Chapter XV: Part V: Mortgages of Real Estate (3)

_Fourth_, I give and devise to my daughter, Anna Brown, my farm known as the "North Place," during her life, and at her death to her lawful issue. This devise is subject to the life estate of my wife, provided for in division two of this will.

_Fifth_, the balance of my personal property I give and bequeath to Smith Home for Aged Men, of Chicago.

I appoint my son, John Brown, Jr., executor of this will, and revoke all former wills. In witness whereof, I have subscribed my name this 10th day of September, 1909.

JOHN BROWN.

The foregoing instrument was signed by the said John Brown in our presence, and by him published, and declared to be his last will and testament, and at his request, and in our presence and in the presence of each other, we subscribed our names as attesting witnesses at Chicago, Illinois, this 10th day of September, 1909.

THOMAS JONES, Residing at 21 State St.,
JAMES JOHNSON, Residing at 4704 Drexel Ave.,
Chicago, Ill.

COURTS AND LEGAL REMEDIES

=364. Courts.= Courts may be defined to be the institutions established by the government to settle disputes and to administer justice. They may consist of a judge sitting alone, of several judges sitting together, or of a judge and a jury. Courts are assisted in their work by bailiffs and clerks. Attorneys who conduct the trials for the opposing parties are officers of the court. They can be fined and imprisoned for refusing to obey the lawful order of the court. In general, courts may be divided into state courts and federal or United States courts.

=365. Federal Courts.= The Constitution of the United States provides that:

"The judicial powers of the United States shall be vested in one supreme court, and in such inferior courts as the Congress may from time to time ordain and establish. The judges both of the supreme and inferior courts shall hold their offices during good behavior, and shall at stated times receive for their services a compensation, which shall not be diminished during their term of office."

The United States Constitution further provides that:

"The judicial power shall extend to all cases in law and equity arising under the constitution, the laws of the United States, the treaties made, or which shall be made, under their authority; to all cases affecting ambassadors, other public ministers and consuls; to all cases of admiralty and maritime jurisdiction; to controversies to which the United States shall be a party; to controversies between two or more states, between a state and citizens of another state, between citizens of different states, between citizens of the same state claiming land under grants of different states, and between a state and the citizens thereof, and foreign states, citizens or subjects."

Congress has provided for District Courts, Circuit Courts, and Circuit Courts of Appeal, which, in addition to the Supreme Court, constitute the Federal or United States Courts.

=366. United States District Courts.= The United States as a whole is divided into districts. Each district is presided over by one United States judge, called a district judge. Each state constitutes at least one district and some states are divided into several districts. For example, Ohio has two districts, called the Northern and Southern Districts of Ohio. New York has four districts, called the Northern, Southern, Eastern, and Western Districts. The judges are appointed for life, or during good behavior. The appointments are made by the President of the United States, by, and with the advice and consent of the senate. Each district judge is required to reside in the district for which he is appointed.

=367. United States Circuit Courts.= The entire territory of the United States is divided into nine sections, and each section comprises the jurisdiction of a separate United States Court. That is, there are nine Circuit Courts in the United States. Each circuit is composed of several districts. For example, the sixth circuit is composed of the states of Ohio, Kentucky, Michigan, and Tennessee. Each circuit has at least two circuit judges, and is presided over by one of the judges of the Supreme Court of the United States. The Circuit Court holds court in each district of the circuit, and the Circuit Court of each district is composed of the United States Supreme Court judge presiding over the circuit, the two circuit judges, and the district judge of the district. The Circuit Court holds court at different times in each district of the circuit. Any one judge may hold court alone. Usually, trials in Circuit Courts are presided over by one judge.

The United States Circuit Court and the United States District Courts have original and exclusive jurisdiction of practically all the cases which may be brought in the United States Courts. The United States Supreme Court has original jurisdiction of a few important classes of cases. By _original jurisdiction_ is meant the right to commence cases in the particular court. By _appellate jurisdiction_ is meant the right to take a case from one court to a higher court upon appeal or writ of error, for the purpose of having the case retried or examined for errors of law.

=368. United States Circuit Court of Appeals.= Each of the circuits in the United States has a Circuit Court of Appeals. This court consists of one member of the United States Supreme Court, who acts as presiding judge, and the two circuit judges of the circuit. At least two judges must be present to hold court. If two of the regular circuit judges are not present, a district judge of any district of the circuit may act. A district judge cannot sit as judge of the Court of Appeals in determining cases in the trial of which he acted as district judge. The Circuit Court of Appeals has no original jurisdiction. It is solely an appellate court. Cases from the District and Circuit Courts may be appealed to it, and brought before it on writs of error. Some cases may be appealed direct to the Supreme Court of the United States from the District and Circuit Courts. The Circuit Court of Appeals has final jurisdiction in many matters appealed to it.

=369. The Supreme Court of the United States.= The Supreme Court of the United States holds court at Washington, and consists of nine judges. It has original jurisdiction in some important matters, and cases may be appealed to it, or tried on writs of error from the District Court, Circuit Court, and Circuit Court of Appeals. The Constitution of the United States provides that, "In all cases affecting ambassadors, other public ministers and consuls, and those in which a state shall be a party, the Supreme Court shall have original jurisdiction."

