"POUNDS STERLING”

Nelson Evening Mail, Volume LXX, 30 March 1936, Page 5

"POUNDS STERLING”

USE OF WORDS IN CONTRACT CASE BEFORE APPEAL COURT (United Press Association) WELLINGTON, This Day. The Appeal Court was engaged to-day hearing the case J. Ballantyne and Co. Ltd. v. De Bueger, of Christchurch. On 2nd August. 1932, Charles Francis Martin de Bueger entered into an agreement with the London agents of Ballantynes to embark for New Zealand and enter the company's employment as a tailor cutter for three years, his salary was expressed to be at “a remuneration of £7OO sterling a year.” He proceeded to New Zealand ail'd entered the company's service. The company paid him in New Zealand currency, though respondent claimed payment in sterling. Action was taken in the Supreme Court at Christchurch and, by the consent of parties stated a. special case for the opinion of the court, In his judgment delivered on_l3th November 1935, Mr Justice Northqroft said, “I am of opinion that the use of the word ‘sterling’ in this contract was neither accidental nor meaningless. Furthermore, I am not prepared to regard it ns meaning, merely ‘legal tender’ as in the result that would be to assume it to be used without purpose, for the same result would be achieved by using Um word ‘pounds’ without adding ‘sterling.’ I consider the parties used the words ‘pounds sterling’ as meaning ‘pounds in English currency.’ Appellant company is appealing from that judgment. Mr M. S. Brown submitted for the company that the whole question was as to the precise meaning of the words “pounds sterling.” A contract was entered into, reduced into writing, and signed in England. Everything which de Bueger had to do under the agreement was to be done in New Zealand, except embarking on the boat, and everything to be done by the company was'to be done in New Zealand also. Mr Brown further submitted that tlio question involved was one of legal tender what was legal tender for a debt of £7OO under the New Zealand law? ' Mr Hensley, who also appeared for appellant, dealt with proper law of contract which lie conteixlcd was the law of the place of performance. There was no unit in law of place of performance. There was no unit in law as English pound as opposed to the New Zealand pound and rate of exchange did not come into the matter.