Hamer v. . Sidway
124 N.Y. 538 · New York Court of Appeals · 1891
Facts
William E. Story (uncle) promised his nephew, William E. Story, 2d, $5,000 if the nephew would refrain from drinking liquor, using tobacco, swearing, and playing cards or billiards for money until he turned 21 years of age. The nephew agreed to these terms and fully performed his part of the agreement. Upon reaching 21, the nephew wrote to his uncle, asserting he had fulfilled the contract and was due $5,000. The uncle replied, acknowledging the debt and stating he had the money set aside for the nephew, but would hold it until he deemed the nephew capable of managing it, adding that the money would accrue interest. The nephew consented to this arrangement. Subsequently, the nephew assigned his interest in the $5,000 to his wife, who then assigned it to the plaintiff in this action.
Procedural history
The trial court (Special Term) found that a contract existed and that the nephew had fully performed his part of the agreement. The defendant contended the contract lacked consideration. The General Term subsequently reversed the judgment of the Special Term. This court then reversed the order of the General Term and affirmed the judgment of the Special Term.
Issue
Was there sufficient consideration to support the uncle's promise to pay his nephew $5,000 for refraining from certain lawful activities, thereby creating a valid contract and making the uncle indebted to the nephew?
Holding
Yes, there was sufficient consideration to support the uncle's promise, making the contract valid and enforceable. The court held that the uncle became indebted to the nephew, reversing the General Term's order and affirming the Special Term's judgment.
Rule
A valuable consideration in the sense of the law may consist either in some right, interest, profit, or benefit accruing to one party, or some forbearance, detriment, loss, or responsibility given, suffered, or undertaken by the other. Courts will not inquire whether the thing forming the consideration actually benefits the promisee or is of substantial value; it is enough that something is promised, done, forborne, or suffered by the promisee as consideration. In general, a waiver of any legal right at the request of another party is sufficient consideration for a promise, as it constitutes the promisee abandoning a legal right or limiting their legal freedom of action.
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