for nothing. But the amount of the consideration is usually unimportant, so long as it is reasonable. Anything is a consideration which is of benefit to the person promising or of loss or inconvenience to the other. An illegal consideration is, however, not a consideration; nor is the performance of a moral duty, nor the doing of what would be a legal duty without the promise in question. If the consideration fails, the contract fails. One has no right to sue on a contract unless he has performed or offered to perform his part.

6. The contract must be made without fraud.

Fraud may be practiced in two ways, by making statements known to be false or by concealing facts that ought to be revealed. But if the parties meet on equal terms, with the same sources of information, and if nothing is done to conceal faults, there is no fraud in law. "Let the buyer beware," is an ancient maxim, and a buyer must exercise reasonable diligence and prudence. Fraud absolves the injured party, but the defrauding party may be held to the contract; that is, the contract is voidable at the option of the party deceived.

Some contracts must be in writing.

The principal classes of commercial contracts which must be in writing to be binding, are: (a) agreements for the sale of property of more than a certain value; (b) agreements of guaranty; (c) agreements not to be performed within a year.

In the famous English "Statute of Frauds," which is the basis of the American local statutes on matters referred to in this section, the value of personal property requiring written contract was ten pounds or fifty dollars. In the United States the value varies in different states from $30 to $200. But if part of the property is

delivered or part of the purchase money is paid the whole contract is binding, even if not in writing.

A guaranty is an agreement by which a person warrants that a certain third person shall duly perform an engagement. Thus if A obtains goods from B upon the assurance of C that they will be paid for, C is said to guarantee the debt.

A contract which may be performed within a year does not come under the statute, even if such performance seems improbable at the time of making the contract.

The style of the writing is immaterial-it may be formal or informal, in ink or pencil. It may be made by the principal or by his agent.

Pertinent Questions.

How are the laws-legislative enactments and decisions of the Supreme Court-made public? Why are they thus published? Tell whether the following agreements are valid contracts or not, and why:

1. An agreement to print a libel. A lease of a house for gambling purposes. A contract executed on Sunday. A contract for work to be done for five consecutive days, beginning on Friday. How would it affect the case if the work were the removing of goods from a building in imminent danger of falling? The agreement of a tinsmith never again to work t his trade. His agreement not to work at it within a specified time or in a certain town.

2. An agreement to swim across the ocean. To pay for a horse at the rate of one kernel for the first nail in the horse's shoes, two for the second, four for the third, eight for the fourth, and so on. To deliver goods at a certain time, though the delivery at the proper time may be prevented by some accident. Is a person released from responsibility by sickness? 3. An agreement by an orphan to pay for necessaries at some future time. If the price charged is exorbitant, is he bound to pay it or only a fair market price? A man while drunk buys a horse for which he has no use, but after becoming sober continues to use the horse. If the price is excessive, how much must he pay? When a married woman buys goods on credit, is she acting as the principal or as her husband's agent? 4. An order for goods to be sent to a man's house, nothing being said about payment. An offer retracted before accept

ance. A watch worth $100 displayed in a jeweler's window and marked $50; a man enters the store and tenders the $50 for it. An offer for a certain horse; an acceptance under the impression that a different horse is meant. A service permitted though uninvited; give an example. An order for 60 bushels of oats written by mistake 600. A man in St. Paul offers by letter a certain piece of property at a certain price to a man in Chicago; an hour after mailing the letter he changes his mind; how can he prevent a contract? A bid at an auction retracted before the gavel falls.

5. A agrees to give B $25 for a silver dime. But if this particular dime were of a rare kind and desired by A, a wealthy coin collector, to complete a set, would the consideration be sufficient? A promise made to a fireman in gratitude for his having rescued one from a burning building. An offer shouted from a fourth story window just as the roof is about to fall, in consequence of which offer a fireman at unusual personal risk successfully attempts the rescue. An offer and acceptance for a horse which is afterwards discovered to have been dead at time of the sale. A promise made under threat of spreading an infamous report. An agreement secured by menace to a friend. An agreement for the purpose of securing the postponement of the payment of a debt. How many "considerations" are there in a valid contract?