=370. United States Courts with Admiralty Jurisdiction.= The Constitution of the United States provides that the United States Courts shall have jurisdiction over admiralty and maritime cases. Admiralty cases comprise those cases arising out of breach of contract, or out of injuries occurring upon the seas or navigable waters within the jurisdiction of the United States. The District Courts of the United States are given original jurisdiction in admiralty cases. In the trial of admiralty cases, the judge acts alone and is not assisted by a jury.

=371. State Courts.= The United States Constitution provides that, "The powers not delegated to the United States by the Constitution nor prohibited by it to the states, are reserved to the states respectively or to the people." Thus, the provision of the United States Constitution, authorizing the creation of federal courts does not prevent the states from establishing and maintaining courts. Each state has its own courts. In fact the bulk of litigation is tried by state courts. The courts of the different states differ somewhat in name and jurisdiction. Most of the states have a court of inferior jurisdiction where small cases involving $300.00 or less, are tried, and a County Court where cases involving more than $300.00 are tried, and to which cases may be appealed from the inferior courts. The inferior court is usually called a Magistrate Court, or a court of a Justice of the Peace. All states have a court of last resort, usually called a Supreme Court. The primary function of state Supreme Courts is to hear appealed cases and cases brought to it upon writs of error. They have very little original jurisdiction. Supreme Courts consist of judges only. They have no juries.

Some states have an Appellate Court inferior to the Supreme Court, which has jurisdiction to hear cases on appeal and error. The states also have courts for the administration of estates, called Probate, Surrogate, or Orphans' Courts.

=372. Courts of Equity.= Originally in England, the king was regarded as having original right to administer justice. It became the custom to appeal to the king in cases where the common law rules afforded no remedy. Later, appeals were made to the chancellor, the king's secretary. Cases were also referred by the king to the chancellor. In time, a distinct court, governed by well established precedents and rules, was established. These courts were called the Courts of Chancery or Courts of Equity. Their jurisdiction covered only those cases not covered by Courts of Law. Chancery courts consisted of a judge only, or a number of judges who heard and determined cases without the assistance of a jury. Courts of Equity are recognized in this country, but few states have separate courts of Equity or Chancery. The same judge is authorized to act as a Court of Law and a Court of Equity. Equity has jurisdiction of those cases only, in which there is no adequate remedy at law.

If _A_ makes a contract with _B_ by which he purchases a certain desirable house and lot and _B_ refuses to make the transfer, and if the house and lot are of such a character that _A_ cannot obtain another which suits his purpose and fancy, _B_ may be compelled by a Court of Equity to transfer the lot to _A_. A Court of Law would give _A_ money damages for breach of contract, but would not compel _B_ specifically to perform the contract. The United States, as well as the states, has Courts of Equity.

=373. Legal Actions and Their Enforcement.= Legal actions may be said to be of three kinds, those arising out of contract, those arising out of torts, and those arising out of crimes. Crimes are punishable by fine, imprisonment, or death. The state, through its officers, punishes criminals. In theory, a crime is a wrong committed against the community. The community, that is, the state, through its officers, convicts and punishes persons who have committed crimes. The person who is injured personally, or whose property is injured, has an action for damages against the party committing the wrong. This action is independent of the crime. The same act may render a person liable to punishment for committing a crime, and liable to an action for damages to the injured party. If a person wrongfully strikes another and injures him, the state may punish the guilty party for committing a crime, and the injured person may sue him for damages.

Legal actions arising out of injuries to persons and property as distinguished from crimes are called _civil_ actions. Civil actions arise out of breach of contract, or out of torts. If a person fails to pay a promissory note, or to perform any contract, a legal action arises out of contract. If a person slanders another, or wrongfully strikes him, a legal action arises out of tort. Legal actions are enforced by the injured or complaining party filing a complaint in court. The party against whom the complaint is filed is notified of the suit by an officer of the court. This notice is called the _summons_. The written complaint is usually called the _petition_. The complaining party is usually called the _plaintiff_. The party against whom the petition or complaint is filed is called the _defendant_. The defendant is allowed a certain time in which to file a statement of his defense. This written statement of the defendant in which he sets forth his side of the case is called an _answer_. These written statements are called the _pleadings in the case_. The parties then appear in court with their witnesses and the case is heard. The judge determines questions of law, and the jury determines questions of fact. The decision of the jury is called the _verdict_. The twelve jurymen must agree to enable them to render a verdict. If they disagree, a new trial with another jury is held. The judge may set aside a verdict, and grant a new trial if the verdict is irregular, or contrary to law. When a judgment has been rendered, execution may be levied upon the property of the defeated party for the amount of the judgment and costs. Execution is levied by the sheriff, who seizes and sells the property of the defeated party, sufficient to satisfy the judgment.

QUIZ QUESTIONS

MORTGAGES

1. What was the nature of a mortgage at _common law_?

2. At common law who had the possession of real property mortgaged?

3. Is a mortgage a contract?

4. What names are applied to the parties to a mortgage?

5. At present who is entitled to possession of mortgaged real estate?

6. Under what circumstances, if any, may a deed be construed to be a
mortgage?

7. What is the ordinary consideration to a mortgage contract?

8. May a mortgage be given to secure a future indebtedness?

9. What is meant by the _debt secured by a mortgage_?

10. Is an oral mortgage of real estate enforceable?

11. Distinguish a _mortgage_ and a _deed_.

12. If a mortgagor stipulates in the mortgage that he waives his equity
of redemption can this stipulation be enforced against him?

