WELLINGTON ACCOUNTANTS

New Zealand Times, Volume LII, Issue 12264, 9 October 1925, Page 5

WELLINGTON ACCOUNTANTS

STUDENTS’ SOCIETY LECTURE ON MERCANTILE CONTRACTS. A successful meeting of tlie Wellington Accountant Students' Society was held in Accountants' Chambers on Wednesday evening, September 30th, when Mr J. L. Arcus presided over an attendance of 80 members The business of the meeting was a lecture by Professor J. M. 33. Garrow, of Victoria University College, on the subject: "The Principles of Mercantile Contracts." The lecturer stated at the outset that a contract was an agreement enforceable at law, and that the remedy for a breach of contract was damages. It waR sometimes overlooked that a covenant in a lease or mortgage was a contract, and that the courts will endeavour to cnforco a contract no matter how trivial it may appear. Some agreements, however, were not enforceable at law, and this applied paYticularly to agreements of a social or domestic nature. Professor Garrow emphasised the principle that the intentions of the parties to an agreement have to be considered, and that contracts against morality were illegal. He dealt at length on agreements in restraint of trade, such as the restricting of an avea in which a vendor may trade, and outlined the principles laid down in the leading cose Te Maxim Nordenfeldt. The lecturer stated that a contract must not be injurious to the parties interested, and that the conditions must be reasonable. He cited agreements illegal by statute, such ns gaming wagers, and stressed the fact that a loser may pay a cheque for a bet, and even although the cheque came into the hands of a third party for value, the cheque could still oe recovered by the loser in New Zealand, although the law in this respect had recently been altered in Great Britain. It was pointed out. that a contract to waive a statutory enactment would be held by the courts as null and void, and that in this

respect an Order-in-Council often had the effect of a statutory provision. In dealing with contracts made with an infant, he laid down the principle that contracts for necessaries or for the infant's benefit were good and enforceable provided these conditions applied at tne time of sale and delivery, and furthermore, the price must be reasonable. The lecturer emphasised that a tradesman contracting with an infant did so at his own risk, and that certain contracts made, such as a lease, partnership, or the taking up of shares, may be repudiated by an infant after coming of age, provided steps were taken promptly on his coming of age. He dwelt on void contracts which had no legal effect, and went on to eay that certain contracts such as marine insurance or transfer of shares must be in writing to be of any legal f effect. In regard to impossibility of performance, he eaid that there must be good reasons before the court would set tne conditions aside, and speaking generally, the serious illness or death of a party ends the contract Perhaps the most interesting part of the lecture was the very full decided cases enumerated by Professor Garrow to illustrate the principles be enunciated. Tho lecturer was accorded a hearty vote of thanks, on the motion of Mr S. M. Hobbs, seconded by Mr H R. Norman,