Contracts/Governing law: Difference between revisions

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(Adapted and imported text from Corpus Juris, The American Law Book Co., New York, NY (1917))
(Adapted and imported text from Corpus Juris, The American Law Book Co., New York, NY (1917))
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==General Rules==
==General Rules==
See generally [[Conflict of Laws]]
''See generally '''[[Conflict of Laws]]'''.''


A contract is governed as to its intrinsic validity and effect by the law with reference to which the parties intended, or fairly may be presumed to have intended, to oontract,<ref>"The general principle is that a contract is to be governed by the law with a view to which it was made, and this is a question of intention, to be deduced, when not expressly declared, from the place, terms, character, and purposes of the transaction." [[Croissant v. Empire State Realty Co.]], 29 App. (D.C.) 538.</ref> the real place of the contract being a matter of mutual intention, except in exceptional circumstances evincing a purpose in making the contract to commit a fraud on the law.<ref>[[International Harvester Co. v. McAdam]], 142 Wis. 114, 118, 124 NW 1042, 26 LRANS 774, 20 AnnCas 614.<br />
A contract is governed as to its intrinsic validity and effect by the law with reference to which the parties intended, or fairly may be presumed to have intended, to oontract,<ref>"The general principle is that a contract is to be governed by the law with a view to which it was made, and this is a question of intention, to be deduced, when not expressly declared, from the place, terms, character, and purposes of the transaction." [[Croissant v. Empire State Realty Co.]], 29 App. (D.C.) 538.</ref> the real place of the contract being a matter of mutual intention, except in exceptional circumstances evincing a purpose in making the contract to commit a fraud on the law.<ref>[[International Harvester Co. v. McAdam]], 142 Wis. 114, 118, 124 NW 1042, 26 LRANS 774, 20 AnnCas 614.<br />
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===Place of contract===
===Place of contract===
The act of the parties in
''For '''Construction of contract''' as to place where made see [[Contracts/Construction and Operation#Place of Making|Place of Making]].''
entering into a contract at a particular place, in the absence of anything shown to the contrary, suffi
 
ciently indicates their intention to contract with
The act of the parties in entering into a contract at a particular place, in the absence of anything shown to the contrary, sufficiently indicates their intention to contract with reference to the laws of that place; hence the rule, as it is usually stated, that a contract as to its validity and interpretation is governed by the law of the place where it is made—-the ''lex loci contractus'',<ref>U.S.-- Northwestern :Mut. L. Ins. Co. v. McCue, 2l!3 U. S. 2 34, 32 SCt 220, 56 L. ed. 419, 38 LRANS 57; Mutual L. Ins. Co. v. Cohen, 1 7 9 U. S. 262, 21 SCt 106, 46 L. ed. 181: Pritchard v. Norton, 106 U. S. 124, 1 SCt 102. 27 L. ed. 104; Seudder v. Union Nat. Bank, 91 U. 8. 406, 23 L. ell- 246; •Wllcox v. Hunt. 13 Pet. 378. 10 L. ed. 209 ; Cox v. U. S., 6 Pet. 172, 8 L. ed. 369 ; Harrison v. S terry, 6 Cranch 289, 3 L. ed. 10 4 ; I n re Hartdagen, 189 Fed. 546 ; Bel l v. New York Safety Steam Power Co .. 183 Fed. 274; Shaw v. Cl eveland, etc .. R. Co., 173 Fed. 746, 97 CCA 620; Owen v. Gi les, 157 Fed. 825, 86 CCA 189; The l<'rl, 1,54 Fed. 333, 83 CCA 205 [certiorari den 201 U. S. 431, 28 SCt 761, 52 L. ed. 1 1 3 6 ]; Schlnottl v. Whitney, 130 Fed. 780 i. Provident Sav. L. Assur. Soc. v. ttadley, 102 Fed. 856, 43 CCA 25 lal'f 90 Fed. 390. an d certiorari den 179 U. S. 686, 21 SCt 919, 45 L. ed. 3861; Potter v. The Majestic, 60 Fed. 624. 9 CCA 16 1 , 23 LRA 746 [rev on o ther grounds 166 U. S. 375, 17 set 697, 41 L. ed. 1039]; Brown v. American Finance Co .. 31 Fed. 616, 24 Bla􀀮ht'. 384 ; Burrows v. Hannegan, 4 F. Cas. No. 2.20!: 1 McLean 315: Green v. Collins, 10 1''. Cas. No. 6,756. 3 Clll't. 494; Nicolls v. Rodgers, 18 F. Cas. No. 10,26 0, 2 Paine 437 ; Pope v. Nicker- son, 19 F. Cas. No. 11,274. 3 Story 465: Van Rel msdyk v. Kane, 28 F. Cas No 16 871 1 Gall 371<br />
reference to the laws of that place; hence the rule,
Ala.-N e w York L. · Ins : Co. v. Scheuer, 73 S 409 ; Western Union Tel. Co. v. Favlsh. 71 S 183: Warrior Coal , etc. , Co. v. Augusta Nat. Bank, 53 S 997; Peet v. Hatcher. 112 Ala. 514, 21 S 7 1 1 , 67 AmSR 46· Swinks v. Dechard, 41 Ala. 258; Evans v. Kittrell, 33 Ala. 449; Walker v. Forbes, 31 Ala. 9; McDougald v. Rutherford, 30 Ala. 253; Jones v. Jones. 18 Ala. 248; Peake v. Yeldell, 17 Ala. 636; Thomas v. Degratr en- reid, 17 Ala . 602; Goodman v. Munks, 8 Port. 8 4 .<br />
as it is usually stated, that a contract as to its
Ark.-Lawler v. Lawler, 107 Ark. 70, 153 SW 1113 ; Rock Island Plow Co. v. Masterson, 96 Ark. 446, 132 SW 216: Hough v. Mau pin, 73 Ark. 518, 84 SW 717 ; Howcott v. Kil bourn, 44 Ark. 213; Laird v. Hodges. 26 Ark. 366 ; Lane v. Levllllan, 4 Ark. 7 6, 37 AmD 769.<br />
validity and interpretation is governed by the law
Cal.- Ailen v. Allen, 95 Cal. 184, 30 P 213. 16 LRA 646; Bertonneau v. Southern Pac. Co., 17 Cal. A. 439, 120 P .63.<br />
of the place where it is made—the lex loci con
Colo.--Cockburn v. Kinsley, 26 Colo. A. 89, 136 P 1112.<br />
tractus,16 or, more accurately, that contracts to be governed as to their nature, validity, and interpretation by the law of the place where they
Conn.-Whlte v. Holly, 80 Conn. 438,- 68 A 997; Koster v. M lnett. 32 Conn. 246 ; Hale v. New Jersey Steam Nav. Co., 16 Conn. 539, 39 AmD 398; Phlladelnhla. Loan Co. v. Towner, 13 Conn. 24 9; Brackett v. Norton, 4 Conn. 617. 10 AmD 1 7 9.<br />
irere made, unless the contracting parties clearly
D. C.--Croissant v. Empire State Realty Co .. 29 App. 538 ; Armstron g v. U. S. Bulldlng, etc., Assoc., 15 App, 1; Ha nsel v. Chapman, 2 App. 3 6 1 .<br />
appear to have had some other place in view.17 The
Fla.-Thompson v. Kyle, 39 F"la. 682, 23 S 12, 63 AmSR 193. Ga.-Flournoy v. J etrerson vllle Firat Nat. Bank, 79 Ga. 810. 2 SE 547; Champion v. Wilson. 64 Ga. 1 8 4 ; Davis v. De Vaughn, 7 Ga. A. 824. 66 SE 9 5 6 ; Missouri S tate L. I ns. Co. v. Lovelace, 1 Ga. A. H6. 58 SE 􀏇3.<br />
presumption recognized by these statements, that
Ili.-Walker v. Lovitt. 250 I ll. 6 4 3 , 9 5 NE 631 ; Benedict v. Dakin, 243 I l l. 384, 90 NE 712: Burchard v. Dun - bar, 82 Ill. 4 5 0, 25 AmR 334 ; Evans v. Anderson, 78 Ill. 568 ; Roundtree v. Baker, 62 Ill. 241, 4 AmR 697; Munsford v. Can t(• 60 I l l . 37 0; Lewis v. Headley, 36 II. 433, 87 AmD 227; Austedt v. Sutter, 30 Ill. 164: Me- All ister v. Smi th, 17 Ill. 328. 65 AmD 6 5 1 ; Phinney v. Baldwin, 16 Ill. 108, 1 AmD 62; S tacy v. Baker. 2 Ill. 417; Humphries v. Co111er, 1 Ill. 297; Bradshaw. v. Newman, 1 I l l . 133, 12 AmD 149: Horvitz v. Fred· son , 178 Ill. A. 303· Lumber Co., 146 I \ 1R. eAid. 3v7. 1N; oMrtchCeorny v. G riswold, 1 1 4 I l l . A. 666: Raphael v. Hartman. 87 I l l . A. 634 ; Waters v. Cox. 2 Ill. A. 129.<br />
the proper law of the contract is the law of the
lnd.-Garrlgue v. Kellar. 1 6 4 Ind. 676, 74 NE 623. 108 AmSR 3 24, 69 LRA 870: Conkl in v. Co nklin, 64 Ind. 289 ; I<'arhnl v. Ram.see, 19 Ind. 400; Krouse v. Kr9use, 48. Ind. A. 3, NE 26! ; Beatty v. lflller, 47 Ind . 4 94 , 94 NE 897.<br />
country where the contract is made, applies with
Iowa.-Boz·n v. Home Ins. Co .. 1! Iowa 299, 94 NW 849; Doyle v. Me Guire, 38 Iowa 410; Franklin v. Two good, 26 Iowa 620, 96 AinD 73; ),f<C. Daniels v. Chicago, etc., R. Co .. Iowa. 412; Bean v. Briggs 4 Iowa 464. '<br />
special force when the contract is to be performed
Kan.-Hetrerlln v. Slnalnderte r, Kan. 401. 85 AmD 693.<br />
wholly in the country where it is made, or may be
Ky.-Elswick v. Ramey, 1 6 7 Ky. 639, 163 SW 761; Arnett v. Pinson. 108 SW 862, 33 KyL 3 6; Ford Buckeye State Ins. Co., & Bush 133, 99 AmD 663: Archer v. National Ina. Co . . 2 Bush ;.:26; Jameson v. Gregory. 4 Mete. 363; You ng v. Harris, 1-1 Mon. 447, 61 AmD 170; Cross v. Petcouche ree, 10 B. Mon. US; Johnson v. U. Bank 2 B Mon 310· Steele v Curle 4 Dana 3Rt· Cocke v. Conlgnlaker. A. K. Marsh. 254 : Grubbs v. HaiTIS. 1 Bibb 667;. Gibson v. Sublet t, 4 KyL 730.<br />
performed anywhere; but it may apply to a contract partly or even wholly to be performed in an
La.-Pecquet v. Pecquet, 17 La. Ann. 204 ; H ollomon v. Hollomon. La. Ann. 607; Snears v. Shronshlre. 11 LL Ann. 669, 68 AmD 208: S. v. U. S. Bank. 8 Rob. 26 2; Shaw v. Oake[• 3 Rob. 361; Brlttgs f'ampbel , 19 La. 624: Buckner Watt, 19 La. 216, 36 AmD 67 1 : Jack son v. Tiernan. 15 La. 485; Gra.vea Roy, 13 La. 464. 33 AmD 668; AnWhere r'lrews v. His Creditors, 11 La. 464; King v. Harman, 6 La. 607. 26 AmD 486 ; Clague v. Their Creditors. 2 La. 114, 20 .AmD 300; Arayo v. Currel. La . 528, 20 AmD 286 ; Malplca v. Mclng Kown, 1 La. 2 48. 2 0 AmD 279; Miles ''· Od en. 8 Mart. N. S. 214. 19 AmD 177: A.Ptor v. Price. 7 Mart. N. 40 􀆱 ;, Shltr v. Loui siana State Ins. Co. 6 Mart. N. S. 6􀁳9; Bell v. James. Mart. N. S. 74: Saul v. His Creditors. 5 Mart. N. S. 669. 16 AmD 212; Thorn v. Morgan, 4 Mart. N. s. 292. 16 AmD 173; Baldwin v. Gray, 4 Mart. N. 192, 16 AmD 169; Chartres Cairnes, 4 Mart. N. S. 1; Ol iver Townes, 2 Mart. N. S. 93; Brown Richardson, 1 Mart. N. S. 202: Evans v. Gray. 12 Mart. 475; Morris v. Eve11. 11 Mart. 730 : Whiston v. Stodder. Mart. 95, 13 AmD 281; Lynch v. Po!! tlethwalte. 7 Mart. 69, 12 AmD 495. Me.-Bond v. Cummlnii'S, 70 Me. 1 􀁴5; Kennedy v. Coch rane, 66 Me. 594; Whidden v. Seelye, 40 Me. 247, 6 3 AmD 6 6 1 .<br />
other country.18
Md.-Mandru v. Ashby, 108 Md 1193. 71 A 3 1 2; Dakin v. Pomeroy, Gill 1; Tra!!her v. Everhart, a Glll & J. 234 ;.. De Sobry v. De Lalstl"(', Harr. & oJ, 191. 3 AmD 655.<br />
