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 The purchaser should require of the seller evidence that the title to the land is straight and clear; if not, exactly what the defects are. This is done through an abstract of title, which should be prepared by a competent lawyer. This is not an official document, and its value depends largely upon the ability and watchfulness of the party making the abstract. Ownership of land is conveyed by means of a deed. A deed is an instrument conveying at least a life interest in the land. Care should be taken that the deed contains the essential parts and that it is properly executed. DEEDS Deeds are of two kinds: Quit claim deeds, which convey all the rights, title and interest which the seller has in the land, but does not warrant the title; and warranty deeds, which, in addition to what a quit claim does, contain covenants which agree that the seller and his heirs, etc., shall warrant and defend the title to the purchaser against the lawful claims of all persons. THE REQUISITES OF A DEED