Contracts9/8Bargain Theory of Consideration – Reciprocal InducementDougherty v. Salt, New York Court of Appeals, 1919Facts: the plaintiff is an eight year old boy who received a promissory note for $3,000 from his aunt, payable at her death or before; the note said “value received;” defendant is the aunt’s testator. The aunt asked the child’s mother to make out a note for her that read “You have always done for me, and I have signed this note for you. Now, do not lose it. Some day it will be valuable.” Procedure: trial court dismissed the complaint. Appellate Division, by a divided court, reversed the judgment and said the note was sufficient evidence of consideration. This court reached a different conclusion. Issue: whether there was any consideration for the promised paymentHolding: no consideration; judgment reversed. The note was the voluntary and unenforceable promise of an executory gift. Rule: nothing is consideration that is not regarded as such by both partiesClass Notes:
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