Business Hints for Men and Women Part 24

The other requisites of a contract are--

1. It must be possible of accomplishment.

2. It must be in accordance with law.

3. Its performance must not injure the public.

4. The parties to a contract must be competent to do the things to which they pledge themselves.

5. A drunken or an insane man cannot make a contract.

6. All parties to a contract must be agreed.

THE CONSIDERATION

No contract can be held as binding where the consideration is not named.

A promise, verbal or in writing, to do something for a certain party, cannot be enforced.

A promise to do the same thing for a stipulation named is a contract and may be enforced.

A gift is not a form of contract. Once made it cannot be legally taken back.

WRITTEN AND VERBAL CONTRACTS

There are certain forms of contract which cannot be legally enforced, unless they are in writing.

1. All contracts for the sale of real estate.

2. Contracts that are not to be performed for a year or more.

3. All contracts, to answer for the debt and obligations of another, must be in writing.

If the contracting parties put but a part of their agreement in writing the law will recognize only the written part. The whole must be in writing, or the agreement will not hold.

Verbal contracts are not safe.

Although the law does not require even contract to be in writing, yet, as it never declares that a contract must be verbal, it is the part of prudence, wherever possible, to put every contract in writing.

Owing to defects of memory even honest men may, and frequently do, disagree as to the terms of a verbal contract.

Because the party with whom the contract is made is a close friend, one is apt to depend on a verbal agreement, but the closer the friend or relative, the more reason there is for an exact written contract, if we would keep the friend.

FORMS OF CONTRACT

The law is never specific as to the form of contract that may be used.

It is not necessary to draw up the contract with the formal accuracy of a real estate deed.

Any one with good sense and a fair common school education can draw up a contract that will hold.

Know what is required, then state the facts simply.

Contracts need not be sworn to or even witnessed.

KINDS OF CONTRACT

Every note, mortgage and other form of obligation is a specific contract.

A lease is a form of contract between two people, known as landlord and tenant, for the use of real estate for a period and at a rental specified in the doc.u.ment.

A verbal lease may be made for a short period, but if for a year or more, it must be in writing.

A lease should state when, where and to whom the rent is to be paid.

Each party to a lease, or other form contract should have a copy.

If the premises rented should become unusable by fire or any action of the elements the tenant is still liable for rent, unless there is a special clause in the lease providing for such a contingency.

A tenant cannot, without the written consent of the landlord, use the rented premises for any other purpose than that stated in the lease.

AS TO REPAIRS

In some states the law compels the landlord to keep the premises in habitable repair, but this does not seem to be the rule. It should be decided, where there is doubt, before signing the lease.

Where it is agreed that the landlord shall keep the premises in repair, and, after due notice of the fact, he fails to do so, the tenant may himself make the repairs and deduct the amount from the rent.

SUBLETTING

If there is no contract to the contrary, the tenant may sublet the whole or any part of the premises, but this does not release him from liability for rent.

If the tenant fails to leave the property when his lease has expired, the owner may make his demand through what is known as a "notice to quit," which must be served on the tenant in person.

WHAT IS A GUARANTY?

A guaranty is sometimes required to insure the payment of rent.

Plainly, a guaranty is an agreement to a.s.sume, under certain conditions, the liabilities of another.

If a man makes a contract, a lease, or a note, and his personal resources are not deemed sufficient to secure his performance of the things agreed to, the other may require that some one, in whom he has more faith, shall give him a guaranty, or personal security in writing.

The following might be used as the form for a guaranty for a lease, contract, note or other obligation of contract:

"For value received, I hereby guarantee the payment of the within lease (bond or contract). George L. Roberts."

Short Hills, N. J.

October 1, 1910.

A BILL OF SALE

This is a written agreement by which one person transfers to another his interest in certain personal property.

The law lays down no rule as to the form.

A bill of sale usually pa.s.ses where the property paid for is not immediately removed from the possession of the seller.

This form would answer in any state: