Section 1301.-ORDER DRAWN ON DEBTOR.-An order drawn by a creditor on his debtor, for the whole amount of the indebtedness, operates as an equitable assignment of the debt to the payee, and a verbal acceptance of the order by the debtor is valid. (Decided by the Supreme Court of California, in the case of Joyce vs. Wing Yet Lung, which decision is printed in Volume 25 of the Pacific Reporter, page 545.) Section 1302.-NON-NEGOTIABLE CONTRACTS.A non-negotiable written contract for the payment of money or personal property may be transferred by indorsement, in like manner with negotiable instruments. Such indorsement shall transfer all the rights of the assignor under the instrument to the assignee, subject to all equities and defenses existing in favor of the maker at the time of the indorsement. Civil Code, Section 1459. Section 1303.-ASSIGNMENT BY CORPORATION. -The secretary and general manager of a corporation may assign accounts, under a general authorization, the adoption of a special resolution authorizing it being unnecessary. (Decided by the Supreme Court of California, in the case of Fuller vs. Arnold, which decision is printed in Volume 33 of the Pacific Reporter, page 445.) Section 1304.-DAMAGES FOR TORT.-A claim for damages for tort, as, for libel, or slander, or personal injuries by reason of accident, cannot be assigned. In order to be an assignable claim, it must be one which is founded upon a contract. Section 1305.-FORM OF ASSIGNMENT OF CONTRACT. The following is a form of assignment, to be annexed to a written contract. If the contract itself is acknowledged, the assignment should be acknowledged. Know all Men by these Presents: That we. and..... named in the annexed instrument, ...dollars, gold in consideration of the sum of..... coin of the United States, to us in hand paid by. ....and..... ., of the City and County of San Francisco, and State of California, the receipt whereof is hereby acknowledged, do, by these presents, sell and transfer, to the said.... ...and.... their heirs and assigns, the said instrument, and all our right, title, and interest in and to the same, authorizing them in our names, or otherwise, but at their own cost, charge, and expense, to enforce the same according to the tenor thereof, and to take all measures which may be necessary for the recovery of the within instrument. Section 1306.-FORM OF INDORSED ASSIGNMENT. The following is a form of assignment to be indorsed on the back of a contract: For Value Received, I do hereby transfer and assign, to his heirs and assigns forever, all my right, title, and interests, in, to, and under the within instrument. Section 1307.-FORM OF ASSIGNMENT OF DEBT DUE. The following is a form of assignment of debt due: of. of. of. Know all Men by these Presents: That I,. . . . for and in consideration of the sum dollars, to me paid by.... .., the receipt whereof is hereby acknowledged, have sold, and by these presents do sell, assign, transfer, and set over, unto the said... a certain debt due me from.. to the sum of........... amounting ..dollars, for goods sold and delivered (or, work, labor, and services), with full power to sue for, collect, and discharge, or sell and assign the same. And I hereby covenant, that the said sum of... dollars is justly due as aforesaid. Section 1308.-FORM OF ASSIGNMENT OF ACCOUNT. The following is a form of assignment of an account, which may be indorsed on the back of the bill: For Value Received, I hereby sell and assign to.. the within account, which is justly due from the within named... and I hereby authorize the said.. .to collect the same. Section 1309. FORM OF ASSIGNMENT OF LEASE. For a form of assignment of lease, see the subject, "Landlord and Tenant." Section 1310.-FORM OF ASSIGNMENT OF MORTGAGE. For a form of assignment of mortgage, see the subject "Mortgages." Section 1311.-FORM OF ASSIGNMENT OF CONTRACT FOR SALE OF REAL ESTATE. The following is a form of assignment of a contract for the sale of real estate: Know all Men by these Presents: That I,.. for and in consideration of the sum of... gold coin of the United States, to me paid by.. dollars, do, by these presents, sell, transfer, assign and set over unto the said.... a contract for the sale of certain real estate, described as follows, to-wit: (Description.) which said contract was made and executed by... to the said. day of..... and bears date the.. 191.., to have and to hold the same unto the said. his heirs, executors, administrators, and assigns; subject, nevertheless, to the covenants, conditions, and payments therein mentioned. And I hereby fully authorize and empower the said.. upon his performance of the said covenants and conditions, to demand and receive of the said..... the deed covenanted to be given in the said contract, in the same manner, to all intents and purposes, as I myself might or could do, were these presents not executed. Guaranty of Accounts. Section 1312.-GUARANTY DEFINED.-A_guaranty is a promise to answer for the debt, default, or miscarriage of another person. A person may become guarantor even without the knowledge or consent of the principal. Civil Code, Sections 2787, 2788. a guar Section 1313.-CONSIDERATION.—Where anty is entered into at the same time with the original obligation, or with the acceptance of the latter by the guarantee, and forms with that obligation a part of the consideration to him, no other consideration need exist. In all other cases there must be a consideration distinct from that of the original obligation. Civil Code, Section 2792. Section 1314.-GUARANTY MUST BE IN WRITING. A guaranty must be in writing, and signed by the guarantor; but the writing need not express a consideration. -- There are some cases in which a promise is made to answer for the obligation of another, where the promise is deemed an original obligation of the person making it, and in such cases the promise need not be in writing. But in ordinary cases of guaranty of accounts, where one person promises to answer for the debt of another, the promise must be in writing. Civil Code, Section 2793. Section 1315.-OFFER TO BECOME GUARANTOR. -A mere offer to become a guarantor is not binding, until notice of its acceptance is communicated by the guarantee to the guarantor; but an absolute guaranty is binding upon the guarantor without notice of acceptance. Civil Code, Section 2795. Section 1316.-GUARANTY THAT AN OBLIGATION IS GOOD OR COLLECTABLE.-A guaranty to the effect that an obligation is good, or is collectable, imports that the debtor is solvent, and that the demand is collectable by the usual legal proceedings, if taken with reasonable diligence. Such a guaranty is not discharged by an omission to take proceedings upon the principal debt, or upon any collateral security for its payment, if no part of the debt could have been collected thereby. Where there is such a guaranty, the removal of the principal from the state, leaving no property therein from which the obligation might be satisfied, is equivalent to the insolvency of the principal in its effect upon the rights and obligations of the guarantor. Civil Code, Sections 2800, 2801, 2802. Section 1317.-LIABILITY OF GUARANTOR.-A guaranty is to be deemed unconditional unless its terms. impart some condition precedent to the liability of the guarantor. A guarantor of payment of an account is liable to the guarantee immediately upon the default of the principal, and without demand or notice. Therefore, if the debtor fails to pay the account at the time agreed upon, the law does not require the creditor to notify the guarantor, or to make any demand upon him; but the creditor may immediately sue the guarantor for the debtor's account. Civil Code, Sections 2806, 2807. Section 1318.-LIABILITY UPON GUARANTY OF A CONDITIONAL OBLIGATION.-Where one guarantees a conditional obligation, his liability is the same in extent as that of the principal; and he is not entitled to notice of the default of the principal, unless he is unable by reasonable diligence to acquire information of such default, and the creditor has actual notice of his inability to acquire such information. Civil Code, Section 2808. GUARANTY. A Section 1319.- CONTINUING guaranty relating to a future liability of the principal, under successive transactions, which either continue his liability or |