Story Case

Mr. Joseph Mcintosh had a nephew, Henry, of whom he was very fond. When Henry was eighteen years of age, his uncle made out and delivered to him the following note:

"When my nephew, Henry Mcintosh reaches his twenty-first birthday, I promise to pay him $1,000.

Signed, sealed and delivered, April 28, 1890. (Signed) Joseph Mcintosh, (Seal)

Under the word "seal" a scrawl was made with the pen.

Later, and before Henry reached the age of twenty-one years, he became wild and reckless. His uncle became disappointed with his conduct and when the nephew presented the note in question on his twenty-first birthday, his uncle refused to pay it, emphatically stating that he would never satisfy it under any circumstances.

Thereupon Henry brought suit, to which the uncle pleaded that there was no consideration for the note, and therefore it was not a binding obligation.

What should be the judgment of the court under the foregoing circumstances?

Ruling Court Case. James Rendleman Vs. Elizabeth Rendleman, Volume 156 Illinois Reports, Page 568

Jerome Rendleman and his wife executed a convey-veyance of land to Mrs. Rendleman, the wife of Dennis Rendleman.

Jerome made out the deed, signed, sealed and delivered it to Dennis. Subsequently Dennis gave it to his wife. At the time Jerome delivered the deed, Dennis, his son, offered him one dollar as payment therefor. The father indignantly refused to accept the money.

Later he brought this bill, asking that this deed be delivered up and declared void. Among other reasons he assigned for having the deed cancelled, was, that the deed was given without consideration. The defendant replied to this, that it was unnecessary for a deed to be supported by a consideration, when the deed is sealed.

Decision

At common law a sealed instrument was a solemn instrument, and, because of this, the law required no consideration in order to make it binding. This does not imply that the seal imports consideration, but that consideration is rendered unnecessary by the solemn form of the instrument.

So it was held that the plaintiff could not have the deed cancelled.

Ruling Law. Story Case Answer

At common law contracts were either simple or sealed contracts. The latter are often referred to specialties. The chief characteristic of a sealed contract at common law is that it becomes a binding obligation when sealed and delivered, even though no consideration is given for the same. The solemnity connected with the execution of a sealed contract took the place of consideration. It is often said that the presence of the seal imported consideration. This means merely that consideration was unnecessary.

At common law, in early times, it was necessary that the seal should be a wax impression upon the paper. But in later times the courts no longer require this as an essential to a sealed contract. A scrawl made with the pen, or the word "seal" written after the name, are now generally held to be sufficient, if they are accompanied with an intent that the instrument should be sealed. In the Story Case, George Mcintosh may be held upon the note in question, even though no consideration was given. The scrawl made with his pen is sufficient to make it a sealed contract.