Question
Beta Inc. is a Canadian corporation located in Ottawa Ontario.It manufactures spare parts foraircraftengines and starts negotiations with a potential distributor located in New Delhi,
Beta Inc. is a Canadian corporation located in Ottawa Ontario.It manufactures spare parts foraircraftengines and starts negotiations with a potential distributor located in New Delhi, India, called Para Inc.
Early in the negotiations, on October 15, 2019,it sends an email indicatingthat its pricing will be in USdollars.Almost two months later, on December 12, 2019, following further negotiations, it sends its standard template contract which obligates Para to buy 20,000 spare parts for $1,500,000, with the shipping date to be March 31, 2020.Both parties sign the contract and exchange them by email. Unfortunately, through an error, Beta forgets to show that the pricing is in US dollars and the contract is silent as to which national currency forms the basis of the contract.
In accordance with the contract, Beta places the goods on the ship in Montreal on March 31,2020, at which point Para wires Beta payment of $1,500,000 in Canadian funds. By this time, the Canadian dollar has tumbled 15% against the US dollar. Beta says that this isunacceptable and halts the shipment.Para threatens to sue as it needs the spare parts to honour a contract with the Government of India.
Based on your reading of the course so far, what legal arguments incontract law do the parties have? IfPara decides to sue, where should it do so? What court? What remedy should it seek? Might there be an alternative to litigation to resolve this dispute?
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