,*APT] #f 
,! ,LEGAL ,NATURE ( ,DEBT1 ,CONT9U$ 

#ahdfahdf 

,PEOPLE 3 

,AU?OR 3 ,LYS&] ,SPOON] 

,TEXT 3 

,LYS&] ,SPOON]1 ,POV]TY3 ,ITS ,ILLEGAL ,CAUSES & ,LEGAL ,CURES4 ,BO/ON3 ,BELA ,M>%1 ,NO4 #be ,CORNHILL4 #a#h#d#f4 

,*,A,P,T,] ,V,I4 

,! ,L,E,G,A,L ,N,A,T,U,R,E ,( ,D,E,B,T4 - 7,C,O,N,T,9,U,$47 

,S,O,M,E P]SONS MAY NOT HAVE BE5 CONV9C$1 BY ! >GUM5TS ALREADY (F]$1 ?AT DEBT IS BUT A BAILM5T4 ,! DOCTR9E IS ALSO TOO IMPORTANT TO BE DISMISS$ )\T (F]+ ALL ! >GUM5TS ?AT GO TO SU/A9 IT4 ,SOME FUR!R EXPLANATIONS ( COLLAT]AL QUE/IONS >E ALSO NECESS>Y4 ,!SE ADDITIONAL >GUM5TS & EXPLANATIONS HAVE BE5 RES]V$ = A SECOND *APT]1 = ! REASON ?AT1 TO MANY M9DS1 ,I APPREH5D1 !Y WILL BE UNNECESS>Y1 & !RE=E T$I\S2 & = ! FUR!R REASON ?AT ! MATT] WILL BE SIMPLIFI$ BY PRES5T+ !M SEP>ATELY FROM ?OSE 9 ! PREC$+ *APT]4 

,!RE REMA9 TWO L9ES ( >GUM5T1 :I* GO TO PROVE ! SAME PO9T1 TO WIT1 ?AT DEBT IS BUT A BAILM5T-& :I*1 = ! SAKE ( DI/9CTNESS1 WILL BE PRES5T$ SEP>ATELY4 ,IT WILL BE IMPOSSIBLE1 9 PRES5T+ !M1 TO AVOID 5TIRELY A REPETITION ( SOME ( ! IDEAS ALREADY EXPRESS$4 

,F,I,R,/ ,>,G,U,M,5,T4 

,9 ORD] TO GET AT ! TRUE NATURE & OBLIGATION ( DEBT1 IT IS NECESS>Y TO CONSID] ?AT A PROMISE TO PAY MONEY IS ( NO LEGAL IMPORTANCE1 EXCEPT AS EVID5CE ( DEBT4 ,IT DOES NOT1 ( ITSELF1 CREATE ! DEBT4 ,IT ONLY AIDS TO PROVE IT4 

,NEI!R DO ! TRUE NATURE & OBLIGATION ( DEBT CONSI/ 91 NOR EV5 RE/ AT ALL UPON1 ! M]ELY MORAL OBLIGATION ( A PROMISE TO PAY4 ,A NAK$ PROMISE TO PAY MONEY IS ( NO OBLIGATION1 9 LAW1 H[EV] S9C]E MAY HAVE BE5 ! 9T5TION ( ! MAK] TO FULFILL IT4 ,! LEGAL OBLIGATION ( DEBT NEV] >ISES FROM ! FACT ?AT A MAN HAS MADE A PROMISE TO PAY MONEY4 ,IT IS 5TIRELY IMMAT]IAL TO ! VALIDITY ( A DEBT1 :E!R ! DEBTOR HAVE MADE ANY PROMISE OR NOT4 ,! DEBT DOES NOT >ISE FROM ! PROMISE2 ! PROMISE IS ONLY GIV5 AS EVID5CE ( ! DEBT4 

,! LEGAL OBLIGATION ( A DEBT1 !N1 IS SOME?+ 5TIRELY DI/9CT FROM ! MORAL OBLIGATION ( A PROMISE1 OR ! MORAL OBLIGATION TO KEEP ONE'S WORD4 ,! PROMISE IS GIV5 M]ELY BECAUSE ! DEBT IS DIME1 & AS EVID5CE ?AT ! DEBT IS DUE4 ,IT IS NO P>T ( ! LEGAL OBLIGATION ( ! DEBT ITSELF4 

,IF A PROMISE BE MADE :5 NO DEBT IS DUE1 ! PROMISE IS ( NO IMPORTANCE 9 LAW4 ,ON ! O!R H&1 IF A DEBT BE DUE1 & NO PROMISE HAVE BE5 GIV51 ! DEBT IS EQUALLY VALID1 AS IF A PROMISE HAD BE5 GIV54 ,!SE FACTS %[ ?AT ! PROMISE IS NO?+ MAT]IAL1 EI!R TO ! EXI/5CE OR TO ! OBLIGATION ( A DEBT4 ,A DEBT MAY BE CREAT$ )\T GIV+ A PROMISE2 & A PROMISE MAY BE GIV5 )\T TREAT+ A DEBT4 

,9 ORD]1 !RE=E1 TO GET AT ! TRUE NATURE ( DEBT1 IT IS NECESS>Y TO SEP>ATE IT 5TIRELY FROM ! IDEA ( A PROMISE4 ,IT IS ?IS FALSE IDEA ( ! LEGAL OBLIGATION ( A PROMISE1 ?AT 9T]POSES ITSELF BE=E \R M9DS1 & PREV5TS \R SEE+ ! TRUE NATURE & OBLIGATION ( ! DEBT4 

,BUT IT IS SAID BY ! LAWY]S1 ?AT :5 A MAN HAS 0RECEIV$ VALUE10 AS A 0CONSID]ATION0 = HIS 0PROMISE10 HIS PROMISE IS B9D+4 ,BUT IT IS AN 5TIRE MIS/ATEM5T ( FACT1 & CONVEYS :OLLY ]RONE\S IDEAS ( ! NATURE ( DEBT1 TO SAY ?AT ! DEBTOR RECEIVES VALUE1 AS A CONSID]ATION = HIS PROMISE4 ,A MAN NEV] PAYS A CONSID]ATION = A PROMISE-= A PROMISE1 AS WE HAVE SE51 HAS1 ( ITSELF1 NO LEGAL OBLIGATION1 & IS ( NO CONSEQU5CE TO ! VALIDITY ( A DEBT4 ,TO SAY1 !RE=E1 ?AT A MAN PAYS A CONSID]ATION = A PROMISE1 IS EQUIVAL5T TO SAY+ ?AT A MAN PAYS HIS MONEY = NO?+-= ?AT :I* HAS NO VALUE ( ITSELF1 & IS ( NO LEGAL OBLIGATION4 

,IF1 !N1 ! CR$ITOR DO NOT PAY 0VALUE0 TO ! DEBTOR AS A CONSID]ATION = ! DEBTOR'S PROMISE1 = :AT DOES HE PAY IT TO HIM8 ,OBVI\SLY AS ! CONSID]ATION1 OR PRICE1 ( ! ?+ PROMIS$- ?AT IS1 AS ! PRICE ( ! EQUIVAL5T1 :I* ! DEBTOR SELLS TO HIM 9 EX*ANGE4 ,IF1 = 9/ANCE1 ,A SELLS TO ,B A HORSE = AN HUNDR$ DOLL>S1 & TAKES ,B'S PROMISSORY NOTE !RE=1 HE DOES NOT SELL ! HORSE = ! NOTE1 BUT = ! HUNDR$ DOLL>S2 & HE TAKES ! NOTE M]ELY AS EVID5CE ?AT HE HAS B\<T ! HUNDR$ DOLL>S1 & PAID AN EQUIVAL5T 7OR VALUE7 = !M1 & ?AT !Y >E !RE=E N[ HIS1 BY RI<T ( PROP]TY2 ALSO AS EVID5CE ( ! TIME :5 !Y >E TO BE DELIV]$ TO HIM4 

,?IS BR+S US TO A P]CEPTION ( ! FACT1 ?AT ! 0VALUE RECEIV$0 BY ! DEBTOR FROM ! CR$ITOR1 & ! SUM1 OR VALUE1 :I* ! DEBTOR 'PROMISES TO PAY OR DELIV] TO ! CR$ITOR1 >E M]ELY EQUIVAL5TS1 :I* HAVE BE5 MUTUALLY SOLD OR EX*ANG$ = EA* O!R4 

,IF !SE EQUIVAL5TS HAVE BE5 MUTUALLY SOLD1 OR EX*ANG$ = EA* O!R1 EA* EQUIVAL5T HAS B\<T & PAID = ! O!R2 &1 ( NECESSITY1 ! RI<T ( PROP]TY 9 EA* EQUIVAL5T PASS$ TO ITS PUR*AS]1 AT ! SAME TIME ?AT ! RI<T ( PROP]TY 9 ! O!R EQUIVAL5T PASS$ TO ITS PUR*AS] - ?AT IS1 AT ! TIME ( ! CONTRACT4 

,BUT ?AT1 :I* MAKES ONE ( !SE P>TIES ! DEBTOR ( ! O!R1 :5 !RE HAS BE5 M]ELY AN EX*ANGE1 OR A MUTUAL PUR*ASE & SALE ( EQUIVAL5TS1 BETWE5 !M1 IS SIMPLY ?IS1 VIZ41 ?AT ! VALUE1 :I* IS SOLD BY ONE ( 7HE P>TIES TO ! O!R1 IS1 BY AGREEM5T1 TO REMA91 = A TIME1 9 ! H&S ( ! SELL]1 = HIS USE4 

,A DEBTOR1 !RE=E1 IS ONE1 :O1 HAV+ SOLD VALUE TO ANO!R1 & PASS$ ! RIG_/A ( PROP]TY 9 IT TO ! PUR*AS]1 RETA9S IT = USE UNTIL A TIME AGRE$ UPON = ITS DELIV]Y4 ,AT ! 5D ( ?IS TIME1 ! CR$ITOR CAN CLAIM ?IS VALUE1 BECAUSE IT IS HIS1 HE HAV+ PREVI\SLY B\<T IT1 & PAID = IT-& NOT BECAUSE ! DEBTOR HAS PROMIS$ TO DELIV] IT AT ?AT TIME4 ,! DEBTOR'S PROMISE TO PAY1 OR DELIV]1 ?IS VALUE TO ! CR$ITOR1 AT ! TIME AGRE$ UPON1 IS NOT ( ! ESS5CE ( ! CONTRACT1 BY :I* ! CR$ITOR ACQUIR$ HIS RI<T ( PROP]TY TO ! VALUE PROMIS$2 & IT IS ( NO IMPORTANCE :ATEV] EXCEPT AS EVID5CE ?AT ! VALUE1 ?US PROMIS$ TO BE PAID1 OR DELIV]$ TO ! CR$ITOR1 HAS BE5 ALREADY SOLD TO HIM1 PAID = BY HIM1 & N[ BELONGS TO HIM2 & ?AT ! DEBTOR HAS NO RI<T TO RETA9 IT1 = USE1 BEYOND ! TIME :5 HE HAS PROMIS$ TO DELIV] IT4 ,! PROMISE1 !RE=E1 9/EAD ( BE+ EVID5CE ?AT ! RI<T ( PROP]TY1 9 ! VALUE PROMIS$1 HAS NOT PASS$ TO ! CR$ITOR1 IS ONLY EVID5CE ?AT IT HAD 79 PO9T ( LAW7 PASS$ TO HIM BE=E ! PROMISE TO DELIV] IT WAS MADE4 

,! RI<T ( PROP]TY1 91 ! VALUE TO BE PAID BY ! DEBTOR1 MU/ HAVE PASS$ TO ITS PUR*AS]1 ! CR$ITOR1 AT ! SAME TIME ?AT ! RI<T ( PROP]TY1 9 ! 0VALUE0 PAID BY ! CR$ITOR1 PASS$ TO ITS PUR*AS]1 ! DEBTOR-?AT IS1 AT ! TIME ( ! CONTRACT2 ELSE ! CR$ITOR W\LD HAVE P>T$ ) HIS 0VALUE10 OR PROP]TY1 7?AT :I* HE PAID TO MITE DEBTOR17 )\T RECEIV+ ANY EQUIVAL5T = IT4 ,HE W\LD M]ELY HAVE RECEIV$ A PROMISE1 :I*1 AS WE HAVE SE51 IS ( NO LEGAL VALUE1 ( ITSELF1 & C\LD BE US$ ONLY AS EVID5CE4 ,& IT C\LD BE US$ AS EVID5CE ONLY TO PROVE ?AT ! CR$ITOR HAD PAID VALUE TO ! DEBTOR 9 EX*ANGE = AN EQUIVAL5T2 ?AT HE HAD ?US B\<T ! EQUIVAL5T2 & ?AT LIE WAS !N1 ( C\RSE1 ! [N] ( ! EQUIVAL5T ?US B\<T & PAID =- NOT)/&+ IT WORE /ILL REMA9+ 9 ! H&S ( ! DEBTOR4 

,! PROMISE1 !RE=E1 W\LD BE ( NO AVAIL1 EV5 AS EVID5CE1 UNLESS ! RI<T ( PROP]TY 9 ! VALUE PROMIS$ TO BE PAID1 OR DELIV]$1 HAD ALREADY PASS$ TO ! CR$ITOR- = ?AT IS ! ONLY FACT1 79 CASE ( DEBT17 :I* ! PROMISE CAN BE US$ TO PROVE4 

,BUT P]HAPS IT WILL BE SAID1 7& ?IS IS ALL ?AT CAN BE SAID ON ! O!R SIDE17 ?AT ! PROMISE1 & ! ACKN[L$GM5T ( ! RECEIPT ( VALUE1 BY ! DEBTOR1 MAYBE US$ TO PROVE ?AT ! CR$ITOR HAS PAID VALUE TO ! DEBTOR 9 EX*ANGE = AN EQUIVAL5T1 :I* ! DEBTOR WAS TO DELIV]1 OR PAY1 TO ! CR$ITOR AT A FUTURE TIME4 ,TRUE IT MAY2 IT CAN BE US$ = ?AT PURPOSE1 & NO O!R4 ,BUT ?AT IS1 9 REALITY1 ONLY ASS]T+1 9/EAD ( CONTRADICT+1 :AT HAS ALREADY BE5 /AT$1 VIZ41 ?AT ! PROMISE MAY BE US$ TO PROVE ?AT TIME CR$ITOR HAS B\<T VALUE ( ! DEBTOR1 & PAID = IT2 & ?AT IT1 7! VALUE ?US B\<T & PAID =17 IS !RE=E N[ HIS1 7! CR$ITOR'S17 BY RI<T ( PROP]TY1 & HAS BE5 HIS EV] S9CE HE B\<T & PAID = IT1 TO WIT1 EV] S9CE LIE PAID HIS VALUE TO ! DEBTOR-= 7AS HAS BE=E BE5 M5TION$7 IT IS ABSURD TO SAY1 :5 A MAN HAS B\<T & PAID = A ?+1 ?AT HE DOES NOT [N IT1 7HAS NOT ! RI<T ( PROP]TY 9 IT17 M]ELY BECAUSE IT WAS LEFT = A TIME 9 ! H&S ( ! SELL]4 

,! ESS5TIAL ]ROR 9 ! COMMON !ORY ( DEBT1 IS1 ?AT IT SUPPOSES ?AT ! CR$ITOR ACQUIRES NO PRES5T RI<T ( PROP]TY-AT ! TIME ! CONTRACT IS MADE1 OR AT ! TIME HE PAYS HIS VALUE TO ! DEBTOR-9 ! EQUIVAL5T :I* ! DEBTOR PROMISES TO PAY OR DELIV] TO HIM2 ?AT LIE ONLY ACQUIRES A RI<T ( PROP]TY 9 ?IS EQUIVAL5T :5 IT IS F9ALLY DELIV]$1 OR PAID TO HIM-:I* MAY BE DAYS1 MON?S1 OR YE>S AFT] HE HAS REALLY B\<T IT & PAID = IT4 ,IT SUPPOSES ?AT HE PAYS HIS VALUE TO ! DEBTOR1 & PASSES HIS RI<T ( PROP]TY 9 IT TO ! DEBTOR1 )\T AT ! TIME ACQUIR+1 9 RETURN1 ANY EQUIVAL5T RI<T ( PROP]TY 9 ! VALUE :I* ! DEBTOR IS TO PAY1 OR TO DELIV] TO HIM4 

