Say the ratio out loud before you open Reasoning — recalling it unprompted is exactly what the exam pays for.
Why it matters
Characterisation is the stage of the analysis students skip, and it is the stage that decides cases. De Nicols is the cleanest demonstration on the syllabus that the label put on the claim, and nothing else, determines which system of law governs and therefore who wins.
It matters for a second reason. The English choice-of-law rule for matrimonial property referred to the matrimonial domicile, and the husband had changed his domicile. If the claim was testamentary, the change of domicile carried the case into English law. If the claim was contractual, the rights were fixed at the date of the marriage and the later change was irrelevant. So the case also teaches when the connecting factor is tested, which is a separate examinable point.
Facts
A Frenchman and a Frenchwoman married in Paris. They made no express agreement about family property, so under French law their property rights fell under the regime of communauté de biens — community of property.
They came to England in 1863. The husband died domiciled in England in 1897, leaving a will which ignored the wife's rights under community of property. The widow sued in England to establish those rights.
The English choice-of-law rule was that such proprietary rights are governed by the matrimonial domicile "save in cases where there is a contract, express or implied, prior to the marriage."
Held
The House of Lords, reversing the Court of Appeal, held that the widow's claim was based on an implied contract arising at the time of the marriage, unaffected by the later change of domicile, and found for the widow. French law therefore governed and she took her community rights.
Reasoning
Step one: identify the two candidate categories. Was the widow's claim testamentary — a claim against her husband's estate on his death, so that English law as the law of his last domicile governed and she lost? Or was it contractual — a claim on rights that arose out of the marriage itself, so that French law governed and she won? Everything turned on that single fork.
Step two: read the forum's own choice-of-law rule and find the exception built into it. The rule sent the matter to the matrimonial domicile, but expressly saved the case of a contract, express or implied, prior to the marriage. The exception is the doorway; the characterisation decides whether the claim walks through it.
Step three: ask what French law did at the moment of the marriage. Under French law, a couple who married without an express contract took the community regime by operation of law. The House of Lords treated that as equivalent to an implied contract made at the time of the marriage — the parties had, in effect, contracted for community.
Step four: fix the rights at that moment. Because the source of the right was a contract concluded at the marriage, the right was complete before either party ever came to England. A later change of domicile cannot divest a right already vested by contract. That is why the move to England in 1863 and the English domicile at death in 1897 could not defeat the claim.
The method is reusable in any problem: name the competing categories; read the forum's choice-of-law rule, including its exceptions; decide which category the claim falls into and say why; and only then apply the law that the category selects.
Exam use
It opens: any question on characterisation or classification of the cause of action — syllabus head 1.4 — and any question on matrimonial property with a change of domicile.
The line to make explicit: nothing in the facts changed between the Court of Appeal and the House of Lords. The characterisation changed, and with it the applicable law and the result. State that sentence, then give the two labels and the two outcomes.
Add if there is room: Ogden v. Ogden, where parental consent was characterised as a matter of form so that the lex loci celebrationis governed and a French capacity rule was inapplicable — the classification has been severely criticised and it produced a limping marriage; and Leroux v. Brown, where the Statute of Frauds was characterised as procedural, so the lex fori applied and an agreement good where made was unenforceable in England. De Nicols turns on testamentary against contractual, Ogden on form against capacity, Leroux on procedure against substance. In each the applicable law, and therefore the outcome, is settled before any foreign rule is read.
Use it to prove the wider proposition that characterisation is done by the lex fori, and that this is unavoidable: the choice-of-law rule cannot be applied until the category is fixed, and the lex causae is not identified until the choice-of-law rule has been applied, so characterising by the lex causae would assume the answer.
It does not decide anything about the essential validity of the marriage, about capacity, or about succession to immovables. And it is not authority that a foreign property regime is always contractual — the reasoning depends on the content of French law at the date of the marriage, which had to be proved.