Mass.-Amerl<-an S pirits Mf111:. v. Eldridge, l!09 Mass. 690, 95 !I: 942: American Malting Co. v. Souther Brewing Co., 194 Mass. 89, 80 NE 52fl; Da niel v. Boston, etc .• R. Co 1 8 4 Mal's. 337, 68 NE 337; Mlttenthal v.· Mascainl, 183 Mass. 19; C6 NE 425. 97 mSR 404, 60 LRA 81!: Stebblmt v. Leowolf, 3 Cush. 137: Carnegie v. Morrison, Z Mete. Ill: Pitki n v. Thom pson, l3 Pick. Bulger v. Roche, 11 Pick. 36. Z2 AmD 359: Blanchard v. Russell, 13 Mass. 1, 7 AmD 106. M i ch .-Mi l lar v. Hilton, 189 Mich. 636, 155 NW 574: Douglass v. Pa.Jne. 1 4 1 Mich. 486, 1 0 4 NW 781 ; Tolman Co. v. Reed, 115 Mich. 71. 7Z NW 141310.4 ;6 8D aNWwso n2 4v6. ; PCeotlelrlnsosn ,I r1o1n0 CMoi. Burkam, 10 Mich. 283.<br />
Mlnn.-Northwestem Fuel Co. Boston I ns. Co .. 131 Minn. 19. 164 NW 616.<br />
Mlss.-Woodsen v. Owens. U 207 ; Partee v. Silliman. 44 Miss . 171; Brown v. Freeland, 3 4 Miss. 1 8 1 ; Brown v. Nevitt. 27 Miss. 8 0 1 ; Bank of England v. Tarleton, 23 M iss. 173; Martin v. Martin, 9 Miss. 176.<br />
Mo.-Carey v. Schmeltz, 22\ Mo. 112, 119 SW 946; Thompson v. Chi 􁦰 Traders' Ins. Co., 169 Mo. 12. C8 SW 889; .Tohnstcm v . Gawtry, 8 3 Mo. 339; Sallee v. Chand ler, 26 Mo. 1!4; Houghtaling v. Ball, 19 Mo. 84, 5t AmD 331; Tremain v. Dyott, l6t :llo. A. 217, 14! SW 760; Kavanaugh "·SUpreme Council R. L., 158 Mo. A. U4, 1 38 SW 3 59; McKinstry v. Chlcqo, etc .• R. Co., 1 5 3 Mo. A. 5 4 6 , 134 8W 10 61: Robert v. Chicago, etc., R. Co.. 148 Mo. A. 96, 127 SW 925 ; Hubbard , •. Mobile. etc., R. Co .• !12 Mo. A. 459, 87 SW 52; Phamlx Mut. L. Ina. Co. v. Simons, 52 Mo. A. 357; Hartmann v. Louisville, etc., R. Co .. It Ho. A. 88; Kerwin v. Doran, 29 Xo. A. 397; Roach v. St. Louis Type Foundry, 21 Mo. A. 118; nan- cllor "· G 9 Mo. A. 1 0 2 ; State 'f. A. %63. State Ins. Co., 61 lZ. Stevens, 6S N. H. v. Costello, 48 N. Bliss v. BrainGodfrey. : Thayer Bl iss v. Hays v. King, H Okl. 1 8 0, 143 11 4 2 ; Wa�rner v. M i nnie Harvester Co., 25 Okl. 5 6 8 , 1 0 6 P 9 69 ; Westeru Union Tel. Co. v. Pratt, 1 8 Okl. 274. 8 9 P 2 37. 1 Or.-.Tamleson v. Potts, 56 Or. 2 1 0 5 P 93, 26 LRANS 24.<br />
Pa.-Forepaugh v. Delaware. etc., R. Co., 1 2 8 Pa. 217, 18 A 603, 15 Am SR 672. 5 LRA 5 0 8 A · Tenant v. Ten- ant, 1 1 0 Pa. 478 , 1 5 3 2 ; GreenwnM '"· Kaster, 86 Pa. 4 6 ; Benners Clemens • . 58 Pa. 24; Speed v. Mny. 17 Pa. 91, 5 5 AmD 6 4 0; Watson Brewster, 1 Pa. 881; Dougherty Snyder, 16 Serg. & R. 84, 1 6 AmD 5 2 0 ; Mann v. Salsberg, 17 Pa. Super. 2RO; Robinson v. Kline. 21 Pft. Dlst. 8 3 9 ; Brewster v. Lyndes, 2 Miles 1 8 Robinson v. Kline, 39 Pa. Co. 328; llmWhltehurst's E�St .. 2 Pa. Co. 212, WkJyNC 403 : Roths.,hild v. RocheF- tf'r, etc .. R. Co., 1 Pa. Co. 620; Gil- bert v. Black, 1 LegChron 132 ; Hong v. Dessan, 1 Plttsb. 3 9 0.<br />
R. I.-Bowler v. Emery, 29 R. :1 1 0. 10 A 1. S . C.-Galletley v. Strickland. S. C. 394. 64 SE 676: Pegram v. WI!- IIams, 3 8 S. C . L . 219; Gilliland Phillips, 30 S. C. L. 1 5 2 ; Weatherby v. Covington, 30 S. C. L. 27, 49 AmD 623 ; Ayres v. Audubon, 20 S. C. SOl ; Touro v. Cassin, 10 S. C. J •. 173, 9 AmD 6 8 0 ; Le Prince v. Guillemot, 18 S. C. Eq. 1 87.<br />
S. D.-Sibley First Nat. Bank Doeden, 21 S. D. 400, 1 1 3 NW Meuer v. Chicago, etc .. R. Co .. 11 D. 94, 76 NW 8 2 3, 74 AmSR 774 Union City Commercial Bank .Jackson, 7 S. D. 136, 63 NW 648.<br />
Tenn.-Ingram v. Smith, 1 Head 411; Pearl v. Hansborough. Humphr. 4 2 6 ; McKissick v. McKls- supsick, 6 Humphr. 76 ; Yerger v. Raus. 4 Humphr. 259.<br />
Tex.-Fidellty Mut. Lite Assoc . Harris, 94 Tex. 2 5, 67 SW 635. AmSR 81 3 ; Cantu v. Bennett. 39 Tex. 3 03 ; Shelton v. Marshall. 1 6 Tex. 344; Crosby v. Huston, 1 Tex. 203; Saw- :ver v. El Paso. etc .. R. Co., 49 Tex. Clv. A. 1 08. 1 0 8 SW. 718.<br />
Vt.--Cartwrlght v. New York, etc.. R: Co .. 69 Vt. 676, 9 A 370 ; Harrison v. Edwards. 12 Vt. 6 4 8 , 36 AmD 8 64 generSutrolk Bank v. Kidder, 12 Vt. 464, 36 AmD 364; Bryant v. Edson, 8 Vt. 325. 80 AmD 472.<br />
Va.-Warder v. Arell, Z Wash. Va.) 282, 1 AmD 488.<br />
Wash.--Crawtord v. Seattle, etc.. R. Co., 88 Wash. 628. 1 5 0 P 1 166, LRA1 9 1 6D 7 3 2: PhrenJx Packing Co. v. Humphrey-Ball Co., 58 Wash. 896, 1 0 8 P 962: Carstens Packing Co. Southern Pac. Co .. 68 Wash. 239, 1 P 613. 27 LRANS 975.<br />
W. Va.-Davldson v. Browning. W. Va. 276, 80 SE 383. LRA1 9 1 976 ; Crumllst v. Central Impr. C'o.. 38 W. Va. 890, 18 SE 466, 46 AmSR 872. 23 LRA 1 2 0 ; Stevens v. Brown, 20 W. Va. 450.<br /> Wls-Intematlonal Harvester Co. Wosv. McAda.m. 142 Wis. 1 14, 1 24 KW 1042, 2 6 LRANS 774. 20 AnnCas 814; Fisher v. Otis, 3 Chand!. 78. Wyo.-Studebaker Bros. Oo. v. Mau. 13 Wyo. 3 6 8 , 8 0 P 161, 1 1 0 AmSR 1 0 01.<br /> Eng.--Chatenay v. Braslllan Sub- marine Tel. Co .. (1 8911 1 Q. B. 79; Gibbs v. La Socll!􀚄 Industrlelle, etc., 25 Q. B. D. 39 9 ; .Jacobs v. Credit Lyonnals, 1 2 Q. B. D. 6 89, 1 ERC 3 3 8 ; Lloyd v. Gulbert. L. R. 1 Q. 1 16, 6 B. & S. 1 00, 1 1 8 ECL 100. UZ Reprint 1 1 3 4 . 6 ERC 870 ; In Bonaclna, (1913] 2 Ch. 394: KearneY UIQI11Zeu v. Ki ng, 2 B. & Ald. 301,. 1 06 Reprint 377 ; Sprowle v. Legge, 1 B. & C. 16. 8 ECL 8, 1 07 Reprint 7; Arnott v. Redfern, 3 Bing. 353. 11 ECL 177, 130 Repri nt 549, 2 C. & P. 88. ll! ECL 466; Scott v. Pi lkington. 2 B. & S. 1 1 , 1 1 0 ECL 1 1, 121 Reprint 978• Robi nson v. Bland, 2 Burr. 1 077, 9 7 Reprint 7 1 7; Peninsular, etc., Steam Nav. Co. v. Shand. 3 Moore P. C. N. S. 272, 16 Reprint 1 0 3. Can.-Black v. Reg., 29 Can. s. C. 693. Ont.-In re Harte, 2 2 Ont. 5 1 0.<br /> '''[a] Applications of rule.'''--Where the ''lex loci contractus'' deals with the substantive liability of a party to a contract, to be performed where made, the enforcement of which is sought in another jurisdiction, a limitation such liability imposed by the law of the place of the contract will be enforced by the forum where the remedy is sought, unless contrary to public policy. [[Hlnkly v. Freick]], 86 N.J.L. 281, 90 A 1108, LRA1916B 1041.</ref> or, more accurately, that contracts to be governed as to their nature, validity, and interpretation by the law of the place where they made, unless the contracting parties clearly appear to have had some other place in view.<ref>Liverpool, etc., Co. v. Phenix Ins. Co., 1 29 U. S. 3 97, 9 SCt 469. 3 2 L . ed. 788 ; Croissant v . Empire State Real ty Co.. 29 App. ( D. C.) 5 3 8j Eagle v. New York L. Ins. Co .. 411 Ind. A. 2 84. 91 NE 8 1 4 ; Western Union Tel. Co. v. Parsley, 67 Tex. Civ. A. 8, 1 2 1 SW 226.<br />
'''[a] Reason for the rule.'''--"When a merchant of France, Holland, or England, enters into a contract in his own country, he must be presumed to be conusant of the laws at the place where he is, and to expect that his contract is to be judged of and carried into effect according to those laws; and the merchant with whom he deals, if a foreigner, must be supposed to submit himself to the same laws, unless he has taken care to stipulate for a performance in some other country, or has, in some other way, excepted his particular contract from the laws of the country where he is." Blanchard v. Russell, 13 folass. 1, 4, 7 AmD 106.<br />
'''[b] The expression "place of contract,"''' in the rule that the validity of a contract is governed by the law at the place ot contract has generally been employed to mean the place where the contract is entered into. Mayer v. Roche, 77 N. J. L. 681, 76 A l!36, 2 6 LRANS 763. 18.</ref> The presumption recognized by these statements, that the proper law of the contract is the law of the country where the contract is made, applies with special force when the contract is to be performed wholly in the country where it is made, or may be performed anywhere; but it may apply to a contract partly or even wholly to be performed in another country.<ref>[[Clarey v. Union Cent. L. Ins. Co.]], 143 Ky. 640, 136 SW 1014, 1015, 33 LRANS 881 [quot Cyc].</ref>


