acts as slander, libel, or negligently injures another's person or property, he is liable to damages.

48. Infant's power of attorney. Rule: A power of attorney executed by an infant is void.

And in some states it is held that any contract by which an infant secures the services of another is not merely voidable, but void.

A power of attorney is a written instrument under seal by which one person appoints another to act for him.

49. Married women. At common law married women were incapable of making any binding contracts. A married woman's contracts were absolutely void, and neither the married woman nor the other party to the contract was bound.

This common law disability has been removed in most of the states by statute and now a married woman may contract as fully as an unmarried woman, except that in some states she cannot contract with her husband or as surety for him. A married woman can conduct her own separate business and enter upon contracts independently of her husband, therefore, in many of the states, can sue and be sued apart from her husband.

50. Insane persons. Rule: Since the formation of a contract requires a meeting of minds, an insane person is incapable of making a valid contract except for necessaries.

Some insane persons appear perfectly rational and others are rational at times. This makes it difficult to determine the mental condition of the party and a person may innocently deal with an insane person without a knowledge of his insanity.

Where a person has been judicially declared to be insane and a guardian has been appointed to manage his property, the insane person cannot thereafter make a valid contract. Where the afflicted person has not been declared insane, his agreements for necessaries are usually binding, and the validity of his other agreements depends on the surrounding circumstances. If the contract is such that the parties can be placed in the same condition they occupied before the contract was made, it is voidable at the option of the insane person. Where, however, the con

tract has been so far executed that the parties cannot be put into their original condition, the insane party is held.

51. Drunkenness. Rule: A contract made with a person who was intoxicated to such an extent that he did not know what he was doing, or the consequences of his act, is voidable at the option of the intoxicated person.

Such a contract may be ratified when he becomes sober, and when so ratified it cannot afterwards be avoided on the ground of drunkenness.

51a. Duress. Duress is where a person is induced to make an agreement by threats of personal violence. Such an agreement is of no validity and may be repudiated. A contract entered into by a party under duress is voidable at his option. The threatened violence may be directed against the person or against a member of his family. It may consist in a threat of imprisonment, or of wanton destruction of one's property. Whatever threat overcomes the will of the contracting party and causes him to do what he otherwise would not do, may be regarded as duress.

52. Alien belligerents. Rule: Subjects of a country with which our nation is at war, are alien enemies, and contracts made with an alien enemy are void.

Such contracts are not allowed because a citizen of this country might be enabled thereby to withdraw the resources of defense from the country and convert them to purposes injurious to his country's interest.

An "alien" is one who is a citizen of a foreign nation and owes his allegiance to the government of that country.

53. Contractual powers of corporations. A corporation has, in general, only such powers as are conferred upon it by the state or government creating it, and when it attempts to bind itself by contracts which are foreign to the purposes for which it was created, such contracts are usually void. This subject is treated more fully in the chapter on corporations.

QUESTIONS

1. As a general rule what persons are capable of making a valid contract?

2. What classes of persons are not competent to contract?

3. What contracts are binding on an infant?

4. What are considered necessaries?

5. Why should an infant be held liable on a contract for necessaries? 6. What will amount to a ratification of an infant's contract?

7. Who may take advantage of the plea of infancy in avoiding a contract? 8. Can an infant avoid a part of a contract only?

9. At what time must an infant ratify his contracts?

10. What is the rule as to disaffirming contracts for the conveyance of real estate?

11. Give four cases of disaffirmance depending on whether the contract is executed or executory.

12. Can an infant be the partner of an adult?

13. What is the effect of disaffirmance?

14. What is the liability of an infant for his torts?

15. Can an infant execute a valid power of attorney?

16. At common law could a married woman execute a valid contract? 17. What changes have been made by statute as to the common law rights of married women to enter into a contract?

18. What are the rules of law in regard to the rights of insane persons to execute a valid contract?

19. When may a drunkard avoid his contract?

20. What is the reason for not allowing an alien enemy to contract with our citizens during hostilities?

21. What limitations are there to the contractual powers of corporations?

CASES

(GIVE REASONS FOR YOUR ANSWERS)

1. A merchant sold a suit of clothes to a boy of 19. The boy lived at home and was supplied with clothes by his parents. Can the merchant recover the price of the suit on the ground that it was a necessary of life?

2. A student rented a room for $1.00 per week, and remained in it until the Christmas vacation. He then rented another room which he liked better. He had agreed to take the first room for the school year. Can the landlord collect rent from the student for the remainder of the school year?

3. A young man twenty years of age bought groceries for the use of his wife and child. Can the merchant compel him to pay for them on the ground that they are necessaries?

4. A, who was a minor, traded horses with B an adult, B desired to trade back, as he afterwards realized that he had the worst of the bargain. Can he compel A to trade back on the ground that A was a minor?

5. A, who was a minor bought a wagon of B for $75.00 for which he gave a promissory note due in 90 days. He refused to pay the note on the ground of infancy but persisted in keeping the wagon. Is he entitled to do this?

6. An infant purchased a farm from an adult. The infant kept the farm until he arrived at his majority which was three years. During this time he collected and spent the income from the farm. He then repudiated his contract. Must he account for the rent?

7. An infant borrowed $50.00 of an adult with which to buy food and clothing. Can the adult recover the money loaned to the infant?

8. An infant invested $2,000.00 in a partnership, and on finding the partnership unprofitable, withdrew from the firm and sought to recover the $2,000.00. Can he do this?

9. An infant negligently drove an automobile through the streets and injured a pedestrian. Is the infant liable in damages for the injury?

10. A while insane sold a tract of land to B. After restoration to sanity A received payments upon the contract. He then sought to avoid the contract on the ground that he was insane when it was made. Can he do this? 11. A while intoxicated sold his watch, which was worth $60.00 to B for $10.00. After he became sober he tendered back the $10.00 and demanded that B should return the watch. Is he entitled to the watch?

CHAPTER IV

CONSIDERATION

54. Definition. Consideration is something exchanged by one party to a contract for what he is to get under the terms of the contract. It consists of some act or forbearance, or the promise thereof, which is offered by one party to a contract, and which is accepted by the other party in return for his act or forbearance, or the promise thereof. Consideration goes to the very roct of the contract and any agreement made without it is void, and no action can be maintained upon such an agreement. Consideration as commonly expressed in business contracts usually means price or compensation.

Rule: Every promise contained in a contract must rest upon a consideration in order to be enforceable.

Contracts under seal are, under the common law, an exception because the seal implies a consideration. In some states the seal is regarded as only a presumption of consideration in an executory contract, and is insufficient without some actual consideration.

An "executory" contract means one unfinished, not completed, something that yet remains to be done in the future.

If a seal be attached to a gratuitous promise to create a consideration, no other evidence of consideration is necessary. Contracts that have been executed will not be set aside for lack of consideration.

An "executed" contract is one that is finished, completed, and nothing remains to be done. A "gratuitous promise" is one given freely without consideration, imposing no obligation.

55. Classification. There are two kinds of consideration— good and valuable.

56. What constitutes a good consideration. Rule: A good consideration is founded on natural love, affection or esteem. As between the immediate parties, it is sufficient to support an