13. What is meant by _power of sale mortgage_?

14. Explain attestation of a mortgage.

15. Explain acknowledgment of a mortgage.

16. When does a mortgage become effective?

17. Define _delivery in escrow_.

18. What interest in real estate may be mortgaged?

19. Is a mortgage of real estate regarded as a transfer of the real
estate?

20. Explain _recording mortgages_.

21. What is the necessity of recording mortgages?

22. May a mortgagee transfer title to the real estate?

23. What interest in the real estate mortgaged can a mortgagee transfer?

24. If a mortgagee sells the debt what becomes of the mortgage?

25. How may mortgages be satisfied?

26. Define and explain _equity of redemption_.

27. Define and explain _foreclosure of mortgages_.

TRUSTS

1. Define _trusts of property_.

2. Classify trusts.

3. Define _grantor of a trust_.

4. Define and give an example of _settlor of a trust_.

5. Define and give an example of a _trustee of a trust_.

6. Define and distinguish _beneficiary of a trust_, and _cestui que
trust_.

7. What classes of persons may be parties to a trust?

8. What kinds of property may be the subject of a trust?

9. Define and give an example of an _express trust_.

10. Define and give an example of an _implied trust_.

11. Define and give an example of a _resulting trust_.

12. Define and give an example of a _constructive trust_.

13. Who has the legal title to trust property?

14. Is a person named in a declaration of trust as trustee, obliged to
accept the trust?

15. What are the duties and liabilities of a trustee?

16. May a beneficiary of a trust convey title to the trust property?

17. If a trustee wrongfully disposes of trust property what remedies,
if any, has the beneficiary?

LANDLORD AND TENANT

1. Define _lessor_ and _lessee_.

2. Distinguish _lease_ and _sale_.

3. Distinguish _lease_ and _assignment_.

4. Is a lease a contract?

5. Does a lease carry with it an implied warranty that the premises
described are in good condition?

6. _A_ rents _B's_ house for one year. _C_, a stranger, without right
attempts by legal action to evict _A_. Does _A_ have a right of
action against _B_ for breach of implied warranty of quiet
enjoyment?

7. For what purposes may a tenant use leased premises?

8. In the absence of express agreement what party to a lease is obliged
to pay taxes and insurance on the leased premises?

9. A lease provides that the tenant is to pay the taxes. A special
assessment for paving is levied. Is the tenant obliged to pay this
assessment?

10. Who is obliged to pay water rent in the absence of any special
agreement in a lease?

11. Who is obliged to pay for ordinary repairs?

12. At common law was a tenant relieved from paying rent by the
destruction by fire of the leased premises?

13. What is the rule at the present time as to release of a tenant's
obligation to pay rent in case the buildings leased are destroyed
by fire?

14. Is there an implied obligation on the part of the landlord to
deliver leased premises in any particular condition?

15. If a tenant is injured by reason of secret defects in the premises
is the landlord liable to him for the injury?

16. If snow and ice are permitted to accumulate on the walk of the
leased premises, causing injury to third persons, is the landlord
or tenant liable for the injury?

17. May a tenant become liable for rent without any express agreement
to that effect?

18. May a tenant be liable for rent without being in possession of the
leased premises?

19. _A_ rents _B's_ house, nothing being said about the condition of
the plumbing. The plumbing leaks. Is _A_ obliged to take the house?

20. If a tenant abandons the rented premises before expiration of the
term of the lease and so notifies the landlord, is he liable for
the balance of the rent?

21. In case a tenant abandons the rented premises, what three remedies
has the landlord?

22. Define _distress_.

23. At common law could a landlord sell personal property distrained?

24. What is the present-day method of distraining for rent?

25. Define _lease_.

26. Must a lease be in any particular form to be legal?

27. What leases, if any, must be in writing?

28. What is meant by attestation of a lease?

29. Define _acknowledgement_.

30. What is the necessity of acknowledgment of a lease?

31. What is the necessity of recording leases?

32. Define, and give an example of an _express covenant_.

33. Define, and give an example of _implied warranty_.

34. Is there any limitation upon a landlord's right to transfer his
interest in a lease?

35. Is there any limitation upon a tenant's right to transfer his
interest in a lease?

36. If _A_, a landlord, assigns his lease to _C_ without notifying _B_,
the tenant, and later the tenant pays _A_, who is insolvent, can
_C_ collect the rent from _B_?

37. Define _attornment_.

38. If a tenant assigns his lease is he relieved from his obligation to
pay rent?

39. Define, and give an example of a _lease for years_.

40. _A_ rents _B's_ house for one year, agreeing to pay rent in monthly
installments. Is the lease one for years, or from month to month?

41. Is a lease real or personal property?

42. What is the practical distinction between a lease for years and a
lease from month to month?

43. When, if at all, may a tenant sublet?

44. Distinguish _assignment_ and _sublease_.

45. If a tenant sublets the premises is he relieved of his obligation
to pay rent?

46. Define and give an example of an _estate at will_.

47. Distinguish an estate at will from an estate for years, and an
estate from year to year.

48. If a tenant for years is permitted to hold over his term with
consent of the landlord, in most jurisdictions is the new tenancy
one at will, or one from year to year?

49. Define, and give an example of a _tenancy at sufferance_.

50. Define and give an example of an _estate from year to year_.

51. _A_ leases a house for a month with the understanding that it is to
continue for similar periods if agreeable to both parties. Is the
lease from year to year?