===Place of performance===
===Place of performance===

Revision as of 06:25, August 4, 2020


Contracts Treatise
Table of Contents
Contracts Outline
Introduction and Definitions
Introduction
Definitions
Elements
Contract law in the United States
Contract formation
Parties
Offer
Acceptance
Intention to Bind
Formal requisites
Mailbox rule
Mirror image rule
Invitation to deal
Firm offer
Consideration
Consent
Implication-in-fact
Collateral contract
Modification
Merger
Uniform Commercial Code
Uniform Commercial Code
Course of dealing
Course of performance
UCC-1 financing statement
Uniform Commercial Code adoption
Defenses against formation
Lack of capacity
Duress
Undue influence
Illusory promise
Statute of frauds
Uncertainty
Non est factum
Contract interpretation
Governing law
Construction and Operation
Parol evidence rule
Contract of adhesion
Integration clause
Contra proferentem
Excuses for non-performance
Mistake
Misrepresentation
Frustration of purpose
Impossibility
Impracticability
Illegality
Unclean hands
Unconscionability
Accord and satisfaction
Rights of third parties
Privity of contract
Assignment
Delegation
Novation
Third-party beneficiary
Performance or Breach
Necessity of performance
Sufficiency of performance
Anticipatory repudiation
Cover
Exclusion clause
Efficient breach
Deviation
Fundamental breach
Termination
Termination
Rescission
Termination and rescission
Abrogation and rescission
Subsequent contract
Termination
Forfeiture
Remedies
Restitution
Specific performance
Liquidated damages
Punitive damages
Quasi-contractual obligations
Estoppel
Quantum meruit
Actions
Actions in General
Parties to Action
Pleading
Evidence
Questions of Law and Fact
Instructions
Trial and Judgment

General Rules

See generally Conflict of Laws.

A contract is governed as to its intrinsic validity and effect by the law with reference to which the parties intended, or fairly may be presumed to have intended, to oontract,[1] the real place of the contract being a matter of mutual intention, except in exceptional circumstances evincing a purpose in making the contract to commit a fraud on the law.[2] This law governs not only as to the execution, authentication, and construction of the contract, but also as to the legal obligations arising from it, and as to what is to be deemed a performance, satisfaction, or discharge.[3] The intention of the parties may be either expressed or implied from their acts and conduct at the time of making the contract.[4] Parties to a contract may contract with reference to the laws of any state or country, if they have a substantial connection with the subject matter.[5]

Place of contract

For Construction of contract as to place where made see Place of Making.

The act of the parties in entering into a contract at a particular place, in the absence of anything shown to the contrary, sufficiently indicates their intention to contract with reference to the laws of that place; hence the rule, as it is usually stated, that a contract as to its validity and interpretation is governed by the law of the place where it is made—-the lex loci contractus,[6] or, more accurately, that contracts to be governed as to their nature, validity, and interpretation by the law of the place where they made, unless the contracting parties clearly appear to have had some other place in view.[7] The presumption recognized by these statements, that the proper law of the contract is the law of the country where the contract is made, applies with special force when the contract is to be performed wholly in the country where it is made, or may be performed anywhere; but it may apply to a contract partly or even wholly to be performed in another country.[8]

Place of performance

When the contract is made in one country and is to be performed either wholly or partly in another,·the proper law of the contract, especially as to the mode of performance, may be presumed to be the law of the country where performance is to take place, the lex loci solutionis.19 This rule yields to a contrary intent of the parties,20 although it has been said that, "to show that the parties did not intend the place of performance to be the place of the contract, when void at the place of performance, it must clearly appear that they intended to be governed by the law of the place where . . . [the contract] was made."21


Neither place of contract nor place of performance controlling.

Neither the place where the con tract is made nor the place at which it is to be per formed is conclusive as to the law by which the parties intended the contract to be governed,22 but both are merely important indicia of such fact.23

Performance in several states.

