A agrees to make B a chair out of a particular piece of walnut lumber. The lumber is destroyed by fire through no fault of A. A is not liable in damages, since the parties contemplated the continued existence of the lumber. If, however, A contracts to build B a walnut chair within ten days for fifty dollars ($50.00) and his factory and walnut lumber are destroyed by fire, A is answerable to B in damages, for failure to deliver the chair. He has entered into a lawful contract, and has not excepted liability on account of fire.
A contract for personal services is rendered of no effect by the failure of health, or by death of the party, who is to perform the services. Where, however, the contract provides for the doing of a certain specific thing, not to be performed by a certain person, and not depending upon the continued existence of a certain thing, the parties are bound to perform, regardless of accident.
Floods, earthquakes or lightning do not excuse performance. These accidents are known in law as Acts of God. (See Acts of God chapter on Carriers.) Acts of God do not excuse performance unless expressly provided against in the contract.
A law changed after the contract is made, making it unlawful to perform the contract, excuses performance.
Strikes do not render it impossible to perform contracts, within contemplation of the law. If a party desires to become exempt from performance by reason of strikes, he must put such a provision in his contract.
If the party to the contract, to whom the performance is due, renders performance impossible for the other party, the latter is excused on the ground of impossibility. For example, A contracts to do the wood finishing on B's house within six months, B to construct the masonry work. B fails to construct the masonry work; this exempts A from liability.
28. Conflict of Laws. The laws of different states differ in some particulars. Where this difference affects the interpretation or enforcement of a contract, the doctrine of conflict of law applies. If a contract is valid in the state where made, it is usually valid everywhere. This rule is subject to the limitation that a state will not enforce a contract clearly against the policy of its own laws. If a contract is made in one state, to be performed in another, the laws of the latter apply. Otherwise, the laws of the state where the contract is made apply. The laws relating merely to the court procedure or the method of enforcing a contract, belong to the state called upon to enforce the contract, and, even though the laws of the state where the contract was made differ, the former will apply.
The laws of New York permit an express company to limit its liability for loss of goods to fifty dollars ($50.00), if so stipulated in the bill of lading, in case no valuation is fixed by the shipper. The laws of Ohio do not permit an express company to limit its liability in this way. A, in New York, shipped goods valued at four hundred dollars ($400.00) to B, in Cleveland. A placed no valuation on the goods and accepted a receipt limiting the liability of the express company for loss of the goods, to fifty dollars ($50.00). The goods were lost. B sued the express company in Ohio for the value of the goods. The court held that the law of Ohio held, since, by the terms of the contract, the goods were to be delivered in Ohio.
29. Assignments of Contracts. By assignment of a contract, is meant the transfer of one's property rights in the contract. One cannot assign his duties under a contract. For example, A contracts with B to have the latter build him a house, for five thousand dollars ($5,000.00). B cannot transfer to another, the obligation on his part to construct the house. B, may, however, transfer to another, his right to recover the money for the house. A may also transfer to another, his right to have the house constructed.
Contracts for personal service such as the painting of a picture, or the writing of a book, cannot be assigned. In such cases the personal work of a particular person is contracted for and cannot be transferred.