Chapter XIX. Contracts
230. Business, Religious Service.—A church organization has the legal right to make any contract concerning its own affairs that is not prohibited by its by-laws or its charter, subject to all laws of legal contracts in the business world. When the consideration is a religious service duly performed, there seems to be no objection to it. Therefore, a minister may collect for preaching a sermon, attending the sick, or saying prayers, or performing any other religious service. But an incorporated church has no authority to enter into a contract for an ulterior purpose, such as the employment of a vessel for the purpose of an excursion.[410]
231. Incorporated Body.—The only way a religious society that is incorporated can make a contract is by a vote of the aggregate body or of the board of trustees, or through an agent authorized by a vote of one body or the other.[411]
232. Mortgage, Deficiency Judgment.—Where a mortgage had been foreclosed against church property before the congregation was incorporated, a deficiency judgment can not be rendered against such church corporation.[412] But where a congregation was incorporated after a debt had been incurred and took charge of the property, it assumed the debt.[413]
233. Building Contracts.—The taking part in a meeting by voting and appointing committees to make contracts will bind those taking part in all contracts made in accordance with the directions of such meeting. In some States the individuals are held only to the amount that each subscribes, but in other States each individual is liable for the entire debt.[414]
234. Individual Promise, Subscriptions, Signature.—An individual promise to give a donation to charity, can not be enforced.[415] But subscriptions to build a church or other charitable institution or to pay the salary of a clergyman when signed by more than one person, have been held binding in some [pg 133] cases on the disputed rule of a-promise-for-a-promise consideration.[416] In the foregoing cases the donor might revoke his subscription or in case of his death his estate would not be liable.[417] However, when expenses have been made or steps taken in the carrying out of the object of the subscriptions, the general rule is that the subscriptions become binding contracts.[418] If the object of the subscriptions be abandoned or changed without the consent of the subscriber, he is thereby released. A promissory note given for the subscription, unless negotiated for value in due course of trade, does not change the foregoing rules.[419] Where many persons subscribed to build a church and some of them failed to pay, one who paid brought an action on behalf of himself and others and collected the unpaid subscriptions.[420] The defendant Nalty signed “Nalty Family, $1,000,” but he was held personally liable.[421]
235. Special Purpose, Suit.—When money is subscribed for a special purpose, as for rebuilding a church, it belongs to the [pg 134] church organization; and in a suit to recover the money the action should be brought in the name of the corporation, if incorporated, and if not incorporated it should be brought in the name of the interested party.[422]
236. Promise, Consideration.—A promise made by the owner of land to a trustee for the benefit of a religious society, that he would convey the land to such society if it would build a church thereon, is a good and lawful consideration; and after work was begun on the church, the contract was enforceable in a court of equity.[423]