of real estate as may remain, in some states; but in others, no dower can be claimed from any part of the partnership realty in any case.

Application of Private Property to Debts.

In settling with the creditors of a firm, the private property of any general partner may be first applied to that purpose, if the creditors prefer to take that rather than the partnership property, even though there may be enough of the latter to cover all the debts of the firm. It is optional with the creditors.

But if the partner has also private creditors, they have the first claim on his private property, and in such case, the partnership creditors must resort to the partnership property. There are many close questions relating to this matter of the application of private and partnership property to the settling of private and of partnership debts, on a dissolution of the firm by death or bankruptcy, and the different states have conflicting rules regulating it; but it is not necessary to enter into their complications here.

Corporations.

In this connection, brief reference may be made to corporations, which in their nature, rights and powers, have some general resemblance to partnerships, though the two relations differ from each other in several very important particulars.

Definition.

A corporation is an artificial body or person, usually consisting of two or more individuals, whose contractual powers are given by the legislature. These powers are strictly limited by the terms of the legislative charter which creates it.

Cities and towns are corporations; so are many manufacturing companies, charitable societies and business concerns. Indeed, the greatest possible variety of associations may be incorporated.

The united action of the membership of a corporation is necessary to give validity to its acts, and this may be manifested by a vote, or by the act of one or more of its officers or members who have been formally appointed its agents to do certain acts, and to bind the corporation thereby.

Every corporation has the power of perpetual succession; that is, when one or more members die or withdraw, others may take their places, and thus the life of the corporation continues, though all its members may have changed.

A corporation may sue and be sued; may grant and receive grants of land and other property; and may do all other business which an individual can do, to the extent which its charter allows. Beyond the bounds of its charter privileges, however, a corporation is powerless and can do nothing, except that it may do such other business as is naturally and commonly attendant upon the express business for which the corporation was created.

A corporation may be dissolved by the expiration of its term of existence; by the loss of all its members; by surrender of its charter; or by forfeiture of its charter, for neglect of its duties or abuse of its privileges.

CHAPTER X.

IMPOSSIBLE AND ILLEGAL CONTRACTS.

Impossible Contracts-What Constitutes Legal Impossi bility-Immoral Contracts-Unlawful Contracts— Contracts in Restraint of Trade-Contracts Restraining or Promoting Marriage-Contract to Purchase a Public Office-To Give Extra Pay for Performance of a Legal Duty-Contract to Compound a Crime-Contracts Unlawful by Statute— Usurious Contracts - Sunday Contracts - Sunday Travel.

As there are certain classes of persons who cannot make general contracts, so there are certain classes of contracts which cannot be made by anybody.

Impossible Contracts.

Some contracts are not binding because, in the nature of things, they are impossible.

The above proposition must not be too broadly understood, however, because there are many things that would ordinarily be considered impossible, which are legally quite possible. Also, the impossibility which in many other cases really exists, should be realized and considered beforehand; and having made such contracts, people must abide by the conse. quences of their own rashness.

No degree of danger or difficulty will make a contract legally impossible. If a man promises to deliver at a certain time a certain amount of wheat, and a great blight falls upon the land, so that at the time named, there is not so much wheat in the world, he is not relieved from his contract, and must pay damages for breaking it.

It is under this rule of law that it has been held that a suit to recover damages for breach of a promise to marry may be maintained against a man, although he was married already when he gave the promise, and so cannot fulfil it. This would not be so, however, if the woman to whom the promise is given, knew at the time that he was married.

To avoid the possibility of being held to a contract under very adverse circumstances, conditions are usually inserted in contracts; as for instance, if a man contract to have a building in perfect repair at a certain date, the condition may well be added, that if the building be destroyed by fire before that time, he shall be relieved from his contract. Conditions are carefully framed and inserted in many contracts by cautious people to guard themselves against loss. In many difficult cases, the courts have held that conditions were implied from the circumstances of the case, and thus the parties have been relieved.

There is no very definite rule concerning impossible contracts, each case being usually decided on its own peculiar merits.

Immoral Contracts.

No immoral contract is binding, or will be enforced by any court of law or equity. Duties of a merely moral nature, to which parties have not legally bound

themselves, will not, as has been already seen, be recognized by law, but neither will the law recognize contracts, however binding and otherwise legal, the object or the consideration of which is immoral in its nature.

So if a hall be hired with the purpose of giving therein a lecture which is contrary to good morals, the lessors may refuse at the last moment to carry out their contract, and may close the hall, and the lessees cannot recover any damages for such failure. The same is true of any contract to let a house which is to be used for immoral purposes.

Unlawful Contracts.

No contract will be enforced which is contrary to the law of the state where it is framed.

There is a

long list of contracts which are considered unlawful, of which only a few need be named here.

Contracts in Restraint of Trade.

Contracts in entire restraint of trade are so unlawful that they are not binding even if under seal. The meaning of the expression "in entire restraint of trade" may be illustrated as follows:

If A is in the dry goods business in Chicago, and sells out to B, agreeing never again to go into the same business himself, or agreeing not to go into the business again anywhere in Illinois, this agreement is not legally binding.

A reasonable contract of restraint is binding, however; for instance, that he will not start the same business again within a year, or that he will never carry it on within a mile of the old stand; or perhaps never in Chicago.