Legal Question in Business Law in Illinois

payment to canadian vendors

How does the fluctuation in currencies affect payment to canadian vendors? If the purchase is based on quoted price in US dollars, shouldn't the amount invoiced match the amount in the PO, regardless of currency fluctuations?

Asked on 11/08/07, 11:51 am

2 Answers from Attorneys

John Steele Steele Law Firm

Re: payment to canadian vendors

It depends on what the contract says. Generally, in most jurisdictions, the court is going to win. Most of the time the court will order both parties to subscribe to the quote if the quote was an agreement. If the quote says, "Do this for $x," and you pay $x, then by making payment you are agreeing to that amount.

Hope this helps!

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Answered on 11/10/07, 11:39 am
David K. Staub Staub Anderson LLC

Re: payment to canadian vendors

Customarily, you pay the invoiced amount in the currency in which it is invoiced. In other words, if a Canadian company invoices you 100 USD for goods, you pay 100 USD without regard to any changes in the exchange rate between US and Canadian dollars.

David K. Staub, an Illinois business attorney

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Answered on 11/08/07, 12:00 pm

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