Define a parol contract. Give examples.

between a parol and a specialty contract?

What is the difference

Define a written contract. Define an oral contract.

How do you

prove a written contract? How do you prove an oral contract? What is an express contract? Give examples.

What is an implied contract? Give examples.

As to time of performance how are contracts classed? Define each and give examples.

Define the following as applied to contracts: void, voidable, unenforceable. Give examples illustrating each. What is the difference between a void and a voidable contract? Compare a void contract with one that is unenforceable.

22. DECISIONS BY THE COURTS

1. In L v. G, Eng. 1853, G induced a singer who had contracted with L to engage at another place. It was held that G was liable in damages for inducing her to break the contract.

2. In B v. H, Eng., the broad principle was laid down that if a third party induces one of the parties to a contract to break it, he is liable for damages.

3. In A v. B, A contracted to bore an artesian well for B. He conducted the work so unskillfully that the tools were broken, leaving the auger and a part of the rods one hundred seventy feet below the surface. As a result the well had to be abandoned. It was held that A had failed to use the reasonable amount of skill and care which, in the eye of the law, he had impliedly undertaken to exercise when he entered into the contract, and that B, having received no benefit, was not liable to pay for the work done.

4. In M v. N, in a suit to recover the price agreed upon for threshing clover seed by M for N, it was held that if M was employed for that purpose he was bound to perform his task in a workmanlike manner, and if, through his negligence, his want of skill, or his defective machinery, the work was done in such a way that N suffered damage thereby, such damage should be deducted from the price agreed upon for the work.

23.

Introduction. Let us next consider in detail in this and the following chapters the four elements of the contract. Since one cannot sue himself or engage in an undertaking with himself that may be enforced by law, it is self-evident that there must be at least two parties to every contract.

1. Definition. The parties to a contract are those affected by the obligation, and this includes all who are affected in any way by its provisions and who claim gains or may suffer loss.

2. May Impose Duties on Third Parties. While as a general rule third parties cannot acquire rights under a contract entered into by others, yet they may become subject to duties and liabilities if they are brought in contact with either party. Where, as was said, one induces another to break a contract, he is liable for damages.

3.

General Rule. All persons whom the law considers competent are allowed to make contracts. The main requisites are that they be of legal age and have a sound mind.

4.

Restrictions. From the standpoint of public policy the law shields certain persons from the ill effects of contracts they may make, and denies to others the right of entering into contracts. Still, in the former instance, all persons are in law presumed to have the capacity to contract, and he who would claim exemption from the contractual liability because of incapacity must prove its existence.

24. Competency. 1. Age. In order to make a binding contract the party must be of age, generally twenty-one years for males and females. Some states, by statute, however, permit females to contract at eighteen.

2. Mind. The mind must be of sufficient acuteness to discern the meaning of the undertaking, as the law contemplates a "meeting of minds.”

25. Incompetency. Incompetency is divided into two classes, legal and natural. Minors, married women, and alien enemies are legally incompetent; profligates, drunkards, lunatics, and idiots are naturally incompetent.

1. Minors. A minor or infant is a person under the age of legal majority. From the standpoint of public policy, contracts relating to business which are made by a minor are declared voidable; that is, he has the privilege of abiding by his agreements or of declaring them to be of no force. This right is his to protect

him against agreements that he might make with those who would attempt to take advantage of his youth. The right is not given that he may defraud. If a minor makes a contract and then refuses to perform it, he must, if possible, return the benefit received. If, for instance, he buys a horse and gives a note in payment, he may refuse to pay when the note falls due, but he must return the horse. If, however, he has sold the horse and used the money, he cannot be compelled to return any value to the holder of the note.

This disaffirmance of a contract may be made during minority only when it relates to personal property. But a disaffirmance in a conveyance of land cannot be made before majority. The minor may accept the rents and profits during minority and still disaffirm later. No particular form of disaffirmance is necessary. Any act inconsistent with ownership or with the existence of the contract and showing an intention not to be bound, is sufficient. The disaffirmance must be complete-he cannot disaffirm part and retain part. Disaffirmance renders the contract void from the beginning the same as if there had been no contract. "The rule seems to be that where an infant acquires an interest in permanent property to which obligations attach, or enters into a contract which involves continuing rights, duties, benefits, and liability, and has taken benefits under the contract, he will be bound unless he expressly disclaims the contract. On the other hand, a promise to perform some isolated act, or a contract wholly executory, will not be binding upon the minor unless he expressly ratifies it upon coming of age."

The minor may always enforce a contract against an adult; he may not, however, enforce against the adult and reject his own part of the contract to be performed. The right to disaffirm is personal to the infant, and he alone can take advantage of it during his life and sanity. Upon his death, or if he becomes insane, his contracts may be avoided by his heirs, personal representative, conservator, or guardian.

Exceptions. Contracts made by minors for board, clothing, instruction and medical attendance, which are classed as necessaries, are valid

and enforceable to the extent of the reasonable value of the articles furnished or the services rendered. What are necessaries is a question of fact and will depend upon circumstances, taking into consideration the station in life of the infant. What would be called necessaries in one case might in another case be called luxuries.

These articles must not be for ornament or pleasure merely, but for use; and the quantity must be reasonable. If the infant lives at home and is supported by his parents, he is not liable for necessaries. The things furnished him must concern his person and not his estate. Persons dealing with an infant do so at their peril, and the burden is upon them to show that the actual circumstances were such that the things furnished were necessaries. If a minor agrees to pay $25 for a suit of clothes that is worth but $15, he cannot be compelled to pay more than their value, his agreement to the contrary notwithstanding.

While a minor is not bound for what may be termed business contracts, he may, nevertheless, on attaining his majority, ratify such contracts made during his minority. His liability then becomes complete and binding from the beginning—but it must be as to the whole contract, it cannot be in part.

(a) Ratification may be brought about in several ways. If, upon arriving at majority, the minor makes an absolute promise to live up to an agreement formerly made, he is bound; no new consideration is necessary; he simply waives a right. Secondly, a mere acknowledgment is not sufficient. If the promise is conditional, the condition must be performed before liability accrues. This ratification must be made knowing that there is no liability. Some states require a written acknowledgment and promise to perform. Ratification of agreements may result from acts; as where the contract was continuous and the minor continues to receive the benefits of the agreement after he reached his majority. After ratification has been made the contract is binding, and suit may be maintained upon it. Before this the minor would in effect say in court, "I was under age when I made the agreement and do not wish to be held liable."

2. Married Women. The common law regarded the rights of a married woman as merged in those of her husband; therefore, she had no contractual rights. The common law has been so greatly changed and modified of late that in most states a