52. _A_ rents _B's_ house for one year. At the expiration of the year
_A_ is permitted by _B_ to hold over for a month. _B_ then
endeavors to eject _A_. _A_ claims he has a lease for eleven more
months. Is _A_ correct in his assertion?

53. Is a lease from year to year terminated by mere lapse of time?

54. Does breach of a condition or covenant, in the absence of an
express stipulation in the lease making it a forfeiture, constitute
a ground of forfeiture?

55. Do leases for years require any notice to terminate?

56. Do leases from year to year require any notice to terminate?

57. In general, in what manner must notice to terminate a lease be
given?

58. Define and give an example of a _surrender_.

59. Does abandonment of the premises by a tenant without consent of the
landlord, constitute a surrender?

60. If a tenant abandons the rented premises, may the landlord relet
for the account of the tenant?

61. Distinguish _breach of lease_ from _surrender of lease_.

62. If a landlord commits a breach of lease by failing to repair
according to agreement, what is the measure of the tenant's
damages?

63. If a tenant abandons the rented premises what are the landlord's
remedies?

64. If a tenant abandons rented premises, may a landlord permit the
premises to remain vacant, and collect rent from the tenant for the
balance of the term?

65. If a tenant abandons a lease and the landlord desires to relet for
the account of the tenant, must he notify the tenant that he takes
possession, and relets for that purpose?

66. How may a landlord recover rent?

67. How may a landlord recover possession of leased premises when the
lease has expired, or is broken?

TRADE MARKS AND TRADE NAMES

1. What is the purpose of trade marks?

2. May anything other than words, letters, or figures be used as a
trade mark?

3. May a word which describes the article on which it is used be used
as a trade mark?

4. May a name of an individual be used as a trade mark?

5. May a name of a place or locality be used as a trade mark?

6. If a person uses a mark without any intention of its becoming a
trade mark, does he acquire a valid trade mark therein?

7. _A_ has acquired a trade mark on flour; has he also acquired the
same trade mark on stoves manufactured by him?

8. If _A_ has acquired a trade mark on flour, can _A_ prevent _B_ from
using the same trade mark on stoves?

9. What length of time is required to obtain a valid trade mark?

10. _A_ used a trade mark on flour for two years, and ceased using it
for two years. In the meantime _B_ used the trade mark. To whom
does the trade mark belong?

11. What trade marks, if any, may be sold?

12. Define _trade name_.

13. What is the distinction between _trade marks_ and _trade names_?

14. May a person acquire a trade name in a name describing the article
manufactured?

15. How is a trade name acquired and how long must it be used to be
acquired?

16. May a person acquire a trade name in a geographical name?

17. What is meant by _unfair trade_?

18. Is it unlawful for a person to adopt as a trade name or trade
mark, a name or mark descriptive of the article manufactured, or a
geographical or a proper name?

19. _A_ used the name "Chicago Varnish Co.," for ten years, and
advertised the name extensively, spending large amounts of money in
this connection. _B_ adopts the name, "Chicago Varnish Co.," and
the public purchases his product thinking they are buying _A's_
product. Can _A_ prevent _B_ from using the name "Chicago Varnish
Co."?

