STOCKHOLMS ENSKILDABANK AKTIEBOLAG v. SCHERING, LTD.

(1941) 69 Ll.L.Rep. 49

COURT OF APPEAL.

Before Sir Wilfrid Greene (Master of the Rolls), Lord Justice MacKinnon and Lord Justice du Parcq.

Emergency legislation-Trading with the enemy-Instalment purchase of reichsmarks by German company from Swedish company (plaintiffs) - Agreement to pay in sterling at substantial discount (8s. in the £)-Existence of foreign exchange difficulties making it impossible for German company to discharge sterling obligation-Contract entered into between German company, an English subsidiary company (defendants), an Indian subsidiary company and plaintiffs whereby plaintiffs agreed to place the reichsmarks at the disposal of the German company, the English and Indian companies constituting themselves sureties jointly and severally and agreeing as principals to purchase by instalments the sterling debt incurred by the German company to the plaintiffs-Provision that German company should lose benefit of proportionate part of discount in case of default by English or Indian companies -Further contract between plaintiffs and English and Indian companies whereby the two companies undertook as principals to make certain instalment payments in sterling to plaintiffs in consideration of the assignment by plaintiffs to them, on the occasion of each such payment, of a like sterling amount of plaintiffs' claim against German company-Instalment not paid on due date - Plea by defendant company that payment to plaintiffs under contract would constitute trading with the enemy-Trading with the Enemy Act, 1939, Sect. 1 (2).