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a bankrupt decree, obtained in England against a citizen of Massachusetts temporarily visiting England, binds his estate in Massachusetts. And it is equally irrational to maintain that when a business firm or corporation has branches in several European states, the first state, no matter how insignificant may be its interest in the estate, which, in the race between creditors, declares the firm or corporation bankrupt, takes control of all its effects, wherever situate.

So as to

state insolvent as

§ 390 a. One state in the United States, also, will not recognize as binding property within its borders, signments. to the prejudice of one of its own citizens, a compulsory insolvent assignment made in another.1

it seems intimated that in such cases the English assignee is entitled to hold the bankrupt's goods on behalf of the English creditors.

In Pyke, ex parte, 42 L. T. N. S. 664 (1880), it was held that where the legal requisites are perfected, and no equitable considerations intervene, the Court of Bankruptcy will adjudicate a debtor a bankrupt upon a petition in England, notwithstanding that a prior adjudication may have been made against the same debtor in Ireland.

In McCulloch, ex parte, 43 L. T. N. S. 161; L. R. 14 Ch. D. 714, it was held that although a debtor, who has carried on business in Ireland and England, has been adjudicated a bankrupt in Ireland, the court will, in the absence of special circumstances, adjudicate him a bankrupt in England. In this case, James, L. J., said: “F think it is our duty, under all the circumstances of the case, to allow the English adjudication to stand for what it is or may be worth."

In Blain, ex parte, L. R. 12 Ch. D. 522; 41 L. T. N. S. 47, it was said by James, L. J., that the British bankrupt legislation was applicable " to foreigners who by coming into this country, whether for a long or a short time,

have made themselves during that time British subjects. Because every foreigner who comes into this country for however limited a time is, during his residence in this country, within the allegiance of the sovereign, entitled to the protection of the sovereign, and subject to all the laws of the sovereign."

But to give the English court jurisdiction in cases of foreigners temporarily in England, it is necessary that an act of bankruptcy should have been committed in England by such foreigner. Blain, ex parte, ut supra.

1 Towne v. Smith, 1 Wood. & M. 137; Harrison v. Sterry, 5 Cranch, 289; The Watchman, 1 Ware, 232; Green v. Van Buskirk, 5 Wall. 307; Osborne v. Adams, 18 Pick. 245; Paine v. Lister, 44 Conn. 136 (a case where the attaching creditor was not a citizen); Kelly v. Crapo, 45 N. Y. 86; and cases cited in last section; Burrill on Assignments, §§ 309 et seq.

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Foreign re

§ 390 b. A receiver appointed in one state for an insolvent corporation has no title as such to property located in another state. The same distinctions apply to other cases of receivership. Receivers take by virtue of a process analogous to execution, which, for reasons heretofore given, has no extra-territorial effect.2

of another state to prevail against any remedy which the laws of the latter afford to its own citizens against property within its jurisdiction." Gray, J., Taylor v. Ins. Co. 14 Allen, 355.

Crapo v. Kelly, 16 Wal. 610, cited fully supra, § 357, may appear to conflict with the above; but the ground of the ruling was in this case that the ship assigned was at the time of the assignment part of the territory of the state directing the assignment.

A state statute prescribing that an insolvent assignment shall dissolve prior attachments is not extra-territorial. Upton v. Hubbard, 28 Conn. 274; Boston v. Boston, 51 Me. 585. Supra, § 347; infra, § 802.

1 Upton v. Hubbard, 28 Conn. 274; Taylor v. Ins. Co. 14 Allen, 353; Willits v. Waite, 25 N. Y. 577; Hooper v. Tuckerman, 3 Sandf. (N. Y.) 311; Cagill v. Woodridge, 8 Bax. 580; Moseby v. Barrow, 52 Tex. 396. It is otherwise as to property actually in possession of the receiver. Pond v. Cooke, 45 Conn. 126.

2 Supra, § 390; Booth v. Clark, 17 How. 322; Farmers' & Mech. Ins. Co. v. Needles, 52 Mo. 17. As to the jurisdiction of federal courts to review state courts in such respects, see

ceivers of subject to

insolvents

same rule.

Williams v. Benedict, 8 How. 107; Wiswall v. Sampson, 14 How. 52. As to practice, see Taylor v. R. R. 57 How. (N. Y.) Pr. 9; U. S. Rolling Stock Co. in re, 57 How. (N. Y.) Pr. 16; Peale v. Phipps, 14 How. U. S.

368.

The fact that a bank has been declared judicially insolvent in Rhode Island, where it is chartered, and its effects passed into the hands of a receiver, does not preclude, it is held in Illinois, an attachment in Illinois, by a creditor of the bank, of real estate of the bank situate in Illinois. City Ins. Co. v. Com. Bank, 68 Ill. 348.