While in numerous cases an entire contract to be performed partly in the state where made and partly in another state has been held to be governed by the law of the place of making,21 and there are other decisions to the effect that each portion is to be governed by the laws of the state in which that portion is performed,26 the better rule would seem to be that the presumed intention of the parties, gathered from the attending circumstances, is to be taken as controlling.2"

Interstate commerce.

Place of enforcement.

Domicile of parties.

Express provision in contract

Where the parties have expressly provided that the contract shall be governed by the law of a particular country, this intention will as a rule be carried out by the courts,3' and a party is bound by his choice.32 "Parties may substitute the laws of another place or country, than that where the contract is entered into, both in relation to the legality and extent of the original obligation, and in relation to the respec tive rights of the parties, for a breach or violation of its terms."33 This is part of the jus gentium, and is enforced ex comitate, when the enforcement of the contract is sought in the courts of a country governed by a different rule than the local or adopted law of the contract.84


Implied provision in contract

Comity basis of all rules

Fact of Agreement

Capacity of Parties

Form and Execution

Revenue stamps.

Legality

General Rules.

Agreements Contrary to Good Morals.

Agreements Injurious to the State or Its Citizens

Agreements Contrary to Constitution or Legislation of State.

Agreements Contrary to Public Policy.

Agreements Relating to Realty

Agreements Relating to Personalty

Carriage of Goods.

Defenses

Presumptions

Remedies

General Rules

Particular Matters Affecting Remedy

Statutes of Limitations

Exemption Laws

Discharge in Bankruptcy or Insolvency

Protection from Civil Arrest

Whether Instrument Is a Specialty

Whether Remedy Is at Law or in Equity

Parties

Conflict of Laws as to Time

In General

Agreement Illegal When Made but Afterward Legalized

Agreement Legal When Made but Afterward Prohibited

References

  1. "The general principle is that a contract is to be governed by the law with a view to which it was made, and this is a question of intention, to be deduced, when not expressly declared, from the place, terms, character, and purposes of the transaction." Croissant v. Empire State Realty Co., 29 App. (D.C.) 538.
  2. International Harvester Co. v. McAdam, 142 Wis. 114, 118, 124 NW 1042, 26 LRANS 774, 20 AnnCas 614.

    As to mere personal c o n t racts t h e law thereo f as to t h e i r val idity and I n terpre tat i o n . Is that of the place where t h e y were made ; the lex Joel c o n trac t u s , u nle ss t h e parties thereto I n te n d e d that they sho u ld be go v erned by t h e law of t h e p l ace of performance ; th e lex Joel solu t i o n i s , o r o f some o t h e r p l ace. T h a t I s . the place o f the contract Is, genera l l y s pe a k i ng, a matter o f mu tual Intent i o n , bu t the I n te n ded place. as det e r m i n e d by l egal presu m p t ion I n s o m e cases a n d e v i d e n t iary c i rcum s tances In o the rs, s e t tles all q uest i o n s as to t h e l ega l t �> s t of val i d i ty and In terpretat i o n. Surh presu mpt i o n , I n the a bsence of evidence to t h e co n trary, Is t ha t the place of m a k i n g and pe r f o rmance, In a phys Ical se nse, Is t h e p lace In a legal s e n s e, b u t the place of pPrformancO> when d ltre re n t from t h a t of the a ctual mak i n g, Is the place In such l egal sense, subject to the presum ption bei n g rebu tted by clear e v i dence of I n t e n ti o n , th is bei n g a g a i n s u bject to some exce p t i o n s In cas e o f l n t e n t l o n to com m i t a frau d on t h e law.

    International Harvester Co. v. McAdam, supra.

    [a] The term "proper law of a contract" means the law or laws by which the parties to a contract intended, or may fairly be presumed to have intended , the contract to be governed, or in other words the law or laws to which the parties intended, or may fairly be presumed to have intended, to submit themselves, or more accurately, although in more cumbersome language, the law of the country or the laws of the countries by the law or the laws whereof the parties to a contract intended or may fairly be presumed to have intended the contract to be governed. Hamlyn v. Tallsker Distillery, [1894] A.C. 202; Lloyd v. Gulbert, L.R. 1 Q.B. 115, 6 B. & S. 100, 118 ECL 100, 122 Reprint 1134, 5 ERC 870; In re Missouri SS. Co., 42 Ch. D. 321.

