CHAPTER XL THE CONTRACT OF EMPLOYMENT1 $257. Introduction The contract of employment is perhaps the one which most concerns the ordinary man in his every-day affairs. All the relations between employers and employees are governed by contract and the laws regulating the subject. In recent years, these laws have undergone almost a revolution; and they are still being rapidly changed to meet the modern ideas of what such relationships should be, and the new sense of the obligations which the employer owes to those under him. It is most important for everyone to know exactly what these changes in the law are, and how they may affect him individually. The Federal Employers' Liability Act, which defines the rights of all employees engaged in the business of interstate commerce, has been followed in many of the states by acts of like tenor; and various efforts have been made to introduce some of the schemes for workmen's compensation and old-age pensions from abroad. Both of these plans have already been adopted in some of the states; and, it would appear from the trend of modern legislation, they are likely in the near future to be enacted into some form of law in most states of the Union. Too much importance cannot therefore be given to the contents of this particular chapter. For this reason the subject of the relations of employer and employee has been treated with some fulness of detail. 1 For forms of contract of employment, see Chapter CIV, Forms 46, 49. § 258. Definition A contract of employment is a contract for the performance of services, by the terms of which the employer is to direct how the work is to be done and what results are to be accomplished. This personal direction by the employer is the essential feature. A contract with a tailor for a suit of clothes is not a contract of employment because it lacks the element of personal supervision. In the older law books the subject of this part of the book was treated under the head of "Master and Servant." It is far from modern habits of thought and speech to consider a member of a labor union or the auditor of a corporation as a servant. Hence, the obsolete terms are not used in this work. § 259. What Constitutes a Contract of Employment There must be an agreement by competent parties. One party agrees to perform services for the other. There must be a consideration. One party gives his services in return for the payment of wages or salary by the other party. The contract may be expressed or implied. If a man does any work for another on request, the law will usually imply a contract to pay a reasonable compensation. If services are rendered for another with his knowledge and acquiescence, a contract is usually implied. A contract to do work on shares is an agreement by one party to perform some labor, such as raising a crop, for a share in the crop. For instance, a man may agree to cut grass for a land owner for half the grass. Such contracts are common in farming communities. The fact that the wages are paid otherwise than in money does not alter the relationship. As has been stated (§ 258), the peculiar and distinguishing element of the contract of employment is that the party for whom the services are to be performed has the right to direct |