That a foreign receiver cannot sue in a state court has been ruled by high authority (Booth v. Clark, 17 How. 322; Willits v. Waite, 25 N. Y. 577; Insurance Co. v. Needles, 52 Mo. 17), though it has been held that he may sue subject to local liens, and in subordination to local law. Norwood, ex parte, 3 Biss. 513; Hoyt v. Thompson, 5 N. Y. 320; Runk v. St. John, 29 Barb. 587; Cagill v. Woodridge, ut supra. But he cannot, in any view, be permitted to come in and contest existing liens. Hunt v. Ins. Co. 55 Me. 298; Taylor v. Ins. Co. 14 Allen, 353.

457

CHAPTER VIII.

OBLIGATIONS AND CONTRACTS.

I. INTRODUCTORY.

Complexity of obligations involves complexity of jurisdictions, § 393. Seat of obligation varies with relations of obligor to obligee, § 394.

Contracts resolvable into obligations, § 395. Roman law determining forum as indicating local law, § 396.

Parties may determine law by constructive consent, § 397.

II. WHEN LAW OF PLACE OF PERFORMANCE BINDS.

Place of making a contract is casual, not necessarily conditioning it, § 398. Otherwise as to place of performance, § 399. Older Roman authorities inconclusive; the later adopt place of performance, § 400. Form determined by place of solemnization; meaning of words by place of agreement; process by place of suit; performance by place of performance, § 401. Mode of payment determined by place of payment, § 402.

Illustrations, § 403. Difficulties when place of performance is undetermined, § 404.

When principal leaves his business in the hands of a general local agent, then the agent's act is imputed to the principal, § 405.

Otherwise as to travelling agent, § 406. Place of final indebtedness determines on litigated accounts, § 407.

Conflict as to whether principal's death re

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Place of business prevails over domicil, § 412.

Public officer's debts governed by law of place of contract, § 413.

And so of watering-place debts, § 414. Rule not dependent on time of residence, $415.

By Savigny place of delivery of goods is place of performance, § 416. So by our own law, § 417.

III. WHEN LAW OF PLACE OF CONTRACT BINDS.

Place of contract determines interpretation of words, and generally mode of solemnization, § 418.

Place of ratification is place of contract, § 418 a.

Place of registry may be place of contract, § 419.

So of place of attestation, § 420. Place of acceptance of proposition is place of contract, § 421.

Inference of place from time, § 422. Each obligor may be bound by his particular law, § 423.

Unilateral obligation may be governed by place of business, § 424.

Under Roman law acceptance controls obligations of heir, § 425.

Savigny's tests of local law, § 426.
Law in this respect to be uniform, § 427.

IV. WHEN THERE IS A POSITIVE, ABSO-
LUTE LAW OF THE JURISDICTION IN
WHICH THE SUIT IS BROUGHT.

In such case law of forum prevails, § 428.

V. WHEN THERE ARE CONFLICTING LAWS

MORE OR LESS FAVORABLE TO CON

TRACT.

Law favoring contract to be preferred, § 429.

Proper law applied as a matter of right, § 430.

VI. PARTICULAR CASES.

1. Obscurities and Ambiguities. Patent ambiguities to be construed against grantor, § 431.

Rules of evidence determined by lex fori, $432.

Latent ambiguities explained by proof of local facts, § 433.

Adoption of local meaning a question of intent, § 434.

Usage of place where term is first employed determines, § 435.

So of place from which term emanates, § 436.

Where place of performance is in view, that

place determines, § 437. French law to this effect, § 438.

Distinction applicable to sureties on foreign bonds, § 439.

2. Maritime Cases.

Master's power to bind owner enlarged in foreign ports, § 440.

Determined by law of flag, § 441. Distinctive French rule, § 442. Lex Rhodia jactu the common rule as to general average, § 443. Insurance does not ordinarily cover general average, § 444.

Place of destination supplies the rule, § 445. Foreign adjustment determines, § 446.

3. Commercial Paper.

Limitations of capacity not ubiquitous, § 447.

Formalities regulated by lex loci actus, § 448.

Each party individually bound, § 449. Acceptor's obligations determined by place of payment, § 450.

And so of maker's, § 451.

And so of days of grace, § 452.
And so of interest, § 453.

And so of demand, protest, and notice of dishonor, § 454.

Notice by indorser depends upon special law, § 455.

Liability of drawer and indorser conditioned by that of acceptor, but subject, as to payment, to his place of payment, § 456. Place of date not necessarily place of payment, § 457.

Bill formally defective where made, may bind indorser if good in place of indorse

ment, 458.

Defective intermediate indorsements do not destroy negotiability when good by the place of payment, § 459.

