The power of a corporation to enter into contracts is limited, in respect of the matter of the contract, by the charter or act of incorporation; and by other statutes binding upon it. Being a creature of the legislature, it may make only such contracts as are expressly or impliedly authorized by the legislature.95 It exists for no other purpose, and has no greater powers, than are conferred by its creation.

By implication a corporation is given power, in the absence of express restriction in its charter, to enter into any contract which is necessary and usual in the course of business, or reasonably, incident to the accomplishment of the objects for which it was created.96

To borrow money for carrying on its business, and to give a mortgage to secure its debts, to receive or give negotiable paper, to buy and sell land, are all acts within the power of the corporation if it is acting within its proper sphere, and in carrying out the purposes for which it was incorporated; but not otherwise.97