the effects, in every other country, upon personal property locally situated there, which are properly attributable to it in the forum, where it is decreed. In respect to real or immovable property, the same effects would in general be attributed to such divorce, as would ordinarily belong to a divorce of the same sort by the ler loci rei sita. If a dissolution of the marriage would there be consequent upon such a divorce, and would there extinguish the right of dower, or of tenancy by the curtesy, according to such local law, then the like effects would be attributed to the foreign divorce, which worked like a dissolution of the marriage.1 CHAPTER VIII. FOREIGN CONTRACTS. [*§ 231. The conflict of laws, as to contracts, better settled. § 232. The incidents affecting contracts various. § 233. Some claim that contracts are governed by the law of the place of contract; others, by that of performance. § 234. This best reconciled by referring the contract to the one or the other law, according to the intent of the parties. § 235. It often becomes necessary to refer the contract to the law of other places. § 236-240. Views of different writers on the continent of Europe. § 241. The doctrines of the English common law require chief attention. § 242. The law of the place of contract governs, unless to be performed in another place. § 242 a. Illustration in regard to the endorsement of bills of exchange. § 243. Contracts void by the law of the place of contract, void everywhere. § 244. But no nation is bound to enforce a contract against its own settled policy. § 245. Contracts, evasive of foreign revenue laws, not voidable on that ground. § 246. But those intended to evade domestic laws cannot be enforced. 247. Nor any contract remotely affected by such consideration. § 248. But this will not extend to transactions entirely new. § 249, 250. Nor to those wholly disconnected with illegal contract. § 251. Mere knowledge in the vendor of an intended illegal act by the vendee, will not render sale illegal. § 252. Sale of prohibited merchandise at another place. § 553. A bad motive can scarce form a good consideration. § 254. One who knows the object of a purchase, by sale aids that object. § 255. Justice would seem to require the extension of this rule to all cases. § 256. Contracts void by law of place where made void everywhere. § 257. This will not include contracts against the revenue laws of other states. 1 Warrender v. Warrender, 9 Bligh, R. 127; ante, § 226 c, note. 257 a. What acts render a contract void, as in contravention of law. 257 b. A foreign contract to violate a local statute affords no ground of action. 257 c. The same rule applied to common-law offences. 258. Contracts against morality and decency void everywhere. 258 a. But contracts valid where made are generally so held elsewhere. 259. Contracts against state policy are void. 259 a. Acts done in another state may defeat discharge under insolvent laws. 259 b. Incestuous marriages void, even with Papal dispensation. 260. Indispensable formalities by ler loci are requisite to the validity of contract elsewhere. § 260 a. All formal proceedings must be according to lex loci. § 261. This is an unquestionable prerogative of local law. 262. The rule illustrated by reference to stamp acts, &c. § 263. The nature, interpretation, and obligation of contracts governed by lex loci. 264. The point illustrated by the case of implied warranty in sales. § 265. The acceptance of a bill of exchange governed by law of the place. 266. Obligation of contract governed by lex loci. § 266 a. This extends to marshalling assets in the distribution of estates. § 267. The extent of the obligation of foreign contracts further illustrated. § 267 a. The indemnity of sureties measured by the law of the place. ( 268. So also the obligation of the heir for his ancestor's debt. 268 a. Contracts of marriage seem to be an exception. 269. Decree of foreign court, upon mistake of domestic law, not conclusive. 270. Usages of the place of contract form part of it. § 271. The meaning of words fixed by the place of contract. § 271 a. This rule admits of possible modifications. 272. Obscure words are to be interpreted by surrounding incidents. 272 a. The kind of currency of contracts fixed by law of place of payment. 273. The parties may intend the contract to be governed by the law of their domicil. § 274. Strangers are bound by the law of the place of contract. 274 a. Some writers hold this not of universal obligation. 275. Illustrations under this head. 276. The subject illustrated by marriage settlements. § 276 a. An English case bearing upon this point. 277. The decisions of foreign courts establish the law of that place. 278. Exposition of the point by a learned judge. 278 a. The law of the place of contract governs unless some other place is clearly indicated. 