Conflict as to cumulation of expenses on reexchange, § 460.

Assignability and taxability determined by holder's domicil, § 461.

Process determined by lex fori, § 462. Defences that go to the merits dependent on place of payment, § 462 a. Interpretation provable by usage, § 463. Accommodation indorser bound by law of place, § 464.

4. Insurance.

Insurance engagements determined by place of principal business, § 465. Otherwise as to agencies with power to act, § 466.

In suit for premium, law of place of payment controls, § 467.

5. Partnership.

Partner holding himself out as such cannot set up restrictions of his domicil, § 468. Otherwise as to secret partnerships, $469. Foreign partners must be proved to be such, § 470.

6. Common Carriers.

The interpretation of a bill of lading, so far as concerns its intrinsic qualities, is for the state of the carrier's principal office, § 471.

And so of the construction of contracts limiting carrier's liability for negligence, § 472.

And so as to value of ship, § 472 a. Liability for tort during carriage is determined by lex loci delicti commissi, § 473. Law of place of performance determines mode of performance, § 473 a. Advances on bill of lading bind extra-territorially, § 473 b.

7. Delicts and Torts.

Delicts and torts convertible, § 474. By Roman law lex delicti commissi prevails, § 475.

By Savigny place of process, § 476. Distinctions between suits for damages and prosecutions for fines, § 477.

Lex fori and lex delicti commissi must concur, § 478.

No remedy by representatives of deceased unless given by lex loci delicti, § 479. Nor will one state enforce in this respect

another's laws, § 480.

Injuries to real estate redressed only by local | Place of performance determines, § 504. law, § 481.

8. Contracts Involving Revenue Evasions. State will not sanction contract to evade its revenue laws, § 482.

But mere knowledge of intended smuggling does not invalidate sale, § 483.

Place of payment not necessarily place of performance, § 505.

Though usually so with negotiable paper, § 505 a.

Nor does obligee's domicil control, § 506.
Hypothesis of favorable law, § 507.

That of place of investment, $ 508.

Contracts to evade foreign revenue laws not This view sustained by analogy, § 509. illegal, § 484.

9. Local Statutory Bonds.

Such bonds have no extra-territorial force, $ 485.

10. Sales of Prohibited Liquors or Drugs. Such sales subject to law of place of performance, § 486.

11. Lotteries.

When lotteries are permitted in place of performance, contract judged by that law, $ 487.

So where lotteries are illegal by such law, § 488. Distinction where lotteries are government institutions, § 489.

12. Contracts against Public Policy. Foreign contracts of this class will not be enforced, § 490. Illustrated by champertous contracts, § 491. Gaming contracts, § 492.

Contracts in restraint of trade, § 492 a. Immorality tested by lex fori, § 493. And so of slave-trade, § 494.

13. Contracts against Law of Nations. Contracts conflicting with law of nations invalid, § 495.

As with contracts involving breach of neutrality, § 496.

Otherwise as to supply of munitions of war and blockade breach, § 496 a.

14. Contracts with Public Enemies. Such contracts void, § 497.

VII. EFFECTS OF OBLIGATIONS.

Specific performance determined by place of performance, § 498.

So of rescissions and renewals, § 499.
Stay laws governed by lex fori, § 500.

VIII. INTEREST.

How classified, § 501.

Savigny's rule, § 502.

1. When based on Contract.

Place of solemnizing contract cannot control, § 503.

When mortgage is not merely collateral, law of site prevails, § 510.

Lex fori to control process, § 511.

2. When in Form of Damages. Conflict as to damages, § 512.

3. Moratory Interest. Determined by place of use, § 513.

IX. CURRENCY OF PAYMENT.

Determined by place of payment, § 514. Real, not formal, value to be recovered, Otherwise when exchange is established by $ 515. Internationally plaintiff entitled to full law, § 516. equivalent, § 517.

Legal tender acts not extra-territorial, §

518.

X. HOW OBLIGATIONS MAY BE BARRED. Modes of barring by Roman law, § 519. Barring in place of performance good everywhere, § 520.

But conditioned upon fairness of procedure, § 521.

1. Bankrupt and Insolvent Discharge. Discharge by state without jurisdiction inoperative, § 522.

Federal bankrupt decrees effective throughout the United States, § 523. State insolvent discharges operative as between citizens of state and validating creditors, § 524.

But not usually as to other persons, § 525. Nor as to negotiable paper indorsed abroad, $526.

Debts payable in state to non-citizen not

barred, § 527.

Except as to party to procedure, § 528. Removal of creditor to another state does

not privilege him, § 529.

Retrospective discharge inoperative, § 530. Foreign bankrupt discharges not a bar, $ 531.

Otherwise as to discharges in special forum or common domicil, § 532. Modern Roman law, § 533.

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