Abstract: CISG is an important convention in the contract law of international sale of goods. To properly settle disputes, CISG has established a remedial mechanism, which consists of compensatory damages, specific performance and restitution. Although such a mechanism proves to be highly competent in a vast majority of cases, it indeed has some shortcomings under certain circumstances, especially when the observant party can hardly prove its loss and the default party benefits from a malicious breach of contract. The introduction of disgorgement of profits is necessary in that it can offset the weaknesses of CISG. Despite different understandings over disgorgement of profits, they will not affect the proper interpretation and application of CISG. From CISG’s perspective, there are two potential approaches to applying disgorgement of profits, namely, regarding disgorgement of profits as an alternative way of damages calculation, or as a new type of remedy based on the good faith principle.

Key words: CISG, disgorgement of profits, good faith principle, comparative law