279. This rule applies to residents and non-residents. 279 a. Conditions in contracts to be performed according to lex loci. 280. The law of the place of performance controls the contract. 281. Views of different writers upon the point. 282. Difficulty may arise in regard to which rule shall control. 283. The law of the place of a transaction governs its construction. § 284. This rule applies to mutual accounts between merchants. 284 a. Balance of account reimbursable where advances made. 284 b. This is sometimes questioned, upon good grounds. 285. Contracts made by an agent have the locality of place of contract. $286. So contracts made by adoption are subject to same rule. § 286 a. Some nice questions have been raised on this point. 286 6. By what law the authority of a shipmaster is determined. § 286 c. Rule adopted by the Louisiana courts. 286 cc. This rule not approved in all cases. § 286 d. Nice question raised in regard to the revocation of letters of attorney by death. § 287. Interest is due on advances according to the law where made. §287 a. But if repayment is stipulated elsewhere, the place of payment governs. § 288. The security given will not draw to it the locality of contract. 289. The locality determined by date of contract. § 290. Official bonds of United States officers regarded as made at the capital. Interest due according to place of payment. § 292 a. § 291. § 292. And will be legal although higher than where contract made. § 293 b. § 293. Security given in another place will not affect the rule. § 293 c. Bonâ fide contract, good by law of place where made, is good everywhere. 293 d, 293 e. Civil law writers and foreign jurists upon the point. § 294. Parties may contract for the interest either of the place where contract is made or where it is payable. § 295. The law is more uncertain as to implied interest. § 296. The settled rule is as stated in § 294, both as to express and implied interest. $297. Interest on remittances may depend upon whom falls the risk of conveyance. § 298. Illustration of the rule that the parties may stipulate for the interest of the place of contract, or of payment. 299. Review of foreign writers upon the point. § 299 a -303. Further review of the continental writers upon interest. § 304. The result is that the parties may stipulate for interest according to the place of payment. § 304 a. This rule adopted by Supreme Court of the United States. § 304 b. The rules of interest more specifically defined. § 305. Interest expressly given by the contract is that of the place of contract. § 305 a. But if the contract stipulate the rate it will be referred to that place where it is legal. §306. This may lead to evasions, and any state may repudiate it. § 307. Different parties to same contract bound according to law of place where such liability assumed. Quere? § 307 a. Every party liable for the same contract is liable to same extent. § 308. There had formerly been considerable conflict as to the rule. § 310. This includes the par value and the rate of exchange. 311 a. This rule is dissented from in some states. § 311 aa, n. 4. Question elaborately discussed, on principle. § 312, 313. Legacies paid according to value of money at domicil of testator. § 313 a. Depreciated currency, in equity, should be made good. § 313 b, 313 c. But the rule at law seems otherwise. § 314. Argument in favor of liability according to law of place of contract. §315, 316. Comparison of this rule with other incidents of the contract. § 316 a. The formalities of an indorsement must be according to the law where made. 317. Indorsements of bills governed by the law of the place of acceptance. 318. Stamps and formalities of execution governed by lex loci contractus. § 319. An acceptance may refer to place of business of acceptor. § 320. But in general it is reckoned of the place where made. 320 a. How far are limited partnerships bound by foreign contracts? § 322, 322 a. Some of the effects and incidents of contracts discussed. § 322 b. The rights of sureties and the law of liens governed by place of contract. § 322 c, 322 d. Some diversity among the foreign writers. § 323-325 c. Priority may depend upon the law rei sitæ. § 325 d. Priority obtained by process governed by the law of the forum. 325 e-325 g. Movables governed by law of domicil of owner, except as to process. 