MUST use the IRAC method (Issue, Rules, Application, Conclusion) to answer all problem scenario question

Tony and Chantelle were travelling around Central America together. While in El Salvador, Tony had his wallet and Australian passport, stolen together with his travellers' cheques. Whilst they were at the Australian Embassy in San Salvador to replace the passport, he asked Chantelle to lend him $1,000 in United States dollars ('USD') to allow him to cover his expenses whilst waiting for the travellers' cheques to be replaced. Chantelle agreed, provided Tony agreed to repay the loan in the same currency when he got his replacement travellers' cheques. Tony agreed to these terms, and Chantelle handed the US$1,000 to him. When Tony eventually obtained his replacement travellers' cheques, he and Chantelle were in Honduras. The day before they had arrived in Honduras, a left-wing faction of the Honduran military had overthrown the pro-American government and installed itself in power in a military coup. The government of the United States immediately cut off all diplomatic relations with Honduras. As a consequence, Honduran banks refused to carry out transactions involving American dollars, and so Chantelle asked Tony to repay the loan in Honduran currency (the lempira). Tony agreed, but said that, in view of restrictions imposed by Honduran banks, he could only afford to repay an amount in Honduran lempira that was equivalent to $300 in USD. Chantelle, who was, unknown to Tony, in desperate need of funds, was so relieved that she said she would be prepared to accept that in full discharge of the debt owed to her by Tony. A few days later Tony and Chantelle had a bitter argument and agreed to part ways.

As the contract was formed in the Australian Embassy, Chantelle now seeks your advice as to whether, pursuant to the law in New South Wales, she can sue Tony to recover the balance of the loan. Remember: Your arguments must all be fully supported with relevant statute or case law.