Hamer v. Sidway

Hamer v. Sidway - st birthday in the sum of $5,000 Also...

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Contracts 9/3 Consideration Hamer v. Sidway, NY Court of Appeals, 1891 Facts : William E. Story, Sr. promised his nephew, William E. Story, Jr., $5,000 if he refrained from various sins until age 21. He informed his uncle that he performed his part and requested the money. The uncle said he would hold the money until he was mature enough to handle it, and the nephew agreed. The nephew exchanged the promise of the $5,000 to another party. Procedure : Trial court found for plaintiff. Supreme Court reversed and found for defendant; now at New York Court of Appeals. The defendant says the contract was without consideration because the promisee was not harmed but benefited from not drinking. See Policy. Issue : whether by virtue of a contract defendant’s testator William E. Story became indebted to his nephew on his 21
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Unformatted text preview: st birthday in the sum of $5,000. Also, whether the statute of limitations had run out on the promise. Holding : order reversed and trial court judgment affirmed. Also, statute of limitations did not expire because the promise created a “trust.” Rule : a waiver of any legal right at the request of another party is sufficient consideration for a promise. Policy : Such an argument (that consideration requires harm) would cause controversy in many other cases. Class Notes : Consideration – can be either a promise or performance Waiver of legal right is classical test for consideration. Gratuitous promise – expect nothing in return Hypotheticals (1a) – outcome of the case wouldn’t have been different (objective theory); (1b) - §20 – modified objective theory...
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This note was uploaded on 04/10/2011 for the course LAW 501 taught by Professor Roy during the Fall '08 term at Ole Miss.

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