,?IS ]ROR RESULTS1 9 P>T1 9 ?IS WAY1 TO WIT2 BECAUSE ! VALUE SOLD BY ! DEBTOR TO ! CR$ITOR1 IS1 AT ! TIME ( ! SALE1 M]G$ 9 ! :OLE VALUE ( ALL ! DEBTOR'S PROP]TY1 AMID IS TO REMA9 SO M]G$ UNTIL IT IS F9ALLY SEP>AT$ & CONV]T$ 9TO MONEY1 = ! PURPOSE ( DELIV]Y1 WE OV]LOOK ! FACT1 ?AT ! RI<T ( PROP]TY 9 IT HAS NEV]!LESS AS MU* PASS$ TO ! PUR*AS]1 7?AT IS1 TO ! CR$ITOR17 AS IF IT W]E ALREADY SEP>AT$ FROM ! MASS ( ! DEBTOR'S PROP]TY1 & DELIV]$ TO ! CR$ITOR4#a#f 

,?IS ]ROR IS FUR!R /R5G!N$ BY \R CONF\ND+1 9 ! FIR/ PLACE1 ! IDEA ( A PROMISE1 & ! OBLIGATION ( ! DEBT2 &1 9 ! SECOND PLACE1 ! RI<T ( PROP]TY1 & ! DELIV]Y ( ! PROP]TY ITSELF4 ,! PROMISE1 & ! OBLIGATION ( ! DEBT1 AS WE HAVE ALREADY SE51 >E 5TIRELY DI/9CT MATT]S4 ,SO ALSO ! RI<T ( PROP]TY1 & ! DELIV]Y ( PROP]TY1 >E 5TIRELY DI/9CT MATT]S4 ,NEI!R DEP5DS AT ALL UPON ! O!R4#a#g ,! RI<T ( PROP]TY IS ACQUIR$ :5 IT IS B\<T & PAID =2 ! DELIV]Y ONLY GIVES ! [N] ! POSSESSION ( :AT WAS ALREADY HIS4 ,A CR$ITOR1 !RE=E1 ACQUIRES A RI<T ( PROP]TY 9 ! VALUE PROMIS$ TO HIM1 AT ! TIME HE PAYS HIS VALUE = IT- :E!R ! ACTUAL DELIV]Y OR PAYM5T ( ! VALUE PROMIS$ TAKES PLACE AT ?AT TIME1 OR MON?S1 OR YE>S AFT]W>DS4 ,IF ?IS W]E NOT SO1 ! CR$ITOR1 DUR+ ! :OLE P]IOD1 BETWE5 ! TIME :5 HE PAYS HIS VALUE TO ! DEBTOR1 & ! TIME :5 ! DEBTOR F9ALLY DELIV]S OR PAYS TO HIM ! EQUIVAL5T VALUE1 IS )\T ANY RI<T ( PROP]TY AT ALL1 EI!R 9 ! VALUE HE HAS P>T$ )1 OR 9 ! VALUE ?AT HE IS TO RECEIVE = IT4 ,& IF HE HAS NO RI<TS ( PROP]TY1 DUR+ ALL ?IS TIME1 TO EI!R ( !SE VALUES1 HE HAS1 ( NECESSITY1 NO RI<TS AT ALL 9 REF]5CE TO !M2 & NEV] CAN HAVE BY VIRTUE ( HIS CONTRACT4 ,HE ONLY HOLDS A PROMISE1 :I* C\LD BE US$ AS EVID5CE ( HIS RI<TS ( PROP]TY1 IF LIE HAD ANY SU* RI<TS2 BUT :I*1 ON ! !ORY ?AT HE HAS LIT7 SU* RI<TS1 CAN BE ( NO USE :ATEV]4 

,IF IT BE N[ E/ABLI%$1 ?AT ! VALUE PAID BY ! CR$ITOR TO ! DEBTOR1 & ! VALUE PROMIS$ BY ! DEBTOR TO ! CR$ITOR1 >E M]ELY- EQUIVAL5TS1 ?AT >E MUTUALLY B\<T & SOLD = EA* O!R2 & IF IT BE ALSO E/ABLI%$ ?AT ! RI<T ( PROP]TY1 9 EA* ( !SE EQUIVAL5TS1 PASSES TO ITS PUR*AS]1 AT ! SAME TIME ?AT ! RI<T ( PROP]TY 9 ! O!R EQUIVAL5T PASSES TO ITS PUR*AS]1 TO WIT1 AT ! TIME ( ! CONTRACT1 9/EAD ( AT ! TIME ( DELIV]Y1 !SE FACTS FURNI% US ) AN EXPLANATION1 OR DEF9ITION ( ! TRUE LEGAL OBLIGATION ( A DEBT4 ,!Y DEF9E ?IS OBLIGATION TO BE ! OBLIGATION ( A SELL] TO PRES]VE =1 & DELIV] TO HIS PUR*AS] AT A TIME AGRE$ UPON1 VALUE1 :I* HE HAS SOLD HIM1 & ! RI<T ( PROP]TY 9 :I* HAS ALREADY PASS$ TO HIM4 

,IF ?IS DEF9ITION BE CORRECT1 A DEBT 7OR SUM DUE7 IS M]ELY AN AM\NT ( VALUE1 :I* HAS BE5 SOLD BY ONE P]SON TO ANO!R1 & IS TO BE DELIV]$ TO HIM AT A TIME SUBSEQU5T TO ! SALE4 ,& A DEBTOR IS M]ELY ONE1 :O HAS SOLD VALUE TO ANO!R1 BUT RETA9S ! CU/ODY & USE ( IT = A TIME AFT] ! SALE1 & IS B\ND TO DELIV] IT TO ! PUR*AS]1 ON DEM&1 OR AT A FUTURE TIME AGRE$ UPON4 

,IF !SE DEF9ITIONS ( DEBT1 DEBTOR1 & ! OBLIGATION ( A DEBT1 >E CORRECT1 !Y PROVE ?AT FROM ! TIME ! CONTRACT 7BY :I* ! DEBT IS CREAT$7 IS 5T]$ 9TO1 UP TO ! TIME ! VALUE DUE IS TO BE DELIV]$1 ! DEBTOR IS ! M]E BAILEE ( ! CR$ITOR2 = A MAN1 :O CONT9UES TO HOLD PROP]TY1 ?AT HE HAS SOLD TO ANO!R1 IS M]ELY ! BAILEE ( ! PUR*AS]2 LIE IS ! M]E HOLD]1 US]1 & HIR] ( ! VALUE1 :I* HE HIMSELF HAS SOLD1 BUT NOT DELIV]$2 & ALL ! NECESS>Y CONSEQU5CES ( BAILM5T FOLL[2 & ! LEGAL PR9CIPLES ( BAILM5T APPLY4 ,ONE ( !SE PR9CIPLES1 AS HAS BE=E BE5 /AT$1 IS ?AT IF 7LIE PROP]TY BAIL$ HE LO/ OR 9JUR$ DUR+ ! BAILM5T1 )\T ANY FAULT OR CULPABLE NEGLECT ON ! P>T ( ! BAILEE1 ! LOSS FALLS ON ! BAILOR1 OR [N]4 

,S,E,C,O,N,D ,>,G,U,M,5,T4 

,IT IS A PR9CIPLE ( NATURAL LAW1 ?AT A CONTRACT = ! CONVEYANCE ( PROP]TY IS VOID1 UNLESS !RE BE PROP]TY [N$ BY ! MAK]1 = ! CONTRACT TO ATTA* TO1 AT ! TIME IT IS MADE4 ,IF1 = 9/ANCE1 ,A %\LD GIVE TO ,B1 A DE$ ( A F>M1 :I* ,A DID NOT [N1 ! DE$ W\LD BE VOID4 ,IT W\LD CONVEY NO RI<TS TO ,B1 SIMPLY BECAUSE ,A [N$ NO SU* F>M = ! CONTRACT TO ATTA* TO - OR1 :AT IS ! SAME ?+1 BECAUSE IT IS1 9 ! NATURE ( ?+S1 IMPOSSIBLE ?AT HE C\LD CONVEY TO ,B ANY RI<TS1 :I* HE DID NOT HIMSELF POSSESS4 ,& EV5 IF ,A %\LD AFT]W>DS BECOME ! [N] ( ! F>M1 ! DE$ ?AT HE HAD PREVI\SLY GIV5 ( IT TO ,B1 W\LD GIVE ,B NO TITLE TO IT4 ,TO CONVEY ! F>M TO ,B1 A NEW DE$ W\LD HAVE TO BE GIV51 SIMPLY BECAUSE1 AT ! TIME ! FIR/ DE$ WAS GIV51 ,A HAD NO RI<T ( PROP]TY 9 ! F>M1 = HIS CONTRACT TO ATTA* TO & CONVEY4 ,HIS FIR/ DE$ BE+ VOID1 AT ! TIME IT WAS GIV51 IT C\LD NEV] AFT]W>DS BE MADE A LEGAL CONVEYANCE ( RI<TS SUBSEQU5TLY ACQUIR$4 

,AGA94 ,IF ,A %\LD MAKE A CONTRACT1 PURPORT+ TO CONVEY TO ,B HIS 7,A'S7 RI<T1 AS HEIR1 9 HIS FA!R'S E/ATE1 :ILE HIS FA!R WAS YET LIV+1 ! CONTRACT W\LD BE VOID1 SIMPLY BECAUSE1 :ILE HIS FA!R WAS LIV+1 HE HAD NO RI<T1 AS HEIR1 9 HIS E/ATE4 ,& EV5 AFT] HIS FA!R %\LD HAVE DI$1 & HE %\LD HAVE BECOME HEIR TO HIS E/ATE1 ,B C\LD NOT HOLD IT UND] ANY CONTRACT ?AT HAD BE5 MADE PRIOR TO ,A'S BECOM+ 5TITL$ AS HEIR-ALL = ! SIMPLE REASON1 ?AT AT ! TIME ! CONTRACT WAS 5T]$ 9TO1 !RE WAS NO LEGAL RI<T OR PROP]TY 9 ,A1 = HIS CONTRACT TO ATTA* TO & CONVEY4 ,& IF IT ATTA*$ TO NO?+ AT ! TIME IT WAS 5T]$ 9TO1 IT NEV] C\LD ATTA* TO ANY?+4 ,NO CONTRACT1 ?AT A MAN CAN 5T] 9TO AT ONE TIME1 CAN1 9 ! NATURE ( ?+S1 BE MADE A LEGAL CONVEYANCE ( ANY RI<TS :I* HE DID NOT !N POSSESS1 & :I* HE %\LD ONLY ACQUIRE SUBSEQU5TLY4 

,IF ,A W]E TO GIVE TO ,B1 A BILL ( SALE ( A HORSE1 :I* HE 7,A7 DID NOT [N1 ,B W\LD ACQUIRE NO RI<TS TO ! HORSE BY IT2 SIMPLY BECAUSE ,A HAD1 AT ! TIME1 NO [N]%IP1 OR RI<T TO ! HORSE1 ?AT HE C\LD CONVEY4 ,& EV5 IF ,A %\LD AFT]W>DS BECOME ! [N] ( ! HORSE1 ,B C\LD NOT HOLD HIM1 OR CLAIM HIM1 UND] ! BILL ( SALE ?AT HAD BE5 PREVI\SLY GIV5-SOLELY = ! REASON ?AT1 AS !RE WAS NO RI<T ( PROP]TY1 9 ,A1 TO ! HORSE1 AT ! TIME ! BILL ( SALE WAS GIV51 ! CONTRACT WAS VOID4 ,IT CONVEY$ NO?+1 BECAUSE ! MAK] ( IT HAD NO RI<TS ?AT HIS CONTRACT C\LD CONVEY4 ,!RE WAS NO?+ = ! CONTRACT TO ATTA* TO4 ,! CONTRACT BE+ VOID AT ! TIME IT WAS 5T]$ 9TO1 NO?+ ?AT MI<T HAPP5 AFT]W>DS C\LD MAKE IT A VALID CONVEYANCE ( RI<TS SUBSEQU5TLY ACQUIR$4 ,B C\LD !N GET ! HORSE ONLY BY A NEW SALE1 OR A NEW CONTRACT1 TO BE MADE AFT] ,A HAD BECOME ! [N] ( ! HORSE4 

,9 ALL !SE ?REE CASES1 ?AT HAVE BE5 NAM$1 :]E ! SALE PROV$ VOID1 = ,WANT ( ANY RI<T 9 ,A TO ! ?+ PURPORT$ TO BE SOLD1 ,B C\LD RECOV] BACK HIS CONSID]ATION MONEY1 ON ! GR\ND ( ITS HAV+ BE5 PAID )\T ANY EQUIVAL5T1 OR VALUE RECEIV$4 ,& 9 AN ACTION TO RECOV] IT1 HE C\LD USE ! DE$1 BILL ( SALE1 OR O!R CONTRACT1 AS EVID5CE ?AT HE HAD PAID ! CONSID]ATION MONEY2 BUT ! CONTRACT ITSELF W\LD CONVEY HIM NO RI<TS1 EI!R TO ! L&1 ! 9H]ITANCE1 OR ! HORSE1 SIMPLY BECAUSE ,A1 AT ! TIME ( MAK+ ! CONTRACT1 HAD NO RI<TS ?AT LIE C\LD CONVEY4 ,& ,B W\LD RECOV] HIS CONSID]ATION MONEY1 SOLELY BECAUSE ! GRANT OR CONTRACT HAD CONVEY$ HIM NO RI<TS4 

,!SE CASES >E PUT SIMPLY TO ILLU/RATE ! PR9CIPLE1 ?AT A CONTRACT1 = ! CONVEYANCE ( PROP]TY1 IS VOID1 & CONVEYS NO RI<TS :ATEV] TO ! GRANTEE1 UNLESS ! GRANTOR BE ! POSSESSOR1 AT ! TIME ! CONTRACT IS 5T]$ 9TO1 ( ! RI<TS HIS CONTRACT PURPORTS TO CONVEY4 ,ANY SUBSEQU5T [N]%IP1 ?AT LIE MAY ACQUIRE1 IS NOT TRANSF]R$ TO ! GRANTEE BY ANY CONTRACT MADE PREVI\S TO HIS BECOM+ ! [N]4 ,!RE BE+1 9 ! GRANTOR1 AT ! TIME ! GRANT IS MADE1 NO SU* RI<TS AS ! CONTRACT PURPORTS TO CONVEY1 ! CONTRACT IS VOID1 9OP]ATIVE2 & BE+ VOID AT ?AT TIME1 NO?+ CAN GIVE IT VALIDITY AT A FUTURE TIME4 ,IT CAN ONLY BE US$ AS EVID5CE ?AT ! GRANTEE HAS PAID HIS MONEY )\T CONSID]ATION1 & \<T TO RECOV] IT BACK4 ,& IF HE WI%ES TO ACQUIRE ! SPECIFIC PROP]TY CONTRACT$ =1 :5EV] IT MAY AFT]W>DS HAPP5 TO COME 9TO ! H&S ( ! GRANTOR1 HE MU/ DO IT BY A NEW CONTRACT-! OLD ONE BE+ ABSOLUTELY 9]T1 LIFELESS1 9VALID1 = ANY PURPOSE ( A CONVEYANCE4 ,& IT IS EQUALLY 9VALID1 SO F> AS ANY CONVEYANCE ( RI<TS IS CONC]N$1 :E!R ! GRANTEE HAVE ACTUALLY RECOV]$ HIS CONSID]ATION MONEY1 OR NOT4 ,IT MAY BE USEFUL1 AS EVID5CE1 TO 5ABLE ! GRANTEE TO RECOV] ! MOTLEY LIE HAS PAID2 BUT IT IS 9CAPABLE ( ANY VALIDITY AS A CONVEYANCE4 

