Bond v. Hume

Citations

• 243 U.S. 15
• 37 S. Ct. 366
• 61 L. Ed. 565
• 1917 U.S. LEXIS 2086

Syllabus

<p>An independent sovereignty will not lend the aid of its courts to enforce a foreign contract where such action would be repugnant to good morals, lead to disturbance or disorganization of its municipal laws, or otherwise violate its public policy.</p> <p>The courts of one sovereignty, -however, will not refuse effect to the principle of comity by declining to enforce contracts which are valid under the laws of another sovereignty unless constrained thereto by clear conviction of the existence of the conditions justifying that course.</p> <p>Since the definition of public policy lies peculiarly with the law-making power, the policy indicated by its enactments must control comity in the enforcement of foreign contracts.</p> <p>The foregoing principles apply to the several States, under the common obligations of the Constitution, more strongly, than to sovereignties which are independent of one another.</p> <p>Contracts between citizens of New York and a citizen of Texas, executed in New York, for the purchase and sale of cotton for future delivery upon the New York Cotton Exchange, pursuant to its rules, etc., Held valid under-the New York law and under the common law.</p> <p>Contracts with brokers for the purchase and sale of cotton for future delivery, under and subject to the rules of a cotton exchange, which rules permit the substitution in delivery of grades other than that upon which the contract price is based and provide that in such case the price shall be readjusted according to the rates of the exchange “existing on the day previous to the date of the transferable notice of delivery,” are not necessarily to be regarded as violating the policy evinced by the Texas “Bucket Shop Law,” Rev. Grim. Stats. 1911, c. 3, Arts. 538, 539, when it is alleged and admitted that actual .delivery of the goods was bona fide intended by the parties;</p> <p>Nor are they repugnant to the public policy of Texas as manifested by other statutes of the State or by decisions of i