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Tohru Honda is a first year high school student when her mother dies, leaving her alone. Tohru chooses to live with her paternal gandfather, but when she sees that he is having house problems, she decides she doesn't want to burden him and begins to live in a tent in the forest. Tohru only wants to finish high school to make her mother proud. It turns out the land Tohru is staying on belongs to the Sohma family.
Yuki Sohma is the most popular boy in Tohru's school. When the Sohma's discover her tent they invite her to come live with them, and Tohru agrees as long as she is able to repay their kindness with her housekeeping skills. Through an accident, Tohru discovers that the Sohma family is cursed to turn into an animal from the Chinese zodiac when embraced by the opposite sex. Tohru quickly grows close to the family, and they become dear friends to her. Tohru struggles to keep the Sohma family secret and learn more about the family, but this may cause her much pain.
This is the outcast of the family, Kyo Sohma. He doesn't belong to the Chinese Zodiac exactly. In the story, the rat (Yuki Sohma) tricked the cat into thinking the banquet for the animals was a different day. In result, Kyo has never been treated like a true member of the Sohmas. It also means he cannot attend the New Years' Banquet, just like in the story.
He lives in Shigure's house along with Yuki, Shigure himself, and Tohru Honda. Yuki is the Rat, Shigure is the Dog, and Tohru Honda really is something.
Tohru Honda was living in a tent as so not to burden her friends and family while her grandfather was having renovations to his house done. Yuki Sohma stumbled upon her, and invited her to be their new housekeeper.
Kyo and Yuki both took quickly to Tohru, but she had to leave when the house was finished. In the end, they took her back; she wasn't happy at her grandfather's house.
Kyo took a liking to her, especially after she accepted his darkest secret.
Since the cat didn't attend the banquet, Kyo must always wear his black and white beads so he doesn't turn into the Cat's Evil Spirit. The Cat's Evil Spirit is what built up after the Cat realized he had been fooled. The Evil Spirit is Kyo's true form, and it is hideous. But Tohru somehow managed to get through to him, after much heartache, though.
Kyo has a very bad temper, but when he's around Tohru, he seems to be a little sweeter and more calm.
The person cursed with the cat spirit is also cursed with it's evilness and anger. These emotions combined with the cat spirit produce a monster. The only way to keep the evil spirit "locked up" is with a special braclet. The braclet is made from human bones (probably bones from the reincarnations of the cat spirit). The darker beads were painted with human blood. If you remove the bracelet, the evil spirit of the cat will dominate the reincarnation of the cat, basically transforming the person into the horrible monster.