affect the inherent character of the contract, yet do bar remedies on the contract after a certain period of time. Such statutes are called "Statutes of Limitations." Strictly speaking, they discharge the right of action, but not the contract.

Such statutes begin to take effect so soon as the cause of action arises, but usually there are certain circumstances, such as infancy, imprisonment, or absence outside of the jurisdiction, which are not included in the time of the statute. If A owes B $500 on a note, and does not pay him within a year as provided by the note, B must sue within ten years after the maturity of the note, in order to obtain a judgment against A, if the Statute of Limitation is for ten years. Such statutes further provide that if A by a written acknowledgment admits the debt, then the period is to be counted only from the time of such acknowledgment. Other statutes also provide that the payment of interest is a sufficient acknowledgment to take the debt out of the statute, so as to begin a recounting of years.90

215. Bankruptcy.-The bankruptcy of a party when determined by a competent court discharges previous debts. Where A obtains an order of discharge he is relieved from all debts provable under the bankruptcy act in question. This is true whether B's claim against A was proved or not, and even if the creditor was in ignorance of the proceedings."

91

90 See Stimson, American Statute Law, § 4147; Wood, Limitation of Action, pp. 82, 96; Allen v. Collier, 70 Mo. 138, and Schmidt v. Pfau, 114 Ill. 494.

91 As to state acts, see Sturges v. Crowninshield, 4 Wheat. 122 (U. S.); see subjects, CONSTITUTIONAL LAW, BANKRUPTCY.

CHAPTER XX.

REMEDIES AND AUTHORITIES.

216. Remedies for breach of contract.-There are two kinds of remedies which arise where a breach of obligation is involved: first, those which are preventive; second, those which are for redress. Thus, a threatened breach of contract may be prevented by the issuance of a writ of injunction. This is an order entered by a court of equity or a court possessing chancery jurisdiction, restraining the defendant from breaking a contract.92 An injunction is only granted when adequate redress cannot be obtained by the remedies offered at law. Thus, a singer of peculiar merits who contracts to sing at a particular theatre exclusively may be prevented by injunction from singing elsewhere during the term of her engagement.93

The remedies for redress for a breach of contract are of two kinds: An action for damages and an action for specific performance. The former is a remedy at law; the latter is an equitable remedy.

217. Damages.-The object of damages for breach of contract is to compensate the injured party for the loss actually sustained. Only such damages will be allowed as a reasonable man would suppose the contract was intended to provide for.95

92 See subject, EQUITY.

93 Lumley v. Wagner, 1 De G. M. & G. 604 (Eng.).

94 See subject, DAMAGES.

95 Hadley v. Baxendale, 9 Ex. 341 (Eng.).

Generally, interest is not recoverable at common law as damages for the retention of money due unless the contract so provides, or usage of trade so dictates. In this country, however, interest is generally recoverable on liquidated claims; that is, where the amount of the claim is fixed. The several states have passed statutes regulating the question of interest.

The parties to a contract may agree upon the damages to be paid in case of a breach. But the courts usually relieve against penalties. Where no sum has been fixed, the actual expenses incurred by the injured party, the actual value of his services and the loss of anticipated profits are elements of damages.96

218. Specific performance.-If the remedy entitling the injured party to damages is inadequate, a court of equity may grant the complaining party an order requiring the specific performance of the contract. Where A agrees to sell B his land, and then A refuses to convey, inasmuch as B cannot purchase the same land with any damages he might recover from A, the court will order A to convey to B. If A refuses to obey, the chancellor may commit him to jail until he does obey."7

97

219. Cancellation and rectification.-Courts exercising chancery jurisdiction possess the peculiar power of ordering the cancellation of instruments upon a proper showing. Similarly, if a contract fails to include all of the terms which the parties intended, chancellors may rectify the mistake by inserting the

96 United States v. Behan, 110 U. S. 338.

97 See subject, EQUITY.

omissions, or in the case of accidental insertion, by striking out the portions not intended by the parties.

BIBLIOGRAPHY.

Many treatises have been prepared on the law of contracts. The best known English author is Sir William Anson, and his work has passed through many editions, of which Huffcut's second American edition is the most valuable to the American student of law. Other English writers on this subject are Chitty, Addison, Pollock, and Leake. The latter has recently given to the profession an exhaustive and voluminous volume. The American writers on the law of contracts include Story, Parsons, Benjamin, and Bishop. Page offers a three-volume work which is exhaustive. Harriman on Contracts is recommended, with the suggestion that care must be taken in not confusing the author's personal terminology.

Particular phases of this subject have been treated by Fry on Specific Performance, Browne on Statute of Frauds, and Bloom on Building Contracts. Costigan's Performance of Contracts furnishes an excellent summary of the rules of conditions.

Legal periodicals, especially the law reviews of the various schools, furnish excellent discussions of all the phases of the law of contracts. By referring to a legal periodical index, these numerous articles may be readily located.

QUIZ QUESTIONS

LEGAL ETHICS

(The numbers refer to the numbered sections in the text.)

1. To what three classes does a lawyer owe his faithful service?

2. Trace the history of the adoption of the codes of ethics by the American bar.

3. What is meant by legal ethics? Of what value to a member of the bar is the code of ethics?

4. What should be the standard of admission to the bar?

5. Define the duty of a lawyer to the court.

6. Give the essential qualities for a judge.

7. Discuss the conduct of judge and lawyer out of court.

8. Is the criticism directed against lawyers just?

9. Discuss what should be the relations between members of

the profession.

10. When may a lawyer be a witness in a case?

11. An attorney for a railroad, which was taking land by eminent domain, suggested to the judge, in the presence of the jury, that they receive double pay for their services, because it would take four or five months to try the case. Is this conduct proper?

12. Discuss the degree of good faith which a lawyer owes to his client. Is it proper for a lawyer to bring a case alleging slander when he does not feel certain that there are grounds for action, although the client regards himself injured? 13. May a lawyer defend a man whom he knows to be guilty? Is it permissible for him to obtain evidence to prove that the man is not guilty?

14. A lawyer advertised in Chicago, in a small north side weekly newspaper. The card read as follows: "John Jones, Attorney at Law, office 1603 Great Northern Building, resi