The plaintiffs, a firm of financiers, made two a *d
contracts in January 1914 with the defendants, who customer '
were bankers, whereby it was agreed that in con-
sideration of \ per cent, the defendants would, when
certain Hungarian Treasury Bonds belonging to the
plaintiffs were paid off in June 1915, and telegraphic
advice had been received from the defendants' friends
in Vienna to that effect, pay to the plaintiffs in
London the equivalent of the bonds. War broke out
between Great Britain and Austria-Hungary on
August 12, 1914, and laws against trading with the
enemy were made in both countries, but the plaintiffs
obtained from the British and Austro-Hungarian
Governments conditional licenses for the bonds being
paid off and for the receipt of the money by the
plaintiffs. The plaintiffs accordingly sent some of
the bonds to Austria, and the proceeds were paid to
the credit of the defendants in a bank at Vienna.
The bank, however, was prohibited by the Austro-
Hungarian Government from paying over the money
to the defendants, and by reason of the state of war
the defendants declined to perform the contracts.
The plaintiffs therefore sued for damages for breach.
Sarikey J. held that the bonds were not paid off
within the meaning of the contract, and that payment
was a condition precedent to the defendants' liability,
and took the view that the war, by reason of the

B



242 Thk Law of War and Contract

(_b) prohibitions issued in consequence thereof, made
contraots. tne performance of the contract impossible, if not
illegal.
Recent

cases : BlLLS OF EXCHANGE

Banker For recent cases of transfers of bills drawn by

customer, enemies and transferred before or after the war

reference should be made to p. 184, ante.
