Title

V.2.2 - Conversion of money debts

Content

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.

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 - PECLUNIDROIT Principles of International Commercial Contracts 2016

Contract Clauses

1. Contractual Clause Ruling Currency Conversion MechanismServices Contract