Seller v. Buyer: Effect of Tax Suppression on Contractual Price

A seller sued a buyer for payment of goods delivered under a contract where the agreed price included a tax that was subsequently suppressed by legislation, leading the buyer to refuse payment of the full invoiced amount, arguing the price should be reduced proportionally. The Court of Cassation quashed the lower court's decision, reasoning that the suppression of the tax, an external event affecting the calculation basis but not the underlying agreement on the price for the goods themselves, did not automatically justify a reduction of the contractual price, as the legislative change did not make performance impossible or inherently unjust in a manner that would legally void the agreed consideration.