As has been reported in the media, most recently in prominent stories in the Economist and the Financial Times, the euro is under significant pressure. Some think that the currency could break up while others disagree. Regardless of what happens, now is the time for businesses with euro-denominated contracts to ask what kind of contingency planning they have in place. Risk is generated because no statute in the U.S.—state or federal—speaks to the issue of whether a successor currency to the euro would be considered a commercially reasonable substitute or commercial equivalent for the euro. In other words, could performance of a euro-denominated contract be discharged or excused because of the introduction of successor currencies?
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