A promise to pay part of a disputed claim is binding, even though there was in reality no original indebtedness.

So, a forbearance to sue a good debt will make a promise of the debtor to pay more than the debt, or of a third person to pay the debt, binding.

Where services are rendered as an act of kindness, they cannot afterwards become the ground of a claim that they were given in consideration of an implied promise to pay for them.

Mutual promises are good considerations for each other.

An illegal, immoral, or impossible consideration will not support

a contract.

The Object of a Contract.-Ordinarily parties may agree to do, or not to do, whatever they please. Contracts in every form, and for almost every conceivable purpose, are being constantly made in business.

There are, however, some limitations, which public policy has introduced to keep these transactions within proper bounds.

For this reason a contract to do something which is absolutely impossible, or which is rendered impossible by the laws of the country, is void.

But, if its impossibility is simply due to circumstances, such as the wrecking of a vessel, it will be binding.

Contracts for the accomplishing of any of the following objects are illegal and therefore void; for the reason that, since such contracts are forbidden by law, either party trying to enforce a claim founded on them in court, would have to allege, at the outset, that his right to recover depended on an unlawful agreement. It should be said, however, that parties to such contracts do often consider themselves bound in honor to live up to their agreements, but neither of them could bring a suit at law on their contracts.

(1) Buying or selling public offices, or bribing voters or legislators or court officials.

(2) Stock-jobbing; i.e. fictitious dealing in stocks, where the broker, pretending to buy and sell stocks, is in reality buying and selling margins.

(3) Agreements tending to shield public offenders; as, for instance, promising not to prosecute a burglar, if he will return the stolen property.

(4) Immoral contracts.

(5) Contracts in general restraint of marriage.

Such would be an agreement never to marry; but a promise not to marry a certain person, would be binding.

(6) Contracts in general restraint of trade.

This would apply to agreements never to carry on a certain legitimate trade again, or never to carry it on again within the limits of a certain state or of the United States. But it would not apply to a promise not to carry on a trade in a certain town or locality for a definite number of years.

(7) Contracts between capitalists to monopolize the market or to make a "corner" in some commodity.

This means that the capitalists acquire no rights between themselves on such contracts.

(8) Contracts forbidden by Statute Laws.

There are numerous instances of this class of contracts, differing of course, according to the laws in different states. Perhaps as common as any are unlicensed or forbidden sales of liquor, contracts, (except of necessity or charity,) entered into on Sunday, charging usurious rates of interest, etc.

Kinds of Contracts. Contracts are either

(1) Specialties or deeds-formal written agreements, signed, sealed, and delivered, usually in the presence of witnesses.

Deeds of lands and houses, mortgages, etc., are common examples of deeds.

A good deal of solemnity attaches to such instruments, and they are usually drawn after certain prescribed methods, blank forms of which can be obtained at any stationer's.

As has been seen before, the consideration of a sealed contract cannot be called in question, even though it is not set forth in the instrument.

Or (2) Simple Contracts-verbal or written agreements.

This class includes of course the bulk of business transactions. As appeared above, most contracts must be put in writing on account of the Statute of Frauds, unless both parties do as they agree to do on the spot, as is usually the case in retail trading.

Where the terms of a contract are clearly stated, either in writing or orally, it is said to be an express contract. But if the law infers a contract from the acts of the parties, then it is implied; as, where one avails himself of some benefit done him by another without his request, the law implies a promise on his part to pay, unless indeed the other rendered the service out of feelings of kindness.

Where both parties have actually done all that they agreed to do, the contract is executed; but, if it is an agreement to do something in the future, then the contract is executory.

Where several persons, acting together, bind themselves to fulfill a promise, it is a joint contract, and they are jointly responsible for its performance. Where, however, several persons, still acting together, make a contract, but agree that each one shall be separately answerable for its fulfillment, it is a several contract. They may also bind themselves both jointly and severally, and then it will be a joint and several contract.

