Merwin Pastoral Co. Pty Ltd v Moolpa Pastoral Co Pty Ltd (1933) 48 CLR 565

Facts: In 1926, the plaintiff (Pl) and defendant (D) were both corporations that were resident in Victoria, and entered into a contract. Under the contract, Pl agreed to sell and D agreed to buy a sheep station in NSW. The subject matter was immovable property in NSW. The purchase price was to be paid by instalments. The contract did not include an express choice of proper law, nor was there an inferred choice.

Issue: What was the proper law of the contract?

Held (HCA): The subject matter of the contract was a sheep station in NSW. Therefore, as the sheep station was immovable property, the objective proper law of the contract was the law of NSW.

Principle: If the subject matter of the contract is immovable property, and there is no choice of proper law, express or inferred, then the proper law of the contract is the lex situs (law of the place where the property is situated).