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CHAPTER XII.

CONTRACTS WHICH MUST BE UNDER SEAL.

[A DEED must be—

1. In writing, to express the contents.

2. Sealed with the seal of the parties, to express their consent. [NOTE. Signing is not necessary. (e)]

3. Delivered to the party, in whose favour it is made, to make it binding or perfect.

[NOTE. If delivered to a stranger until certain con

ditions be performed, and afterwards to be delivered to the party, to whom it is made, it is called an "escrow "; that is "a mere writing," escriver.] ] I. An executory promise with no consideration must, in order to be valid, be made by deed. For if Jones promises by parol to paint Smith's portrait for nothing, Smith cannot enforce the contract. But if Jones has covenanted to do so in a deed he will be bound.

II. A gift, if there has been no transfer of the thing given. For if not made by deed it can be revoked at will.

III. Feoffments. (f) That is, grants of land in fee simple by the delivery of seizin and possession of what is given. IV. Grants and transfers of land must, at common law, be made by deed.

V. Grants and transfers of incorporeal hereditaments.

As, a

right of common, a seignory, or a rentcharge, must at common law be made by deed.

VI. Exchanges of land. (f) That is, the mutual granting of equal interests, the one in exchange for the other.

(e) Shep. Touch. 56.

(f) 8 & 9 Vict. c. 106, s. 3.

VII. Partitions of land. (a) That is, the dividing the lands of joint-tenants, tenants in common, and co-parceners, SO that they may each hold their own in severalty.

VIII. Surrenders of land. (a) That is, the yielding up of land and the estate a man has therein to another, who has a higher and greater estate in the same.

IX. Assignments of leaseholds. (a).

X. Leases which are required to be in writing by sect. 1 of the Statute of Frauds (see Appendix). That is, leases for a longer period than three years. (a)

XI. Transfers of patent rights. For, what can only be created by deed, can only be transferred by deed.

XII. Transfers of ships and shares of ships must be made by bill of sale, by the Merchant Shipping Act, 1854. (b)

XIII. Transfers of shares in joint stock companies incorporated by Act of Parliament, by the Companies Clauses Consolidation Act, 1845. (c)

XIV. Contracts with an urban sanitary authority, if over £50 in value, by the Public Health Act, 1875. (d)

XV. Mortgage debentures issued by land companies, by the Mortgage Debenture Acts, 1865, 1870. (e)

XVI. A power of attorney to execute a deed. That is, an authority to another to execute a deed as agent.

XVII. Contracts made by a corporation. For the only means a corporate body has of authenticating its contracts is by affixing its seal.

Illustration. The guardians of Bethnal Green Union ad-
vertised for a clerk. One Austin applied, and entered
on his duties, which consisted of keeping accounts of
a somewhat complicated character.
He was very

(a) 8 & 9 Vict. c. 106, s. 3.
(b) 17 & 18 Vict. c. 104, s. 55.

(c) 8 & 9 Vict. c. 16, s. 14.

(d) 38 & 39 Vict. c. 55, s. 174.

(e) 28 & 29 Vict. c. 78; 33 & 34 Vict. c. 20.

shortly afterwards dismissed, and sued the guardians for breach of contract. It was held that, as there was no agreement under seal, he could not maintain. his action. (f)

EXCEPTIONS

1. Where power is specially given to a trading corporation, by the charter, letters patent, or statute,

to which it owes its existence, to enter into contracts by certain of its own officers.

2. In the case of corporations, or companies, constituted for the purpose of trading, which may enter into all contracts of ordinary occurrence in their respective trades, without limit as to amount. Illustration. The South of Ireland Collieries Company, incorporated under the Companies Act, 1862, for the working of certain collieries, contracted with Waddle for the supply by him to them of a pumping engine and machinery. In an action by the company for not delivering the engine, &c., it was held, that the action was maintainable, although the contract was not under seal. (g)

3. Where the contract is for

(i) The performance of insignificant acts.
(ii) of acts of frequent recurrence.

(iii) The carrying out of the very purposes for
which such corporations were created.

Illustration. The Imperial Gaslight and Coke Company agreed to supply Church with gas at £12 16s. per annum. Afterwards Church refused to have the gas, and the company sued him for not accepting it.

(f) Austin v. The Guardians of Bethnal Green Union, L. R. 9, C. P. 91. (g) South of Ireland Collieries Company v. Waddle, L. R. 3, C. P. 463.

The court held that the company could maintain their action, though the contract

was not under seal. (a)

4. Where the consideration is executed, and the corporation have got the benefit of the contract. Illustration. Nicholson supplied coals to the guardians of the Bradfield Union. The coals were used. It was held that he could sue the guardians for the price of the coals, though the agreement, under which he supplied them, was not under seal. (b)

5. Where one has acted on the faith of a contract with a corporation, which is not under seal, and has incurred expense in so doing.

Illustration. The Corporation of Seaford passed

a resolution, by which they agreed to let Crook a piece of foreshore for three hundred years. Crook entered, and built a sea wall and a terrace. Afterwards the corporation gave him notice to quit, and brought ejectment, relying on the agreement not having been under seal. The court restrained the action on Crook's application, and decreed specific performance of the contract. (c)

(a) Church v. Imperial Gas Company, 6. A. & E. 846.
(b) Nicholson v. The Bradfield Union, L. R. 1, Q. B. 620.
(c) Crook v. The Corporation of Seaford, L. R. 6, Ch. 551.

CHAPTER XIII.

CONTRACTS WHICH MUST BE IN WRITING.

1. CONTRACTS WITHIN SECTION 4 AND SECTION 17 OF THE STATUTE OF FRAUDS. (d)

1. Contracts to charge executors and administrators on any special promise to answer damages out of their own estate. (e)

[Such a contract would be anyhow void as a "nudum pactum," unless there were some consideration to support it.] 2. Contracts to answer for the debt, default, or miscarriage of another. (e) These are contracts in the nature of a guarantie. (See post, Book II. Chap. VI.)

3. Contracts in consideration of marriage. (e) This does not apply to a promise to marry between principals. (See post, Book II. Chap. VIII.)

4. Contracts for the sale of interests in land. (e) This means any contract (not operating as a transfer) which relates to the sale of any interest in land.

For example. An agreement to assign, grant, or surrender a lease; an agreement for the sale of "fructus naturales" before severance from the soil.

Illustration. Mrs. Cocking agreed with Ward, in conside-` ration of £100, to surrender her tenancy of a farm to the landlord, and to prevail on him to accept Ward as his tenant in her place. This was held to be an agreement for the sale of an interest in land within the meaning of the statute. (ƒ)

(d) 29 Carl. 2, c. 3. [See the statute at length in the Appendix.]
(e) Sect. 4.

(f) Cocking v. Ward, 15 L. J. C. P. 245.

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