FOREIGN CURRENCY OBLIGATIONS

Abstract

To discuss some aspects of foreign currency obligations under conflict of laws, the author first explains the conflicts question possibly involved in money of account determinations. He reviews the jurisprudence in favour of determining that question according to the proper law, explains the method for determining the proper law, and examines the factors to be considered if no choice is impliedly or expressly indicated and the applicable law must be determined. Attempting to decide whether courts should be bound by rules and presumptions when determining the proper law, he illustrates how contracts are interpreted according to the domestic rules of the chosen law, focusing on principles of interpretation of written contracts. Finally, he discusses the currency questions related to the method of measuring damages in the sale of goods context, the ambiguity of sterling and trust funds and legacies.