,! =CE & JU/NESS ( ?IS PR9CIPLE WILL BE MORE CLE>LY SE51 :5 IT IS CONSID]$ :AT A CONTRACT REALLY IS4 ,IT IS M]ELY A CONS5T1 AGREEM5T1 ASS5T- A M]E OP]ATION ( ! M9D4 ,! WRITT5 9/RUM5T1 CALL$ A CONTRACT1 IS ONLY ! EVID5CE ( ! M5TAL CONTRACT1 OR CONS5T4 ,I,L HAS NO VALIDITY O!RWISE ?AN AS SU* EVID5CE4 ,! ONLY REALLY MAT]IAL MATT] IS ! M5TAL OP]ATION1 OR ASS5T4#a#h ,N[ ?IS M5TAL EX]CISE1 OR ASS5T1 CAN OBVI\SLY PRODUCE NO EFFECT1 EXCEPT :ILE IT IS 9 ACTION4 ,IT MU/ !RE=E PASS ! RI<T ( PROP]TY !N1 OR NEV]4 ,IF1 :ILE IT IS 9 ACTION1 ! RI<T ( PROP]TY BE 9 ! P]SON :O EXP]I5CES ?IS ASS5T1 ! ASS5T PASSES ! RI<T ( PROP]TY TO ANO!R4 ,BUT IF ! RI<T ( PROP]TY BE NOT 9 HIM1 :ILE EXP]I5C+ ?IS S5SATION ( ASS5T1 ! S5SATION ACCOMPLI%ES NO?+1 BECAUSE !RE IS NO?+ ON :I* IT CAN OP]ATE4 ,& IF ! P]SON %\LD EV] AFT] BECOME ! PROPRIETOR ( ! ?+ TO BE CONVEY$1 HE MU/ EXP]I5CE ! S5SATION AGA91 9 ORD] TO MAKE ! CONVEYANCE1 BECAUSE HIS =M] CONS5T WAS ( NO =CE EXCEPT :ILE IT CONT9U$4 

,?IS PR9CIPLE BE+ E/ABLI%$1 ?AT A CONTRACT = ! CONVEYANCE ( PROP]TY1 HAS NO LEGAL =CE1 OR VALIDITY1 AS A CONVEYANCE- ?AT IS1 ?AT IT ATTA*ES TO NO?+1 & CONVEYS NO RI<T TO ANY?+-UNLESS ! MAK]1 AT ! TIME ! CONTRACT IS MADE1 BE ! [N] ( ! RI<TS HE PURPORTS TO CONVEY1 LET US APPLY ! PR9CIPLE TO ! CASE ( A PROMISSORY NOTE4 

,A PROMISSORY NOTE IS A CONTRACT 7OR1 MORE ACCURATELY SPEAK+1 ! EVID5CE ( A CONTRACT7 = ! CONVEYANCE ( PROP]TY-?AT IS1 ( MONEY4 ,IT IS A BILL ( SALE ( MONEY1 ?AT HAS BE5 SOLD & PAID =1 & IS TO BE DELIV]$ AT A FUTURE TIME4 ,IT DIFF]S1 9 SOME P>TICUL>S1 FROM ! CONTRACTS JU/ M5TION$1 9 REG>D TO L&1 A HORSE1 @&C42 BUT IT DOES NOT DIFF] FROM !M1 9 ANY P>TICUL> ?AT IS ESS5TIAL TO ! PR9CIPLE JU/ /AT$1 TO WIT1 ?AT A CONTRACT = ! CONVEYANCE ( PROP]TY1 ATTA*ES ONLY TO ! PROP]TY ?AT A MAN HAS :5 ! CONTRACT IS 5T]$ 9TO-7&1 ( CONSEQU5CE1 TO SU* O!R PROP]TY AS MAY BECOME 9DI/+UI%ABLY MIX$ ) IT PRIOR TO ! DELIV]Y47 ,! RI<TS1 :I* A CR$ITOR ACQUIRES BY A PROMISSORY NOTE1 7OR BY ! CONTRACT ( :I* ! NOTE IS ! EVID5CE17 >E RI<TS :I* ATTA* TO ! DEBTOR'S PROP]TY ! MOM5T ! CONTRACT IS 5T]$ 9TO1 EV5 ?\< ! MONEY IS NOT TO BE DELIV]$ = MON?S OR YE>S AFT]W>DS4 ,& IF ! DEBTOR HAVE NO PROP]TY = ! CONTRACT TO ATTA* TO1 AT ! TIME ! CONTRACT IS 5T]$ 9TO1 ! CONTRACT IS VOID1 & CAN NEV] AFT]W>DS ATTA* TO ANY?+4 ,& ?IS IS ON ! SAME PR9CIPLE1 ?AT A DE$ ( A F>M ATTA*ES TO ! F>M FROM ! MOM5T ! DE$ IS MADE1 & ?AT ! RI<T ( PROP]TY 9 ! F>M PASSES1 AT ?AT MOM5T1 FROM ! SELL] TO ! BUY]1 EV5 ?\< ! POSSESSION ( ! F>M IS1 BY AGREEM5T1 NOT TO BE DELIV]$ = MON?S OR YE>S AFT]W>DS4 ,SO ALSO A BILL ( SALE ( A HORSE1 ATTA*ES TO ! HORSE1 & ! RI<T ( PROP]TY 9 ! HORSE PASSES FROM ! SELL] TO ! BUY] AT ! MOM5T ! CONTRACT ( SALE IS 5T]$ 9TO1 EV5 ?\< ! HORSE1 BY AGREEM5T1 IS NOT TO BE DELIV]$ UNTIL A SUBSEQU5T TIME4 ,ON ! SAME PR9CIPLE1 ! RI<T CONVEY$ BY A PROMISSORY NOTE1 7:I* IS M]ELY A CONTRACT = ! SALE & DELIV]Y ( MONEY17 ATTA*ES TO ! DEBTOR'S PROP]TY1 & ! LI5 PASSES TO ! CR$ITOR AT ! MOM5T ! CONTRACT IS 5T]$ 9TO1 EV5 ?\< ! MONEY IS NOT TO BE DELIV]$ UNTIL MON?S OR YE>S SUBSEQU5T4 ,! RI<T ( ! CR$ITOR MU/ ATTA* AT ! TIME ! CONTRACT IS 5T]$ 9TO1 OR1 = ! REASONS ALREADY GIV51 IT CAN NEV] ATTA* AT ALL2 & W\LD !RE=E CONVEY NO RI<TS AT ALL TO ! CR$ITOR4 

,! PR9CIPAL PO9TS1 9 :I* A DE$ ( L&1 OR A BILL ( SALE ( A HORSE1 7:]E ! POSSESSION IS TO BE DELIV]$ AT A TIME SUBSEQU5T TO ! CONTRACT17 DIFF]S FROM A PROMISSORY NOTE1 >E !SE3 

#a4 ,A DE$ ( L&1 OR A BILL ( SALE ( A HORSE1 NECESS>ILY DESCRIBES OR DESIGNATES A P>TICUL> PIECE ( L&1 OR A P>TICUL> HORSE2 & IT NECESS>ILY APPLIES OR ATTA*ES ONLY TO ! ONE SO DESCRIB$1 BECAUSE !RE IS1 & CAN BE NO O!R PRECISELY LIKE IT4 ,BUT A PROMISSORY NOTE DOES NOT DESCRIBE ! P>TICUL> DOLL>S1 ?AT >E SOLD1 OR >E TO BE DELIV]$1 BUT ONLY TIME NUMB] ( !M4 ,IT !RE=E DOES NOT APPLY1 OR ATTA* TO1 ANY P>TICUL> DOLL>S2 & IT IS NOT NECESS>Y ?AT IT %\LD1 BECAUSE ALL DOLL>S >E ( EQUAL VALUE1 & !RE=E IT IS IMMAT]IAL :AT P>TICUL> DOLL>S %ALL BE DELIV]$4 

#b4 ,AS A PROMISSORY NOTE DOES NOT DESCRIBE OR DESIGNATE ! ID5TICAL DOLL>S SOLD1 IT CANNOT APPLY1 OR ATTA* TO ANY P>TICUL> DOLL>S1 ANY MORE ?AN TO ANY O!R DOLL>S ?AT ! DEBTOR MAY HAVE4 

#c4 ,AS A PROMISSORY NOTE DOES NOT DESCRIBE1 DESIGNATE1 OR ATTA* TO ANY P>TICUL> DOLL>S1 9 PREF]5CE TO O!RS1 IT DOES NOT IMPLY ?AT ! ID5TICAL DOLL>S1 ?AT >E F9ALLY TO BE DELIV]$1 N[ EXI/ 9 ! H&S ( ! DEBTOR4 ,& IF IT DOES NOT IMPLY ?AT ?OSE ID5TICAL 7DOLL>S N[ EXI/ 9 ! HALIDE ( ! DEBTOR1 IT DOES NOT OV5 IMPLY ?AT ! AM\NT ( VALUE1 :I* ! DOLL>S CONTA91 OR 79 O!R WORDS17 ! AM\NT ( VALUE :I* ! NOTE CONVEYS1 N[ EXI/S 79 ! H&S ( ! DEBTOR7 9 ! %APE ( DOLL>S1 ANY MORE ?AN ?AT IT EXI/S 9 ANY O!R P>TICUL> %APE1 FROM :I* IT CAN1 BY ! TIME AGRE$ ON = ! DELIV]Y1 BE CONV]T$ 9TO ! P>TICUL> DOLL>S ?AT %ALL F9ALLY BE DELIV]$1 OR 9TO ANY DOLL>S ?AT ! DEBTOR MAY HAVE A RI<T TO DELIV] 9 FULFILLM5T ( HIS CONTRACT4 ,AS ! NOTE DOES NOT DESCRIBE OR DESIGNATE ! ID5TICAL DOLL>S1 ?AT >E SOLD BY ! CONTRACT1 IT DOES NOT IMPLY OR DESCRIBE ! P>TICUL> %APE1 9 :I* ! AM\NT ( VALUE SOLD1 N[ EXI/S2 = IF IT DO NOT IMPLY ?AT IT EXI/S 9 ! %APE ( ! ID5TICAL DOLL>S ?AN >E TO BE DELIV]$1 IT DOES NOT IMPLY ?AT IT EXI/S 9 ! %APE ( ANY O!R DOLL>S1 ANY MORE ?AN ?AT IT EXI/S ,9 ! %APE ( CO/1 WOOL1 OR IRON4 ,IT ONLY IMPLIES1 !RE=E1 ?AT IT EXI/S1 7?AT IS1 ?AT ! AM\NT OR VALUE CONVEY$ BY ! NOTE EXI/S17 9 ! H&S ( ! DEBTOR1 9 SOME OR O!R1 FROM :I* ,IT ,IS SUSCEPTIBLE ( BE+ CONV]T$ 9TO DOLL>S BY ! TIME AGRE$ ON = ! DELIV]Y4 

#d4 ,AS ! NOTE DOES NOT DESCRIBE ! P>TICUL> %APE 9 :I* ! VALUE CONVEY$ BY IT N[ EXI/S1 & DOES NOT EV5 IMPLY ?AT IT N[ EXI/S 9 ! %APE ( DOLL>S1 ! NOTE IS1 9 EFFECT1 AN LI5 UPON ALL A2 MAN'S PROP]TY = ! NUMB] ( DOLL>S M5TION$ 9 ! NOTE2 OR IT IS A SALE ( SO MU* VALUE1 EXI/+ 9 SOME %APE OR O!R1 AS WILL PROCURE1 OR EX*ANGE = ! NUMB] ( DOLL>S M5TION$ 9 ! NOTE1 RA!R ?AN A SALE ( ANY P>TICUL> DOLL>S !MSELVES4 ,?AT SU* IS ! FACT1 IS EVID5T FROM TWO CONSID]ATIONS1 TO WIT2 FIR/1 ?AT ! ID5TICAL DOLL>S SOLD >E NOT DESCRIB$1 & !RE=E CANNOT BE KN[N2 &1 SECONDLY1 ?AT ! DEBTOR IS TO HAVE ! USE ( !M UNTIL ! TIME AGRE$ UPON = ! DELIV]Y4 ,AS ! DOLL>S1 :ILE REMA9+ 9 ! SPECIFIC %APE ( DOLL>S1 CAN BE ( NO USE TO ! DEBTOR1 & CAN1 BE US$ BY HIM ONLY BY CONV]T+ !M 9TO O!R COMMODITIES1 & AS !Y >E TO BE LEFT 9 HIS H&S1 = A C]TA9 TIME1 SOLELY ?AT HE MAY USE 7LI5S1 IT FOLL[S ?AT ,IT MU/ HAVE BE5 ! 9T5TION ( ! P>TIES ?AT ! DEBTOR %\LD HAVE ! RI<T ( CONV]T+ !M 9TO O!R COMMODITIES ?AT MI<T HE PRODUCTIVE1 OR SUSCEPTIBLE ( USE ,9 ! MEAN TIME- ?AT IS1 UNTIL ! TUNE ( DELIV]Y2 &1 !RE=E1 ?AT ! CR$ITOR %\LD HAVE HIS LI5 UPON !M1 OR UPON AN AM\NT ( VALUE EQUIVAL5T TO !M1 ,9TO :ATEV] %APE !Y MI<T BE CONV]T$1 OR ?R\< :ATEV] *ANGES !Y MI<T PASS1 PREVI\S TO DELIV]Y2 & ?AT1 9 TIME = ! DELIV]Y1 ?IS AM\NT OR VALUE WAS TO BE CONV]T$ AGA9 9TO DOLL>S = ?AT PURPOSE4#a#i 

#e4 ,AS ! CONTRACT1 TO BE ( ANY VALIDITY1 7?AT IS1 TO CONVEY ANY RI<TS17 MU/1 FROM ! MOM5T ,IT IS 5T]$ 9TO1 ATTA* TO SOME?+ OR OILI] 9 ! H&S ( ! DEBTOR2 & AS ,IT DOTS NOT DESIGNATE1 OR !RE=E PURPORT TO ATTA* TO ! ID5TICAL DOLL>S ?AT >E TO BE DELIV]$1 ,IT CAN ONLY ATTA* TO ! G5]AL PROP]TY ( ! DEBTOR1 AS A LI5 = ! NUMB] ( DOLL>S TO BE DELIV]$4 ,UNLESS IT ?US ATTA* TO ! G5]AL PROP]TY ( ! DEBTOR AS A LI51 IT W\LD1 ( NECESSITY1 BE A NULLITY1 HAV+ NO LEGAL OP]ATION :ATEV]1 SIMPLY BECAUSE !RE IS NO?+ ELSE = IT TO ATTA* TO4 

,A PROMISSORY NOTE1 !RE=E1 = AN HUNDR$ DOLL>S TO HE DELIV]$ AT A FUTURE TIME1 IS1 9 REALITY1 A CONTRACT ( SALE ( SO MU* VALUE1 EXI/+1 9 SOME %APE OR O!R1 9 ! H&S ( ! DEBTOR1 AS WILL PRODUCE AN HUNDR$ DOLL>S4 ,SU* A CON TRACT IS1 9 EFFECT1 A LI51 = ?AT AM\NT1 UPON A MAN'S :OLE PROP]TY1 EV5 ?\< HIS :OLE PROP]TY %\LD BE EQUAL TO ALL HUNDR$ TIMES ?AT AM\NT- & :Y8 ,BECAUSE1 AS ! P>TICUL> AM\NT ( VALUE1 OR PROP]TY1 TO :I* ! CONTRACT1 ATTA*ES1 ,IS NOT DESCRIB$1 OR SET (F DI/9CTLY FROM ! RE/ ( HIS PROP]TY1 ! DEBTOR CAN NEV] %[1 AS LONG AS ANY PORTION ( HIS PROP]TY REMA9S 9 HIS H&S1 & ! DEBT ,IS UNPAID1 ?AT ! PORTION REMA9+ 9 HIS H&S IS NOT ! PORTION ?AT WAS SOLD1 & PROMIS$ TO BE DELIV]$4 ,BESIDES1 IF1 BY ! TIME ( DELIV]Y1 IT %ALL APPE> ?AT ALL HIS PROP]TY HAS DISAPPE>$ EXCEPT A S+LE HUNDR$ DOLL>S1 IT IS MORE REASONABLE TO SUPPOSE ?AT HE HAS DISPOS$ ( HIS [N PROP]TY1 ?AN ?AT HE HAS DISPOS$ ( ?AT TO :I* HIS CR$ITOR HAD AN EQUITABLE RI<T4 

