they are dissolved. Thus, a contract of partnership which essentially violates the laws governing a state of war is dissolved. During hostilities an alien enemy is precluded from suing on pre-existing contracts. He may be sued on them, however, and may, of course, defend. EXAMPLES 42. A, who is an alien enemy, enters into a contract in writing with B to purchase his farm. A deed of the farm is duly executed by B and delivered to A who pays B the purchase price. In some states the contract and deed are valid, while in others they are void. 43. A, an alien enemy, enters into a contract in writing with B to purchase his horse for $200. This contract is valid and enforcible. 81. Married women.-At common law a married woman (feme covert) is, in most instances, incapable of making a valid contract; and the fact that she is living apart from her husband under an agreement of separation makes no difference. When, however, the husband is civilly dead his wife has the same capacity to contract as a widow or an unmarried woman (feme sole). If a married woman renders personal services to a third party she acquires contractual rights. These the husband may reduce to his possession, but if he fails to do so during coverture they survive to the wife. A married woman may make contracts relative to her personal estate which are enforcible by a court of equity. An English case holds the following: 1 "Courts of equity have, through the medium of trusts, created for married women rights and interests in property, 1 Johnson v. Gallagher, 3 De Gex, F. & J., 494. both real and personal, separate and independent of their husbands. To the extent of the rights and interests thus created a married woman has, in courts of equity, power to alienate, to contract, to enjoy. She is considered a feme sole in respect of property thus settled or secured to her separate use." Under modern statutes, both in England and in this country, the contractual rights of married women are given recognition. Under some of these laws married women are empowered to contract generally; but under most of them they are empowered to contract only with reference to their separate estates. Usually, the husband is relieved of liability for his wife's ante-nuptial debts, but he remains liable for her maintenance. 82. Corporations.-A corporation has power to make valid contracts within the scope of its charter. This power may be either express or implied. As said in an English case: 1 When the legislature constitutes a corporation, it gives to that body prima facie an absolute right of contracting. But this prima facie right does not exist in any case where the contract is one which, from the nature and object of incorporation, the corporate body is expressly or impliedly prohibited from making. Since a corporation is an artificial being it cannot contract except by means of an agent expressly authorized to act for it. In the words of Lord Cairns, it "cannot act in its own person, for it has no person." Nor can it act through any number of its shareholders, for they are not the corporation. It may, however, be liable on a contract created by law the same as a natural person.2 1 South Yorkshire Ry. Co. v. Gt. Northern Ry. Co., 9 Exch. 84. 2 Ferguson v. Wilson, 2 Ch. 99. CHAPTER IV FORMATION OF CONTRACTS: THE CONTRACT 83. Offer and acceptance.—All true contracts result from agreement and to have an agreement there must be an offer and an acceptance, either of which may consist of a promise or an act. The acceptance must be unconditional and conform to the offer. Thus, if the offer prescribes the time, place or mode of acceptance, the acceptance must conform thereto. If the acceptance introduces additional terms it is virtually a rejection of the offer. EXAMPLES 44. A and B mutually agree to marry. This is an offer of a promise for a promise. 45. A advertises that he will pay a reward of $5 for the return of his lost dog. This is an offer of a promise for an act. 46. A, a hackman, stands ready to convey persons from one part of the city to another part. This is an offer of an act for a promise to pay the fare. 47. A offers B $200 for his horse. B replies that he will take $250 for the horse. This is virtually a rejection of the offer. 48. A writes B that he will pay him $4000 for his residence provided B accepts by return mail. B neglects to answer until a week later and then accepts A's offer. A is not bound. 84. Offer and acceptance by mail or telegraph.-An offer sent by mail is not complete until it reaches the offeree. An acceptance, on the other hand, is complete when mailed, provided it is properly addressed and the postage paid. The fact that it fails to reach the offeror is immaterial, unless he makes an actual receipt of it a condition precedent. Similar rules obtain where an offer or acceptance is sent by telegraph. 85. Offer to the public.-It is not essential that an offer be made to an ascertained person to make it binding. It may be made to the public in general. And it may be made orally as well as in writing or printing. No contract arises, of course, until it is accepted by an ascertained person. Some courts hold that there is no contract unless the party performing the services has knowledge of the offer. As said in a New York case, "there must be mutual assent, or, in another form, offer and consent to the offer. The motive inducing consent may be immaterial, but the consent is vital. Without that, there is no contract. How, then, can there be consent or assent to that of which the party has never heard?" Other courts, however, hold the contrary view. 86. Revocation of offer.—As a rule, an offer may be revoked any time before it is accepted. This rule obtains even when the offeror promises to keep it open unless he receives something of value for his promise. The mode of revocation is immaterial. Usually, however, it is by express notice. When sent by mail the letter of revocation must be received before the letter of acceptance is mailed. The death or insanity of either party before acceptance revokes the offer. An offer is revoked by lapse of a reasonable time before acceptance or by an acceptance that conditions or varies the terms of the offer. EXAMPLES 49. A offers B $200 for his horse. A may withdraw his offer at any time before it is accepted. 50. A writes B that he will buy all his corn at sixty cents a bushel. B replies by mail that he accepts A's offer. Before B's acceptance reaches A, but after it is mailed, B receives a letter from A revoking his offer. A is bound. 51. A, whose wife is in a burning building, exclaims to the bystanders that he will pay $100 to any person who will bring her out dead or alive. B does so. B is entitled to the reward offered.1 52. A, a vendor of a certain medicine, advertises that any person who buys and uses the remedy and subsequently contracts the disease it is guaranteed to prevent will be paid $100. B buys and uses the remedy and subsequently contracts the disease. B is entitled to the $100.2 87. Consideration.-To render a promise binding it must be based upon a valuable consideration. This may consist "in some right, interest, profit, or benefit accruing to one party, or some forbearance, detriment, loss, or responsibility given, suffered, or undertaken by the other." While a consideration may be very slight, it is essential that the benefit conferred or detriment suffered be of value in the eye of the law. A merely moral obligation will not support a promise, nor will a merely good consideration. A contract under seal is said to be valid without a consideration. The seal is presumptive evidence of a consideration, and at the early common law it was conclusive. Under the modern rule, however, it is rebuttable. The law looks favorably upon the settlement of dis 1 Reif v. Paige, 55 Wis. 496, 13 N. W. R. 473, 42 Am. Rep. 731. 2 Carill v. Carbolic Smoke-Ball Co., 2 Q. B. D. 484. |