Story Case

Hilery DeFort, an old gentleman who was closely allied with some of the best families of England, . promised, in writing and in the presence of witnesses, that he would give his nephew, Geoffrey DeFort, £10,000 when Geoffrey reached the age of twenty-one. He (Hilery) told several people of his promise and everyone knew that the old gentleman's promise was to be relied upon. Hilery DeFort died when Geoffrey was past twenty but not yet twenty-one. On his death bed, he expressed satisfaction that Geoffrey was provided for upon his twenty-first birthday.

Hilery made no will and all of his property went to his son and heir. The heir refused to pay Geoffrey, when the latter reached twenty-one, and Geoffrey sued him for the money. He defends on the grounds that Geoffrey gave no consideration for Hilery's promise. Which party should win?

Ruling Court Case. Louisa Hamer Vs. Franklin Sidway, Volume 124 New York Reports, Page 528

"William E. Story, now deceased, during his lifetime agreed with his nephew, William E. Story, that if the nephew would refrain from drinking liquor, using tobacco, swearing, and playing cards or billiards for money until he should become twenty-one years of age, that he, the uncle, would give to him $5,000 at that time. The nephew accepted the offer. From that time until he reached full age he never again indulged in any of the habits above enumerated. In the meantime, his uncle had died. His personal representative, Frank Sidway refused to pay the nephew the $5,000 and this action was brought to recover the same.

Sidway contended that there was no contract between the nephew and the uncle, because there was no consideration for the agreement of the uncle to make the gift.

Decision

A consideration is necessary to make any agreement legally binding, unless the agreement is under seal. Without a consideration, the agreement is without force or effect. It may be morally binding upon the promisor, but the agreement cannot be enforced by the promisee in any court. But, if the promisee relinquished any right, or does anything, however invaluable to him or to the promisor, the relinquishment of the right, or, the act, will constitute a good consideration for the promise of the other. In this case, the nephew gave up his right to indulge in certain habits, and this was a valuable consideration, even though it may have been to his benefit, and conferred no benefit on the uncle.

Accordingly, it was decided that judgment should be given for Louisa Hamer, who was suing for the nephew.

Ruling Law. Story Case Answer

Every simple contract presupposes the existence of a valuable consideration. In general, the doing of anything by one, which he is not legally bound to do, or the surrender of any legal right, which he may legally withhold, constitutes a valuable consideration. Consideration is the moving force of a contract and that which gives it life. In the Story Case, there was no consideration for the promise of Hilery DeFort to pay his nephew the sum of ten thousand pounds; therefore Geoffrey can recover nothing in an action against the heir of DeFort.