325 f. But immovables always by lex rei sitæ. § 325 g -325 n. The majority of foreign writers agree that priority among creditors as to movables depends upon the law of the place of domicil, and as to immovables upon law rei site. §325 o. But as to immovables unquestionably such priorities are governed by the law rei sitæ. 325 p-325 s. The present established doctrines in regard to giving effect to securities in favor of particular creditors, where there is a conflict between the laws of the state where made and where they are attempted to be carried into effect. § 326, 327. Foreign laws must always yield to the law of the forum in case of conflict. § 327 a. Decision in Louisiana illustrating the point. § 327 b. The point illustrated with reference to policies of insurance. § 328. Lex loci does not apply: 1, where the parties had another place in view; 2, where the contract is against good morals; 3, against public policy. § 329. Contracts not necessarily payable where made. 330. What defences to contracts admissible on the merits. § 331, 331 a. The foreign jurists agree, that a good defence by the law of the contract is good everywhere. § 332. The same rule applies in England and America. Illustrations. § 333. Acceptances governed by law where made. 334. Exceptions when debt confiscated contrary to law of nations. § 335. Discharge of contract by its law good everywhere. § 336. All the effects of contracts, where made, not obtainable elsewhere. 337. Priorities in one country not recognized in others. 338. Distinction between absolute and partial discharges. § 339. These latter interpose no impediment in other countries. § 340. Some states limit general discharges to citizens and residents. 341. Decisions in regard to state insolvent laws not applicable. 341 a. Comment on the validity of discharges under bankrupt laws. § 342. Discharges not according to the law of the contract void. § 343-347. Negotiable paper, how affected by this rule. 347 a. Discharge under state insolvent law no bar as to citizens of other states. 347 b. Exemptions from attachment and levy extend to non-residents. $348. Any country may make special enactments upon the subject. 349. Discharges by laws of place of contract subject to limitation. 350, 351. Must not be exclusive or unequal. § 351 a, 351 b. The parties may agree to discharge a contract by the law of another state. 351 c. Lord Brougham's illustrations of the point. 351 d. This rule applies to contracts affecting real as well as personal estate. 353. Foreign notes negotiable under statute of Anne. § 353 a. Endorsements where not effective to transfer title give no right of action. § 354. Negotiability a matter pértaining to the contract. 355, 356. It would seem a title good in the place of contract should be good every were. § 357. But a contract negotiated where it is held negotiable may be there sued in the name of an endorsee. § 358. Personal representative cannot endorse note in another state. § 359. But such assignment in the place of administration will entitle the assignee to sue in any state. §360. By what law protest, etc., of bills of exchange governed. § 361. Different terms of grace allowed on notes and bills in different countries. § 362. Personalty has no situs but the domicil of the owner. § 362 a. Choses in action follow the same law. 362 6. They fall under the class of movables. § 363 - 365 a. Contracts concerning land must be made according to the law rei sita. § 366. The point illustrated by Scotch heritable bonds. § 367. But land converted into money may pass as personalty. § 368. The foreign jurists not agreed upon this point. § 369. Many of them claim the universal application of the law of the place of con tract. § 369 a, 370. Illustrations from their writings. § 371. Pothier and others hold contracts affecting immovables governed by law rei sita. § 371 a-371 e. Many foreign writers seem to think all contracts governed by the law of the place where in fact made. § 372-372 c. Some go so far as to extend the rule to wills, executed out of the place of domicil, to affect immovables elsewhere. §372 d. A contract to transfer realty is good if made according to the law of the domicil; but the actual transfer must be according to the law rei sitæ, as the foreign jurists say. 372 e. The same point further discussed. § 372 f. The common law seems to require contracts to transfer realty to be executed according to the law rie site. §373. They must, at all events, not be in conflict with that law. § 373 a. Statement of principles adopted in a late English case. § 3736. It seems contracts concerning lands abroad may be governed by the law of the place of domicil of the parties. § 373 c, 373 d. The lex loci contractus conclusively determined by the courts of that country. § 373 e. If such is the effect of the judgment where rendered. § 231. WE next come to the consideration of the highly important branch of international jurisprudence arising from the conflict of laws in matters of contract generally. This subject has been very much discussed, not only by foreign jurists and foreign courts, but in our own domestic tribunals. The general princi 1 See on the subject of this chapter, 1 Burge, Comm. on Col. and For. Law, Vol. I., Pt. 1, ch. 1, p. 23, 24, 29; Id. Vol. III., Pt. 3, ch. 20, p. 749 to p. 780; Fælix, Conflict. des Lois, Revue Etranger et Francais, Tom. 7, 1840, § 39 to 51, p. 344 to p. 365. |