A shipbuilder had contracted to build a tanker for North Ocean Tankers. The contract was in US dollars and didn't contain any provisions for currency...

A shipbuilder had contracted to build a tanker for North Ocean Tankers. The

contract was in US dollars and didn’t contain any provisions for currency

fluctuations. Approximately halfway through construction of the ship, the United

States devalued its currency by 10 per cent. As the shipbuilder stood to make a loss

on the contract, it demanded that an extra US$3 million be paid or it would stop

work. The buyer reluctantly agreed under protest to pay, as he already had a charter

for the tanker and it was essential that it be delivered on time. The buyer didn’t

commence action to recover the excess payment until some nine months after

delivery. Will the buyer succeed in recovering the excess?