Hirsch v Zinc Corporation Limited [1917] HCA 55

Hirsch v Zinc Corporation Limited [1917] HCA 55

On the outbreak of war, the contract was not dissolved or suspended as to the payment for zinc concentrates delivered before hostilities began. The price adjustment mechanism did not require unlawful intercourse with the enemy, and payment of the balance due was permitted under the King's Proclamation of 9th September 1914. Rights and obligations concerning goods delivered before war are preserved under the Enemy Contracts Annulment Act. Disruption of the London metal market due to war does not frustrate the agreed contractual mechanisms for price ascertainment. The option clause's non-exercise cannot defeat payment on the minimum ascertainable basis. Arbitration and adjustment clauses do...

Parties
Defendants/appellants: Aron Hirsch, Abraham Hirsch, Emil Hirsch and Siegfried Hirsch; Plaintiff/respondent: The Zinc Corporation Limited
Jurisdiction
Australia
Judgment Date
12 October 1917
Procedural Posture
Appeal / On Appeal From the Supreme Court of Victoria
Outcome
Appeal dismissed
Legal Topics
Sale of Goods, Frustration of Contract, Trading With the Enemy, Adjustment of Price Post Delivery, Arbitration and Enforcement During Wartime
Contract Law Conflict of Laws War and National Security Sale of Goods Frustration of Contract Trading With the Enemy Adjustment of Price Post Delivery Arbitration and Enforcement During Wartime

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Parties

Aron Hirsch, Abraham Hirsch, Emil Hirsch and Siegfried Hirsch

Defendants/appellants

The Zinc Corporation Limited

Plaintiff/respondent

Procedural Posture

Appeal / On Appeal From the Supreme Court of Victoria

Legal Issues

  1. 1 Whether outbreak of war between Great Britain and Germany dissolved or suspended contract rights related to goods delivered before the war
  2. 2 Whether payments due or adjustments required under a contract with an enemy alien after outbreak of war are recoverable
  3. 3 Whether English statutory or common law or Australian statutes preclude receipt or enforcement of payments for such contracts during wartime

Ratio Decidendi

On the outbreak of war, the contract was not dissolved or suspended as to the payment for zinc concentrates delivered before hostilities began. The price adjustment mechanism did not require unlawful intercourse with the enemy, and payment of the balance due was permitted under the King's Proclamation of 9th September 1914. Rights and obligations concerning goods delivered before war are preserved under the Enemy Contracts Annulment Act. Disruption of the London metal market due to war does not frustrate the agreed contractual mechanisms for price ascertainment. The option clause's non-exercise cannot defeat payment on the minimum ascertainable basis. Arbitration and adjustment clauses do...

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs.