INDIVIDUAL PROPRIETORSHIP 1. Origin of individual ownership.—The primi tive man who first picked up a stone and threw it, made a long stride toward civilization. But, when another fixed a stone on the end of a stick, modern man bad arrived. This contrivance, indeed, was the first bit of capital used by man.
That primeval man was most interested in the sat isfaction of immediate wants only and relied chiefly on nature to supply the means, is evidenced by the fact that the few capital instruments which had been acquired by him were interred with him at his death. Subsequently, the idea of transfer of property, or dis position of property, as it is sometimes called, was added to that of possession to form the concept of ownership. But disposition usually took the form of gift. Afterward, when a crude society had been formed, common ownership was customary within the clan or family. Gradually, however, there arose the practice of accepting some other form of wealth from outsiders in exchange for goods given to them. Thus arose barter, a term which, from its very deri vation (meaning to cheat), shows how little depend ence was then placed on exchange as a. means of satis fying wants. Later, when society became more com plex and man's wants more numerous, diverse and insistent, exchange assumed more importance, until, with the aid of money and credit, business had as its chief concern the sale of goods and services thru the use of these mediums.
2. Not every individual a business unit.—The in dividual represents the simplest form of business or ganization which owns and controls capital. 1\Tot every individual, however, is permitted by law to con trol his property. Indeed, this right of control is limited to those who can fairly exercise it with benefit to themselves.
3. Rights and liabilities of infants, lunatics and drunkards.—Sinee the business man in the ordinary conduct of his business is apt to come in contact with persons who lack the power to make a contract, it may be well to pause a moment to explain their rights and liabilities.
Contracts made- by infants, insane persons and drunkards without guardians, are voidable. That is, the binding force of such contracts is conditioned up on the non-exercise of the right of the individual or of his duly constituted and competent representative to avoid the obligation. When the obligation is
ayoided, the incompetent is released from all liability except to return to the other party things which he has received and which he is still able to return. If the person subsequently becomes competent, he may ratify his contract and will be deemed to have done so if he neglects promptly to exercise his right to dis affirm it.
Contracts by an insane person or habitual drunkard whose incompetence has been judicially established by the courts, Him the appointment of a guardian, are usually considered unconditionally void. These ob servations are to be modified by the rule that incom petents' estates are liable for the contract or market price—whichever is the lower—of necessaries they re ceive. Food, clothing and proper education are ex amples of necessaries.
4. are divided into two classes— alien friends and alien enemies. In respect to the for mer class the laws of the various states are not in har mony. In some states, the organic law entitles resi dent foreigners to all the rights enjoyed by native-born citizens ; while in others; statutes prohibit aliens from dcquiring and bolding real property. Some of the latter states discriminate in this respect between resi dent and non-resident aliens, but others do not. However, in most of the states, if not in all, alien friends, whether resident or non-resident, may make enforcible contracts relating to personal property. Many questions involving the rights of certain aliens are regulated by treaty with the sovereigns to whom they owe allegiance.
Alien enemies are persons who are subjects or citi zens of a hostile nation. When war is declared be tween nations, commercial intercourse between them ceases, except in so far as sanctioned by sovereign authority. Existing contracts with alien enemies are, as a rule, suspended during hostilities. When they are inherently antagonistic to the existing military conditions they are dissolved. Thus, a contract of partnership which essentially violates the laws govern ing a state of Is-ar is dissolved.