CONTRACTS.

1. A contract is an agreement between two or more parties, upon sufficient consideration, for the doing or the not doing of some particular thing.

The word contract comprises, in its full and more liberal signification, every description of agreement, obligation, or legal tie, whereby a party binds himself, or becomes bound, expressly or impliedly, to another, to pay a sum of money, or perform or omit to do a certain act.

2. The essentials of a legal contract are, the parties, the consideration, the assent of the parties, and the subjectmatter of the contract.

3. Parties to a contract.

Classification of Parties. - Parties may act independently and severally, or jointly, or jointly and severally. Whenever an obligation is undertaken by two or more, or a right given to two or more, it is the general presumption of the law that it is a joint obligation or right. On the other hand, contracts are joint contracts, or several contracts, or joint and several contracts according as the persons who have undertaken the obligation or possess the right are joined. Whenever two or more persons have undertaken an obligation, or had a right given to them by contract, such contract may be a joint contract, a several contract, or a joint and several contract. Joint contracts are those where the persons under the obligation or possessing the right are jointly and collectively united and identified. In a several contract the persons under the obligation or possessing the right are individually and severally liable, or possess individual and separate rights. In joint and several contracts each of the persons under the obligation or possessing the right are liable individually, or possess the right individually as well as collectively.

It is a presumption of the common law, now generally abol

ished by statute, that wherever two or more persons are under an obligation or possess a right that it is a joint contract.

As a result of the identity of interest of joint contractors in joint contracts, all of the joint contractors must sue or be sued, and if one is released, all are released; and where a joint obligation is discharged by one of the joint contractors, he may recover from the other joint contractors the adequate proportions which they ought to pay. But one or more of several contractors may sue or be sued.

4. Parties to a contract must have capacity to contract. The general rule is that all natural persons, unless otherwise disqualified, over the age of twenty-one, have the legal capacity to contract.

5. Infants. All persons are denominated infants by common law until they reach the age of twenty-one. Infants lack the capacity to contract, on the ground of youth, immaturity, or incapacity of mind, and are protected against their contracts, but not against their frauds or torts. However, contracts of infants are not absolute nullities, but are said to be voidable contracts, that is, the infant on attaining majority, or within a reasonable time after he becomes of age, avoid the contract if he will, so also he may after coming of age affirm a voidable contract made by him during infancy. Certain contracts of infants are, however, treated as valid and not voidable, to wit: contracts for necessaries. Infants may contract for necessaries, because otherwise they might suffer for the want of them. The term "necessaries” includes such food, clothing, washing, medical attendance and education, etc., as may be necessary and suitable to an infant, regard being had to his condition and station in life.

6. Lunatics and drunken persons who are unable to comprehend the contract which they make have not the contractual capacity, and many courts hold that contracts made by them, when unable to comprehend the subject-matter of the contract and its terms, may be disaffirmed; other courts hold that such contracts may be disaffirmed if at the time of contracting the other party knew of the insanity, but not if he was

ignorant of it. But an insane person's contract for necessaries, like those of an infant, are valid.

At common law

7. Contracts of Married Women. a married woman has no capacity to contract, her personal existence being merged, for most purposes, in that of her husband. She could make no valid contract; hence her husband was not bound by the contracts she attempted to make, but he was responsible for her torts. This rule of the common law is now generally abolished, and a wife may contract with regard to her separate property, as if she were single.

8. Corporations may contract for any purpose within the sphere of the powers authorized in their charters. A contract not within the corporate powers is termed ultra vires. Corporations contract through their agents or officers, and though it was the old doctrine that the corporate seal must be affixed to all contracts to make them valid, for it was the fixing of the seal, and that only, which unites the several assents of the individuals who compose the community, and makes one joint assent of the whole," the modern doctrine is that a corporation may contract without affixing its seal in all matters where an individual may.

9. The binding effect of a contract depends on its consideration, for every contract to be valid must have a consideration. Considerations are of two kinds-good considerations and valuable considerations. A good consideration is such as that of blood, or of natural love and affection, as where a man grants an estate to a near relation; being founded on motives of generosity, prudence, and natural duty. A valuable consideration is such as money, marriage, or the like, which the law esteems an equivalent given for the grant; and is, therefore, founded in motives of justice. Contracts based upon good considerations, though valid between the parties, are considered as merely voluntary and are frequently set aside in favor of creditors and bona fide purchasers. A valuable consideration must be something to which the law attaches a value; but if it be of some value, the law will not go further and ascertain

whether its value be adequate to the promise for which it serves as a consideration.

But contracts under seal or specialties, which are regarded as contracts of a higher form than ordinary contracts, are said to need no consideration, as their seal imports a consideration.

10. Contracts are classified according as they are evidenced or created; contracts under seal or specialties; contracts of record being made and entered before a judicial tribunal; oral contracts; contracts in writing. Contracts are also classified as express and implied. The classes of contracts above named are express contracts, and implied contracts occur where by law a duty is placed upon one in favor of another. The law implies a contract in that other's favor; or where from the facts or conduct of the parties the law implies a contract. Contracts are executed or executory; executed where they have been performed; executory where they are still to be performed.

11. Every contract in its ultimate analysis is reducible to an offer and acceptance. The offer and its acceptance may be evidenced by writing, orally or even by the conduct of the parties. But the acceptance of the offer must be without reserve and embrace the identical terms of the offer,-for no contract is made where the contracting parties do not agree to the same thing; otherwise there would be no assent, or meeting of the minds. An offer unaccepted or withdrawn before being accepted, becomes no contract. Where the offer is made by letter posted in the mails, the party making the offer constitutes the mails as his agent, and when the person receiving the offer posts his letter accep'ing, the contract is made.

12. By reason of the Statute of Frauds some contracts may not be enforced, unless they are evidenced by some writing, expressing their terms, i. e., though the contract may exist validly, as a parol contract, it will not be enforced by the courts, unless the "agreement upon which such action shall be brought, or some memorandum or note thereof, shall be in writing and signed by the party to be charged therewith, or some other person thereunto by him lawfully authorized."