THIS IS JUST A HYPOTHETICAL QUESTION!!!!!

 

 

 

Lets say, Mr. Harry Bahadur from USA told his friend Mr Ram Bahadur in Nepal that to give his family 75,000 (1000$). Mr Ram did as he was told. 3 months later Mr. Ram wins a DV visa and comes to the USA. Mr Harry gives him 1000$ to Mr. Ram as he promised him. Now Mr Ram refuses to take 1000$ and wants 1153$ because he argues that right now conversion rate is 1$=65 Rs.

If you are Judge Joe Brown what you verdict would be?

it depends on what Harry told Ram during the transaction.

Did he say that he would repay $1000 or Rs 75000 ?

Ram bahadur needs 75,000 as he paid this amount to harry bahadur's family.

I would say If Mr. Ram was in nepal, he should get 75000 in Nepalese Rupees. Regardless of the exchange rate cause he paid in Nepalese Rupees. But since Ram is here in USA he should get 1000 in US Dollar.

What you guys think?

 THIS IS JUST A HYPOTHETICAL ANSWER!!!!!!!!!!!!!!!!!!!!!!!!!!
 
Agreement: "Lets wait for the time when $1 = NRs. 75 again."

Note: This might happen after November 2008!

If we are looking hypothetically, then we should ask Ram a hypothetical question.

Let's say the value of dollar had actually appreciated so that $1 = Rs. 85. In this case how much would have Ram wanted back?

Bisal! I agree with your your own answer. It's not worth it for two friends to fight for $153 (1153-1000).

But Harry should pay Ram for the interest accumulated each month on that amount.

From this incident we should realize that both lender and borrower should agree upon not only the following formula...

A=P(1+r/n)^(nt)

Where,

• P = principal amount (initial investment)
• r = annual interest rate (as a decimal)
• n = number of times the interest is compounded per year
• t = number of years
• A = amount after time t

..but also the pay back currency if lending is across international borders.

I say Ramey was dumb enough to give that little prick Harry family that 75 gran in Nepal. charge that hairy palms 50%  APR interest. Talk about helping friends... No good deed goes unpunished.

harry ko han gulama

Unless the agreement mentions otherwise and in absence of any expressed or implied agreement regarding exchange rate, 1000 US Dollar will be the appropriate amount to be paid to Mr. Y from Mr. X.

The law relating to this question is governed by Private International Law which is also called "conflict of laws" and generally I say, the intention of the parties where they intended to enter into the contract will be the basis. In abscence of more details, It's my verdict that 1000 USD be paid to the plaintiff within a month.

The case is dismissed. The parties bear their own costs.
Sajha_Lawyer

Sajha Lawyer, you seem a real lawyer. What kinda law you practice?

My areas of practice are Direct Taxation and Constitutional Law. I am yet to be a full fledged lawyer. But, near the destination now.