  3. U.S.-O w e n v. G i l e s . 1 5 7 Fed. 8 2 5 , 86 CCA 1 8 9
    I o w a.-Ba nco d e S o n o ra v . Ba n kers' M ut. Casual ty Co., 1 2 4 Iowa 6 7 6 . 1 3 􀁋 . AmSR 3 6 7 .
    Ky.-- Union Cent. L. Ins. Co., 143 Ky. 640, 136 SW 101 4, 1015, 33 LRANS 881 [quot Cyc]; Davis v. Morton, 5 Bus h 160, 96 AmD 345.
    Mass.-HIJI v. Chase, 143 Mass. 1 2 9 , 9 NE 30 ; Stebbins v. Leowolf, 3 Cush. 137.
    Mo.-Thompson v. Chicago Trad- ers' I ns. Co. , 169 Mo. 12, 68 SW 8 8 9 .
    N. Y.-Dicklnson v. Edwards, 77 N. Y. 673, 33 AmR 671.
    [a] Illustrations.--
    1. Where two citizens of France, at Parla1 entered Into a marriage contract ror com- munltf of goods according to the law o Paris, and the husband after- ward deserted his wife. went to New York,· and after remaining there many years, died there, It was held that the rights of the wife In the distribution of the es tate must be go verned by the law ot' France. De- Petcouche v. Savetler, 3 Johns. Ch. <N. Y ) 190, 8 AmD 478 .
    2. Where plaintiffs who lived In New York made a contract In New York with defendants, whereby plalntltrs paid certain bllls for defendants' accom- modatlon, the money being paid In New York, It was held In an action In New York to recover the amount paid on such bllls that the law ot' New York, and not that ot' Mi s s ouri , governed the c ontract notwlthstand- lng defendants resided In Missouri, and the bills were drawn there. Sul'- dam v. Barber, 18 N. Y. 468, 75 AmD 254 [rev 13 N. Y. Super. 34].
    3. AnWhere mo ney was boiTowed In Mas- sachusetts ot' A by an agent ot' B. a resident of New Hampshire, the agen t bei ng employed by B t'or the purpose, and the latter, after recelv- Mclng the money fro m the agent to whom It had been delivered by A. signed and returned/ to A a recelnt sent with the money, It was held that the contract was made In Mas- sachusetts and governed by the laws thereof, and that the fac t that the receipt was si gned In New Hamp- shire was Immaterial. HJII v. Chase, 143 Mass. 129. 9 NE 30.
    4. A statute of the state In which an action Is tried. prov iding that time Is not <it' the essence of a contract unless by Its terms e_xpressly so provid ed, has no application where the con tract In suit was made and was to be per- t'ormed In another state. Owen v. Giles , 157 Fed. 825. 85 CCA 189.
    5. It' by the lex loci the day ot' performance of a contract Is extended to Monday, when the contem plated <lay o t' performance fall!! on Sunday, that rule will be anplled In the place where the contract was to be per- formed. Stebbi ns v. Leowolf, 3 Cush. ( Mass.) 137. Bertonneau
  4. Bertonneau v. Southern Pac. Co., 17 Cal . A. 439, 120 P 53.
    SeeExpress provision in contract.
    See Implied provision in contract.
  5. Crawford v. Seattle, etc., R. Co. , 86 Wash. 6 2 8, 1 5 0 P 1155, LRA 1 916D 732.
  6. U.S.-- Northwestern :Mut. L. Ins. Co. v. McCue, 2l!3 U. S. 2 34, 32 SCt 220, 56 L. ed. 419, 38 LRANS 57; Mutual L. Ins. Co. v. Cohen, 1 7 9 U. S. 262, 21 SCt 106, 46 L. ed. 181: Pritchard v. Norton, 106 U. S. 124, 1 SCt 102. 27 L. ed. 104; Seudder v. Union Nat. Bank, 91 U. 8. 406, 23 L. ell- 246; •Wllcox v. Hunt. 13 Pet. 378. 10 L. ed. 209 ; Cox v. U. S., 6 Pet. 172, 8 L. ed. 369 ; Harrison v. S terry, 6 Cranch 289, 3 L. ed. 10 4 ; I n re Hartdagen, 189 Fed. 546 ; Bel l v. New York Safety Steam Power Co .. 183 Fed. 274; Shaw v. Cl eveland, etc .. R. Co., 173 Fed. 746, 97 CCA 620; Owen v. Gi les, 157 Fed. 825, 86 CCA 189; The l<'rl, 1,54 Fed. 333, 83 CCA 205 [certiorari den 201 U. S. 431, 28 SCt 761, 52 L. ed. 1 1 3 6 ]; Schlnottl v. Whitney, 130 Fed. 780 i. Provident Sav. L. Assur. Soc. v. ttadley, 102 Fed. 856, 43 CCA 25 lal'f 90 Fed. 390. an d certiorari den 179 U. S. 686, 21 SCt 919, 45 L. ed. 3861; Potter v. The Majestic, 60 Fed. 624. 9 CCA 16 1 , 23 LRA 746 [rev on o ther grounds 166 U. S. 375, 17 set 697, 41 L. ed. 1039]; Brown v. American Finance Co .. 31 Fed. 616, 24 Bla􀀮ht'. 384 ; Burrows v. Hannegan, 4 F. Cas. No. 2.20!: 1 McLean 315: Green v. Collins, 10 1. Cas. No. 6,756. 3 Clll't. 494; Nicolls v. Rodgers, 18 F. Cas. No. 10,26 0, 2 Paine 437 ; Pope v. Nicker- son, 19 F. Cas. No. 11,274. 3 Story 465: Van Rel msdyk v. Kane, 28 F. Cas No 16 871 1 Gall 371
    Ala.-N e w York L. · Ins : Co. v. Scheuer, 73 S 409 ; Western Union Tel. Co. v. Favlsh. 71 S 183: Warrior Coal , etc. , Co. v. Augusta Nat. Bank, 53 S 997; Peet v. Hatcher. 112 Ala. 514, 21 S 7 1 1 , 67 AmSR 46· Swinks v. Dechard, 41 Ala. 258; Evans v. Kittrell, 33 Ala. 449; Walker v. Forbes, 31 Ala. 9; McDougald v. Rutherford, 30 Ala. 253; Jones v. Jones. 18 Ala. 248; Peake v. Yeldell, 17 Ala. 636; Thomas v. Degratr en- reid, 17 Ala . 602; Goodman v. Munks, 8 Port. 8 4 .
    Ark.-Lawler v. Lawler, 107 Ark. 70, 153 SW 1113 ; Rock Island Plow Co. v. Masterson, 96 Ark. 446, 132 SW 216: Hough v. Mau pin, 73 Ark. 518, 84 SW 717 ; Howcott v. Kil bourn, 44 Ark. 213; Laird v. Hodges. 26 Ark. 366 ; Lane v. Levllllan, 4 Ark. 7 6, 37 AmD 769.
    Cal.- Ailen v. Allen, 95 Cal. 184, 30 P 213. 16 LRA 646; Bertonneau v. Southern Pac. Co., 17 Cal. A. 439, 120 P .63.
    Colo.--Cockburn v. Kinsley, 26 Colo. A. 89, 136 P 1112.
    Conn.-Whlte v. Holly, 80 Conn. 438,- 68 A 997; Koster v. M lnett. 32 Conn. 246 ; Hale v. New Jersey Steam Nav. Co., 16 Conn. 539, 39 AmD 398; Phlladelnhla. Loan Co. v. Towner, 13 Conn. 24 9; Brackett v. Norton, 4 Conn. 617. 10 AmD 1 7 9.
