account. In subsequent proceedings, in an assignment for the benefit of creditors, the question was raised whether or not the account was merged in the bond and mortgage. The rule was stated to be that the taking of a bond and mortgage, or other security of higher nature, extinguished a debt arising from mere matter of account. Yet this will depend on the intention of the parties. If the higher security is given as future evidence of the debt to be looked to for payment, then the lesser merges in the greater; but if the higher security is merely to be additional or collateral to the lesser, showing intention to keep the lesser open and to be looked to for payment, then the lesser is not extinguished by the greater.

7. In M. & St. P. Ry. Co. v. A, 91 U. S. 489, as a general rule the object of the law in awarding damages for civil injury and breach of contract is to put the plaintiff in the same position, so far as money can do it, as he would have been had there been no injury or breach; that is, to compensate him for the injury actually sustained. Also R v. A, 7 Mass. 254, S v. S, 2 Tex. 460.

8. In M v. E, 164 Mass. 457, where a contract for the use in Massachusetts of electrotyped plates owned by plaintiff in Leipsic, Saxony, is drawn up and signed in Massachusetts by defendant, and sent to plaintiff, who cabled acceptance to defendants in Massachusetts, the measure of damages for breach is governed by the laws of Massachusetts.

9. In G v. K, 22 Mich. 117, damages will not be denied because their nature is such that they cannot be accurately measured. If they cannot be measured by a fixed rule, all facts and circumstances tending to show what they are should be submitted to the jury.

10. In U. S. Fed. Case 10469, nominal damages will be given for the breach of a valid contract, although it does not appear that the plaintiff has sustained actual damages. Also A v. R, 65 Ala. 586.

11. In E Co. v. S, 61 Conn. 56, in action for breach of contract of employment, though the committee to which the case was referred found that the plaintiff benefited by defendant's breach of the contract, plaintiff is entitled to nominal damages.

12. In C v. U. S., 23 Ct. Cl. 341, where the defendant contracted to deliver goods within a specified time, but delivered them sometime thereafter, he will be liable for any reductions of the plaintiff's profits caused thereby.

13. In Y S v. B, Fed. Case 14690. Where a party is entitled to the benefit of a contract, and can save himself from a loss arising from a breach of it, at a trifling expense, or with reasonable exertions, it is his duty to do it, and he can charge the delinquent with such damages only as with reasonable endeavors and expense he could not prevent.

14. In B v. M, 50 Ala. 206, an action against the proprietor of a school for the breach of a contract to employ plaintiff as a teacher, defendant may show, in mitigation of damages, that the plaintiff obtained other employment during the time covered by the contract, and received compensation for it.

15. In O v. G, 18 Minn. 429, notwithstanding a note is expressed to be payable without interest, interest is recoverable as damages for the detention of the money after due.

CHAPTER XII.

HOW TO DRAW UP A CONTRACT

89. OTHER POINTS TO BE OBSERVED

1. Caution

2. Short Contract

90. CONSTRUCTION WORK-Directions

91. HYPOTHETICAL PROBLEMS

92. SEARCH QUESTIONS

89. Other Points to be Observed. When contracts of importance are made the substance of the conversation should be reduced to writing and signed by the parties, and each should have a copy. Particularly should these directions be followed if the contract is to continue in force for some time, or if it contains many provisions. Remember, however, that while a verbal contract is just as valid as a written one, it is not so easily proved. An oral contract that is disputed or denied must be established by the testimony of witnesses. A written contract is established by its production.

1. Caution. Since it is advisable to reduce important contracts to writing, the rule, "no oral evidence can be admitted to explain, vary, or contradict that which is written," must be kept in mind. The written contract must contain the four principal elements of contracts together with such additional and modifying matter as may be desired. Grammatical error will not affect the validity of the contract. No special form is necessary. State clearly the intention of the parties. The contract must be signed. 2. Short Contract-Merchant and Clerk.

"This agreement made this first day of July, 1913, between E. C. Coe, and James Leffring: Witnesseth that it is agreed that the said E. C. Coe shall faithfully serve the said James Leffring

as a bookkeeper in the store of the said James Leffring for the period of seven months from and after the first day of August, 1913, then the said James Leffring shall pay the said E. C. Coe the sum of seventy-five dollars per month, payable monthly on the last working day of each month of this contract.

Signed in duplicate on the 1st day of July, 1913.

90.

Construction Work.

E. C. Coe.
James Leffring."

Directions.

Supply all necessary names, terms and descriptions not given. The teacher will give amounts and other limiting data.

1. Draw a short contract between A and B, one to sell and the other to buy a team of horses; consideration, $300, in three payments of $100 each, first payment one month after date of sale. Warrant the horses "broken to double harness and sound."

2. Draw an agreement to sell and buy seven articles of personal property.

3. Draw an agreement to sell and buy a piece of land. Describe location of land in general way. Assume a mortgage and agree to furnish an abstract. Also a warranty deed is to be given.

4. A agrees to sell to B the following described property: One horse, "Duke," at $250; one horse, "Walter," at $225; one set double harness at $200; one light buckboard at $175. Draw the agreement once as an entire contract and again as a divisible contract.

5. Draw an agreement (1) in accordance with the first clause of section four of the Statute of Frauds.

6. (2) In accordance with the second clause of section four of the Statute of Frauds. (a) Contract executed. (b) Contract executory.

7. (3) In accordance with the third clause of section four of the Statute of Frauds.

8. (4) In accordance with the fourth clause of section four of the Statute of Frauds.

9. (5) In accordance with the fifth clause of section four of the Statute of Frauds.

10. (6) In accordance with the section of the Statute of Frauds relating to the sale of goods.

91. Hypothetical Problems. 1. A says to B, "I will sell you my horse, Prince, for $100." B replies, "Agreed." Discuss the relationship.

2. A says to B, "I will sell you my horse, Prince, for $100." B replies, "I will give you $95;" or he may say, “I will give you $105." Discuss the relationship.

3. A says to B, "I will sell you my horse, Prince, for $100." C, a third party, says, "I will take him at that price." Discuss the relationship.

4. A says to B, "I will sell you my horse, Prince, for $100." B replies, "Agreed, I will pay you the money to-morrow." Discuss the relationship.

5. A says to B, "I will sell you my horse, Prince, for $100." B replies, "I will give you my note at 10 days for $100." Discuss the relationship.

6. As in 5, B then says, "Well, I will take him for $100." Discuss the relationship.

7. A says to B, "I will sell you my horse, Prince, for $100, and you may consider the offer until 2 o'clock to-morrow afternoon." B replies, "Agreed." Discuss the relationship.

8. As in 7, C, knowing of A's offer to B, says to A, "I will take your horse for $100 now." A says, "Agreed." Discuss the relationship of A, B, C.

9. A proposes as in 7, B replies, "Well, here is $2 for your offer." Discuss the relationship.

10. As in 7, C pays the $100 and takes possession of the horse. Discuss the relationship.

11. D writes B September 4th, "I will sell you 1,000 bu. wheat at 50c per bushel. Reply by first mail." The letter will be delivered on the 6th. Discuss the relationship.

12. As in 11, B receives the letter on September 6th and mails acceptance, which will be delivered the 8th. Discuss the relationship.

13. Conditions as in 11 and first part 12, but the letter of acceptance is lost. Discuss the relationship.

14. Conditions as in 11 and 12, but on September 5th B writes and withdraws his offer. Letter delivered September 7th. Discuss the relationship.