications. It highlights the notice requirements, the consequences of impediments, and the interaction of contractual clauses on liability. Disgorgement of profits as a remedy and the foreseeability rule limiting recoverable damages are discussed. Finally, the chapter addresses the right to interest on overdue payments, its calculation, and the role of party autonomy in shaping remedies.