''Foster v Driscoll''

929 Year 929 ( CMXXIX) was a common year starting on Thursday (link will display the full calendar) of the Julian calendar. Events By place Europe * January 16 – Emir Abd-al-Rahman III of Córdoba proclaims himself caliph and create ...

1 KB 470 is a decision of the

Court of Appeal of England and Wales The Court of Appeal (formally "His Majesty's Court of Appeal in England", commonly cited as "CA", "EWCA" or "CoA") is the highest court within the Senior Courts of England and Wales, and second in the legal system of England and Wales only to ...

in relation to illegality under foreign laws and its effect under English contract law.

Facts

Sir Harry Foster, a British politician, entered into contracts with various parties (including a distiller and a ship broker) to finance an undertaking for the supply of 500 cases of

whisky Whisky or whiskey is a type of distilled alcoholic beverage made from fermented grain mash. Various grains (which may be malted) are used for different varieties, including barley, corn, rye, and wheat. Whisky is typically aged in wooden ca ...

into the United States in breach of prohibition laws. In pursuance of the undertaking

bills of exchange A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time, whose payer is usually named on the document. More specifically, it is a document contemplated by or consisting of a ...

were presented for payment but dishonoured. Foster then sought rescission of the contract. Three actions were consolidated and eventually came before the Court of Appeal.

Decision

The judge at first instance, Wright J, held that the purpose of the enterprise was to smuggle whisky into the United States for profit. Although this was not illegal in England, it was clearly in breach of US laws, and thus he declined to enforce the contracts. In the Court of Appeal Lawrence LJ held "I am clearly of opinion that a partnership formed for the main purpose of deriving profit from the commission of a criminal offence in a foreign and friendly country is illegal". Accordingly the court dismissed all of the claims and counterclaims, without any order as to costs.

Authority

The case is still cited as good authority for the proposition that a contract to break the laws of a friendly foreign jurisdiction will be unenforceable for illegality even if the contract is otherwise lawful under English law.

Footnotes

{{DEFAULTSORT:Foster v Driscoll English contract case law 1929 in case law 1929 in British law