Putnam's Handy Law Book for the Layman

Part 1

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+-----------------------------------------------------------+ | Transcriber's Note: | | | | Inconsistent hyphenation in the original document has | | been preserved. Bolded text is represented =like so=. | | | | Obvious typographical errors have been corrected. For | | a complete list, please see the end of this document. | | | +-----------------------------------------------------------+

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BY ALBERT SIDNEY BOLLES, PH.D., LL.D.

THE MODERN LAW OF BANKING BANKS AND THEIR DEPOSITORS BANK OFFICERS BANK COLLECTIONS THE NATIONAL BANK ACT AND ITS JUDICIAL INTERPRETATION

Putnam's Handy Law Book for the Layman

Putnam's Handy Law Book for the Layman

Albert Sidney Bolles, Ph.D., LL.D.

Formerly Professor of Commercial Law and Banking in the University of Pennsylvania, also Lecturer on the Same Subjects in Haverford College

G.P. Putnam's Sons New York and London The Knickerbocker Press

Copyright, 1921 by Albert Sidney Bolles

Published September, 1921 Reprinted December, 1921 " March, July, 1922 " April, 1923

Made in the United States of America

FOREWORD

What useful purpose can this book serve? Most of the laws under which we live are kept, not from knowing them, but because the good sense of individuals leads them along legal ways. Yet in many cases their good sense fails to discover the right way. Thus, the receiver of a check on a bank must present it within a reasonable time after receiving it, and if he keeps it longer the risk of loss, should the bank fail, is his own. What is this reasonable time? One man says three days, another a week, another a month. So one's common sense fails to establish a definite reasonable time. It is needful to have the time fixed, and the law therefore has established a reasonable time. There are many cases like this in which one's common sense fails to furnish a correct, yet needful guide.

This little book contains many of the legal principles that are in most frequent use, as readers will learn who carefully read it. Again, if they do not always find an answer to their questions, it is believed that in many cases they will find enough law of a general nature from which they can safely solve their questions. They are therefore besought to do something more than merely consult this book for the purpose of finding ready and complete answers to their questions, to read it and become familiar with its contents.

Besides the law presented here the reader should learn to be cautious, and not trust too much his own judgment when no rule can be found for his guidance. Many a person has written his own will, as he has a right to do, and after giving a legacy to a relative or friend has nullified the gift by having the legatee, through the testator's ignorance, sign as a witness. The writer knew a railway president who had the temerity to draw the writing containing an important contract between his railroad and another, and who, by unintentionally putting a comma in the wrong place, made his road instead of the other responsible for large losses. If this book shall make the reader cautious concerning the legality of his undertakings, it will be worth to him many times its price.

A.S.B.

CONTENTS

PAGE

EXPLANATION OF TERMS 1

ADOPTED CHILD 5

AGENCY 6

AGREEMENT TO PURCHASE LAND 15

AUCTIONEER 16

AUTOMOBILE 19

BAILOR AND BAILEE 26

BANKRUPTCY 31

Part 2

BENEFICIAL ASSOCIATIONS 38

BROKER 45

CARRIER 48

CHATTEL MORTGAGE 52

CHAUFFEUR 57

CHECK 58

CITIZEN 62

CONTRACTS 64

CORPORATIONS 72

CURTESY 101

DECEIT 102

DEEDS 104

DIVISIONAL TREE 113

DOWER 113

DRUNKENNESS 116

EQUITABLE REMEDIES 118

FACTOR 123

FIRE INSURANCE 124

FIXTURES 132

GARAGE KEEPER 133

HOMESTEAD 135

HUSBAND AND WIFE 137

INNKEEPER 147

LAND LICENSE 149

LEASE 151

LEGAL REMEDIES 164

LIFE INSURANCE 167

MINOR 176

Part 3

MORTGAGE 177

NEGOTIABLE PAPER 183

PARENT AND CHILD 197

PARTNERSHIP 198

PATENT 202

PAYMENT 211

PRESCRIPTIVE RIGHTS 214

QUASI CONTRACTS 218

SALE 227

SHIPPING 235

STATUTE OF FRAUDS 242

STATUTES OF LIMITATION 243

TELEGRAPH AND TELEPHONE 246

TORTS OR WRONGS 248

WARRANTY 260

WILL 262

WORKMEN'S COMPENSATION ACTS 266

LEGAL FORMS FOR EVERYDAY USE 277

INDEX 321

Putnam's Handy Law Book for the Layman

=Explanation of Terms.=--At the outset the explanation of a few terms, often used, may be helpful to the reader. Among these are the terms statute and common law. Statute law or statutes mean the laws enacted by the state legislature and by the federal congress. Common law means the decisions made by the state and federal courts. These decisions may relate to the interpretation and application of statutes, or to the application of former decisions or precedents, or to the qualification and application of them, or to the making and application of new rules or principles where none exist that are needed to decide the case in hand.

It is a rule of the most general application that legal decisions are precedents which are to be followed in other cases of the same character. The decisions of the highest court in each state must be followed by the lower courts, but no courts in any state are obliged to follow the decisions of the courts in any other state. The courts in every state must also follow the decisions of the federal courts in all matters of a national character. Thus if a federal court decides the meaning or interpretation of a federal statute, a state court must follow the interpretation in a case requiring the application of that statute.

Again, common law decisions are not binding on the courts that make them like statutes or legislative commands. A decision may be modified or set aside when it is regarded as no longer applicable to the present condition of things. It may also be set aside or changed by legislative action. The common law is therefore always slowly changing like the ocean and is never at rest.

The common law forms much the largest part of the great body of law under which we live. This book is a collection chiefly of common law principles; a few statutes are interwoven here and there to complete the subjects presented.

The distinction also between civil and criminal law requires explanation. Nearly all criminal law is founded on statutes, in other words the statutes, state and federal, define nearly all legal crimes known to society. It is therefore true that the field of crime is not fixed, is in truth always changing. Thus formerly if a man bought goods on credit of another on the statement that he was worth fifty thousand dollars and the seller afterward learned that he was not worth fifty cents, the seller could sue the buyer to recover the value of the goods and for any additional loss, but could do no more. Many, perhaps all the states, now declare by statute that such an act is a crime, and the offender can be prosecuted by the state and fined or imprisoned or both. And the wrongdoer may still be sued in a civil action for the loss to the seller as before.

All crimes are prosecuted by the officers of the state chosen or appointed for that purpose. Again, as in the case mentioned, the wrongful act has a double aspect. An individual who has been wronged may proceed against the wrongdoer to recover his loss; the state also has been wronged and may also proceed against him. A good illustration is a bank defaulter. The bank may proceed through a court of law to recover the money lost by him, or from those who have promised to make the bank good should he wrongfully take anything; the state may also proceed against him as a criminal for breaking a statute that forbids him from doing such a thing. Furthermore, should the bank, as often happens, agree to accept a sum from the defaulter and not trouble him further, the agreement would be no bar to an action by the state against him.

The terms law and equity are frequently used in the law books and require explanation. Formerly there was no such term as equity in the common law. It came to be used as a supplement to the law to indicate ways of doing things unknown to the law, which ought to be done. Thus if a man threatened to fill up your well because it stood, as he claimed, on his land, you had no preventive remedy at law. You could use some force to prevent him, you could not kill him, or put out his eyes, or treat him roughly. The law only gave you the right to proceed against him to recover money damages for the legal injury. A court of equity has a preventive remedy. If one threatens to fill up your well you can petition or pray the court to order that he shall refrain until there has been a legal hearing to determine whether he has any right to do so and the court will order him to desist until it has heard the case, and will enforce its order with a fine or penalty should he disobey.

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