,A PROMISSORY NOTE1 !N1 = AN HUNDR$ DOLL>S1 ,IS A M]E BILL ( SALE ( AN HUNDR$ DOLL>S1 ?AT >E TO BE DELIV]$ AT A FUTURE TIME2 OR RA!R A BILL ( SALE ( SO MU* VALUE1 7N[ EXI/+1 OR PRESUM$ TO EXI/1 9 SOME O!R %APE ?AN ?AT ( ! ID5TICAL DOLL>S :I*1 >E TO BE DELIV]$17 AS WILL PUR*ASE AN HUNDR$ DOLL>S AT ! TIME AGRE$ UPON = ! DELIV]Y4 ,AL?\<1 !N1 A PROMISSORY NOTE DIFF]S FROM A BILL ( SALE ( A HORSE1 OR A DE$ ( L&1 9 NOT DESCRIB+ OR DESIGNAT+ ! ID5TICAL DOLL>S SOLD1 & !RE=E 9 NOT ATTA*+ TO ANY P>TICUL> DOLL>S :I* ! DEBTOR MAY HAVE ON L9$ AT ! TIME ! CONTRACT IS 5T]$ ,9TO1 IT ,IS NEV]!LESS PRECISELY LIKE A BILL ( SALE ( A HORSE1 OR A DE$ ( L&1 9 ?IS RESPECT1 TO WIT1 ?AT ! RI<TS ( ! CR$ITOR ATTA*1 FROM ! MOM5T ! CONTRACT IS MADE1 TO AN AM\NT ( VALUE1 7EXI/+ 9 ! H&S ( ! DEBTOR1 9 SOME %APE OR O!R17 SUFFICI5T TO PRODUCE1 OR BE CONV]T$ 9TO1 ! NUMB] ( DOLL>S M5TION$ 9 ! NOTE4 

,BUT P]HAPS SOME MAY BE DISPOS$ TO D5Y ?AT !RE IS ANY SU* ANALOGY1 AS ,I HAVE SUPPOS$1 BETWE5 A PROMISSORY NOTE & A DE$ ( L&1 OR A BILL ( SALE ( A HORSE2 OR ANY ANALOGY ?AT MAKES IT NECESS>Y ?AT !RE %\LD BE ANY PROP]TY1 ,9 ACTUAL EXI/5CE1 = ! CONTRACT EXPRESS$ 9 ! NOTE1 TO ATTA* TO4 ,& P]HAPS !Y WILL SAY ?AT ! DIFF]5T =M ( A PROMISSORY NOTE FROM ?AT ( A DE$1 OR BILL ( SALE - ! =M] BE+ A 0PROMISE TO PAY0 AT A FUTURE TIME1 & ! TWO LATT] BE+ EXPRESS GRANTS 9 ?9 PRES5T T5SE - IMPLIES ?AT ! NOTE CONVEYS NO SU* PRES5T RI<T ( PROP]TY TO ! PAYEE1 AS A DE$ DOES TO ! GRANTEE1 OR A BILL ( SALE TO ! V5DEE4 

,TO SEE ! FALLACY ( ?IS OBJECTION1 IT IS NECESS>Y TO GET RID ( WORDS1 & GET AT ,IDEAS2 OR RA!R TO GET RID ( ?AT CONFUSION ( IDEAS1 :I* RESULTS FROM ! HABIT ( >BITR>ILY US+ DIFF]5T WORDS TO CONVEY ! SAME ESS5TIAL IDEAS4 ,= 9/ANCE4 ,WE 0PAY0 MONEY = A HORSE1 & WE 0SELL0 A HORSE = MONEY- SU* IS ! COMMON USE ( WORDS4 ,YET1 9 REALITY1 WE AS MU* 0PAY0 ! HORSE = ! MONEY1 AS ! MONEY = ! HORSE4 ,& WE AS MU* SELL ! MONEY = ! HORSE1 AS ! HORSE = ! MONEY4 ,! HORSE BUYS ! MONEY1 AS MU* AS ! MONEY BUYS ! HORSE4 ,! HORSE & ! MONEY >E EQUIVAL5TS1 :I* >E MUTUALLY EX*ANG$ = EA* O!R2 :I* MUTUALLY BUY EA* O!R2 :I* >E MUTUALLY SOLD = EA* O!R2 :I* MUTUALLY PAY = EA* O!R4 ,9 EV]Y EX*ANGE ( EQUIVAL5TS ( ?IS K9D1 !RE >E TWO PUR*ASES1 & TWO SALES4 ,ONE ( ! P>TIES SELLS HIS HORSE = MONEY1 ! O!R HIS MONEY = A HORSE4 ,ONE ( ! P>TIES BUYS A HORSE ) MONEY1 ! O!R BUYS MONEY ) A HORSE4 ,& ?IS IS ! :OLE MATT]4 

,:51 !RE=E1 A MAN SELLS A HORSE = MONEY1 & PROMISES TO DELIV] ! HORSE AT A FUTURE TIME1 ! CONTRACT IS ( PRECISELY ! SAME ESS5TIAL NATURE AS :]E A MAN SELLS MONEY = A HORSE1 & PROMISES TO DELIV]1 OR 0PAY0 ! MONEY AT A FUTURE TIME4 ,! HORSE & ! MONEY >E ! EQUIVAL5TS1 ?AT >E EX*ANG$ = EA* O!R2 ?AT IS1 ! RI<T ( PROP]TY 9 EA* ,IS EX*ANG$ = ! RI<T ( PROP]TY 9 ! O!R4 ,& ! RI<T ( PROP]TY ,9 EA* EQUIVAL5T PASSES AT ! SAME 9/ANT ?AT ! RI<T ( PROP]TY 9 ! O!R EQUIVAL5T PASSES-ELSE ! CONTRACT IS NOT RECIPROCAL1 MUTUAL1 OR EQUAL1 & ONE ( ! P>TIES RECEIVES NO EQUIVAL5T1 OR CONSID]ATION1 = ! PROP]TY HE SELLS4 ,& IT IS ( NO CONSEQU5CE :5 ! DELIV]Y1 EI!R ( ! HORSE1 OR ( ! MONEY1 ACTUALLY TAKES PLACE-:E!R 9 A MON? OR A YE> ALT] ! CONTRACT-OR :E!R ! DELIV]Y ( BO? EQUIVAL5TS TAKES PLACE AT ONE & ! SAME LIME1 OR NOT4 ,! RI<T ( PROP]TY 9 BO? EQUIVAL5TS PASSES AT ! TIME ( ! CONTRACT1 :E!R ! DELIV]Y ( EI!R OR BO? TAKES PLACE !N OR NOT4 ,! DELIV]Y IS A M]E 9CID5T TO ! CONTRACT1 & IS ( NO ,IMPORTANCE 9 ITSELF1 AS AFFECT+ ! RI<TS ( PROP]TY1 :I* EA* ( ! P>TIES HAS ACQUIR$ BY ! CONTRACT4 ,ALT] ! CONTRACT IS MADE1 ! HORSE BELONGS TO ITS PUR*AS]1 AS MU* BE=E IT IS DELIV]$ TO HIM AS AFT]W>DS2 &1 BY ! SAME RULE1 ! MONEY BELONGS TO ITS PUR*AS] AS MU* BE=E IT IS DELIV]$1 OR 0PAID0 TO HIM1 AS AFT]W>DS4 ,! SAME IS TRUE 9 REG>D TO ! SALE ( L&4 ,! RI<T ( PROP]TY 9 ! L& PASSES AT ! TIME ! CONTRACT IS MADE1 OR ! DE$ GIV51 ?\< ! POSSESSION ( ! L& ITSELF BE NOT DELIV]$ UNTIL A SUBSEQU5T TIME4 ,&1 ( CONSEQU5CE1 ! RI<T ( PROP]TY 9 ! EQUIVAL5T1 ! CONSID]ATION1 ! MONEY1 = :I* ! L& IS SOLD1 OR EX*ANG$1 PASSES ALSO AT ! TIME ( ! CONTRACT1 ?\< ?IS EQUIVAL5T1 OR MONEY ,ITSELF1 BE NOT DELIV]$1 OR PAID1 UNTIL A SUBSEQU5T TIME-ELSE ! CONTRACT W\LD NOT BE MUTUAL1 RECIPROCAL1 OR EQUAL1 & ! SELL] ( ! L& W\LD HAVE P>T$ ) HIS RI<T ( PROP]TY ,9 ! L&1 )\T RECEIV+ ANY CONSID]ATION !RE= - ?AT IS1 )\T RECEIV+ ANY EQUIVAL5T RI<T ( PROP]TY 9 EX*ANGE4 ,! DELIV]Y ( MONEY1 !N1 ON A NOTE OR CONTRACT MADE PREVI\SLY TO ! DELIV]Y1 CORRESPONDS ) A DELIV]Y ( ! POSSESSION ( L&1 ON A DE$ ?AT HAS BE5 PREVI\SLY GIV54 ,! DELIV]Y HAS NO?+ TO DO ) ! RI<T ( PROP]TY 9 EI!R CASE - = ?AT 7! RI<T ( PROP]TY7 HAS PREVI\SLY PASS$1 TO WIT1 AT ! TIME ! CONTRACT WAS 5T]$ 9TO4 

,:AT WE CALL 0PAY+0 MONEY ON A NOTE1 IS ! M]E DELIV]Y ( MONEY ?AT L9E BE5 PREVI\SLY SOLD & PAID =1 & ! RI<T ( PROP]TY 9 :I* HAS PREVI\SLY PASS$ TO ! PUR*AS]4 ,& IT IS SOLELY BECAUSE ! MONEY HAS BE5 PREVI\SLY SOLD & PAID =1 & ! RI<T ( PROP]TY 9 IT HAS PASS$ TO ! PUR*AS]1 ?AT ! MONEY ITSELF IS PAID1 OR DELIV]$4 ,IT IS BECAUSE ! MONEY HAS BE5 PREVI\SLY B\<T BY ANO!R1 & !RE=E BELONGS TO HIM1 IS [N$ BY HIM1 IS1 9 FACT1 HIS PROP]TY1 ?AT IT IS PAID1 OR DELIV]$ TO HIM4 ,IF IT HE NOT PAID TO HIM = ?IS REASON1 OR IF IT BE NOT HIS PROP]TY BE=E ,IT IS DELIV]$1 ! DELIV]Y IS A GRATUITY2 IT IS :AT HE CANNOT CLAIM AS A RI<T - = PLA9LY A MAN CANNOT CLAIM1 ON A CONTRACT1 ?AT PROP]TY BE DELIV]$1 OR PAID TO HIM1 AS HIS1 UNLESS HE HAS1 BY ! CONTRACT1 FIR/ ACQUIR$ ! [N]%IP ( IT4 

,CONTRACT RI<TS TO ?+S1 !N1 >E ACTUAL BONA FIDE RI<TS ( PROP]TY 9 & TO ! ?+S CONTRACT$ =4 ,NO O!R 9TELLIGIBLE MEAN+ CAN BE GIV5 ( CONTRACT RI<TS TO ?+S4 ,A RI<T TO A M]E PR(USE1 OR A M]ELY MORAL CLAIM TO ! FULFILLM5T ( A PROMISE1 IS NO?+ 9 LAW4 ,! LAW1 ?AT GOV]NS M5'S TITLE TO PROP]TY1 CANNOT TAKE NOTICE ( ANY SU* UNC]TA91 9TANGIBLE1 & SPECULATIVE RI<TS1 AS ?AT ( A M]ELY MORAL CLAIM TO ! FULFILLM5T ( A PROMISE1 IF SU* A CLAIM1 7DEP5D+1 AS IT MAY1 UPON A ?\S& CONT+5CIES NOT 9 !IR NATURE SUSCEPTIBLE ( PRO(17 CAN BE CALL$ A RI<T4 ,! LAW1 9 REG>D TO PROP]TY1 CAN TAKE NOTICE ( NO?+ LESS DEF9ITE1 C]TA91 OR TANGIBLE1 ?AN ACTUAL1 PROPRIET>Y RI<TS1 9 ACTUAL1 EXI/+ ?+S4 ,& UNLESS A MAN ACQUIRE A RI<T ( PROP]TY 9 A ?+1 BY HIS CONTRACT1 HE REQUIRES1 LEGALLY SPEAK+11 NO RI<T BUT ALL BY HIS CONTRACT4 ,!RE IS NO O!R LEGAL RI<T TO OR 9 ?+S1 ?AT HE CAN ACQUIRE BY CONTRACT4 ,& ?IS PROPRIET>Y RI<T IS ACQUIR$- ,9 ALL CASES :5 IT IS ACQUIR$ AT ALL - ! MOM5T ! CONTRACT IS MADE_/ :E!R IT BE AGRE$ ?AT ! DELIV]Y %ALL TAKE PLACE AT ?AT OR A FUTURE TIME4 ,& ?IS PR9CIPLE APPLIES AS WELL TO MONEY ?AT IS SOLD = A HORSE1 OR = L&1 & IS AGRE$ TO BE DELIV]$1 OR PAID1 AT A FUTURE TIME1 AS IT DOES TO L&1 OR A HORSE1 ?AT IS SOLD = MONEY1 & IS AGRE$ TO BE DELIV]$ AT A FUTURE TIME4#b 

,BUT P]HAPS IT WILL BE SAID ?AT ! WORDS1 0,I PROMISE10 :I* >E CONTA9$ 9 ! NOTE >E NOT CONTA9$ 9 ! BILL ( SALE ( A HORSE1 OR DE$ ( L&2 & ?AT !SE WORDS 9DICATE SOME ESS5TIAL DIFF]5CE 9 ! NATURE ( !SE DIFF]5T CONTRACTS4 

,BUT ! WORDS1 ,I 0PROMISE10 >E NO ESS5TIAL P>T ( ! CONTRACT4 ,NOR IS A =MAL PROMISE 9 ANY CASE ESS5TIAL TO ! VALIDITY ( A DEBT-?AT IS1 TO ! OBLIGATION TO DELIV] MONEY ?AT HAS BE5 SOLD & PAID =4 ,A MAN MAY MAKE AS MANY NAK$ PROMISES TO PAY MONEY1 AS HE PLEASES1 & !Y >E ( NO OBLIGATION 9 L[4 ,ON ! O!R H&1 IF A MAN HAVE RECEIV$ VALUE FROM ANO!R1 ) ! UND]/&+ ?AT IT IS NOT A GIFT1 OR ?AT AM1 EQUIVAL5T IS TO BE PAID = IT1 ! DEBT IS OBLIGATORY - ?AT IS1 ! OBLIGATION TO DELIV] ! EQUIVAL5T IS B9D+-:E!R !RE HE ANY =MAL PROMISE TO PAY OR NOT4 ,?IS WE SEE 9 ! EASE ( GOODS SOLD1 & *>G$ ON ACC\NT4 ,& TIME OBLIGATION TO DELIV] ! EQUIVAL5T CONSI/S 9 ?IS - ?AT IT1 7! EQUIVAL5T OR MONEY17 HAS BE5 B\<T AMID PAID =1 & N[ ACTUALLY BELONGS TO ! CR$ITOR1 OR PUR*AS]1 AS A MATT] ( PROP]TY4 ,! PROMISE1 !N1 IS A MATT] ( M]E =M 9 ANY CASE1 & ( NO IMPORTANCE TO ! VALIDITY ( AN OBLIGATION TO DELIV] AN EQUIVAL5T1 ?AT L9E1 BY CONTRACT1 7CONS5T17 BE5 EX*ANG$ = VALUE ?AT HAS BE5 RECEIV$4 ,IT MAY LIE IMPORTANT US EVID5CE ( ! CONTRACT2 BUT IT IS NO P>T ( ! CONTRACT ITSELF2 ?AT IS1 IT1 ( ITSELF1 CONVEYS NO RI<TS ( PROP]TY TO ! PROMISEE1 & NO RI<TS ( ANY K9D1 TO ! EQUIVAL5T PROMIS$1 :I* LIE W\LD NOT HAVE )\T ANY =MAL PROMISE4 