20. Is everyone entitled to use his own name in the manufacture or sale
of any article he pleases?

21. Who may register trade marks, and when may they be registered?

22. Does registration of a mark constitute it a trade mark?

23. What is the advantage of registering a trade mark?

24. How may registered trade marks be transferred?

WILLS

1. Define _will_.

2. When does a will take effect?

3. Can both real and personal property be disposed of by wills?

4. Distinguish the terms _will_ and _testament_.

5. Define and distinguish the terms _testator_ and _devisor_.

6. Define the term _devise_.

7. Define the term _bequeath_.

8. Define and distinguish the terms _devisee_ and _legatee_.

9. What are the most common statutory requirements of a will?

10. Is a will a contract?

11. By the laws of what state is a will disposing of real property
governed?

12. By the laws of what state is a will disposing of personal property
governed?

13. May a will be in the form of a letter addressed to a beneficiary
named in the will?

14. In a will does any present interest in the property pass to the
beneficiaries at the time the will is made?

15. When, if at all, may a will be revoked?

16. May a person under legal age make a will?

17. Can a married woman make a will?

18. What test is applied in determining whether a person is mentally
capable of making a will?

19. What kinds of property may be disposed of by will?

20. Must a will be in writing?

21. May a will be printed?

22. Define and describe _signing_, _attesting_, and _acknowledging a
will_.

23. Define and describe _publication of a will_.

24. Give an example of a contract to make a will.

25. May a contract to make a will be revoked?

26. Define and give an example of _holographic will_.

27. What is the distinguishing feature between a holographic will and
an ordinary will?

28. Define and describe _nuncupative wills_.

29. May real property be disposed of by a nuncupative will?

30. When, and by whom must a nuncupative will be reduced to writing?

31. Must a nuncupative will be attested?

32. What is meant by _revocation of a will_, and by whom, when, and how
may a will be revoked?

33. Define and describe _alteration of a will_.

34. Define _codicil_.

35. When, and how, may a lost will be proven?

36. Define and give an example of _abatement_.

37. What is meant by _ademption of a legacy_?

COURTS AND LEGAL PROCEDURE

1. Define _courts_.

2. In general how may courts be classified?

3. By what authority are Federal Courts established?

4. What is the term of office of Federal judges?

5. Classify Federal Courts.

6. How many United States District Courts are there?

7. How many United States Circuit Courts are there?

8. How many Circuit Court judges are there in each circuit?

9. Do the Supreme Court judges and District judges have anything to do
with the Circuit Courts? If so, what?

10. What is meant by _original jurisdiction_, as applied to a court?

11. Does the United States Circuit Court of Appeals have any original
jurisdiction?

12. How many United States Supreme Court judges are there?

13. What, in general, is the jurisdiction of the United States Supreme
Court?

14. Where are admiralty cases tried?

15. What cases are included in term admiralty cases?

16. Are juries used in the trial of _admiralty cases_?

17. By what authority are State Courts established?

18. Classify, in general, State Courts.

19. What are Courts of Equity, and over what classes of cases do they
have jurisdiction?

20. Classify legal actions.

21. Give an example of an act which is both a tort and a crime.

22. Define _plaintiff_ and _defendant_.

23. Define _pleadings_.

24. What is the function of a jury in the trial of a case?

25. Define _verdict_, and distinguish it from judgment?

26. How are judgments enforced?

INDEX

A

Abandonment, remedies of landlord for, 279

Abatement, definition of, 295

Acceptance
definition of, 15
of draft, 133

Acceptor
of negotiable instruments, 122
rights and liabilities of, 123

Acquisition of personal property, 179

Act of bankruptcy, 35

Act of God as affecting carriers, 225

Ademption, definition of, 295

Administrative law, definition of, 13

Advancement, definition of, 295

Adverse interest, 40

Age, legal, 16, 20

Agencies, irrevocable, 72

Agency
contracts within Statute of Frauds, 41
contracts which must be in writing, 41
definition of, 39
general, 43
purposes for which created, 42
ratification of, 42
special, 43
universal, 43

Agents
apparent authority of, 50
how appointed, 41
authority of, 43
to collect, 52
to warrant, 53
of corporations, 107
definition of, 39
delegation of authority by, 51
distinguished from master and servant, 39
duties of, to principal, 46
general, 43
principal to pay, 44
risks assumed by, 44
secret instructions of, 50
universal, 43
value of services, 44
who may be, 40

Anomalous indorser, 130

Appeal from one court to another, 298

Assessments
of corporations, 104
not included in taxes, 271

Assignment
of contract, 31
of insurance, 167
of lease, 269
notice of, 274
oral, 274

Assignability distinguished from negotiability, 113

Attestation
of deeds, 245
of will, 291

Attornment, definition of, 274

Auctioneer, 55

B

Baggage
what constitutes, 234
duty of innkeeper to receive, 236
sample cases, 234

Bailee
definition of, 205
liability of, 212
lien of, 212
right of possession of, 212
right of, against third persons, 212
right of, to use property, 212
right of, against bailor, 212

Bailment
classification of, 206
definition of, 205
distinguished from sale, 182
parties to, 205
for sole benefit of bailee, 208
for sole benefit of bailor, 207
what constitutes a, 206

Bailor
bailments for sole benefit of, 207
definition of, 205

Banks
checks on, 153
of circulation, 151
classified, 151
clearing houses, 157
definition of, 151
of deposit, 151
deposits in, 152
discount, 158
of discount, 151
exchange, 158
functions of, 152
interest, 158
loans of, 154
money, 157
national, 151, 155
pass books of, 153
powers of, 152
private, 151
rights of, in case of forged, altered, lost, or stolen checks, 154
savings, 156
state, 151
trust companies, 156
usury, 160

Bankruptcy
acts of, 35
definition of, 35
involuntary, 35
revokes agency, 59
voluntary, 35

Barter, distinguished from sale, 181

Bearer, negotiable instrument payable to, 112

Beneficiary of trust, 266, 269

Bequeath, definition of, 287

Bilateral contract, definition of, 19

Bill of exchange, definition of, 116

Bill of lading
definition of, 227
negotiability of, 227
valuation, 226

Blank indorsement, 124

Boarding housekeeper not an innkeeper, 235

_Bona fide_ holder of negotiable instrument, 135

Bonds
coupon, 118
definition of, 118
form of, 118
registered, 118

Breach of contract, 280

Brokers
definition of, 55
insurance, 55
stock, 55
real estate, 57

By-laws of corporations, 103

C

Capital of national banks, 293

Capital stock
of corporations, 103
decreasing, 105
increasing, 105

Capitalization of corporations, 103

Carrier
Act of God, 225
charges of, 230
common, 223
defined, 223
delivery of goods by, 229
delivery of goods to, 193
discrimination by, 230
of goods, 223
implied liability of, 224
interstate commerce act, 231
liability as insurer, 223
lien of, 230
limiting liability, 225
of mail, 230
negligence of shipper, 225
private, 223
public enemy, 225
stoppage _in transitu_, 229
title to goods in possession of, 227

Carrier of passengers
baggage, 233
definition of, 232
degree of care required of, 233
right to eject passengers, 233
rights and liabilities of, 233

Casualty insurance, definition of, 166

_Caveat Emptor_, rule of, in sales, 188

Certificate of protest, 136

Certificates of deposit, 121

Certificates of stock, 101

Certification of checks, 118

_Cestui que trust_
definition of, 265
rights and liabilities of, 269

Charter of corporations, 92

Chattel mortgage, 1
definition of, 247
distinguished from pledge, 218
distinguished from sale, 218
filing and recording, 220
form of, 250
mortgagee, 218
mortgagor, 218
parties to, defined, 218
possession of property, 218
redemption, 221
rights of mortgagee, 221
rights of mortgagor, 220
as security for a debt, 219
title in mortgagee, 218

