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 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 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)

The Clergyman's Hand-book of Law: The Law of Church and Grave · 第 19 / 34 章