6. The sale of an unfashionable "ready-made" suit of clothes, nothing being said about the style. The sale of a plated watch chain, the dealer permitting the purchaser to suppose it solid gold. The sale of a blind horse, nothing being said about its sight, no effort being made to conceal its blindness, and full opportunity for examination being given to the purchaser. The sale of a house and lot at a certain price, greater than the purchaser had at first intended to give, upon the representation of the seller that he had "been offered" such a sum. A sale of real estate upon the vendor's misrepresentation of the amount of rent received from it. The purchase of a piece of land which unknown to the vendor contains a valuable mine, nothing being said to mislead said vendor.

7. An oral order for goods to the value of $500. How does the buyer's receiving part of the goods affect the matter? How else could the contract be made binding? What position does a person assume by endorsing a note? By orally saying that a debt of another will be paid? An oral engagement made December first to work a year beginning January first.

Definitions.-An agent is a person authorized to act for another in dealing with third parties. The one for whom the agent acts is called the principal.

Authority of Agent.-An agent's authority may be granted orally or in writing. When written it is called a "power of attorney." A general agent has all the authority implied in his employment. A special agent has only such authority as is specifically granted.

Responsibility of the Principal.-Between the principal and his agent responsibility is determined by their contract. Expressly or impliedly the principal agrees to pay for the service rendered.

It is in the principal's relation to third parties that the most important rule of agency appears. It is this: The principal is responsible for the authorized acts of his agent. The theory is that the acts are those of the principal, the agent being merely an instrument. And, accordingly, the principal is bound not only by such acts of his agent as he has really authorized, but also by such as he apparently authorizes. But if the agent exceeds both his real and his apparent authority, the principal is not responsible, unless he subsequently ratifies the act.

Responsibility of Agent.-The agent is responsible to his principal for any violation of their contract. Expressly or impliedly he is bound to obey orders, to exercise ordinary skill and care in the performance of his duty, and to refrain from putting his interests in adverse relation to those of his principal.

To the third party the agent is not responsible, except in the following cases: When he specifically assumes responsibility, when he conceals the identity of his principal, when he exceeds his authority, or when he acts fraudulently.

Termination of Agency.-An agency terminates at the death of either principal or agent. It may also be terminated by revocation of authority, which takes effect

upon receipt of the notice; or by the bankruptcy or lunacy of the principal, judicially declared.

Pertinent Questions.

In the following cases name the principal, the agent, and the third party: A clerk in a store; a man employed to sell goods by sample; a cashier in a bank; a conductor on a train, a school board; a commission merchant; a broker; a collector of debts, a machine agent; a partner acting for a firm; a sheriff; a mayor. Trace a crop of wheat from sowing time until it is sold as bread, and designate the parties concerned.

May a minor act as principal? As agent? If a married woman buys a bill of goods at a store who is responsible for the payment of them? On what theory? May an agent have a sub-agent? A watch left at a jeweler's store for repairs is injured by the workman; who is responsible to the owner? On account of a road overseer's neglect horse is injured by stepping through a hole in a bridge; to whom shall the owner look for damages? If a person is notified that another claims to represent him as agent and he neglects to repudiate the claim, is he responsible for acts of the claimant as agent? Is a principal responsible if undisclosed?

May an agent having authority to fix prices sell to himself? May a clerk in a store sell goods to himself at regular marked prices?

An agent transacts business after his principal's death but before he has received notice thereof; is the transaction binding upon the heirs?

CHAPTER XXXIII. PARTNERSHIP.

What it is.-Partnership is the relation existing between persons who have agreed to combine their property or skill for the prosecution of a given enterprise, and to share the profits or losses resulting therefrom.

How Formed.-Partnership being a matter of agreement is subject to the law of contracts. When the agreement is in writing, it is called "articles of copartnership." The articles usually specify the parties and the firm name, the nature and the location of the business to be carried on, the investment of each party, the basis for apportioning profits and losses, and some