Chattel real, definition of, 274

Chattels
definition of, 128
personal, 128
real, 128

Checks
on banks, 153
certification of, 118
definition of, 117
when returned, 153

Child may be agent, 40

Choses
in action, 178, 182, 219
in possession, 178, 182, 219

Circulation, banks of, 151

Clearing houses, 157

Codicil, definition of, 294

Cognovit promissory notes, 120

Collateral promissory note, 120

Collateral securities, definition of, 283

Combination of capital distinguished from trusts, 265

Commercial law, definition of, 13

Compensation of agent, 44

Conditional sale, definition of, 181

Conflict of laws in contracts, 30

Consideration
adequate, 17
in contracts of suretyship, 173
definition of, 17
good, 17
illegal, 17
in negotiable instruments, 132
past, 17
to trust agreement, 321
valuable, 17

Consolidation of corporations, 98

Constitution
definition of, 12
English, 12
limitation of, 95

Constructive trusts, definition of, 268

Continuing guaranty, definition of, 175

Contract
acceptance to, 15
as affected by duress, 28
as affected by frauds, 28
as affected by mistake, 29
agreement in, 15
assignment of, 31
bilateral, 19
breach of, 34
competent parties, 16
consideration to, 17
by correspondence, 25, 26
definition of, 14
dependent covenants in, 34
discharge of, 33
of drunkards, 22
elements of, 15
executed, 19
executory, 19
express, definition of, 18
forms of, 38
of idiots, 22
illegal, 27
implied, 18
independent covenants in, 34
of infants, 20
of insane persons, 22
of married women, 22
mutuality in, 19
offer to, 15
parties to, 16
of partnership, 77
remedies for breach of, 36
rescission of, 34
signing of, by corporation, 108
specific performance of, 37
_statu quo_ in, 34
Sunday, 27
by telegraph, 25, 26
trust created by, 266
under seal, 27
unilateral, 19
voidable, 20
warranty in, 34
will not a contract, 288

Corporation
act through agents, 39
by-laws of, 103
calls and assessments of, 104
capitalization of, 103
certificates of stock of, 101
charter of, 92, 95
common stock of, 105
consolidation of, 98
creation of, 92
_de facto_, 96
definition of, 90
directors of, 102
dissolution of, 111
distinguished from partnership, 90
dividends of, 106
estoppel of, 95
foreign, 110
franchise of, 90
kinds of, 94
meetings and elections of, 99
names of, 93
nature of, 90
object of, 90
officers and agents of, 107
organization of, 92
powers of, 91
preferred stock of, 105
promoters of, 96
regulation of, 103
reorganization of, 197
resolution of, 103
revocation of franchise of, 91
seal of, 91, 108
stockholders of, 100
_ultra vires_ acts of, 109
voting at meetings of, 99
watered stock, 105

Counterclaim good against assignee, 274

Coupon bonds, 118

Courts
appeal from one court to another, 298
classification of, 296
definition of, 296
reports, 12

Covenants
in deeds, 245
dependent, 34
express, 273
implied, 273
independent, 34
of leases, 273

Creditor to suretyship contract, 169

Credits, definition of, 154

Crime, agency to commit, 42

Crimes of corporations, 185

Criminal, 13

Cumulative voting at corporate meetings, 99

Custom as part of contract, 22

Customs make law, 11, 12

D

Damages, definition of, 13

Death
of partner, 87
revokes agency, 59

Debts
of another, 169
secured by chattel mortgage, 219
secured by mortgage, 257
transfer of, 261

Deeds
acknowledgment of, 246
conclusion of, 245
covenants in, 245
definition of, 243
description of property in, 244
formal parts of, 243
habendum clause, 245
indentures, 243
as mortgages, 256
premises of, 244
quit claim, 246
redendum clause, 245
signature of, 245
trust created by, 266
warranties in, 245
witnesses to, 245

_De facto_ corporation, 96

Defenses, 132

_Del credere_ agency, 56

Delivery
in escrow, 258
of goods, 193, 229
of mortgages, 258
of personal property sold, 184

Deposit
indorsement for, 129
banks of, 151

Devise, definition of, 287

Devisor, definition of, 287

Discharge of contract
by bankruptcy, 35
by breach, 34
by performance, 33
by subsequent agreement, 34
by tender, 33

Discount, definition of, 158

Dishonor, notice of, in negotiable instruments, 36

Dissolution of partnership, 87

Distress, definition of, 273

Distribution of assets of partnership, 88

Dividends of corporations, 106

Divisions of law, 12

Domestic exchange, 158

Dower estates
definition of, 31
cannot be taken away by will, 288

Draft
definition of, 116
presentment and acceptance of, 133

Drawee of negotiable instrument, 122

Drunkard
contracts of, 22
cannot enter into partnership, 78

Duration of estates, 239

Duress
as affecting wills, 289
as defense to payment of negotiable instrument, 131
as defense to suretyship contract, 176
definition of, 28

Duties
of agent to principal, 46
of partners to each other, 84
of partners to third persons, 85
of principal to agent, 44

E

Election of corporations, 99

Elements of a contract, 15

Emblements, definition of, 236

Enemy, public, as affecting carrier, 225

Equity
courts of, 37, 300
definition of, 37
of redemption in chattel mortgages, 221
of redemption in real estate, 263

