A German plaintiff had sold equipment to an American firm on open account.On the date the amounts were due,the American firm owed the plaintiff 60,000 marks.At that time,the dollar was worth 2.5 marks.Three years later,the plaintiff took a judgment against the American firm in the courts of New York.At the time of judgment,the dollar was worth only 1.5 marks.The New York court may do which of the following:

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The plaintiff is entitled to receive the amount in the currency of the original contract at the exchange rate prevailing at the time of payment. In this case, the originally agreed amount was 60,000 marks, which would have been equal to $24,000 (60,000/2.5). However, at the time of the judgment, the dollar had weakened and was worth only 1.5 marks, which means that the plaintiff is entitled to receive $40,000 (60,000/1.5) in U.S. currency.

A German Plaintiff Had Sold Equipment to an American Firm