Through the ages certain procedures have become fixed by custom. These legal practices are largely the inheritance of old Roman law and are usually known as common law. Various legislative bodies having jurisdiction enact from time to time other laws. This body of enacted law is called statute law and is much more variable than common law. In the briefest possible manner it is the purpose here to state a few of the principles and applications of the law, chiefly the common law, as it affects the farmer in acquiring or disposing of his property and in his dealings with labor.

PROPERTY

Property may be defined as anything which is a subject of ownership. It possesses the characteristics of being acquired, held, sold, willed or inherited and is of two kinds: (1) Real property, real estate or realty; (2) chattels or personal property. These two kinds of property are subject to quite distinct legal practices. In general, real estate consists of land, things attached to it, such as trees, buildings, fences and certain rights and profits arising out of or annexed to the land. The term land as ordinarily used includes all these things, so that when land is said to be worth so much an acre it includes all fixtures. Ponds and streams are, under this definition, land. The land not only has surface dimensions, but extends upward indefinitely and down to the center of the earth, and hence includes a right to ores, coal, oil, gas or other materials whatsoever.

An article may, however, be real property or personal property depending upon circumstances. Thus a tree growing on the land is real property, but when cut into cord wood becomes personal property. New fence posts ready for use are personal property. When set in the ground they become real estate. Just what goes with a farm or what are fixtures is frequently a subject for legal determination.

FIXTURES

The general rule is that “fixtures are any chattels which have become substantially and permanently annexed to the land or to buildings or other things which are clearly a part of the land.”[D] The annexation may, however, be purely theoretical, since the keys to the house or barn, which may be in the owner’s pocket, are real estate. One rule concerning fixtures is that they must be so annexed that they cannot be severed without injuring the freehold. The intention of the party making the annexation also often determines, since if the article is annexed with the intention of making it permanent, it then becomes a part of the land. Among the things held to be fixtures, and therefore a part of the land, are: (1) All buildings and everything which is a part of any building, such as doors, blinds, keys, etc.; (2) fence materials which have been once used and are piled up to be used again are a part of the land, but new fence material not yet used is personal property. (3) Growing crops are real property. They go to the purchaser of the land unless specially reserved in the deed. A verbal agreement is not sufficient. (4) Trees, if blown down or cut down and still lying where they fell, are real property; if cut or corded up for sale they become personal property. (5) All manure made on the farm is real estate and passes with the land. (6) All the ordinary portable machines and tools are considered personal property, but certain machines held to be of permanent use upon the land are real estate. Among the things which courts have held to go with the land are cotton gins, copper kettles encased in brick and mortar for cooking food for hogs, cider mills, pumps, water pipes bringing water from distant springs. In general, motive power machinery and the shafting go with the land, but the machinery impelled may or may not, depending upon the way it is annexed. (7) If stones have been quarried for the purpose of using upon the farm, they go with the farm, but if quarried for sale they are personal property.

CONTRACTS

The difference between personal property and real property may be indicated by considering the essential features of a contract. A contract is an agreement between two or more persons. The foundation rule concerning a contract is that every man must fulfill every agreement he makes. An ethical practice grows out of this legal rule which, if strictly adhered to, will save much embarrassment, viz., make but few promises and always keep your engagements.

There are seven requirements generally necessary to a valid contract. (1) Possibility. The thing to be done must be possible. (2) Legality. It must not be forbidden by law. (3) Proper parties. The parties to a contract must be competent. Contracts with idiots or drunken persons are not binding. Some contracts with minors are not binding, although contracts for the necessities of life are. (4) Mutual assent. A proposition not assented to by both parties is not binding on either. (5) Valid consideration. A man is not regarded as injured by the breaking of a promise for which he has paid, or is to pay, nothing. (6) Fraud or deceit. A contract obtained by fraud is void as against the party using the fraud, but may be enforced by the innocent party if he sees fit. (7) Written contracts. Here comes the most important difference between real and personal property. Real property can only be conveyed by a written instrument, properly executed and recorded, while personal property passes by mere possession. Contracts relating to the sale of real estate are not binding unless in writing, while verbal contracts are sufficient for personal property if accompanied by payment of a part of the purchase price or the acceptance of the goods. For amounts under $50 verbal agreement in itself is binding.

TRANSFER OF REAL ESTATE