Problem:
MBI's branch in country G is TransShip, Ltd., a shipping company. Its manager signed a contract with Erecto to the A.P.O. (Army Purchasing Organization) in Country I. TransShip is not to make delivery until the A.P.O. deposits the purchase price into an account in JumboBank in Country J and this fact is communicated to TransShip by Erecto. The goods were loaded aboard the TransShip vessel in Country H and the vessel has transported them to the point of destination in Country I. The A.P.O. did not, however, deposit the purchase price into JumboBank in Country J. Erecto refuses to pay TransShip for returning the goods to Country H or to agree not to hold it responsible if it delivers the goods to the A.P.O. TransShip has contacted MBI's legal office for assistance. Can TransShip sue Erecto or the A.P.O. or both? Where should the legal suit be brought? And, finally, what law governs the dispute?