The Federal Reporter with Key-Number Annotations, Volume 272: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States and the Court of Appeals in the District of Columbia, June-August, 1921. Page: 57
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GASTON, WILLIAMS & WIGMORE OF CANADA V. WARNER 57
not compulsory, but a privilege, of which the purchasers may or may not
avail themselves, as they choose.
3. Brokers -8=61(4)-Principal must disclose to broker foreign laws restrict-
ing sale of ship.
Where a domestic corporation, acting for a foreign corporation, au-
thorized a citizen to procure a purchaser for a ship, the broker, even if
it be assumed that he had knowledge that the ship and its owner were
foreign, is not chargeable with knowledge of the foreign law restricting
the sale, but the principal should have informed the broker of such
4. Brokers =>61(4)-Principal must disclose to ship broker contract re-
stricting right of sale.
A shipowner must disclose to a broker a bunker agreement between
it and a foreign government, which restricted its right to sell its ship, to
avoid liability for payment of commission, when the broker procured a
customer ready, willing, and able to buy, but to whom the owner could
not sell under the agreement
5. Brokers =>54-Whether broker's customer is legally able depends on local
If a ship broker is impliedly bound to produe as purchasers of the
ship persons under no legal disability, which precluded them from en-
tering into a binding contract for purchase, the question whether such
purchaser was produced depends on the law of the place where the
contract was entered into.
6. Contracts e=101(1), 144, 276---rdinarily validity and construction gov-
erned by law where made; performance governed by law of place of
Though the parties to a contract, which by its terms is to be per-
formed in a place other than that in which it is made, are presumed to
adopt the law of the place of performance as the law of the contract,
the general rule as to contracts is that they are governed as to their
validity, as well as to their nature and interpretation, by the law of the
place where they are made, unless the contracting parties clearly appear
to have had some other law in view.
7. Brokers C==54---Must procure purchaser ready, willing, and able to buy.
A broker employed to find a purchaser is not entitled to a commission,
where no sale is made, unless he has at least produced a purchaser wno
is able, ready, and willing to take the property on the terms specified;
all three of those elements being necessary.
8. Brokers =m54-Ability of customer determined by local law.
Where the contract is one not to be performed elsewhere, the cus-
tomer produced by a broker should be, by the law of the place of the con-
tract, legally able to enter into the contract.
9. Brokers 4=54-Contract with customer procured precludes principal ques-
tioning ability of customer to perform.
Where the principal has cntei ed into a contract for the sale of the prop-
erty with a customer procured by his broker, he thereby accepts the
customer as one able to perform the contract, and cannot thereafter ques-
tion his ability.
10. Brokers =58-Illegality of contract for services defeats right to com-
A broker is not entitled to his commission, if the transaction nego-
tiated by him is illegal, and he participates in the illegality, or has knowl-
edge thereof, or if his services are tainted with illegality.
11. Brokers :63(1)-Not to be depriied of commission because buyer could
not obtain registry of vessel sold, and principal alone refused for undis-
Where a ship broker procured buyers for a ship, who were accepted
by the owners, and with whom a valid contract was made, he is not to
@*For other cases see same topic & KEY-NUMBER in all Key-Numbered Digests & Indexes
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The Federal Reporter with Key-Number Annotations, Volume 272: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States and the Court of Appeals in the District of Columbia, June-August, 1921., legislative document, 1921; Saint Paul, Minnesota. (digital.library.unt.edu/ark:/67531/metadc38843/m1/79/: accessed January 23, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.