Will the buyer succeed in recovering the excess

Assignment Help Finance Basics

Reference no: EM131175078

A shipbuilder had contracted to build a tanker for North Ocean Tankers. The contract was in US dollars and didn't contain any provisions for currency fluctuations.

Approximately halfway through construction of the ship, the United States devalued its currency by 10 per cent.

As the shipbuilder stood to make a loss on the contract, it demanded that an extra US$3 million be paid or it would stop work. The buyer reluctantly agreed under protest to pay, as he already had a charter for the tanker and it was essential that it be delivered on time. The buyer didn't commence action to recover the excess payment until some nine months after delivery.

Will the buyer succeed in recovering the excess?

Reference no: EM131175078

Questions Cloud

Describe the four components of an information system : In a formal 400-500 word essay, describe the four components of an information system. Why is it important to consider each of them when designing and installing an information system?

Determine the average illuminance of the surface in lux : What would the average illuminance be if only half of the light illuminated the surface?

Measuring our worth : This Decision Point deals with how we measure the intrinsic value of a life in addition to the instrumental value. The scenario discussed is that of the Ford Pinto, which involves a decision that teaches the hazards of considering only the instrume..

Determine the luminous intensity : The source is held exactly 4 ft above a moveable surface. The surface can be sloped at angles in 10° intervals in the range of 0° to 90°, measured from horizontal. Determine the luminous intensity, in foot-candles, on the surface at each angle.

Will the buyer succeed in recovering the excess : A shipbuilder had contracted to build a tanker for North Ocean Tankers.- Will the buyer succeed in recovering the excess?

How professional etiquette impacts workplace relationships : Do you think executive compensation in its various parts (i.e., salary, stock options, severance packages) funded at the current levels is unethical? If so, how would you revise the compensation so that it was just? On what basis would you change ..

Marketing process to a product : Conduct a market research, demonstrating how you would apply the marketing process to a product using the concepts in the 5Cs, STP and the 4Ps

Discuss your calculated share price : Discuss your calculated Share price, How confident are you in the analysis? How might you address any concerns affect your confidence level

Prepare loan amortization schedule based on monthlypayments : Based on the information provided below, compute the Net Present Value of the project.- Prepare loan amortization schedule based on monthlypayments.

User Account

All Pages