,BUT IT MAY BE SAID1 7& ?IS IS ! LANGUAGE ( ! LAWY]S17 ?AT :]E A MAN HAS PAID A CONSID]ATION = A PROMISE1 !RE ! PROMISE IS B9D+4 ,BUT ! TRU? IS1 7AS HAS BE=E LIV5 /AT$17 ?AT A MAN NEV] PAYS A CONSID]ATION = A PROMISE4 ,HE SIMPLY PAYS AN EQUIVAL5T1 A PRICE1 OR CONSID]ATION1 = ! ?+ PROMIS$4 ,& HIS RI<T ( PROP]LY TO ! ?+ PROMIS$1 ( C\RSE1 ATTA*ES AT ! TIME ( ! CONTRACT - AT ! TIME HE PAYS ! EQUIVAL5T = IT - OR IT CAN NEV] ATTA* AT ALL4 FLUID !N LIMO PROMISE TO DELIV]1 OR PAY IT1 7! ?+ PROMIS$17 IS MADE SOLELY AS EVID5CE ?AT IT 7! ?+ PROMIS$7 HAS BE5 SOLD1 & N[ BELONGS TO ! PROMISEE AS A MATT] ( PROP]TY4 

,A PROMISSORY NOTE1 !N1 ?AT ,IS GIV5 = MONEY1 IS1 9 ITS ESS5CE1 PRECISELY LIKE A BIII ( SALE1 ?AT IS GIV5 ( A HORSE1 & ?AT CONTA9S AN AGREEM5T TO DELIV] ! HORSE AT A FUTURE LIMO2 OR IT IS PRECISELY LIKE A DE$ ?AT ,IS GIV5 ( L&1 & ?AT EMBRACES AN AGREEM5T1 OR MEMOR&UM1 ?AT ! POSSESSION ( ! L& ,IS TO BE GIV5 AT A FUTURE TIME4 ,TIME LANGUAGE ( !SE ?REE CONTRACTS >E1 9 !IR LEGAL PURPORT1 ESS5TIALLY TIME SAME4 ,= 9/ANCE4 ,! PROMISSORY NOTE RUNS ?US4 

0,?IRTY 7LAYS FROM DATE ,I PROMISE TO PAY ,A4 ,B4 ONE HUNDR$ DOLL>S1 = VALUE RECEIV$40 ,SIGN$ ,C4 ,D4 

,! BILL ( SALE RUNS ?US4 

,A4 ,B4 B\<T ( ,C4 ,D4 ONE HORSE1 LOBE DELIV]$ 9 ?IRTY 7LAYS FROM DATE4 ,RECEIV$ PAYM5T40 ,SIGN$ ,C4 ,D4 

,TIME DE$ ( L& RUNS ?US4 

0,9 CONSID]ATION ( ONE HUNDR$ DOLL>S1 PAID BY ,A #a#c1 ! RECEIPT ( :I* IS H]EBY ACKN[L$G$1 ,I H]EBY GRANT1 CELL1 & CONVEY TO ,A ,B1 ONE ACRE ( L&1 POSSESSION TO LIE DELIV]$ ,9 ?IRTY DAYS FROM ! DATE H]E(40 ,SIGN$ ,C4 ,D4 

,:AT DIFF]5CE IS !RE 9 !SE ?REE CONTRACTS1 SO F> AS A CONVEYANCE ( PROPRIET>Y RI<TS TO ! ?+ PROMIS$ TO HE PAID1 OR DELIV]$1 IS CONC]N$8 ,OBVI\SLY NONE :ATEV]4 ,! BILL ( SALE SAYS1 9 SUB/ANCE1 ?AT ! HORSE HAS BE5 SOLD1 NOT JU/ ?IS 0PAYM5T10 ! VALUE1 OR ! EQUIVAL5T1 HAS !N 0RECEIV$20 & ?AT TIME HORSE - :I*1 HAV+ BE5 ?US SOLD & PAID =1 N[ ( C\RSE BELONGS TO ! PU*AS]- IS TO BE DELIV]$ TO HIM 9 ?IRTY DAYS4 ,! DE$ SAYS ?AT ! LAUD IS SOLD1 & ITS EQUIVAL5T1 OR 0CONSID]ATION10 HAS BE5 0PAID0 NOT 0RECEIV$ & ?AT ! POSSESSION ( ! L&- 7:I*1 HAV+ BE5 ?US SOLD & PAID =1 N[ ( C\RSE BELONGS TO ! PUR*AS]7 - ,IS TO BE GIV5 9 ?IRTY DAYS4 ,! NOTE SAYS ?AT ! 0VALUE0 - ?AT IS1 ! EQUIVAL5T1 ! 0PAYM5T10 !0 CONSID]ATION10 = ! MONEY PROMIS$1 HAS BE5 0RECEIV$10 7:I* ,IMPLIES ?AT ! MONEY PROMIS$ HAS BE5 SOLD1 & N[ BELONGS TO ! PUR*AS]17 & ?AT ! MONEY ,IS TO BE DELIV]$1 OR PAID1 9 ?IRTY DAYS4 

,:AT POSSIBLE GR\ND IS !RE = SAY+ ?AT ! RI<T ( PROP]TY 9 ! L&1 OR 9 ! HORSE1 IS CONVEY$ BY ! CONTRACT EXPRESS$ 9 ! =EGO+ DE$1 OR BILL ( SOLE1 & ?AT ! RI<T ( PROP]TY 9 ! MONEY1 7OR 9 AN AM\NT ( VALUE SUFFICI5T TO PUR*ASE ! MONEY17 IS NOT CONVEY$ BY ! CONTRACT EXPRESS$ 9 ! NOTE8 ,NONE1 NONE :ATEV]4 

,SUPPOSE ,A AMID #ad %\LD MAKE A CONTRACT ) EA* O!R = ! EX*ANGE - OR1 :ET IS ! SAME ?+1 = ! MUTUAL PUR*ASE & SALE - ( ONE HUNDR$ DOLL>S 9 MONEY1 & A HORSE2 ?AT ,IS1 ,A %\LD SELL TO ,B A HORSE = AN HUNDR$ DOLL>S 9 MONEY1 & #ac %\LD SELL TO ,A AN HUNDR$ DOLL>S 9 MONEY = A HORSE2 AMID ?AT BO? ! MONEY & ! HORSE >E TO BE DELIV]$ 9 TW5TY DAYS FROM ! TIME ( ! CONTRACT4 ,! PROMISE ( ONE W\LD BE TO 0PAY0 ! MONEY 9 ?IRTY DAYS1 & ( !SE !N TO 0DELIV]0 ! HORSE 9 ?IRTY DAYS4 ,YET DO NOT !SE MUTUAL PROMISES1 OR UND]TAK+S1 MEAN PRECISELY ! SAME TIM+8 ,& IS NOT ! CONTRACT1 ON1 ! P>T ( EA*1 PRECISELY ! SAME ?R\<\T1 ?AT IT IS ON ! P>T ( ! O!R8 ,TIM ALSO IS ! EQUIVAL5T ( ! MONEY1 & TIME MONEY ( ! HORSE4 ,! MONEY IS SOLD = ! HORSE1 AS MU* AS ! HORSE IS SOLD = ! MONEY4 ,AMID ! HORSE BUYS ! MONEY1 AS MU* AS ! MONEY BUYS ! HORSE4 ,TIME AGA9 IS RECIPROCAL & EQUAL 9 EV]Y RESPECT4 ,! MUTUAL PUR*ASE & SALE HAVE BEETS A M]E EX*ANGE ( ! RI<TS ( PROP]TY 9 C]TA9 VALUES1 OR EQUIVAL5TS4 ,:Y1 !N1 ATTA* A DIFF]5T MEAN+ TO ! WORD 0PAY10 :5 APPLI$ TO ! MONEY1 FROM :I* WE ATTA* TO ! WORD 0DELIV]10 :5 APPLI$ TO ! HORSE8 ,:Y SAY ?AT TIME RI<T ( PROP]TY 9 ! HORSE PASSES TO ! PUR*AS] ( ! HORSE AT ! TIME ( ! CONTRACT1 LIMIT !N ! RI<T ( PROP]TY 9 ! MONEY1 7OR 9 AN AM\NT ( VALUE SUFFICI5T TO PUR*ASE ! MONEY17 DOES NOT PASS TO ! PUR*AS] ( ! MONEY UNTIL ! DELIV]Y1 ?IRTY DAYS AFT]W>DS8 ,CLE>LY !RE IS HO REASON = IT4 ,EVID5TLY1 ! RI<T ( PROP]TY 9 ONE EQUIVAL5T PASSES AT ?IS SAME TIME ?AT ! RI<T ( PROP]TY 9 ! O!R EQUIVAL5T PASSES1 TO WIT1 AT ! TIME ( ! CONTRACT1 )\T ANY REG>D TO ! TIME ( ! DELIV]Y4 

,! REAL1 EQUITABLE1 BONA FIDE RI<T ( PROP]TY 9 EA* ( !SE >TICLES1 7TIME HORSE & HUE MONEY17 IS EX*ANG$ BY TIME CONTRACT1 & !RE=E NECESS>ILY PASSES AT ! TIME ( ! CONTRACT4 ,! POSSESSION M]ELY ( EA* REMA9S ) ! SELL] = ?IRTY DAYS4 ,ALL WILL AGREE ?AT ! RI<T ( PROP]TY 9 ! HORSE PASSES AT ! TIME ( TIME CONTRACT1 & ?AT ! POSSESSION M]ELY REMA9S ) ! SELL] DUR+ ! ?IRTY DAYS4 ,:Y DOES NOT ! RI<T ( PROP]TY1 9 ! HUNDR$ DOLL>S1 7OR 9 AN AM\NT ( VALUE EQUIVAL5T TO ! HUNDR$ DOLL>S17 PASS EQUALLY AT ! TIME ( ! CONTRACT1 M9D ! POSSESSION M]ELY REMA9 ) ! SELL] ( ! MONEY = ?IRTY DAYS8 ,! MUTUAL PUR*ASE & SALE ( ! HORSE & ! MONEY IS A M]E EX*ANGE ( EQUIVAL5TS- A RECIPROCAL CUD EQUAL CONTRACT2 & PRECISELY ! SAME RI<TS ( PROP]TY1 :I* PASS TO TIME PUR*AS] ( ! HORSE1 PASS ALSO TO ! PUR*AS] ( ! MONEY4 ,C]TA9LY1 IF ! RI<T ( PROP]TY 9 ! HORSE1 PASSES TO ! PUR*AS] ( TIME HORSE1 BY =CE ( ! CONTRACT1 & AT ! TIME ( !E CONTRACT1 TIME SAME RI<T ( PROP]TY 9 ! MONEY PASSES ALSO TO ! PUR*AS] ( ! MONEY1 BY =CE ( CONTRACT1 & AT ! TIME ( ! CONTRACT4 ,NO PROPOSITION1 9 LAW1 IT SEEMS TO ME1 CAN LIE MORE SELL-EVID5T ?AN ?IS4 

,WELL1 !M1 SUPPOS+ ?IS PO9T TO HE E/ABLI%$1 ?AT ! RI<T ( PROP]TY1 9 MONEY ?AT IS PROMIS$-OR RA!R 9 AN AM\NT ( VALUE EXI/+1 9 SOME %APE OR O!R1 9 ! H&S ( ! DEBTOR1 SUFFICI5T TO PUR*ASE ! AM\NT ( MONEY PROMIS$ - PASSES TO ITS PUR*AS] AT ! TIME ! CONTRACT IS 5T]$ 9TO1 9/EAD ( ! TIME ( DELIV]Y - :AT FOLL[S8 

,FROM ! TIME ?AT PROP]TY IS SOLD1 UNTIL IT IS DELIV]$1 ! SELL] IS ! M]E BAILEE ( ! PUR*AS]2 & ! PROP]TY ITSELF ,IS AT ! RISK ( ! PUR*AS]1 UNLESS ! SELL] BE GUILTY ( SOME FAULT1 OR CULPABLE NEGLECT1 9 REG>D4 TO ! CU/ODY OR USE ( IT4 

,= 9/ANCE4 ,9 ! CASE BE=E SUPPOS$1 :]E ,A SELLS TO ,B A HORSE1 = AN HUNDR$ DOLL>S1 GIV+ HIM A BILL ( SALE !RE(2 & ,B SELLS TO ,A AN HUNDR$ DOLL>S = TIME HORSE1 GIV+ HIM A PROMISSORY NOTE !RE= - ! HORSE & MONEY TO BE EA* DELIV]$ TO !IR RESPECTIVE PUR*AS]S 9 ?IRTY DAYS FROM ! TIME ( ! CONTRACT-,A HOLDS ! CU/ODY OH ! HORSE1 = ?OSE ?IRTY DAYS1 AS ! H\SE ( ,B4 ,& IF ! HORSE1 DUR+ ?OSE ?IRTY DAYS1 DIE1 BE /OL51 OR O!RWISE LO/ OR 9JUR$1 BY ANY ( ! CASUALTIES TO :I* HORSES >E LIABLE1 )\T ANY FAULT1 OR CULPABLE NEGLIG5CE1 ON TIME P>T ( ,A1 ! LOSS FALLS UPON ,B1 ! PUR*AS]4 ,ALL LAWY]S WILL AGREE ?AT ?IS IS TIME LAW ,9 REG>D TO ! HORSE4 ,ON ! SAME PR9CIPLE1 !M1 ?AT ,A IS TIME M]E BAILEE ( ! HORSE = ?OSE ?IRTY DAYS1 ,B IS ! M]E BAILEE ( ! MONEY1 7OR ( AN AM\NT ( VALUE EQUIVAL5T TO ! MONEY17 DUR+ ! SAME TIME2 ?AT IS1 ?IS MONEY OR VALUE REMA9S 9 ! H&S ( ,B1 = HIS USE1 ! REAL [N]%IP BE+ 9 ,A2 & IF ! MONEY1 DUR+ ! ?IRTY DAYS ?AT ,IT IS TO REMA9 9 TIME H&S ( ,B1 = HIS USE1 BE LO/ BY FIRE1 OR !FT1 OR ANY ( ! ACCID5TS1 OR ANY ( ! CASUALTIES ( TRADE1 TO :I* MONEY IS LIABLE1 )\T ANY FAULT1 OR CULPABLE NEGLIG5CE ON ! P>T ( ,B1 ! LOSS FELLS UPON ,A1 ! PUR*AS] & REAL [N] ( ! MONEY4 ,CLE>LY ! SAME PR9CIPLES APPLY TO BO? ! >TICLES1 HORSE & MONEY4 ,! RI<T ( PROP]TY 9 EA* HAS BE5 EX*ANG$ = ! RI<T ( PROP]LY 9 TIME O!R2 & ! CU/ODY & USE ( EA* >E TO REMA9 ) ITS SELL] = ?IRTY DAYS4 ,EA* PUR*AS]1 ( C\RSE1 TAKES ! SAME RISK AS ! O!R1 ( ! COMMODITY HE HAS PUR*AS$1 :ILE IT REMA9S 9 ! H&S ( ITS SELL]4 

,IF ,A1 ! SELL] ( ! HORSE1 :ILE ! HORSE REMA9S 9 HIS POSSESSION1 AFT] ! SALE1 %\LD USE IT 9 ANY MODE DIFF]5T FROM :AT IT WAS UND]/OOD ?AT HE %\LD USE IT2 OR %\LD NEGLECT TO TAKE SU* REASONABLE C>E1 9 ! USE & TREATM5T ( ! HORSE1 AS GOOD FAI? T[>DS ! [N] ( ! HORSE REQUIR$ ( HIM2 & %\LD !REBY ! TIME CAUSE ( 9JURY OR DEA? TO ! HORSE1 HE 7! SELL]7 W\LD BE /ILL LIABLE = ! VALUE ( ! HORSE2 NOT1 H[EV]1 ON HIS CONTRACT1 NOR 9 AN ACTION ( TROV] = ! HORSE ITSELF1 BUT 9 AN ACTION ON ! CASE = DAMAGES1 = ! LOSS OCCASION$ BY HIS 9T5T1 AS HAS BE=E BE5 EXPLA9$4 ,BY ! SAME RULE1 IF ,B1 ! SELL] ( ! MONEY1 :ILE IT REMA9$ 9 HIS POSSESSION1 W\LD 9T5TIONALLY OR NEGLIG5TLY EXPOSE IT TO ANY O!R ?AN ! USUAL RISKS1 TO :I* IT WAS UND]/OOD ?AT IT WAS TO BE EXPOS$1 & !REBY ! MONEY %\LD BE LO/1 !N HE 7! SELL] ( ! MONEY7 W\LD BE %ILL LIABLE TO ! [N] ( IT = ! AM\NT 2 NOT1 H[EV]1 ON HIS CONTRACT1 NOR 9 AN ACTION ( TROM] = ! MONEY ITSELF1 BUD ,9 AN ACTION ON ! CASE = DAMAGES1 = ! LOSS OCCASION$ BY HIS FAULT4 #ba 

