Relation of the Lex Loci Contractus to the Lex Loci Rei Sitae
![handle is hein.journals/jure22 and id is 277 raw text is: THE RELATION-OF THE LEX LOCI CONTRA CTUS
TO THE LEX LOCI REI SITE.(a)
TJHE case noted below is interesting mainly as illus-
trating the importance of, the lex loci contractus,
and how it may control the lex loci rei sitw even in the
case of immovable property. The British South Africa
Company, incorporated by Royal Charter (commonly called
The Chartered Company ), borrowed from De Beers Mines,
Limited, a company registered and incorporated in Cape
Colony, but having an office in London, sums amounting to
£212,000 on the security of its (the Chartered Company's)
debentures of a greater amount. Under written agreements,
dated in 1892, for this loan on security, the Chartered
Company granted to the De Beers Company exclusive licence
to work all the diamondiferous ground to which the Char-
tered Company was or might become entitled within certain
territories north and south of the Zambesi River, for a
specified royalty. The loans were repaid before the end of
1896, but the De Beers Company maintained that they
were still entitled to the exclusive diamond licence. The
Chartered Company accordingly brought an action to have
it declared that the obligation to grant the licence was ultra
vires of the Chartered Company; or alternatively, that it
was a clog on the equity of redemption, and not binding
after repayment of the loans. The question thus arose
whether the agreements were to be governed by English
law or by Rhodesian law, which was English north of the
Zambesi and Roman-Dutch south of it, where most of the
diamond ground was situated. If governed by English law,
(a) The case of the British South Africa Company v. De Beers Consolidated Mines,
Limited, [1910] 1 Ch. 354; 2 Oh. 502.
voL. XX .-NO. 4. T](ViewImageLocal?handle=hein.journals/jure22&div=28&collection=&method=preview&ext=.png&size=3)
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Relation of the Lex Loci Contractus to the Lex Loci Rei Sitae
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