CHAPTER XXXI.
CONTRACTS.
Definitions.—A contract is an agreement between two or more parties, containing on the one hand an offer and on the other an acceptance.
Contracts are express or implied. An express contract is one whose terms are definitely stated in words; an implied contract is one whose terms are understood from the circumstances. A written contract is express; an oral contract may be express or implied.
Fundamental Principles.—Every one able to contract is free to enter into any agreement not forbidden by law. Every such person is bound to fulfill every legal contract that he makes.
Essential to a Contract.—To be binding, however:
1. A contract must be to do a lawful act.
Most contracts are permitted by law. But a contract the carrying out of which is recognized as subversive of justice, morality, or the general welfare, is illegal, and therefore void.
2. The thing contracted to be done must be possible in its nature.
That a person finds it impossible under the circumstances to live up to his contract should not and does not release him from responsibility.