Interpretation of Contracts.-The terms of a contract should be construed, so far as it is possible, so as to carry out the evident intention of the parties. For this purpose words should be given their natural meanings; and reference may be had, under proper restrictions, to local business usages to explain obscure phrases or conditions of the agreement, but not to alter any of its terms.

If a contract calls for its performance in any particular place or locality, the law and usage of that place or locality are to be followed in construing it; but, if it is not to be performed in any particular place or locality, then the law and usage of the place where it is made will govern.

Of their Performance.

-Contracts should be performed within the time, or at the time, fixed by the agreement. If no time is fixed, then it should be performed within a reasonable time, a matter which depends almost entirely on the circumstances in each case. If a contract is to be performed by a certain day which happens to be Sunday, the time is extended until the next day, though negotiable paper, bearing grace, is an apparent exception.

Courts of law cannot compel the performance of a contract, but they can give damages for the breach of a contract. But courts of equity will enforce the specific performance of certain contracts, where money damages are manifestly inadequate or impossible to

ascertain. Thus, in a contract for the purchase of real estate, it is assumed that the peculiar advantages of location or neighborhood is the essential inducement, and that the particular lot or house contracted for cannot be duplicated; and the same is true in some instances with personal property where the article contracted for has a value peculiar to itself. But if the object of the contract is an article which can be readily and substantially duplicated in the market, equity will not interfere, and money damages only can be had for a breach of contract.

In any action on a contract, the party bringing suit, or the "plaintiff," must have fully performed his part of the contract; or he must be ready and willing so to do, and only prevented by the neglect or refusal of the defendant to do his part. Otherwise his action cannot be maintained.

If the agreement is for personal services of such a nature that no one else can perform the services but he with whom the contract is made (as a contract with an author to write a book, or with an artist to paint a portrait, or a promise to marry), the death of that person discharges his estate from any liability on the contract.

Limitation of Actions. - As soon as a party to a contract is entitled to bring his action for the other party's breach of it, his cause of action is said to have "accrued." But he must bring his action within a certain number of years thereafter, or else his claim under that contract becomes "outlawed," and worthless legally. This time of limitation is generally six years; but each state has its own rule in this respect, and the law of that state in which the suit is brought will govern any particular case.

As a rule a part payment, or a written promise to pay, if made within this time of limitation, will have the effect to postpone this limitation of the time of bringing an action to six years, or whatever the period may be, from the date of such payment or promise. If the defendant is absent from the state at the time the cause of action accrues, or during the time of limitation, such absence not being merely temporary, this period of absence is not generally to be reckoned as a part of the time of limitation. An action to recover a judgment of a court of record may generally be brought within twenty years from the time such judgment is entered.

CHAPTER II.-PRINCIPAL AND AGENT.

What an Agent Is. An Agent is one who has authority to act in behalf of another, his Principal.

"To act," here means to take steps causing legal liability.

With a very few exceptions, anything which may be done lawfully, may be done by means of an agent. Indeed, the greater part of business is transacted by means of agents.

Since the agent's acts, as such, are really the acts of his principal, he may be a competent agent, though incompetent to contract for himself.

Thus, minors and married women may be agents. The principal, however, must be legally competent to contract, in order to be bound by his agent's acts.

One person cannot, in the same transaction, act as agent for two different parties, or as agent for another and principal for himself; unless both principals know he is so acting, or his duty is simply that of a middleman, to bring the two parties together.

For example: an insurance agent cannot take out a policy for himself.

An agent's duty is to obey orders and to keep regular accounts and vouchers, ready at any time to show the condition of his principal's affairs. He is bound to exercise reasonable skill, diligence, and prudence in conducting his principal's affairs; and is liable to his principal for any neglect of duty.

How Agents are Appointed. No one can lawfully act as another's agent without his consent.

The principal must give his express consent to the agency (either orally, or in writing, or in writing under seal); or a consent implied from his treatment of the agent's acts, or from the relations of the two parties.