Originally published in 1937
FROM the beginning of time men have made covenants with each other. The covenant is of great value. When an employer hires an employee, he makes a certain agreement with him as to the services to be rendered and the benefits to be received. When a man buys a piece of property, an agreement is drawn up between the party of the first part and the party of the second part as to just what each will do.
A business house decides to erect a new building. After inspecting the architect's plans, they make an agreement with the builder. The builder agrees to erect the building for a certain amount of money. That is his contract. The business house agrees to pay a certain amount of money. That is their contract. If the contractor breaks his contract, then the business house is no longer bound by it, and they will not have to keep their part. A good contractor would Say, "Whether this job bankrupts me or not, I must finish my contract. My reputation depends on it."
This agreement gives men confidence in each other and puts business on a friendly relationship. When a covenant is signed and sealed, it is binding.