Article

Note: A Hong Kong Trader, Pactland Ltd., purchased 24,832 In-line Speedometers from a German Seller, Microsport GMBH, for a price of EUEUR 491,673.6. Trader was the beneficiary of an LC issued for the account of Ultimate Buyer. Although this LC was payable in US Dollars and the currency could not be changed, it was agreed at the time that Trader would be liable for the agreed price in Euros. After the transfer, the relative rate of the Dollar to the Euro dropped. When it drew on the LC, Seller was paid EUEUR 448,201.51 rather than the amount listed in the written contract.

When Seller demanded the balance, Trader claimed that there had been a supplemental oral agreement by which Seller had agreed to share the currency loss equally. After negotiations for partial payment broke down, Seller sued Trader for breach of contract in Hong Kong, claiming the EUR 43,472.09 balance due under the contract.

The District Court of the Hong Kong Special Administrative Region, Wong, DDJ, found that there were no oral agreements modifying the amount owed by Trader to Seller, and ordered Seller to pay Trader the remainder of the money owed under their contract, expenses incurred as a result of Trader's previous underpayment, interest on both of these amounts, and Seller's court costs.

[JEB/dgd]

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