,BUT IF ,A1 ! SELL] ( ! HORSE1 US$ ! HORSE ) SU* REASONABLE C>E1 :ILE IT REMA9$ 9 HIS POSSESSION AFT] ! SALE1 AS ! LAW ( BAILM5TS & GOOD FAI? T[>DS ,B2 ! [N] ( ! HORSE1 REQUIR$ ( HIM1 & ! HORSE1 NEV]!LESS1 CANOE TO 9JURY OR DEA?1 ,B1 ! PUR*AS] & [N] ( ! HORSE1 MU/ BE> ! LOSS4 ,BY ! SAME RULE1 IF ,B1 ! SELL] ( ?IS MONEY1 SOME SU* C>E 9 ! PRES]VATION & MANAGEM5T ( IT1 :ILE IT REMA9S 9 HIS POSSESSION AFT] ! SALE1 AS ! LAW ( BAILM5TS & GOOD FAI? T[>DS ,A1 ! PUR*AS] ( ! MONEY1 REQUIRE ( HIM1 & IT 7! MONEY7 %\LD1 NEV]!LESS1 BE DIM9I%$ OR LO/1 ,A1 ! PUR*AS] & REAL [N] ( ! MONEY1 MU/ BE> ! LOSS4 

,N[ ! ONLY OBJECTION :I* ! LAWY]S WILL RAISE TO ?IS DOCTR9E1 OR TO ! APPLICATION ( ! PR9CIPLES ( BAILEE & BAILOR TO ! CASES ( DEBTOR AMID CR$ITOR1 ,IS SIMPLY ?IS M ,!Y WILL SAY ?AT ! SPECIFIC PROP]TY1 TO :I* TIME CONTRACT ( DEBT 7AT ! TIME ,IT IS 5T]$ 9TO7 ATTA*ES1 MAY1 BE=E ! TIME AGRE$ ON = ! DELIV]Y1 BE EX*ANG$1 BY ! DEBTOR1 = O!R PROP]TY 2 & ?AT ! SAME CONTRACT1 :I* ATTA*$ TO ! ORIG9AL PROP]TY1 CANNOT ATTA* TO ! NEW PROP]TY = :I* ?AT IS EX*ANG$4 

,!Y GET ?IS FALSE IDEA FROM LOOK+ SOLELY AT ! G5]AL RULE IT1 REG>D TO BAILM5TS1 & KEEP+ ! EXCEPTIONS & QUALIFICATIONS TO ! RULE NOT ( SI<T2 :I*1 9 FACT1 !SE EXCEPTIONS & QUALIFICATIONS COV] NE>LY OR QUITE AS MANY CASES1 9 ACTUAL LIFE1 AS ! RULE ,ITSELF4 ,= 9/ANCE ! G5]AL RULE1 9 BAILM5TS1 IS1 ?AT ! SPECIFIC ?+ LOAN$ OR 5TRU/$ TO ! BAILEE1 IS TO BE RE/OR$ TO ! BAILOR4 ,! EXCEPTIONS OR QUALIFICATIONS ORE1 :]E !RE IS EI!R AN EXPRESS1 OR IMPLI$ AU?ORITY GIV5 TO ! BAILEE TO EX*ANGE ! PROP]TY HAIL$ = SOME?+ RISE4 ,:]EV] !RE IS EI!R AN EXPRESS OR IMPLI$ AU?ORITY GIV5 TO ! BAILEE TO MAKE SU* EX*ANGE1 ! SAME RI<T ( PROP]TY :I* ! BAILOR HAS 9 ! ORIG9AL COMMODITY HAIL$1 ATTA*ES TO ! NEW COMMODITY1 OR EQUIVAL5T1 = SU* ?AT HAS BE5 EX*ANG$4 ,9 TIME CASES ( ! V>I\S K9DS ( COMM]CIAL AG5CIES1 :]E ! AG5T IS 5TRU/$ ) COMMODITIES ( ONE K9D1 TO BE EX*ANG$ BY HIM = MONEY1 OR O!R COMMODITIES1 ! RI<T ( PROP]TY 9 ! MONEY OR O!R COMMODITIES1 RECEIV$ BY ! BAILEE AS ! EQUIVAL5T ( TIME COMMODITIES BAILEE1 VE/S 9 ! BAILOR ON ! 9/ANT ( TIME EX*ANGE1 AMID NEV] BECOMES VE/$ 9 TIME HI!R4 ,MANY1 P]HAPS 9 TIME L>G] NUMB]S ( CASES ( COMM]CIAL AG5CIES1 ! BAILEE RECEIVES EXPRESS AU?ORITY = MAK+ TIME EX*ANGE2 BUT NOT ALL1 NOR NE>LY ALL4 ,9 MAMMY CASES ! AU?ORITY IS IMPLI$ FROM COLLAT]AL FACTS4 ,& AN1 IMPLI$ AU?ORITY IS AS GOOD1 9 L[1 ITS ANY CASE :ATEV]1 AS AN EXPRESS AU?ORITY4 ,ALL ?AT IS NECESS>Y1 ,IS1 ?AT !RE BE VALID GR\NDS = ! IMPLICATION4 

,CONSID]+1 !N1 ! RELATIONS ( DEBTOR & CR$ITOR TO BE ?OSE ( BAILEE OR BAILOR1 >E !RE ANY VALID GR\NDS = ! IMPLICATION ( AN AU?ORITY1 FROM TIME CR$ITOR TO TIME DEBTOR1 TO EX*ANGE1 & TRAFFIC )1 ! PROP]TY BAIL$1 OR LOAN$ TO ! CR$ITOR4 

,!RE >E SEV]AL4 

,9ASMU* AS ! CONTRACT MAKES NO DESIGNATION ( ! P>TICUL> =M 9 :I* ! VALUE1 TO :I* ! CONTRACT ATTA*ES1 EXI/S AT ! TIME ! CONTRACT IS 5T]$ 9TO1 IT1 ( C\RSE1 DESCRIBES NO P>TICUL> =M IT 9 :I* IT MU/ EXI/ AT ANY TIME1 EXCEPT AT ! TIME ( DELIV]Y1 :5 IT MU/ BE 9 MONEY4 ,S9CE1 !N1 !RE IS1 9 ! CONTRACT1 NO EXPRESS OR IMPLI$ REQUIREM5T ?AT ! DEBTOR %ALL RETA9 ! VALUE 9 ANY P>TICUL> =M1 IT 9H]5TLY ALL[S HIM TO USE ALL REASONABLE DISCRETION AS TO ! =M 9 :I* IT WILL BE EXP$I5T TO KEEP IT4 ,& SU* A DISCRETION ALL[S HIM TO CONV]T IT1 BY EX*ANGES1 9TO SU* DIFF]5T =MS AS A PRUD5T & C>EFUL MAN MI<T REASONABLY DEEM B5EFICIAL4 ,UNLESS HE W]E ALL[$ ?IS DISCRETION1 HE W\LD NOT BE ALL[$ TO CONV]T IT FROM A P]I%ABLE COMMODITY 9TO A DURABLE ONE 2 NOR FROM AN UNPRODUCTIVE 9TO A PRODUCTIVE ONE4 

#b4 ,! CAPITAL LOAN$1 IS LOAN$ TO BE US$4 ,?IS MU/ ALWAYS BE PRESUM$1 BECAUSE NO O!R REASONABLE MOTIVE = ! LOAN CAN BE SUPPOS$4 ,& IF IT BE LOAN$ TO BE US$1 & ! =M 9 :I* IT IS TO BE US$ IS NEI!R EXPRESS$ NOR IMPLI$ BY ! CONTRACT1 7AS IS ! CASE 9 ! 9/ANCE ( A PROMISSORY NOTE17 IT MU/ BE PRESUM$ ?AT IT WAS 9T5D$1 BY ! CR$ITOR1 ?AT ! DEBTOR %\LD USE IT 9 SU* MANN] AS PRUD5T M5 USE !IR [N CAPITAL4 ,& AS ! HABIT ( PRUD5T M5 IS TO CONV]T !IR [N CAPITAL1 BY EX*ANGES1 OR TRAFFIC1 FROM ONE =M 9TO ANO!R2 & AS1 9 MANY K9DS ( BUS9ESS1 !Y >E OBLIG$ TO DO SO1 TO D]IVE ANY PR(IT FROM !IR CAPITAL1 ,IT MU/ ALWAYS BE PRESUM$1 79 ! ABS5CE ( ANY EXPRESS OR IMPLI$ PROHIBITION17 ?AT ! DEBTOR WAS TO HE ALL[$ ! SAME DISCRETION 9 ! MANAGEM5T ( ! LOAN1 >ID 9 CONV]T+ IT FROM ONE =M 9TO ANO!R1 BY TRAFFIC1 AS PRUD5T M5 EX]CISE 9 ! MANAGEM5T ( !IR [N CAPITAL4 

#c4 ,! CONTRACT ( DEBT NEV] DESCRIBES ! P>TICUL> =M1 9 :I* ! AM\NT ( VALUE1 TO :I* ! CONTRACT ATTA*ES EXI/S AT ! TIME ! CONTRACT ( BAILM5T OR DEBT IS 5T]$ 9TO2 BUT ONLY ! =M 9 :I* IT IS F9ALLY TO BE DELIV]$1 TO WIT1 ?AT ( MONEY4 ,! CONTRACT1 !RE=E1 ONLY IMPLIES ?AT ! AM\NT ( VALUE EXI/S1 9 SOME %APE OR O!R1 9 ! B&S ( ! DEBTOR4 ,IF1 !RE=E1 ! DEBTOR HAVE NOT MONEY = ! CONTRACT TO ATTA* TO1 AT ! TIME IT IS 5T]$ 9TO1 IT MU/ ATTA* TO VALUE EXI/+ 9 SOME O!R =M1 ELSE ,IT W\LD ATTA* TO NO?+1 & !RE=E BE VOID4 ,:51 !N1 ! CONTRACT DOES ATTA* TO VALUE EXI/+ 9 SOME O!R =M ?AN MONEY1 IT C]TA9LY IMPLIES AN AU?ORITY TO EX*ANGE ! COMMODITIES1 79 :I* ! VALUE IS 9VE/$17 = MONEY1 AT LEA/1 IF = NO?+ ELSE 2 BECAUSE ! CONTRACT EXPRESSLY PRESCRIBES ?AT ! VALUE TO :I* ! CONTRACT ATTA*ES %ALL ONLY BE DELIV]ABLE TO ! CR$ITOR 9 ! %APE ( MONEY1 & ! DEBTOR1 !RE=E1 CANNOT FULFILL HIS CONTRACT1 UNLESS LIE C\LD CONV]T ?IS VALUE 9TO MONEY4 ,& IF ! DEBTOR IS AU?ORIZ$ TO CONV]T 9TO MONEY1 ! VALUE TO :I* ! CONTRACT ATTA*ES1 !RE IS NO REASON1 ?AT ,I KN[ (1 :Y HE HAS NOT ALL FAIR & REASONABLE DISCRETION AS TO ! MODE ( CONV]T+ IT 9TO MONEY2 NOR :Y HE MAY NOT DO IT BY MEANS ( A DOZ5 9T]M$IATE EX*ANGES1 IF HE ?9KS HE CAN ?US DO IT MORE ADVANTAGE\SLY4 

#d4 ,IF ! VALUE1 TO :I* ! CONTRACT ATTA*ES1 DO EXI/ 9 ! %APE ( MONEY AT ! TIME ! CONTRACT IS 5T]$ 9TO1 7AS 9 ! CASE :ORE MONEY ITSELF IS LOAN$1 & ! DEBTOR HAS NO O!R PROP]TY1 ?AN ! LOAN1 = ! CONTRACT TO ATTA* TO17 !N ! CONTRACT C]TA9LY IMPLIES AN AU?ORITY TO EX*ANGE ?AT MONEY = O!R COMMODITIES1 & ?OSE COMMODITIES BACK 9TO MONEY2 BECAUSE ! MONEY IS OBVI\SLY LOAN$ TO BE US$2 AS IS PROV$ BY ! FACTS1 ?AT NO O!R REASONABLE MOTIVE = ! LOAN CAN LIE SUPPOS$1 >ID ?AT1 9 MO/ CASES ! DEBTOR AGREES TO PAY UTT]$ = ITS USE1 :I* HE C\LD NOT AF=D TO DO UNLESS ! MONEY W]E TO BE MADE PRODUCTIVE TO HIM4 ,N[ MONEY ITSELF CAN NEI!R BE US$1 NOR MADE PRODUCTIVE1 9 ANY O!R WAY ?AN BY BE+ EX*ANG$ = O!R COMMODITIES1 OR BY BE+ WR\<T 9TO SOME O!R %APE ?AN CO94 ,!SE FACTS1 !N1 >E 5\< TO PROVE IT MU/ HAVE BE5 ! 9T5TION ( ! L5D]1 OR BAILOR1 ?AT ! BORR[]1 OR BAILEE1 %\LD BE AT LIB]TY TO EX*ANGE ! MONEY LOAN$1 = O!R COMMODITIES4 ,& !N ! FACT ?AT ! AM\NT ( VALUE PROMIS$ TO BE PAID TO ! CR$ITOR1 IS F9ALLY TO HE DELIV]$ TO HIM 91 ! %APE ( MONEY1 PROVES ?AT ! DEBTOR HAS ! CONS5T ( ! CR$ITOR TO CONV]T !SE O!R COMMODITIES BACK 9TO MONEY AGA94 

,:E!R1 !RE=E1 ! CONTRACT ( DEBT ATTA*1 AT ! TIME IT IS 5T]$ 9TO1 EI!R TO VALUE EXI/+ 9 ! %APE ( MONEY1 OR TO VALUE EXI/+ 9 ANY O!R %APE1 7NOT DESIGNAT$ 9 ! CONTRACT17 ! CONTRACT & ! COLLAT]AL FACTS IMPLY AN AU?ORITY TO ! DEBTOR TO TRAFFIC ) ! PROP]TY OR VALUE TO :I* ! CONTRACT ATTA*$4 ,&1 IF ?IS BE ! FACT1 !N ! RI<TS ( ! CR$ITOR1 OR BAIL]1 FOLL[ ! VALUE1 & CL+ TO IT1 9 EV]Y =M ?AT IT MAY PASS ?R\< 9 ! H&S ( ! DEBTOR1 FROM ! TIME ! CONTRACT IS MADE1 UNTIL IT IS F9ALLY DELIV]$1 OR REPAID TO HIM1 7! CR$ITOR17 9 ! %APE ( MONEY4 

