Dougherty v. Salt
125 N.E. 94 (1919)
Cardozo, J.
The plaintiff, a boy of eight years, received from his aunt, the defendant’s testatrix, a promissory note for $3,000, payable at her death or before. Use was made of a printed form, which contains the words ‘value received.’ How the note came to be given was explained by the boy’s guardian, who was a witness for his ward. The aunt was visiting her nephew.
‘When she saw Charley coming in, she said, ‘Isn’t he a nice boy?’ I answered her, Yes; that he is getting along very nice, and getting along nice in school; and I showed where he had progressed in school, having good reports, and so forth, and she told me that she was going to take care of that child; that she loved him very much. I said, ‘I know you do, Tillie, but your taking care of the child will be done probably like your brother and sister done, take it out in talk. ’She said, ‘I don’t intend to take it out in talk; I would like to take care of him now. ’I said, ‘Well, that is up to you.’ She said, ‘Why can’t I make out a note to him? ’I said, ‘You can, if you wish to.’ She said, ‘Would that be right?’ And I said, ‘I do not know, but I guess it would; I do not know why it would not.’ And she said, ‘Well, will you make out a note for me?’ I said, ‘Yes, if you wish me to,’ and she said, ‘Well, I wish you would.”
Question
Did Aunt Tillie intend to make a legally binding promise to Charley?
(a) Yes
Correct. Charley’s guardian questions whether Aunt Tillie will ever really give the money to Charley. Her response is to ask whether she can legally bind herself to give the money. Clearly she intends that the promise to pay the money be legally enforceable.
(b) No
Incorrect. Charley’s guardian questions whether Aunt Tillie will ever really give the money to Charley. Her response is to ask whether she can legally bind herself to give the money. Clearly she intends that the promise to pay the money be legally enforceable.
A blank was then produced, filled out, and signed. The aunt handed the note to her nephew, with these words:
‘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.’
The trial judge submitted to the jury the question whether there was any consideration for the promised payment. Afterwards, he set aside the verdict in favor of the plaintiff, and dismissed the complaint. The Appellate Division, by a divided court, reversed the judgment of dismissal, and reinstated the verdict on the ground that the note was sufficient evidence of consideration.
We reach a different conclusion. The inference of consideration to be drawn from the form of the note has been so overcome and rebutted as to leave no question for a jury. This is not a case where witnesses, summoned by the defendant and friendly to the defendant’s cause, supply the testimony in disproof of value. Strickland v. Henry, 175 N. Y. 372, 67 N. E. 611. This is a case where the testimony in disproof of value comes from the plaintiff’s own witness, speaking at the plaintiff’s instance. The transaction thus revealed admits of one interpretation, and one only. The note was the voluntary and unenforceable promise of an executory gift. Harris v. Clark, 3 N. Y. 93, 51 Am. Dec. 352; Holmes v. Roper, 141 N. Y. 64, 66,36 N. E. 180. This child of eight was not a creditor, nor dealt with as one. The aunt was not paying a debt. She was conferring a bounty. Fink v. Cox, 18 Johns. 145, 9 Am. Dec. 191.
Question
If Aunt Tillie had been making a promise to pay a debt, she would have
(a) been making the promise in return for value received.
(b) not have been making the promise in return for value received.
Answer A
(a) been making the promise in return for value received.
Correct. The “value received” would have been the money loaned, and Aunt Tillie would have made her promise in exchange for the loan.
Answer B
(b) not have been making the promise in return for value received.
Incorrect. The “value received” would have been the money loaned, and Aunt Tillie would have made her promise in exchange for the loan.
The promise was neither offered nor accepted with any other purpose. . . . A note so given is not made for ‘value received,’ however its maker may have labeled it. The formula of the printed blank becomes, in the light of the conceded facts, a mere erroneous conclusion, which cannot overcome the inconsistent conclusion of the law. . . . The plaintiff through his own witness, has explained the genesis of the promise, and consideration has been disproved. Neg. Instr. Law, § 54 (Consol. Laws, c. 38).
We hold, therefore, that the verdict of the jury was contrary to law, and that the trial judge was right in setting it aside. . . .
Question
The court requires that Aunt Tillie’s promise to pay the money be given in exchange for value received. Thus, without such an exchange, the fact that Aunt Tillie intended the promise to be legally enforceable is irrelevant to the question of whether the promise is in fact legally enforceable.
(a) True
Correct. The intention is irrelevant.
(b) False
Incorrect. The intention is irrelevant.
The judgment of the Appellate Division should be reversed, and the judgment of the Trial Term modified by granting a new trial, and, as modified, affirmed, with costs in all courts to abide the event.
HISCOCK, C. J., and CHASE, COLLIN, HOGAN, CRANE, and ANDREWS, JJ., concur.
Judgment accordingly.