Estate, trust, 265

Estates in land, 239

Estoppel,
of corporation from denying existence, 95
partnerships by, 77

Exchange
barter, 181
definition of, 158
of goods not a sale, 181

Executed contract, definition of, 19

Execution
of contracts of corporations, 108
definition of, 300
of leases, 273
of negotiable instruments, 108

Executory contract, definition of, 19

Exempt property, 206

Express contract, definition of, 18

Express trusts, definition of, 266

F

F. O. B., definition of, 227

Factors, definition of, 54

Federal court, 297

Fee simple estates, definition of, 239

Females, legal age of, 16

Fictitious name of partnership, 79

Fidelity insurance, definition of, 169

Foreclosure of chattel mortgages, 222

Foreclosure of mortgages, 264

Foreign corporation, 110

Foreign exchange, 158

Forfeiture of leases, 279

Forgery
of negotiable instruments, 130
ratification of, 42

Forms
of bond, 119
of certificates of deposit, 121
of certificates of protest, 136
of certificates of stock, 101
of cognovit note, 120
of collateral note, 120
of contract, 38
of judgment note, 120
of partnership agreement, 89
of will, 296

Franchise of corporation, 90

Fraud
defense, of in suretyship, 176
definition of, 28
effect of, upon lease, 277
effect of, on sale, 188
renders contract voidable, 28

Freehold estates, definition of, 239

G

Gambling contracts void, 28

Gift of personal property, 179

Government warehouses, 209

Grace, days of, 134

Guarantor
contract of, 171
notices to, 175

Guaranty
continuing, 175
general, 175
letter of, 175
limited, 175
special, 175

Guests, duty of innkeeper to receive, 235

H

Habendum clause in deed, 245

Hereditaments, 236

Highways, how established, 238

Holder in due course of negotiable instrument, 135

Holographic wills, 293

Homestead estates, 241

Hotelkeeper (see Innkeeper), 235

I

Idiot
contracts of, 22
cannot enter into partnership, 78
cannot be a principal, 40
relation to contract, 16

Illegal acts cannot be ratified, 42

Illegal agencies void, 42

Illegal consideration, 17

Illegal contracts, 27

Implied contract, definition of, 18

Implied contract of bailment, 206

Implied trusts, definition of, 267

Implied warranty, definition of, 189

Indemnity in suretyship, 178

Indorser
anomalous, 130
blank, 124
for collection, 129
contract of, in suretyship, 172
for deposit, 129
in full, 126
irregular, 172
liability of, 130
without recourse, 128

Infant
may be agent, 40
contracts of, 20
definition of, 40
may be partner, 78
cannot be principal, 40
may be trustee, 265

Infringement of trade mark, 283

Innkeeper
definition of, 235
duties and liabilities of, 235
lien of, 236

Innocent purchaser for value without notice, 135

Insane person may be agent, 40

Insane person to contract, 16

Insane person cannot be partner, 78

Insolvency of purchaser, 193

Insurable interest, definition of, 162

Insurance
assignment of, 167
broker, 55
contract, 160
definition of, 160
fidelity and casualty, 166
kinds of, 162
life policies, 165
marine policies, 165
open policy, 168
representations in contracts of, 164
standard policies, 166
suicide clauses in policy of, 166
term policies, 165
tontine policies, 165
underwriter's, 161
valued policy, 168
warranties in contracts of, 173
who must pay on leased premises, 271

Interstate commerce act, 231

Involuntary bankruptcy, 35

Irrevocable agencies, 59

J

Joint liability of parties, 32

Judgment
definition of, 300
promissory note, 120

Justice of peace court, definition of, 299

L

Landlord and tenant
attornment, 274
definition of, 269
implied warranty, 270
lease, 269
notice, 279
rent, 272
taxes, repairs, and insurance, 271

Law
administrative, 13
commercial, 13
constitutional, 12
criminal, 13
definition of, 11
division of, 12
private, 13
public, 13
sources of, 12
statute, 12
unwritten, 12
written, 12

Law merchant, 113

Leases
acknowledgment of, 273
assignment of, 269
covenants of, 273
definition of, 269
forfeiture of, 279
form of, 273
recording, 273
signing, 273
termination of, 279
transfer of, 274
witnessing, 273

Legal tender, 33, 157

Legatee, definition of, 287

Lessee, definition of, 269

Lessor, definition of, 269

Liabilities
of agent and principal, 46
of agent to third person, 47
of partners to each other, 84
of principal to agent, 44
of undisclosed principal, 48

Lien
of bailee, 212
of carrier, 230
at common law, 212
how enforced, 212
of innkeeper, 236
seller's, 193

Life estates, 240

Life policies of insurance, 165

Limited partnership, 89

Loans, definition of, 154

Lost wills, how proven, 294

M

Magistrate, court of, definition of, 299

Males, legal age of, 16

Marine insurance, definition of, 165

Married women, contracts of, 22

Membership, changes of, in partnership, 86

Mercantile agencies, definition of, 154

Minds, meeting of, 15

Mistake of fact, 29

Mistake of law, 29

Money, definition of, 157

Mortgagee, definition of, 218, 256

Mortgages
debt secured by, 257
deeds as, 256
definition of, 255
delivery of, 258
elements of, 258
equity of redemption, 263
foreclosure of, 264
parties to, 256
of personal property, 218
recording, 260
satisfaction of, 262
transfer of, 261

