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X and Y are foreign exchange traders in Germany. X agrees to sell 100 million Mexican pesos to Y for delivery within 1 week at an agreed price in German marks. X was three days late in making delivery of the Mexican pesos he agreed to sell to Y. During those three days, the Mexican government acted to devalue the Mexican pesos by 20 percent. Y now sues X in a German court to have the contract set aside. Will Y be successful? Why?
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