Strong v. . Sheffield
144 N.Y. 392 · 1895
Facts
The defendant's husband made a demand promissory note, which the defendant indorsed at his request. This note was delivered to the plaintiff, the payee, as security for an antecedent, past-due debt owed by the husband to the plaintiff. The only consideration claimed for the wife's indorsement was an alleged agreement by the plaintiff to forbear collection of the debt, or a request for forbearance followed by actual forbearance for about two years. The plaintiff testified to an express agreement stating, "I will hold it until such time as I want my money, I will make a demand on you for it," and "No, I will keep it until such time as I want it." The defendant indorsed the note based on this alleged agreement.
Procedural history
The trial court's judgment was reversed by the General Term. This court affirmed the order of the General Term, directing judgment absolute for the defendant.
Issue
Was there valid consideration for the defendant's indorsement of a demand note, when the alleged agreement by the plaintiff was to forbear collection only "until such time as I want my money"?
Holding
The court held that there was no valid consideration for the defendant's indorsement. The agreement to forbear for an indefinite period, solely at the plaintiff's election, did not constitute valid consideration.
Rule
A promise not supported by consideration is a bare promise (nudum pactum). While an agreement by a creditor to forbear collection of a debt presently due can be good consideration for a third person's promise, such forbearance must be either absolute, for a definite time, or for a reasonable time. Forbearance "for a little" or "for some time" is insufficient, though a reasonable time is intended if no specific time is stated. An agreement to forbear for such time as the creditor elects, without binding the creditor to any actual forbearance, does not constitute valid consideration. The consideration is tested by the agreement itself, not by what was subsequently done under it.
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