56 BULLETIN 1106, U. S. DEPARTMENT OF AGRICULTURE. 



UNINCORPORATED ASSOCIATIONS— HOW FORMED. 



Statutes have been passed in some States expressly authorizing 

 individuals to unite as a voluntary association under a distinctive 

 name, but, as a rule, the organization of unincorporated or voluntary 

 associations is done independent of statutes. They are generally 

 formed under the common-laAv right of contract. Just as A and B 

 may enter into a contract with reference to doing some lawful act, 

 so a larger number may associate for the accomplishment of a lawful 

 object. 



Provision may be made for any matter that is the legitimate sub- 

 ject of contract. The qualifications of members may be prescribed, 

 and causes for expulsion may be specified. A constitution is usu- 

 ally adopted which states the objects of the association and other 

 fundamental propositions relative to the organization. By-laws are 

 also usually adopted which prescribe the manner in which the ob- 

 , jects of the association "are to be attained. The constitution and the 

 by-laws, or either of them, constitute a contract binding all those 

 who agree if) them. 



In a Michigan case^^° it was said, "The articles of agreement of, 

 a benevolent association, whether called a constitution, charter, by- 

 laws, or any other name, constitute a contract between the members 

 which the courts will enforce if not immoral or contrary to public 

 policy or the law of the land." The foregoing was quoted approv- 

 ingly in a Kansas case ^^ involving an antihorse-thief association, 

 and it is believed it states the general rule.^^ It follows that inas- 

 much as a voluntary association rests on a contract or contracts, 

 the rights or liabilities of members among themselves are to be de- 

 termined by the contracts involved in accordance with common-law 

 principles as modified or supplemented by statutes; and in the 

 absence of a constitution or by-laws the courts will apply the same 

 legal rules for ascertaining the rights of the parties, weight being 

 given to any usages or customs which may have been followed by 

 the association.j^^ 



It should be remembered that, in order for a constitution and by- 

 laws, or either of them, to constitute a contract between an associa- 

 tion and one claiming or alleged to be a member, he must have agreed 

 to them in some way, either by signing papers containing the con- 

 stitution and by-laws or by assenting to them in some other way.®* 

 If one in joining an association signs its constitution and by-laws 

 or assents to them in some other way and thus agrees to be bound by 



60 Brown v. Stoerkel, 74 Mich. 269, 41 N. W. 921, 3 L. R. A. 430. 



«i McLaughlin v. Wall, 86 Kaas. 45, 119 Pac. 541. 



82Kalbitzea- v. Goodliue, 52 W. Va. 435, 44 S. W. 264. 



63 Ostrom V. Green, 161 N. Y., 353, 55 N. E. 919. 



6*Austin V. Searing , 16 N. Y. 112, 69 Amer. Dec. 665 and note. 



