xr Trans-Lex.org Law Research Trans-Lex.org Law Research - Docid: 953000 -
Principle

No. V.2.2 - Conversion of money debts

Conversion of the currency of account into a different currency of payment has to be made according to the exchange rate prevailing at the time when payment is due. If the debtor is in arrear, the creditor may require payment either at the rate when payment is due or at the rate of the time of actual payment.

Commentary
The rule contained in this Principle applies only if the parties to the contract have not agreed on a different distribution of the currency conversion risk. Please see Commentary No. 3 to Principle V.2.4.

Please cite as: "Commentary to Trans-Lex Principle , http://www.trans-lex.org/953000"
References
Doctrine
Fouchard, Philippe, L'Arbitrage Commercial International, Paris 1965
Kahn, Philippe, La Vente Commerciale Internationale, Paris 1961
National Legislation
French Code de Commerce
Principles / Restatements
Principles of European Contract Law - PECL
UNIDROIT Principles of International Commercial Contracts
Contract Clauses
1. Contractual Clause Ruling Currency Conversion Mechanism
Services Contract
Guaranteed Consideration
The sum of $ {X}, payable upon the following dates: these sums as set forth above shall be applied against such royalties that become due to the licensor. No part of such Guaranteed Consideration shall be repayable to the licensee.
Compensation
The royalties specified in (...) are due and to be paid by Licensee for such Licensed Products (...) the royalties of such Licensed Products shall be computed and paid on the Net Selling Price valid at the time of actual sale (...) the Parties agree that the royalty rate has been negotiated and agreed upon by the Parties (...) the Parties agree that none of the before mentioned circumstances shall entitle Licensee to a reduction of the royalty rate, not to pay royalties for all Licensed Products sold by Licensee or any of its Subsidiaries or a termination of this Agreement (...)
2006
Construction & O&M Contract
Power Purchase Agreement
Payments under the Power Purchase Agrement are calculated in US Dollars and payable monthly in either US Dollars or in Pesos, with a true-up mechanism for Peso payments in the event there are differences in the invoiced US Dollar amount and the amount of US Dollars actually received by the Company upon conversion of the Pesos.
Invoicing and Payment
(...) Each invoice will set forth an amount of Pesos equivalent to the Invoiced Dollar Amount at a representative market exchange rate (calculated as the average rate offered by three commercial banks (...)) will be issued to X plus any transaction costs for the conversion of Pesos into Dollars and any transaction costs (...). A difference between the actual Dollars received at conversion and the Invoiced Dollar Amount triggers a True-Up Amount if there is a shortfall of Dollars and a X Credit if there is an excess of Dollars (...)
2. Debtor in Arrear
Services Contract
Statements and Payments
If (i) Licensee is in delay in making any payment due hereunder or (ii) a royalty statement as per Section X is incorrect, X shall be entitled to claim in case of (i) interest on such overdue payment from the date it was due until payment is received by X and in case of (ii) interest on the amount of royalties which Licensee failed to correctly report to X from the point in time X hould have received the correct report according to Section X to the date the underpaid amount is received by X, at the rate of {X}% above the then current EURIBOR rate at the close of banking on such date, or on the first business day thereafter if such date happens to be a non-business day. If such interest rate exceeds the maximum legal rate in the jurisdiction where a claim therefor is being asserted, the interest rate shall be reduced to such maximum legal rate.
2006
3. Conversion in Exceptional Circumstances
Loan Contract
Changes in Circumstances Affecting Euro-dollar Loans
Basis for Determining Interest Rate Inadequate or Unfair. If on or prior to the first day of any Interest Period for any Euro-Dollar Loan (...) the Required Lenders advise the Administrative Agent that the London Interbank Offered Rate as determined by the Administrative Agent will not adequately and fairly reflect the cost to such Lenders of maintaining or funding their respective Euro-Dollar Loans for such Interest Period (...) the obligations of the Lenders to make Euro-Dollar Loans, or to continue or convert outstanding Loans as or into Euro-Dollar Loans shall be suspended, and each outstanding Euro-Dollar Loan shall be converted into a Base Rate Loan on the last day of the then current Interest Period applicable thereto.
2011
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