,IF IT HAS N[ BE5 %[N ?AT ! TRUE RELATION SUBSI/+ BETWE5 DEBTOR & CR$ITOR IS M]ELY ! RELATION ( BAILEE & BAILOR2 ?AT A DEBTOR IS M]ELY ONE :O HAS SOLD VALUE TO ANO!R1 & RETA9S ! POSSESSION & TITLE ( IT = A TIME AFT] ! SALE2 & ?AT ! LEGAL OBLIGATION ( ! DEBTOR TO PAY MONEY1 5D ! LEGAL PURPORT ( HIS PROMISE TO PAY MONEY1 = VALUE ?AT HUE HAS RECEIV$1 >E M]ELY AN OBLIGATION & PROMISE TO DELIV] MONEY1 :I* HE HAS SOLD & RECEIV$ HIS PAY =1 & ! RI<T ( PROP]TY 9 :I* HAS ALREADY PASS$ TO ! CR$ITOR1 IT FOLL[S ?AT ! CR$ITOR'S RI<T1 ACQUIR$ BY HIS CONTRACT1 ATTA*ES TO NO?+ EXCEPT TO SU* PROP]TY AS ACTUALLY EXI/$ 9 ! H&S ( ! DEBTOR = ! CONTRACT TO ATTA* TO1 AT ! TIME ! CONTRACT WAS MADE1 & NO SU* O!R VALUE AS MAY HAVE BECOME ,9DI/+UI%ABLY MIX$ ) IT1 BETWE5 ?AT ! & ! TIME NMGREE#d UPON = ,ITS DELIV]Y OR PAYM5T4 ,& FROM !SE SEV]AL PROPOSITIONS IT ALSO FOLL[S1 ?AT AT ! TIME A DEBT BECOMES DUE1 A CR$ITOR HAS NO CLAIMS1 BY VIRTUE ( HIS CONTRACT1 UPON ANY?+ EXCEPT :AT REMA9S ( ! PROP]TY ?AT HE PUR*AS$ BY HIS CONTRACT1 5D UPON SU* O!R VALUE OR PROP]TY AS MAY HAVE BECOME 9DI/+UI%ABLY MIX$ ) IT1 7UNLESS ! DEBTOR HAVE BE5 GUILTY ( SOME FAULT OR CULPABLE NEGLECT 9 ! USE OR CU/ODY ( IT1 :]EBY IT HAS BE5 DIM9I%$ OR LO/47 

,! UTMO/ EXT5T1 !RE=E1 ( ! CR$ITOR'S CLAIM1 7:5 ! DEBTOR HAS BE5 GUILTY ( NO FAULT1 NEGLECT1 OR BAD FAI?1 ,9 ! CU/ODY OR USE ( ! PROP]TY LOAN$ TO HIM17 IS TO ! PROP]TY ACTUALLY EXI/+ 9 ! H&S ( ! DEBTOR AT ! TIME ! DEBT BECOMES DUE4 ,HE HUMS A PRIMA FACIE CLAIM TO ! :OLE ( ?IS1#b#b IF IT BE NECESS>Y = ! SATISFACTION ( HIS DEBT4 ,BUT IF IT BE 9SUFFICI5T = ! SATISFACTION ( HIS DEBT - ?AT IS1 IF HIS PUR*ASE HAVE BE5 DIM9I%$ ,9 VALUE OR AM\NT1 :ILE ,9 ! CU/ODY ( ! DEBTOR1 7)\T ANY FAULT OR CULPABLE NEGLECT ON ! P>T ( ! DEBTOR17 - HE1 ! CR$ITOR1 MU/ BE> ! LOSS4 ,! CONTRACT IS EXT9CT1 FULFILL$1 ON ! DELIV]Y ( :ATEV] REMA9S ( ! PROP]TY ORIG9ALLY BAIL$ TO ! DEBTOR4 ,& ,IF ! :OLE ( ! VALUE BAIL$ HAVE BEAMS LO/1 )\T ! FAULT ( ! DEBTOR1 ! LOSS FALLS ON ! CR$ITOR4 

,!RE IS NO ESCAPE FROM ?IS CONCLUSION BUT BY D5Y+ ?AT ! CONTRACT ATTA*$ TO ANY?+ AT ! TIME IT WAS MADE4 ,& SU* A D5IAL1 9/EAD ( PROV+ ?AT ! DEBT WAS OBLIGATORY BEYOND ! DEBTOR'S MEANS ( PAYM5T1 W\LD ONLY BE EQUIVAL5T TO A D5IAL ?AT IT EV] HAD ANY LEGAL VALIDITY AT ALL4 ,9 ORD] TO MA9TA9 ! VALIDITY ( ! CONTRACT1 WE MU/ MA9TA9 ?AT IT ATTA*$ TO SOME?+-?AT IS1 ?AT IT CONVEY$ TO ! CR$ITOR A PROPRIET>Y RI<T TO SOME VALUE EXI/+ 9 ! H&S ( ! DEBTOR AT ! TIME ! CONTRACT WAS 5T]$ 9TO4 ,& IF ! CONTRACT HAD ANY VALIDITY-?AT IS1 IF IT ATTA*$ TO ANY?+ - AT ! TIME IT WAS 5T]$ 9TO1 ITS VALIDITY LIV$ ONLY 9 ! LIFE ( TIME VALUE1 OR PROP]TY TO :I* ,IT ATTA*$2 & :5 ?AT VALUE EXPIR$1 OR BECAME EXT9CT1 ! CONTRACT1 OR1 9 O!R WORDS1 ALL ! RI<TS :I* ! CR$ITOR ACQUIR$ BY VIRTUE ( HIS CONTRACT1 NECESS>ILY EXPIR$ ) IT4 

,TAK+ IT = GRANT$ ?AT IT HAS N[ BE5 %[N ?AT A DEBTOR IS1 9 LAW1 ! M]E BAILEE ( HIS CR$ITOR1 IT MAY BE IMPORTANT TO REPEAT ! /ATEM5T ( ! PR9CIPLE1 BY :I* ?IS BAILM5T OP]ATES AS A LI5 UPON ! :OLE PROP]TY ( ! DEBTOR1 EV5 ?\< HIS PROP]TY HE MANY TIMES GREAT] ?AN ! DEBT4 ,! PR9CIPLE IS ?IS4 ,SUPPOSE ! DEBT TO BE ONE HUNDR$ DOLL>S 2 & ! :OLE AM\NT ( PROP]TY1 9 ! H&S ( ! DEBTOR1 TO BE ONE ?\S& DOLL>S4 ,! CONTRACT ATTA*ES TO AMID B9DS SO MU* VALUE1 OR PROP]TY1 9 ! H&S ( ! DEBTOR1 AS WILL BR+ ONE HUNDR$ DOLL>S4 ,BUT ! CONTRACT DOES ,COT DESIGNATE ! P>TICUL> =M1 9 :I* ! VALUE1 OR PROP]TY1 TO :I* IT ATTA*ES1 EXI/S4 ,IT1 !RE=E1 ATTA*ES TO IT 9 EV]Y =M IT EXI/S 9 ! H&S ( ! DEBTOR2 SIMPLY BECAUSE IT CANNOT BE %[N ?AT IT ATTA*ES TO ?AT :I* EXI/S 9 ONE =M1 ANY MORE ?AN TO ?AT :I* EXI/S 9 ANO!R =M4 ,ANY PORTION1 !RE=E1 ( ! DEBTOR'S PROP]TY1 OR ! :OLE ( IT1 IF IT %\LD BE NECESS>Y1 IS LIABLE TO BE TAK5 = ! SATISFACTION ( ! DEBT2 & ?IS LIABILITY ( ! :OLE MAKES ! DEBT A LI5 UPON ! :OLE4 ,IT IS ON ?IS PR9CIPLE ?AT A MORTGAGE ON L&1 = BUT A T5? P>T ( ! ACTUAL VALUE ( ! L&1 IS A LI5 UPON ! :OLE4 

,A PROMISSORY NOTE1 OR O!R P]SONAL DEBT1 :]E !RE IS NO DESIGNATION ( ! P>TICUL> >TICLES ( PROP]TY1 TO :I* ! CONTRACT ATTA*ES IS1 9 FACT1 A SALE ( ALL ! PROP]TY ! DEBTOR HAS 9 HIS H&S1 SUBJECT TO HIS RI<T ( CANCEL+ ! SALE BY PAY+ ! AM\NT ( ! DEBT 9 MONEY1 JU/ AS A MORTGAGE IS A SALE ( ! UNMORTGAG$ SUBJECT TO ! RI<T ( ! DEBTOR TO CANCEL ! SALE BY PAY+ 9 MONEY ! AM\NT = :I* ! MORTGAGE IS GIV54 

,9 O!R WORDS1 A CONTRACT ( DEBT1 )\T ANY DESIGNATION ( ! SPECIFIC PROP]TY TO :I* ! CONTRACT ATTA*ES1 IS A CONTRACT BY :I* ! DEBTOR PL$GES HIS :OLE PROP]TY = ! DELIV]Y1 OR PAYM5T ( ! AM\NT SOLD \T ( IT TO ! CR$ITOR1 VIZ41 ! AM\NT ( ! DEBT4 ,SU* A PL$GE GIVES ! CR$ITOR A SPECIAL1 OR CONDITIONAL [N]%IP (' ! :OLE PROP]TY PL$G$ 2 & ! DEBTOR !NCE=? HOLDS ! :OLE PROP]TY AS ! BAILEE ( ?AT PORTION ( ITS VALUE1 :I* ACTUALLY BELONGS TO ! CR$ITOR1 & IS M]G$ 9 ! VALUE ( HIS1 7! DEBTOR'S7 :OLE PROP]TY4 

,IF ! PO9T BE N[ E/ABLI%$1 ?AT A DEBT IS A LI5 UPON ! :OLE PROP]TY ( ! DEBTOR2 AMID IF ! DEBTOR IS ! M]E BAILEE ( ! AM\NT ( VALUE SOLD & BELONG+ TO ! CR$ITOR1 IT BECOMES NECESS>Y TO %[ ON :AT GR\NDS IT IS1 ?AT ! DEBTOR HAS ! RI<T TO APPROPRIATE = HIS SUBSI/5CE1 ANY PORTION ( ! PROP]TY ON :I* HIS CR$ITOR HOLDS A LI54 ,:]E A DEBTOR HAS MORTGAG$ L& TO HIS CR$ITOR1 HE 7! DEBTOR17 HAS NO RI<T TO SELL ANY PORTION ( ?AT L&1 NOT EV5 TO PROVIDE HIMSELF ) FOOD4 ,:Y IS IT DIFF]5T 9 ! CASE ( ! LI5S CREAT$ BY A P]SONAL DEBT1 UPON ! :OLE PROP]TY ( ! DEBTOR8 ,! REASON IS1 ?AT !RE IS AN IMPLI$ P]MISSION GIV5 BY ! CR$ITOR TO ! DEBTOR1 TO APPROPRIATE 5\< ( ! PROP]TY 9S HIS H&S = HIS SUBSI/5CE - SUBJECT TO ! CONDITION ?AT ! DEBTOR %ALL APPLY HIS C>E & LABOR TO ! 9CREASE & PRES]VATION ( ?AT PROP]TY4 ,?IS P]MISSION IS TO BE IMPLI$ FROM ! FOLL[+ FACTS3 

#a4 ,IT IS A SELF-EVID5T FACT ?AT ! DEBTOR AMID HIS FAMILY MU/ LIVE2 & BE+ A SELF-EVID5T FACT1 IT MU/ HAVE BE5 TAK5 = GRANT$ BY ! CR$ITOR AS A P>T ( ! CONTRACT-BECAUSE ALL SELF-EVID5T FACTS HAV+ ANY BE>+ ON ! CONTRACTS1 >E TAK5 = GRANT$ 9 ALL LAWFUL CONTRACTS4 

#b4 ,IF ! DEBTOR & HIS FAMILY MU/ LIVE1 IT IS SELF EVID5T ?AT !Y MU/ D]IVE !IR SUBSI/5CE1 EI!R BY SELL+ !IR LABOR = WAGES1 79DEP5D5TLY ( ANY PROP]TY 9 !IR H&S27 OR BY BE/[+ !IR C>E & LABOR UPON ! PROP]TY 9 !IR H&S1 & TAK+ !IR SUBSI/5CE \T ( IT1 & ITS PROCE$S4 

,N[ IT IS EVID5T ?AT ! CONTRACT DOES NOT CONTEMPLATE ?AT ! DEBTOR IS TO SELL HIS LABOR = WAGES TO ! NEGLECT OR DISUSE ( ! PROP]TY LOAN$ TO HIM2 = ! ONLY REASONABLE MOTIVE ?AT CAN BE SUPPOS$ = ! LOAN1 IS1 ?AT ! DEBTOR MAY USE ! CAPITAL LOAN$1 ?AT IS1 ?AT HE MAY BE/[ HIS LABOR UPON IT4 ,& IF HE BE/[ HIS LABOR UPON IT1 IT FOLL[S ?AT HE MU/ MEAN:ILE TAKE HIS SUBSI/5CE \T ( IT- BECAUSE1 :ILE BE/[+ HIS LABOR UPON ,IT1 HE CANNOT BE SELL+ HIS LABOR = WAGES1 & ( CONSE#iU5CA CANNOT D]IVE HIS SUBSI/5CE 9 ANY O!R WAY ?AN FROM ! PROP]TY 9 HIS H&S4 ,AMID AS ! CR$ITOR'S LI5 EXT5DS TO ALL ! PROP]TY 9 HIS H&S1 IT FOLL[S ?AT ! DEBTOR MU/ TAKE HIS SUBSI/5CE \T ( ?AT TO :I* ! LI5 ATTA*ES - SIMPLY BECAUSE !RE IS NO O!R PROP]TY 9 HIS H&S = HIM TO TAKE IT \T (4 

,9 ALL ?IS !RE IS A /RONG ANALOGY TO ! CASE ( A LI5 ON L&-= !RE ! DEBTOR TAKES ! PRODUCE ( ! L& = HIS SUBSI/5CE1 :I* IS H>DLY DI/+UI%ABLE 9 FACT1 & IS NOT DI/+UI%ABLE 9 PR9CIPLE1 FROM TAK+ ! L& ITSELF - 9ASMU* AS ! CROPS EXHAU/ ! F]TILITY1 & CONSUME ! VALUE ( ! L&4 

#c4 ,! CONTRACT EVID5TLY SUPPOSES ?AT ! DEBTOR1 :ILE LABOR+1 IS TO HAVE 5\< ( ! FRUIT ( HIS LABOR = HIS SUBSI/5CE1 7BECAUSE A MAN CANNOT LABOR )\T A SUBSI/5CE27 ?AT HIS LABOR IS TO HE BE/[$ UPON ! CAPITAL ON :I* ! CR$ITOR HAS A LI52 &1 ( C\RSE1 ?AT ! VALUE ( HIS LABOR IS TO BECOME 9CORPORAT$ 9DI/+UI%ABLY ) ?AT ( ! CAPITAL4 ,IT FOLL[S ?AT IT MU/ HAVE BE5 UND]/OOD1 BO? BY DEBTOR AMID CR$ITOR AS A SELF-EVID5T MATT]1 ?AT ! DEBTOR1 :ILE LABOR+1 %\LD APPROPRIATE 5\< ( ! PROP]TY 9 HIS H&S = HIS SUBSI/5CE1 BECAUSE )\T HIS SUBSI/5CE1 HE C\LD NOT BE/[ HIS LABOR UPON ! CAPITAL4 

#d4 ,! NATURE ( ! CONTRACT PROVES ?AT ! CR$ITOR IS 9T]E/$ 9 ! LABOR ( ! DEBTOR1 BECAME1 AT A GIV5 TIME1 HE 7! CR$ITOR7 IS TO RECEIVE ! CAPITAL LOAN$1 ) 9CREASE4 ,?IS1 ( C\RSE1 ! DEBTOR C\LD NOT AF=D1 NOR ! CR$ITOR EXPECT1 UNLESS ! DEBTOR W]E TO BE/[ HIS LABOR UPON ! CAPITAL4 ,& IF HE BE/[ HIS LABOR UPON ! CAPITAL1 HE MU/1 ( NECESSITY1 HAVE HIS SUBSI/5CE MEAN:ILE4 ,& IF HIS CONTRACT IS A LI5 UPON EV]Y?+ 9 HIS H&S1 IT MU/ ( NECESSITY HAVE BE5 UND]/OOD ?AT HE %\LD APPROPRIATE HIS SUBSI/5CE \T ( ! PROP]TY ?AT IS SUBJECT TO ! LI54 

,9 %ORT1 ! CONTRACT PROCE$S ?R\<\T UPON ! SUPPOSITION ?AT ! SUBSI/5CE ( ! LABOR]1 :ILE LABOR+ ON CAPITAL1 R\/ BE PROVID$ = \T ( ! CAPITOL ON :I* HE LABORS4 ,>ID ?IS SUPPOSITION IS NOT NORMALLY REASONABLE1 BUT IT IS A NECESS>Y ONE - = IT IS OBVI\S ?AT HIS SUBSI/5CE MU/ HE ?US PROVID$ =1 :E!R HE BOLD ! RELATION ( DEBTOR TO ! CAPITALI/1 OR ?AT ( A LABOR] = WAGES4 ,9 EI!R CASE1 HIS SUBSI/5CE1 :ILE LABOR+1 MU/ BE A TAX UPON ! CAPITAL ON :I* HE LABORS4 

