Story Case

Henry Nightingale in a letter to his nephew, John Nightingale, promised to pay or give him $500 on his next birthday. John received the letter and thanked his uncle for the promised gift.

When John's birthday arrived Mr. Nightingale did not send the $500 as he had promised. A few days later John wrote him reminding him of his promise, and asking that the money be sent at once as he needed it. His uncle replied that he had decided that he was unable, as well as unwilling, to give the money which he had promised some months before.

John then sued him for the money. What should the court decide under the foregoing circumstances ?

Ruling Court Case. Lillie Williams Vs. Forbes, Admr., Volume 114 Illinois Reports, Page 167

Lillie Williams who had lived for a long time with her aunt, Delilah Deeds, had won the admiration and affections of her aunt. Some time before her death, the aunt made out a promissory note in the sum of $2500 to be paid to her niece after her death.

After the death of the aunt, the niece presented this note to George Forbes, the administrator of Delilah Deeds. He refused to pay it, and this action was begun on the note.

The defendant contended that the note was only a gift by the aunt; that it was not supported by a consideration ; that it called for no act or promise on the part of the niece which would make it binding.

Decision

The giving of this promissory note was but a promise to make a gift. A gift may be withdrawn at any time until it is executed, that is, the time when it is paid. Thus, this note gave the niece no legal right whatever.

It was held that the plaintiff, Lillie Williams, could not recover on the note in question.

Ruling Law. Story Case Answer

In order to create a binding agreement or contract, every promise by one person made in favor of another must be supported by a consideration moving from such person. Thus, a proposal made by one person to another, which does not call for a promise, act, or some other consideration from the person to whom it is made, does not constitute a binding contract.

However, if such a promise is made under seal, in the absence of statutory changes it becomes binding, even though there is no consideration moving from the person to whom the promise is made. A sealed contract is binding without a consideration, because the presence of the seal dispenses with its necessity.

In the Story Case, the promise made by Mr. Nightingale was without consideration; it was a bare promise; it did not contemplate any promise or act on the part of the nephew. Consequently it is not a binding agreement and the nephew could not recover from his uncle. Had the promise been in writing, signed and sealed by his uncle, then it would have been binding, even though without consideration.