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Stockholm Arbitration Report (SAR) - (Individual Back Volumes)
Stockholm Arbitration Report (SAR) - (Individual Back Issue)
Preview Page SAR 2002 - 2
Subject-matters:
(1) Invalidity of a contract under the Swedish doctrine of assumptions
(förutsättningsläran).
(2) Liability for damages following the invalidity of a contract by virtue of
the doctrine of assumptions.
Findings:
(1) Where an assumption relating to certain facts has been decisive for
party A for entering into an underwriting agreement with party B and where
party B must have been aware of the assumption and its importance to
party A and where such assumption is created by a promise from party B
and where such promise is broken by the same party without a valid excuse
then party B must bear the risk for the failure of party A’s assumption and
the failure of such assumption may render the contract invalid.
(2) Failure to fulfil a commitment outside the invalidated contract may
constitute ground to claim damages (culpa in contrahendo).
Parties:
Claimants: 1. PC, Parent Company (Sweden)
2. The F Company, Underwriter (Republic of Panama)
Respondent: The Respondent, Underwriter (British West Indies)
Subsidiary of Claimant no 1: TC, the Target Company (State of Delaware,
USA)
Shareholder of Claimant no 1: SPC, Shareholder of Parent Company
Place of arbitration:
Stockholm, Sweden
Language of the proceedings:
English
