A contract or agreement is where a promise is made on one side and assented to on the other, or where two or more persons enter into engagement with each other by a promise on either side. In a written contract assent is proved by the signature or mark. In verbal agreements it may be given by a word or a nod, by shaking of hands, or by a sign. The old saw, "Silence gives consent," is often upheld in law.

The conditions of a contract, as applying to individuals, are: 1. Age; 2. Rationality; and 3, as-to corporations, the possession of general or special statutory powers.

Persons under age are incompetent to make contracts, except under certain limitations. Generally such persons are incapable of making binding contracts.

As to rationality, the general principle of law is that all persons not rendered incompetent by personal disability, or by considerations of public policy, are capable of making a contract.

Corporations have powers to make contracts strictly within the limits prescribed by their charters, or by special or general statute.

The first step toward a contract is the proposition or offer, which may be withdrawn at any time before it is agreed to. When the proposition is verbal, and no time is specified, it is not binding unless accepted at once. To give one the option or refusal of property at a specified price, is simply to give him a certain time to make up his mind whether he will buy the property or not. To make the option binding he must accept within the time named. The party giving the option has the right to withdraw it, and sell the property to another, at any time previous to its acceptance, if the offer is gratuitous, and there is no consideration to support it.

If a letter of acceptance is mailed, and immediately after a letter withdrawing the offer is received, the contract is binding. An acceptance takes effect from the time it is mailed, not from the time it is received; it must, however, be in accordance with the original proposition, for any new matter introduced would constitute a new offer. When the offer is accepted, either verbally or in writing, it is an express assent, and is binding.

A contract under a mistake of law is not void. Everybody is presumed to know the law. This, however, applies only to contracts permitted by law and clear of fraud.

A refusal of an offer cannot be retracted without the consent of the second party. Once a proposition is refused, the matter is ended. And no one has the right to accept an offer except the person to whom it was made.

The consideration is the reason or thing for which the parties bind themselves in the contract, and it is either a benefit to the promisor or an injury to the other party. Considerations are technically divided into valuable and good, and it sometimes happens that the consideration need not be expressed, but is implied. A valuable consideration is either money or property or service to be given, or some injury to be endured. A promise to marry is considered a valuable consideration. A good consideration means that the contract is entered into because of consanguinity or affection, which will support the contract when executed, but will not support an action to enforce an executory contract. Whether a consideration is sufficient or not is tested by its being a benefit to the promisor or an injury to the other party. If it has a legal value, it makes no difference how small that value may be. The promisor need not always be benefited, as, for instance, the indorser of a note, who is liable although he gets no benefit.

But if a person promises to do something himself for which no consideration is to be received, there is no cause of action for breach of the contract.

There are several causes which void contracts, first among which is fraud. Fraud is defined to be "every kind of artifice employed by one person for the purpose of wilfully deceiving another to his injury." No fraudulent contract will stand in law or in equity. The party upon whom the fraud has been practiced must void the contract as soon as he discovers the fraud, for if he goes on after having knowledge of the fraud he cannot afterwards void it. But the one who perpetrates the fraud cannot plead that ground for voiding it. Contracts in restraint of trade are void, as also are contracts in opposition to public policy, impeding the course of justice, in restraint of marriage, contrary to the insolvent acts, or for immoral purposes. Any violation of the essential requisites of a contract, or the omission of an essential requisite, will void it.

Don't make a contract with a person of unsound mind or under the influence of liquor, or otherwise under restraint of liberty, mind or body. Use caution in making contracts with an illiterate, blind or deaf and dumb person, and see to it that witnesses are present.

Don't put a forced construction on a contract - the intent of the parties is a contract.

Don't suppose that you can withdraw a proposition made in writing and sent by mail after the party to whom it was made has mailed an unconditional acceptance.

Don't suppose that a conditional acceptance of a proposition is binding on the party making the proposition.

Don't forget that the courts will construe a contract according to the law prevailing where it was made.

Don't forget that the law says, " no consideration, no contract," and that the courts will not enforce a contract which is too severe in its provisions.

Don't sign an agreement unless you have carefully weighed its provisions, which should all be fixed and certain.