Mortgagor
definition of, 256
rights of, 220

Mutuality in contracts, 19

N

National banks
capital of, 155
how created, 155
U. S. corporation, 92

Necessaries, definition of, 20

Negligence
gross, 210
liability of agent for, 46
ordinary, 210
of shipper, 225
slight, 210

Negotiable instruments
_bona fide_ holder of, 135
definition of, 112
forgery of, 130
origin of, 112
parties to, 122
presentment and acceptance, 133
presentment for payment of, 135
promissory notes, 114
purpose of, 112
requisites of, 122
signing, by corporations, 108

Negotiability
of bill of lading, 227
definition of, 112
distinguished from assignability, 113

Note
cognovit, 120
collateral, 120
definition of, 114
judgment, 120

Nuncupative wills, 293

O

Open insurance, 168

Oral assignment of leases, 274

Oral contract, 41

Organization of corporation, 92

Ostensible partner, definition of, 79

P

Partners
agreement of, 81
definition of, 77
distribution of assets of, 88
duties of, to each other, 84
kinds of, 79
powers of, 82
property of, 82
survivorship of, 87
withdrawal of, 86

Partnership, 77-90

Pass book of banks, 153

Pawnbrokers, 55

Payee of negotiable instrument, 122

Partial assignments, 274

Perpetual succession of corporation, 91

Perpetuities, rule against, 239

Personal property
definition of, 178
mortgages of, 218
possession of, 179
sale of, 179
title to, 179
transfer of, 179

Pledgee, definition of, 214

Pledges, definition of, 213

Pledgor, definition of, 214

Preferred stock, 105

Principal, definition of, 39

Q

Quit claim deed, definition of, 246

Quorum at corporate meetings, 99

R

Real property, definition of, 236

Redemption
equity of, in real estate mortgage, 263
mortgagor's right of, in chattel mortgage, 221
of pledged property, 217

Redendum clause in deed, 245

Registration of corporation, 103

Registration of trade marks, 286

Reinsurance, definition of, 167

Remainder, estates in, 212

Rent
action by landlord to recover, 281
definition of, 272
when payable, 272

Reorganization of corporation, 97

Rescission
of contract, definition of, 34
of sale by reason of fraud, 188

Revocation of agency, 58

Revocation of offer, 25

Revocation of wills, 294

Rights, definition of, 11

S

Sale
caveat emptor, 188
definition of, 179
distinguished from bailment, 182
implied warranty, 190
of pledged property, 214
of trade mark, 283

Savings banks
definition of, 156
deposits in, 152
pass books of, 153

Seal
contract under, 27
definition of, 27
private, 27
use of, by corporation, 108

Signature
of agent to written instruments, 53
to deeds, 245
to a will, 291

Silent partner, definition of, 79

Spoliated wills, how proven, 294

_Statu quo_, definition of, 35

Statute of Frauds
as affecting contracts, 23
agency contracts within, 41
as applied to leases, 273
contracts of suretyship within, 174
partnership contracts within, 78
in sales, 183

Statutes, definition of, 12

Stock
common, 105
increasing and decreasing, 105
preferred, 105
watered, 105

Stockholders of a corporation, 102

Stoppage _in transitu_, 193, 229

Storage companies, 209

Subagents, 51

Subletting, 272

Subrogation in suretyship, 177

Sufferance
estates at, 242
leases at, 277

Sunday contracts illegal, 27

Surety contract of, 170

Surety companies, 177

Suretyship, 169-178

Survivorship in partnership, 87

T

Taxes, 271

Tearing wills, 294

Telegraph, contracts by, 25

Tenancies
at sufferance, 277
from year to year, 278
for years, 275
at will, 277

Tenant, definition of, 269

Tender, definition of, 33

Tenements, definition of, 236

Testament, definition of, 287

Testator, definition of, 287

Third persons
contracts for benefit of, 21
property held for benefits of, 265

Title to negotiable instruments, 215

Title to
personal property, 179
pledged property, 215
real property, 243
trust property, 266

Tontine policies of insurance, 165

Torts, 46, 111

Trade marks, 282

Trade name, 284

_Transitu_, stoppage in, 193, 229

Treaties, definition of, 12

Trust companies, definition of, 156

Trustees, 265

Trusts, 265
beneficiary of, 266
classified, 265
consideration to, 267
how created, 266

U

_Ultra vires_ acts of corporation, 109

Underwriter, definition of, 161

Undisclosed principal, 48

Unfair trade, 285

Unilateral contract, definition of, 19

Universal agents, 43

Unwritten law, 12

Usury, 160

V

Valued insurance, 168

Verdict, definition of, 300

Voluntary bankruptcy, 36

Voting by proxy, 99

W

Wagering contracts void, 28

Warehousemen, 209

Warranties
in deeds, 245
in insurance contract, 164

Warranty
in contracts, 34
deeds, 244
express, 189
implied, 190

Watered stock of corporations, 105

Wife, dower of, 288

Will
ademption, 295
codicil, 294
creation of trusts by, 266
definition of, 287
duress, 290
estates at, 242
form of, 296
holographic, 293
leases at, 277
nature of, 288
nuncupative, 293
publication of, 292
revocation of, 294
signature to, 291
statutes regulating making of, 288
who may make, 289
witnessing, 291

Witnesses
to deeds, 245
to a will, 291

Written law, 12

TRANSCRIBER'S NOTE:

-Obvious print and punctuation errors were corrected.