,9 ALL ?IS !RE IS NO?+ ?AT AU?ORIZES WA/E OR PRODIGALITY ON ! P>T ( ! DEBTOR 2 OR ?AT AU?ORIZES ANY?+ EXCEPT :AT IS CONSI/5T ) SU* ECONOMY & FRUGALITY AS GOOD FAI? T[>DS ! CR$ITOR REQUIRES4 ,BUT ?IS PO9T HAS BE5 SUFFICI5TLY EXPLA9$ 9 ! PREC$+ *APT]4 

,HALT+ AT ?IS PO9T1 & LOOK+ LACK UPON ! GR\ND WE HAVE GONE OV]1 DOES RIOT ?AT GR\ND PRES5T A MORE RATIONAL VIEW ( ! NATURE ( DEBT1 ?AN ANY TIME HAS EV] BE5 PRACTIC$ UPON BY C\RTS ( LAW8 ,IS IT NOT ! ONLY VIEW ?AT CAN MAKE ! CONTRACT ( DEBT CONSI/5T1 EI!R ) MORALITY1 OR ) ! IDEA ?AT CR$ITORS ACQUIRE ANY TANGIBLE1 LEGAL RI<TS1 TO ACTUAL ?+S1 BY VIRTUE ( ?AT CONTRACT8 

,?IS VIEW ( ! CONTRACT ( DEBT PLACES ! DEBTOR & CR$ITOR1 TO A C]TA9 EXT5T1 9 ! RELATION ( P>TN]S4 ,! CR$ITOR FURNI%ES CAPITAL1 ! DEBTOR LABOR4 ,! SEP>ATE VALUES ( ?IS CAPITAL & LABOR BECOME 9DI/+UI%ABLY MIX$ - ?AT IS1 ! LABOR BE/[$ UPON ! CAPITAL ADDS TO ITS VALUE1 BY CONV]T+ IT 9TO NEW =MS - AS = 9/ANCE1 BY CONV]T+ LEA!R 9TO %OES4 ,! DEBTOR1 :ILE ?US BE/[+ HIS LABOR UPON ! CAPITAL1 RECEIVES HIS SUBSI/5CE \T ( ! MASS 2 9 O!R WORD'S1 HIS SUBSI/5CE1 :ILE LABOR+1 IS ! FIR/ *>GE 7AS 9 ALL CASES IT NECESS>ILY MU/ BE7 UPON ! COMB9$ CAPITAL & LABOR4 ,! CR$ITOR HOLDS ! NEXT LI5 UPUN ?IS COMB9$ CAPITAL AMID LABOR1 = ! AM\NT ( HIS 9VE/M5T1 & HIS /IPULAT$ PR(ITS4 ,! DEBTOR IS 5TITL$ TO ! RESIDUE1 IF ANY !RE BE1 AS ! REW>D ( HIS LABOR4 ,DUR+ ! P>TN]%IP1 ! CR$ITOR HOLDS T9E DEBTOR TO ! OBS]VANCE ( ECONOMY & GOOD FAI?4 ,UND] !SE CIRCUM/ANCES1 BO? P>TIES TAKE ! NATURAL RISKS ( ! BUS9ESS4 ,! CR$ITOR RISKS HIS CAPITOL1 ! DEBTOR HIS LABOR4#b#c 

,ALL ?IS IS OBVI\SLY A ,JO9T OP]ATION1 A BONA FIDE P>TN]%IP4 ,! CR$ITOR1 AS WELL AS ! DEBTOR1 IS TO D]IVE A PR(IT FROM IT4 ,! PROSPECT ( PR(IT IS ! CR$ITOR'S ONLY MOTIVE = 5T]+ 9TO ! CONTRACT4 ,! DEBTOR1 !RE=E1 H]O9ES A BAILEE1 NOT M]ELY = ! B5EFIT ( HIMSELF1 BUT ALSO = ! B5EFIT ( ! CR$ITOR4 ,:AT IS !RE 9 MORALITY1 OR 9 ! LEGAL RI<TS ( ! P>TIES TO ! CAPITAL & LABOR ?US COMB9$1 ?AT REQUIRES ! DEBTOR TO TAKE ! RISK1 BO? ( HIS [N LABOR & ( ! CR$ITOR'S CAPITAL1 BEYOND ! DUE EX]CISE ( HIS SKILL1 9DU/RY1 C>E1 & GOOD FAI? 9 ! PRES]VATION & MANAGEM5T ( ! LATT]8 

,! CR$ITOR ADOPTS ?IS MODE ( EMPLOY+ HIS CAPITAL1 AS BE+ ! MO/ ADVANTAGE\S TO HIMSELF4 ,HE HAS MORE CAPITAL ?AN HIS [N LABOR CAN ADVANTAGE\SLY EMPLOY4 ,HE MU/1 !RE=E1 9 ORD] TO MAKE HIS CAPITAL4 PRODUCTIVE1 EI!R LOAN IT TO O!RS1 OR EMPLOY ! LABOR ( O!RS UPON IT BY HIR+ !M1 & PAY+ !M WAGES4 ,HE CONSID]S ?AT1 BY LOAN+ IT1 & (F]+ ! DEBTOR AN 9DUCEM5T TO ! EX]CISE ( HIS BE/ SKILL1 BY A CONTRACT ?AT GIVES TO ! DEBTOR ALL ! PROCE$S ( ! JO9T LABOR & CAPITAL1 EXCEPT A /IPULAT$ AM\NT1 7CALL$ 9T]E/17 HE WILL BETT] /IMULATE ! LABOR]S 9DU/RY1 SKILL1 & C>E1 & ?US REAP A BETT] PR(IT TO HIMSELF ?AN HE WILL IF HE HIRE ! MAN AS A LABOR] = WAGES4 ,& ?IS ! REASON :Y HE LOANS HIS CAPITAL1 9/EAD ( HIR+ ! LABOR NECESS>Y TO EMPLOY IT4 ,BUT !RE IS NO?+ 9 ALL ?IS1 ?AT MORALLY OR LEGALLY 5TITLES HIS CAPITAL - :ILE IT IS 9 ! H&S TO :I* HE HAS ?US1 ) A VIEW ( HIS [N PR(IT1 *OS5 TEMPOR>ILY TO 5TRU/ IT - TO1 9 9SURANCE AGA9/ ! NECESS>Y RISKS TO :I* CAPITAL IS ALWAYS LIABLE4 ,NOR IS !RE ANY?+ 9 ALL ?IS1 ?AT MORALLY OR LEGALLY 5TITLES HIM TO MAKE ?IS BAILEE1 & P>TN]1 HIS SLAVE = LIFE1 9 CASE ( ANY MIS=TUNE TO ! P>TN]%IP BUS9ESS1 BY :I* BO? HIS CAPITAL & ! DEBTOR'S LABOR %\LD BE LO/4 ,NOR IS !RE 9 ALL ?IS1 ANY?+ ?AT GIVES HIM ANY TANGIBLE1 LEGAL1 PROPRIET>Y RI<TS1 TO PROP]TY ?AT HIS P>TN] & BAILEE MAY E>N ALT] ! P>TN]%IP1 OR BAILM5T1 %ALL HAVE T]M9AT$4 

#a#f4 ,SUPPOSE ,A SELLS TO ,B1 & RECEIVES HIS PAY =1 AN HUNDR$ BU%ELS ( GRA91 \T ( A C]TA9 MASS CONSI/+ ( A ?\S& BU%ELS2 & ,A PROMISES ?AT HE WILL SEP>ATE ! HUNDR$ BU%ELS FROM ! MASS 9 :I* !Y >E M]G$1 & DELIV] !M TO ,B ,9 ONE MON? FROM ! TIME ( ! CONTRACT4 ,9 ?IS CASE ! RI<T ( PROP]TY 9 ! HUNDR$ BU%ELS1 PASSES TO ,B1 ! PUR*AS]1 AT ! TIME ( ! CONTRACT--& IF ! MASS %\LD BE DE/ROY$ BE=E ! DELIV]Y1 7)\T ANY FAULT ON ! P>T ( ,A7 ! LOSS ( ! HUNDR$ BU%ELS W\LD FALL UPON ,B1 ! PUR*AS] & [N] ( !M4 ,& ?IS ,IS BUT A P>ALLEL TO ! EASE ( DEBT1 :]E ,A %\LD SELL TO ,B1 & RECEIVE HIS PAY =1 AN HUNDR$ DOLL>S' WOR? ( VALUE \T ( HIS 7,A'S7 :OLE E/ATE2 & %\LD PROMISE ?AT ?IS HUNDR$ DOLL>S WOR? ( VALUE %\LD BE SEP>AT$ FROM ! MASS ( HIS E/ATE1 79 :I* IT IS M]G$47 CONV]T$ ,9TO MONEY1 & DELIV]$ TO ,I,I1 ! PUR*AS]1 7OR CR$ITOR17 9 ONE MON? FROM ! TIME ( ! CONTRACT4 ,9 ?IS CASE1 AS 9 ! CASE ( ! GRA91 ! RI<T ( PROP]TY 9 ! HUNDR$ DOLL>S' WOR? ( VALUE1 W\LD PASS TO ,B1 ! PUR*AS] ( IT1 AT ! TIME ( ! CONTRACT2 & IF ! :OLE E/ATE ( ,A1 9 :I* ,B'S HUNDR$ DOLL>S' WOR? ( VALUE--WAS M]G$1 %\LD !N BE LO/ OR DE/ROY$ PRIOR TO ! DELIV]Y1 )\T ANY FAULT OR CULPABLE NEGLECT ON ! P>T ( ,A1 7! BAILEE1 OR DEBTOR17 ! LOAN ( ! HUNDR$ DOLL>S' WOR? ( VALUE W\LD FALL UPON #a#c1 ! PUR*AS] & [N] ( IT4 ,RETURN 

#a#g4 ,! DELIV]Y MAY SOMETIMES BE ,IMPORTANT AS EVID5CE ( ! RI<T ( PROP]TY1 :5 !RE IS NO O!R EVID5CE ( IT4 ,BUT IT IS ( NO ,IMPORTANCE TO ! RI<T ITSELF1 IF TIME RI<T CAN BE PROV$ BY ANY O!R TE/IMONY4 ,& A PROMISE TO DELIV] PROP]TY1 & AN ACKN[L$GM5T ?AT ! PROP]TY HAS BE5 PAID =1 7AS 9 ! EASE ( A PROMISSORY NOTE17 >E AS GOOD EVID5CE ?AT ! RI<T ( PROP]TY HAS PASS$ TO ! PROMISEE1 AS IS ! DELIV]Y ITSELF4 ,RETURN 

#a#h4 ,! VALIDITY ( ?IS ASS5T1 = ! CONVEYANCE ( PROP]TY1 RESULTS FROM ! FACTS ?AT M5 HAVE AN 9H]5T RI<T TO DISPOSE ( !IR PROP]TY2 ?AT !Y CAN DISPOSE ( ONLY BY ! CONS5T1 OR ASS5T ( !IR M9D1 OR WILLS TO DO SO2 & ?AT1 CONSEQU5TLY1 :5EV] ?IS CONS5T1 OR ASS5T1 TAKES PLACE1 IT ACTUALLY PASSES ! RI<T ( PROP]TY1 79 ! ?+ TO :I* IT APPLIES17 TO ! P]SON TO :OM ! PROPRIETOR DESIGNS IT TO GO4 ,IT IS TRUE ! LAW REQUIRES SOME \TW>D MANIFE/ATION ( ?IS ASS5T -- SU* AS A DELIV]Y ( ! ?+ SOLD1 OR A WRITT5 OR ORAL CONTRACT AS PRO( (' IT -- BE=E IT 7! LAW7 WILL DECL>E ?AT ! RI<T ( PROP]TY HAS ACTUALLY PASS$ TO ANO!R -- BUT ?IS IS REQUIR$1 NOT BECAUSE ! \TW>D MANIFE/ATION IS ( ANY 9TR9SIC IMPORTANCE1 BUT BECAUSE WE CAN HAVE NO EVID5CE ( A MAN'S M5TAL S5SATIONS EXCEPT FROM SOME \TW>D EXHIBITION ( !M4 ,RETURN 

#a#i4 ,AL?\< A DE$ ( L&1 OR A BILL ( SALE ( A HORSE MAY CONTA9 AN AGREEM5T ?AT ! POSSESSION %ALL REMA9 9 ! SELL] = A TIME2 & AL?\< SU* AN AGREEM5T W\LD IMPLY ?AT ! HORSE OR =M WAS LEFT 9 HIS POSSESSION TO BE US$ BY HIM1 /ILL ,IT W\LD NOT1 AS TO ! COOS (' A NOTE1 7OR BILL ( SATE ( DOLL>S17 IMPLY ?AT ! HORSE OR F>M MI<T1 ,9 ! MEAN TIME1 HA CONV]T$ ,9TO ANY O!R %APE = USE1 OR BE EX*ANG$ = ANY O!R COMMODITY2 BECAUSE ! HORSE & =M1 UNLIKE ! MONEY1 >E PRODUCTIVE & USEFUL ,9 !IR PRES5T %APE4 ,RETURN 

#b4 ,IT WILL BE UND]/OOD1 :5 ,I SAY ?AT ! RI<T ( PROP]TY 9 ! 0MONEY0 PASSES TO ! PUR*AS] AT ! TIME ,IT IS SOLD1 OR CONTRACT$ =1 7?\< NOT DELIV]$ UNTIL A FUTURE TIME17 ?AT ,I MEAN1 NOT ! RI<T ( PROP]TY ,9 ! ,ID5TICAL PIECES ( MONEY ?AT >E TO BE DELIV]$1 OR PAID1 BUT 7= ! REASONS H]ET(ORE GIV57 ! RI<T ( PROP]TY 9 AN AM\NT ( VALUE1 EXI/+ 9 SOME %APE OR O!R1 ,9 ! DEBTOR'S H&S1 EQUIVAL5T TO ! MONEY1 & :I* ,IS TO BE CONV]T$ ,9TO MONEY ,9 TIME = ! DELIV]Y4 ,RETURN 

#b#a4 ,?IS DI/9CTION BETWE5 ! LIABILITY ( A DEBTOR1 ON HIS CONTRACT1 = ! MONEY ITSELF1 & HIS LIABILITY = ! SAME AM\NT1 9 AN ACTION ON ! CASE = DAMAGE1 :]E ! LOSS HAS BE5 OCCASION$ BY HIS FAULT OR NEGLIG5CE1 IS AN IMPORTANT ONE 9 SEV]AL RESPECTS1 AS REG>DS BO? DEBTORS & CR$ITORS1 7AS HAS H]ET(OR BE5 %[N17 NOT)/&+ ! AM\NT RECOV]ABLE 9 EA* CASE %\LD BE ! SAME4 ,RETURN 

#b#b4 ! PRIMA FACIE CLAIM MY BE DEFEAT$ AS TO ANY P>TICUL> PROP]TY 9 ! H& ( ! DEBTOR1 CLE>LY DI/+UI%ABLE FROM ! BULK ( HIS PROP]TY1 & :I* ! DEBTOR CAN %[ TO HAVE BE5 EI!R LOAN$ OR GIV5 TO HIM S9CE HIS DEBT WAS CREAT$4 ,RETURN 

#b#c4 ,?AT IS1 HE RISKS HIS LABOR1 ALT OV] & ABOVE HIS NECESS>Y SUBSI/5CE :ILE LABOR+ 2 :I* IS NO MORE ?AN ! CAPITALI/ W\LD BE OBLIG$ TO RISK IF HE HIR$ HIS LABOR2 & :I*1 !RE=E1 IS NOT 5TITL$ TO BE CONSID]$ AS A RISK CREAT$ BY ! LOAN4 ,RETURN 

,FROM 3 ,AN>*Y ,>*IVES4 

,*RONOLOGY 3 
,NOVEMB] #c1 #ahde 3 ,*APT] #f -- ,PUBLICATION4 
,FEBRU>Y #a1 #bag 3 ,*APT] #f -- ,ADD$4 

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