relaxed only by the permission of the allied nations, according
to their mutual consent.[27]
[Sidenote: Contracts void.]
On similar principles, all Contracts made with the Enemy _during War_
are utterly _void_. This applies to Insurances on the enemy's property
and trade; to the drawing and negociation of Bills of Exchange,
whether the subject of this country or of the alien enemy be the
acceptor; to the sending of Money or Bills to the enemy's country; to
Commercial Partnerships. All endeavours to trade by third persons are
equally illegal.[28]
Thus also all Contracts made in contemplation of War, and which never
could have existed at all, but as an insurance against the pressure of
war, and with a view to evade the rights that arise out of war, and in
fraud of the belligerent, are illegal, even though made by
neutrals.[29]
[Sidenote: Insurances.]
The municipal or common law of every state declares all Insurances to
be void, by which ships or merchandize of the enemy are sought to be
protected. Also all Insurances by or on behalf of _alien_ enemies are
wholly illegal and void, although effected before the breaking out of
hostilities; but if both the policy had been effected and the loss
accrued before the war, the remedy is only suspended during the war.
The general principle is that the contract of assurance is vacated and
annulled _ab initio_; wherever an insurance is made on a voyage
expressly prohibited by the common, statute, or maritime law of the
country; the policy is of no effect.[30]
Thus, if a ship, though neutral, be insured on a voyage prohibited by
an embargo laid on in time of war, by the prince of the country in
whose ports the ships happen to be, such an insurance is void.[31]
Similarly, all Insurances to protect the interests of British subjects
trading without licence with the enemy are absolutely void.[32]
So also, if a Licence is not strictly pursued, so that the voyage
becomes illegal, the insurance is void.[33]
I have said that all Insurances will be void which are designed to
protect voyages or trading to hostile ports. But, for this purpose, it
must be clearly made out, not only that the port into which the ship
sails is hostile, but also, that she was bound with a distinct hostile
destination at the time of loss. Thus a policy to "ports in the
Baltic," is legal, as some may be hostile, and some not, and it is not
certain that she was sailing to a hostile port.
The gen
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