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Dougherty v. Salt

Dougherty v. Salt - Contracts 9/8 Bargain Theory of...

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Contracts 9/8 Bargain Theory of Consideration – Reciprocal Inducement Dougherty v. Salt, New York Court of Appeals, 1919 Facts : 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 payment Holding : 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 parties Class Notes :
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