    D. C.--Croissant v. Empire State Realty Co .. 29 App. 538 ; Armstron g v. U. S. Bulldlng, etc., Assoc., 15 App, 1; Ha nsel v. Chapman, 2 App. 3 6 1 .
    Fla.-Thompson v. Kyle, 39 F"la. 682, 23 S 12, 63 AmSR 193. Ga.-Flournoy v. J etrerson vllle Firat Nat. Bank, 79 Ga. 810. 2 SE 547; Champion v. Wilson. 64 Ga. 1 8 4 ; Davis v. De Vaughn, 7 Ga. A. 824. 66 SE 9 5 6 ; Missouri S tate L. I ns. Co. v. Lovelace, 1 Ga. A. H6. 58 SE 􀏇3.
    Ili.-Walker v. Lovitt. 250 I ll. 6 4 3 , 9 5 NE 631 ; Benedict v. Dakin, 243 I l l. 384, 90 NE 712: Burchard v. Dun - bar, 82 Ill. 4 5 0, 25 AmR 334 ; Evans v. Anderson, 78 Ill. 568 ; Roundtree v. Baker, 62 Ill. 241, 4 AmR 697; Munsford v. Can t(• 60 I l l . 37 0; Lewis v. Headley, 36 II. 433, 87 AmD 227; Austedt v. Sutter, 30 Ill. 164: Me- All ister v. Smi th, 17 Ill. 328. 65 AmD 6 5 1 ; Phinney v. Baldwin, 16 Ill. 108, 1 AmD 62; S tacy v. Baker. 2 Ill. 417; Humphries v. Co111er, 1 Ill. 297; Bradshaw. v. Newman, 1 I l l . 133, 12 AmD 149: Horvitz v. Fred· son , 178 Ill. A. 303· Lumber Co., 146 I \ 1R. eAid. 3v7. 1N; oMrtchCeorny v. G riswold, 1 1 4 I l l . A. 666: Raphael v. Hartman. 87 I l l . A. 634 ; Waters v. Cox. 2 Ill. A. 129.
    lnd.-Garrlgue v. Kellar. 1 6 4 Ind. 676, 74 NE 623. 108 AmSR 3 24, 69 LRA 870: Conkl in v. Co nklin, 64 Ind. 289 ; I<'arhnl v. Ram.see, 19 Ind. 400; Krouse v. Kr9use, 48. Ind. A. 3, NE 26! ; Beatty v. lflller, 47 Ind . 4 94 , 94 NE 897.
    Iowa.-Boz·n v. Home Ins. Co .. 1! Iowa 299, 94 NW 849; Doyle v. Me Guire, 38 Iowa 410; Franklin v. Two good, 26 Iowa 620, 96 AinD 73; ),f<C. Daniels v. Chicago, etc., R. Co .. Iowa. 412; Bean v. Briggs 4 Iowa 464. '
    Kan.-Hetrerlln v. Slnalnderte r, Kan. 401. 85 AmD 693.
    Ky.-Elswick v. Ramey, 1 6 7 Ky. 639, 163 SW 761; Arnett v. Pinson. 108 SW 862, 33 KyL 3 6; Ford Buckeye State Ins. Co., & Bush 133, 99 AmD 663: Archer v. National Ina. Co . . 2 Bush ;.:26; Jameson v. Gregory. 4 Mete. 363; You ng v. Harris, 1-1 Mon. 447, 61 AmD 170; Cross v. Petcouche ree, 10 B. Mon. US; Johnson v. U. Bank 2 B Mon 310· Steele v Curle 4 Dana 3Rt· Cocke v. Conlgnlaker. A. K. Marsh. 254 : Grubbs v. HaiTIS. 1 Bibb 667;. Gibson v. Sublet t, 4 KyL 730.
    La.-Pecquet v. Pecquet, 17 La. Ann. 204 ; H ollomon v. Hollomon. La. Ann. 607; Snears v. Shronshlre. 11 LL Ann. 669, 68 AmD 208: S. v. U. S. Bank. 8 Rob. 26 2; Shaw v. Oake[• 3 Rob. 361; Brlttgs f'ampbel , 19 La. 624: Buckner Watt, 19 La. 216, 36 AmD 67 1 : Jack son v. Tiernan. 15 La. 485; Gra.vea Roy, 13 La. 464. 33 AmD 668; AnWhere r'lrews v. His Creditors, 11 La. 464; King v. Harman, 6 La. 607. 26 AmD 486 ; Clague v. Their Creditors. 2 La. 114, 20 .AmD 300; Arayo v. Currel. La . 528, 20 AmD 286 ; Malplca v. Mclng Kown, 1 La. 2 48. 2 0 AmD 279; Miles · Od en. 8 Mart. N. S. 214. 19 AmD 177: A.Ptor v. Price. 7 Mart. N. 40 􀆱 ;, Shltr v. Loui siana State Ins. Co. 6 Mart. N. S. 6􀁳9; Bell v. James. Mart. N. S. 74: Saul v. His Creditors. 5 Mart. N. S. 669. 16 AmD 212; Thorn v. Morgan, 4 Mart. N. s. 292. 16 AmD 173; Baldwin v. Gray, 4 Mart. N. 192, 16 AmD 169; Chartres Cairnes, 4 Mart. N. S. 1; Ol iver Townes, 2 Mart. N. S. 93; Brown Richardson, 1 Mart. N. S. 202: Evans v. Gray. 12 Mart. 475; Morris v. Eve11. 11 Mart. 730 : Whiston v. Stodder. Mart. 95, 13 AmD 281; Lynch v. Po!! tlethwalte. 7 Mart. 69, 12 AmD 495. Me.-Bond v. Cummlnii'S, 70 Me. 1 􀁴5; Kennedy v. Coch rane, 66 Me. 594; Whidden v. Seelye, 40 Me. 247, 6 3 AmD 6 6 1 .
    Md.-Mandru v. Ashby, 108 Md 1193. 71 A 3 1 2; Dakin v. Pomeroy, Gill 1; Tra!!her v. Everhart, a Glll & J. 234 ;.. De Sobry v. De Lalstl"(', Harr. & oJ, 191. 3 AmD 655.
    Mass.-Amerl<-an S pirits Mf111:. v. Eldridge, l!09 Mass. 690, 95 !I: 942: American Malting Co. v. Souther Brewing Co., 194 Mass. 89, 80 NE 52fl; Da niel v. Boston, etc .• R. Co 1 8 4 Mal's. 337, 68 NE 337; Mlttenthal v.· Mascainl, 183 Mass. 19; C6 NE 425. 97 mSR 404, 60 LRA 81!: Stebblmt v. Leowolf, 3 Cush. 137: Carnegie v. Morrison, Z Mete. Ill: Pitki n v. Thom pson, l3 Pick. Bulger v. Roche, 11 Pick. 36. Z2 AmD 359: Blanchard v. Russell, 13 Mass. 1, 7 AmD 106. M i ch .-Mi l lar v. Hilton, 189 Mich. 636, 155 NW 574: Douglass v. Pa.Jne. 1 4 1 Mich. 486, 1 0 4 NW 781 ; Tolman Co. v. Reed, 115 Mich. 71. 7Z NW 141310.4 ;6 8D aNWwso n2 4v6. ; PCeotlelrlnsosn ,I r1o1n0 CMoi. Burkam, 10 Mich. 283.
    Mlnn.-Northwestem Fuel Co. Boston I ns. Co .. 131 Minn. 19. 164 NW 616.
    Mlss.-Woodsen v. Owens. U 207 ; Partee v. Silliman. 44 Miss . 171; Brown v. Freeland, 3 4 Miss. 1 8 1 ; Brown v. Nevitt. 27 Miss. 8 0 1 ; Bank of England v. Tarleton, 23 M iss. 173; Martin v. Martin, 9 Miss. 176.
    Mo.-Carey v. Schmeltz, 22\ Mo. 112, 119 SW 946; Thompson v. Chi 􁦰 Traders' Ins. Co., 169 Mo. 12. C8 SW 889; .Tohnstcm v . Gawtry, 8 3 Mo. 339; Sallee v. Chand ler, 26 Mo. 1!4; Houghtaling v. Ball, 19 Mo. 84, 5t AmD 331; Tremain v. Dyott, l6t :llo. A. 217, 14! SW 760; Kavanaugh "·SUpreme Council R. L., 158 Mo. A. U4, 1 38 SW 3 59; McKinstry v. Chlcqo, etc .• R. Co., 1 5 3 Mo. A. 5 4 6 , 134 8W 10 61: Robert v. Chicago, etc., R. Co.. 148 Mo. A. 96, 127 SW 925 ; Hubbard , •. Mobile. etc., R. Co .• !12 Mo. A. 459, 87 SW 52; Phamlx Mut. L. Ina. Co. v. Simons, 52 Mo. A. 357; Hartmann v. Louisville, etc., R. Co .. It Ho. A. 88; Kerwin v. Doran, 29 Xo. A. 397; Roach v. St. Louis Type Foundry, 21 Mo. A. 118; nan- cllor "· G 9 Mo. A. 1 0 2 ; State 'f. A. %63. State Ins. Co., 61 lZ. Stevens, 6S N. H. v. Costello, 48 N. Bliss v. BrainGodfrey. : Thayer Bl iss v. Hays v. King, H Okl. 1 8 0, 143 11 4 2 ; Wa�rner v. M i nnie Harvester Co., 25 Okl. 5 6 8 , 1 0 6 P 9 69 ; Westeru Union Tel. Co. v. Pratt, 1 8 Okl. 274. 8 9 P 2 37. 1 Or.-.Tamleson v. Potts, 56 Or. 2 1 0 5 P 93, 26 LRANS 24.
