Great India company ltd. is a company registered in India and deals in the manufacture and supply of various engineering goods. it enters into a contract to export a million pieces of nuts and bolts with an American company to be exported over a period of six months starting from 1st January 2011 within six months at the price of $2/piece.

each dollar is valued at Rs 45 per dollar on the date of the contract on 1st April 2011. The Rupees devalued and $1 is now equivalent at Rs. 50. The American company has received goods worth 1 lakh dollars and is required to make payment on 15th April 2011. the American company makes payments of the goods received in Rupees on 20th April 2011 @ $1=Rs. 45. The great India company writes to American company that they are entitled to payment either in dollars or at the rate of Rs. 50 / dollar.

They also stopped delivery of the balance goods. the American company contents that this is a breach of contract .

we got this problem for moot court. we are starter and are not getting the starting point. anyone please help us out with laws applicable and similar cases, if any. this is urgent requirement