This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
Power given by statute, either expressly or impliedly, carries with it power to make contracts necessary and proper to carry such power into execution.1 Thus power to provide for supplying water and lighting includes power to make contracts for that purpose.2 Power to provide a water supply confers power to erect a plant to supply water.3 Power to abate nuisances includes power to contract for the removal of garbage to a place without the city limits.4 Power to build a sewer includes power to make a contract therefor.5 Power to keep streets in order includes power to release a railroad company from its liability to keep up a bridge. The city may agree to maintain such bridge itself.6 So power to grant franchises "upon such terms and conditions as council may prescribe" includes power to take a bond to insure the prompt installment and completion of the plant.7 So power to contract includes power to impose reasonable restrictions.8 Power to construct waterworks includes power to repay to private persons the amount spent by them in constructing pipes to connect with the city waterworks.9 A grant of a specified power does not confer analogous powers not granted. Power to erect cisterns for fire purposes does not confer power to erect a system of general waterworks,10 and power to construct waterworks does not confer power to engage in a general plumbing business.11 Under the power to tax, a public corporation cannot contract to pay, for discovering unassessed and untaxed personalty, one-half the taxes thus added.12 So power to rent market stalls does not include power to hire an auctioneer.13 Power to maintain roads is not power to employ an inspector,14 and power to sell bonds does not include power to compromise a claim for breach of a void executory agreement to sell bonds.15 A county cannot contract for medical services to cure a pauper who is an habitual drunkard,16 and a board of public works can employ a pipe-man only by contract at will.17
13 Hedges v. Dixon County, 150 U. S. 182; Windsor v. Des Moines, 110 Ia. 125; 81 N. W. 476; Board, etc, of D County v. Gillett, 9 Okla. 593; 60 Pac. 277.
14 Phelpa v. Tacoma, 15 Wash. 363 46 Pac. 400.
1 French v. Paving Co., 181 U. S. 324; McBean v. Fresno, 112 Cal. 159; 53 An. St. Rep. 191; 31 L. R. A. 794; 44 Pac. 358; Board, etc., of Perry County v. Gardner, 155 Ind. 165; 57 N. E. 908; Reed v. Anoka, 85 Minn. 294; 88 N. W. 981; Salem v. Anson, 40 Or. 339; 91 Am. St. Rep. 485; 56 L. R. A. 169; 67 Pac. 190; Reuting v. Titusville, 175 Pa. St. 512; 34 Atl. 916; Tiede v.
Schneidt, 105 Wis. 470; 81 N. W. 826.
2 Reed v. Anoka, 85 Minn. 294; 88 N. W. 981.
3 Fawcett v. Mt. Airy, 134 N. C. 125; 45 S. E. 1029.
4 Kelley v. Broadwell (Neb.), 92 N. W. 643.
5 Jones v. Holzapfel, 11 Okla. 405; 68 Pac. 511.
6 Hicks v. Ry., - Va. - ; 45 S. E. 888.
7 Salem v. Anson, 40 Or. 339; 91 Am. St. Rep. 485; 56 L. R. A. 169; 67 Pac. 190.
8 Hamilton v. Gambell, 31 Or. 328; 48 Pac. 433.