ENGINEERING CONTRACTS DEALT WITH 67 



provided that the powers of the company were only to 

 commence when 3,000 shares had been subscribed. Mr. 

 Pierce, the plaintiff, was appointed engineer and surveyor 

 at a salary of 1,000 a year by a resolution of the directors 

 passed at a board meeting. He went to Jersey, made plans 

 and specifications, and drew up a report, and then sued for 

 half a year's salary. It was held thai;, inasmuch as the 

 3,000 shares had not been subscribed, the directors had no 

 power to contract, and that, therefore, the action could not 

 be maintained against the company. 



7- Stamp duty. The stamp duty on a building contract or 

 other similar instrument, the matter of which is of the value 

 of 5 or upwards when under hand only, is sixpence. The 

 stamp used may be adhesive ; if so it must be cancelled by 

 the person who first executes the contract. If an adhesive 

 stamp is not used, the contract must be stamped at the Stamp 

 Office, either before execution, or within fourteen days of 

 execution, otherwise it cannot be stamped without payment of 

 a 10 penalty. The stamp duty on a building contract, or 

 other like instrument when under seal as where, for instance, 

 it is made with a local authority is ten shillings. The contract 

 must be stamped at the Stamp Office, either before execution, 

 or within thirty days after execution, otherwise it cannot be 

 stamped without payment of a 10 penalty. The necessity of a 

 stamp only becomes apparent when it is sought to put a contract 

 in evidence in a court of law or before an arbitrator. Suppose, 

 for instance, the employer were suing the contractor for 

 damages for breach of contract. He could not prove his case 

 without referring to the contract ; and if it were not stamped 

 the judge might refuse to look at it unless an undertaking 

 were given to stamp it. Although a penalty of 10 is pre- 

 scribed by statute, it generally happens that the revenue 

 authorities at Somerset House will remit 8 or 9 of the 

 penalty, if it be shown to their satisfaction that there was no 

 intention to cheat the revenue. 



8. Form of contract. The form and legal incidents 

 appertaining to a contract for large works is of the utmost 

 importance to the engineer or architect. Not only does it 

 often fall to his lot to draw up or approve the actual terms of 

 the document, but it frequently rests with him to decide, as 



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