MCC-Marble Ceramic Center, Inc. v. Ceramica Nuova d'Agostino, S.P.A.
Facts
MCC, a Florida tile retailer, negotiated with D'Agostino, an Italian tile manufacturer, at a trade fair in Italy and, according to affidavits, the parties first reached an oral agreement on key terms before writing them onto D'Agostino's standard order form. The form, printed in Italian, stated beneath MCC president Monzon's signature that the buyer knew and approved the sales conditions on the reverse, including a clause allowing D'Agostino to suspend or cancel contracts for nonpayment and a clause requiring written notice of defects within ten days. MCC claimed the parties subjectively intended not to be bound by the reverse-side terms, and submitted affidavits from Monzon, translator-agent Copelli, and D'Agostino's former commercial director Silingardi to that effect. The district court nevertheless enforced the printed terms and granted summary judgment to D'Agostino based on MCC's failure to submit written complaints and alleged nonpayment.
Issue
In a contract dispute governed by the CISG, must a court consider affidavits and other parol evidence showing the parties' subjective intent not to be bound by boilerplate terms in a signed form contract when the other party knew of that intent? Relatedly, does the domestic parol evidence rule bar consideration of such evidence in a CISG case?
Rule
CISG Article 8(1) requires courts to interpret a party's statements and conduct according to that party's intent when the other party knew or could not have been unaware of that intent. Article 8(3) requires due consideration of all relevant circumstances, including negotiations, practices, usages, and subsequent conduct, and thus precludes use of the domestic parol evidence rule to exclude relevant evidence of prior or contemporaneous oral understandings in CISG cases. If Article 8(1) is not satisfied, interpretation proceeds under the objective reasonable-person standard of Article 8(2).
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If the seller moves for summary judgment based solely on the reverse-side late-notice clause, how should the court treat the affidavits?