    Pa.-Forepaugh v. Delaware. etc., R. Co., 1 2 8 Pa. 217, 18 A 603, 15 Am SR 672. 5 LRA 5 0 8 A · Tenant v. Ten- ant, 1 1 0 Pa. 478 , 1 5 3 2 ; GreenwnM '"· Kaster, 86 Pa. 4 6 ; Benners Clemens • . 58 Pa. 24; Speed v. Mny. 17 Pa. 91, 5 5 AmD 6 4 0; Watson Brewster, 1 Pa. 881; Dougherty Snyder, 16 Serg. & R. 84, 1 6 AmD 5 2 0 ; Mann v. Salsberg, 17 Pa. Super. 2RO; Robinson v. Kline. 21 Pft. Dlst. 8 3 9 ; Brewster v. Lyndes, 2 Miles 1 8 Robinson v. Kline, 39 Pa. Co. 328; llmWhltehurst's E�St .. 2 Pa. Co. 212, WkJyNC 403 : Roths.,hild v. RocheF- tf'r, etc .. R. Co., 1 Pa. Co. 620; Gil- bert v. Black, 1 LegChron 132 ; Hong v. Dessan, 1 Plttsb. 3 9 0.
    R. I.-Bowler v. Emery, 29 R. :1 1 0. 10 A 1. S . C.-Galletley v. Strickland. S. C. 394. 64 SE 676: Pegram v. WI!- IIams, 3 8 S. C . L . 219; Gilliland Phillips, 30 S. C. L. 1 5 2 ; Weatherby v. Covington, 30 S. C. L. 27, 49 AmD 623 ; Ayres v. Audubon, 20 S. C. SOl ; Touro v. Cassin, 10 S. C. J •. 173, 9 AmD 6 8 0 ; Le Prince v. Guillemot, 18 S. C. Eq. 1 87.
    S. D.-Sibley First Nat. Bank Doeden, 21 S. D. 400, 1 1 3 NW Meuer v. Chicago, etc .. R. Co .. 11 D. 94, 76 NW 8 2 3, 74 AmSR 774 Union City Commercial Bank .Jackson, 7 S. D. 136, 63 NW 648.
    Tenn.-Ingram v. Smith, 1 Head 411; Pearl v. Hansborough. Humphr. 4 2 6 ; McKissick v. McKls- supsick, 6 Humphr. 76 ; Yerger v. Raus. 4 Humphr. 259.
    Tex.-Fidellty Mut. Lite Assoc . Harris, 94 Tex. 2 5, 67 SW 635. AmSR 81 3 ; Cantu v. Bennett. 39 Tex. 3 03 ; Shelton v. Marshall. 1 6 Tex. 344; Crosby v. Huston, 1 Tex. 203; Saw- :ver v. El Paso. etc .. R. Co., 49 Tex. Clv. A. 1 08. 1 0 8 SW. 718.
    Vt.--Cartwrlght v. New York, etc.. R: Co .. 69 Vt. 676, 9 A 370 ; Harrison v. Edwards. 12 Vt. 6 4 8 , 36 AmD 8 64 generSutrolk Bank v. Kidder, 12 Vt. 464, 36 AmD 364; Bryant v. Edson, 8 Vt. 325. 80 AmD 472.
    Va.-Warder v. Arell, Z Wash. Va.) 282, 1 AmD 488.
    Wash.--Crawtord v. Seattle, etc.. R. Co., 88 Wash. 628. 1 5 0 P 1 166, LRA1 9 1 6D 7 3 2: PhrenJx Packing Co. v. Humphrey-Ball Co., 58 Wash. 896, 1 0 8 P 962: Carstens Packing Co. Southern Pac. Co .. 68 Wash. 239, 1 P 613. 27 LRANS 975.
    W. Va.-Davldson v. Browning. W. Va. 276, 80 SE 383. LRA1 9 1 976 ; Crumllst v. Central Impr. C'o.. 38 W. Va. 890, 18 SE 466, 46 AmSR 872. 23 LRA 1 2 0 ; Stevens v. Brown, 20 W. Va. 450.
    Wls-Intematlonal Harvester Co. Wosv. McAda.m. 142 Wis. 1 14, 1 24 KW 1042, 2 6 LRANS 774. 20 AnnCas 814; Fisher v. Otis, 3 Chand!. 78. Wyo.-Studebaker Bros. Oo. v. Mau. 13 Wyo. 3 6 8 , 8 0 P 161, 1 1 0 AmSR 1 0 01.
    Eng.--Chatenay v. Braslllan Sub- marine Tel. Co .. (1 8911 1 Q. B. 79; Gibbs v. La Socll!􀚄 Industrlelle, etc., 25 Q. B. D. 39 9 ; .Jacobs v. Credit Lyonnals, 1 2 Q. B. D. 6 89, 1 ERC 3 3 8 ; Lloyd v. Gulbert. L. R. 1 Q. 1 16, 6 B. & S. 1 00, 1 1 8 ECL 100. UZ Reprint 1 1 3 4 . 6 ERC 870 ; In Bonaclna, (1913] 2 Ch. 394: KearneY UIQI11Zeu v. Ki ng, 2 B. & Ald. 301,. 1 06 Reprint 377 ; Sprowle v. Legge, 1 B. & C. 16. 8 ECL 8, 1 07 Reprint 7; Arnott v. Redfern, 3 Bing. 353. 11 ECL 177, 130 Repri nt 549, 2 C. & P. 88. ll! ECL 466; Scott v. Pi lkington. 2 B. & S. 1 1 , 1 1 0 ECL 1 1, 121 Reprint 978• Robi nson v. Bland, 2 Burr. 1 077, 9 7 Reprint 7 1 7; Peninsular, etc., Steam Nav. Co. v. Shand. 3 Moore P. C. N. S. 272, 16 Reprint 1 0 3. Can.-Black v. Reg., 29 Can. s. C. 693. Ont.-In re Harte, 2 2 Ont. 5 1 0.
    [a] Applications of rule.--Where the lex loci contractus deals with the substantive liability of a party to a contract, to be performed where made, the enforcement of which is sought in another jurisdiction, a limitation such liability imposed by the law of the place of the contract will be enforced by the forum where the remedy is sought, unless contrary to public policy. Hlnkly v. Freick, 86 N.J.L. 281, 90 A 1108, LRA1916B 1041.
  7. Liverpool, etc., Co. v. Phenix Ins. Co., 1 29 U. S. 3 97, 9 SCt 469. 3 2 L . ed. 788 ; Croissant v . Empire State Real ty Co.. 29 App. ( D. C.) 5 3 8j Eagle v. New York L. Ins. Co .. 411 Ind. A. 2 84. 91 NE 8 1 4 ; Western Union Tel. Co. v. Parsley, 67 Tex. Civ. A. 8, 1 2 1 SW 226.
    [a] Reason for the rule.--"When a merchant of France, Holland, or England, enters into a contract in his own country, he must be presumed to be conusant of the laws at the place where he is, and to expect that his contract is to be judged of and carried into effect according to those laws; and the merchant with whom he deals, if a foreigner, must be supposed to submit himself to the same laws, unless he has taken care to stipulate for a performance in some other country, or has, in some other way, excepted his particular contract from the laws of the country where he is." Blanchard v. Russell, 13 folass. 1, 4, 7 AmD 106.
    [b] The expression "place of contract," in the rule that the validity of a contract is governed by the law at the place ot contract has generally been employed to mean the place where the contract is entered into. Mayer v. Roche, 77 N. J. L. 681, 76 A l!36, 2 6 LRANS 763. 18.
  8. Clarey v. Union Cent. L. Ins. Co., 143 Ky. 640, 136 SW 1014, 1015, 33 LRANS 881 [quot Cyc].