85 Ind. 294 | Ind. | 1882
The appellant’s complaint is founded upon a promissory note executed by the appellee’s intestate. The answer of the appellee alleges that the only consideration for the note sued on was the sum of $40 paid to the intestate by ¡the appellant, and the agreement of the latter to bestow upon ■one of his children the name of Charles Lehman Wolford. The appellant replied to this answer that Charles Lehman, .the intestate, had .been an intimate friend of the appellant, and a frequent visitor at his house; that Lehman was a
To this reply a demurrer was sustained. It is the general rule that where there is no fraud, and a party gets all the-consideration he contracts for, the contract -will be upheld. In Hardesty v. Smith, 3 Ind. 39, it was said: “When a party gets all the consideration he honestly contracted for, he can not say that he gets no consideration, or that it has failed. If this doctrine be not correct then it is net true that parties are at liberty to make their own contracts.” The same principle is declared and enforced in many of our own cases.. Kernodle v. Hunt, 4 Blackf. 57; Harvey v. Dakin, 12 Ind. 481; Baker v. Roberts, 14 Ind. 552; Taylor v. Huff, 7 Ind. 680; Louden v. Birt, 4 Ind. 566; Smock v. Pierson, 68 Ind. 405 (34 Am. R. 269); Neidefer v. Chastain, 71 Ind. 363 (36 Am. R. 198); Williamson v. Hitner, 79 Ind. 233. In Pollock’s Principles of Contract, the author quotes approvingly from a philosophic treatise this statement: “The value of all things contracted for is measured by the appetite of the contractors, and therefore the just value is that which they be contented to give.” An examination of the decided cases will prove this to-
In Earl v. Peck, 64 N. Y. 596, a case similar to this in many respects, the court says: “ The only point insisted upon in this court, relates to the consideration. The note is for $10,-000, and expresses the consideration to be for services rendered. The plaintiff' liad been the housekeeper for the defendant, who was a bachelor, for seven or eight years, and the latter was indebted to her for her services in some amount, and the evidence tended to prove that at some time during the •service it was agreed that the amount of compensation should be left to the intestate. Mere inadequacy of consideration, ■except as a circumstance bearing upon the question of fraud, •or undue influence, is not a defence to a note. It is not necessary that the consideration of a note shall be equal in pecuniary value to the obligation incurred. If no part of the consideration was wanting at the time, and no part of it subsequently failed, although inadequate in amount, the note is a valid obligation. * * * * * * There is no standard whereby courts can limit the measure of value in such a case, and an obligation is not wanting even partially in consideration, because the value is less than the obligation.”
The case before us, in some of its features, resembles that of Cowee v. Cornell, 75 N. Y; 91 (31 Am. R. 428), where a note for services was sustained although the amount was $20,000, and greatly in excess of the value of the services. The court said: "’‘More inadequacy in value of the thing bought or paid for is never intended by the legal expression, want or failure of consideration. This only covers either total worthlessness to all parties or subsequent destruction partial or complete.” The case of Lindell v. Rokes, 60 Mo. 249; S. C., 21 Am. R. 395, is a peculiar one.- There the consideration of the note sued on was the payee’s promise to abstain- from the use of intoxicating liquors for eight months; and it was held to be sufficient
Before passing from this branch of the case, there is an English decision which we think deserves attention; the case to which we refer is that of Shadwell v. Shadwell, 30 Law J. 145. In that case the decedent wrote the following letter to his nephew: “ I am glad to hear of your intended marriage with Ellen Nicholl; and, as I promised to assist you at starting, I am happy to tell you that I will pay to you one hundred and fifty pounds yearly during my life, and until your annual income-derived from your profession of a chancery barrister shall amount to six hundred guineas, of which your own admission will be the only evidence that I shall receive or require." The declaration averred that the nephew relied upon this promise, and married the woman named in the letter. Eulk, C. J., in delivering the opinion of the court, said: “Then, do these facts shew that the promise was in consideration, either of the loss to be sustained by the plaintiff, or the benefit to be derived from the plaintiff to the uncle, at his, the uncle’s, request ? My answer is in the affirmative. First, do these facts shew a loss sustained by the plaintiff at the uncle’s request? When I answer this in the affirmative, I am aware that a man’s marriage with the woman of his choice is in one sense a boon, and in that sense the reverse of a loss; yet, as between the
There are, it is commonly but not altogether accurately said, two exceptions to the general rule we have stated:
First. Where the sole consideration is money, and the amount is greatly disproportioned to the value of the promise.
Second. Where the consideration is so grossly disproportionate to the value of the promise as to indicate fraud, shock the conscience of the court, and make the enforcement of the contract unconscionable.
Of these in their order.
First. A money consideration is capable of exact and definite admeasurement; its value is fixed and unalterable, and there can not bo any uncertainty as to its adequacy or inadequacy. The parties really exercise no judgment in passing upon its value, for that never is in doubt. Courts can, therefore, pass upon its sufficiency without infringing the rule that where the parties have for themselves determined the sufficiency of the consideration, courts will not review their decision. Schnell v. Nell, 17 Ind. 29 ; Shepard v. Rhodes, 7 R. I. 470. But where the consideration is something else than money, there must be some exercise of judgment in ascertaining and settling its value.
Second. Where the consideration is so grossly inadequate as to shock the conscience, courts will interfere, although there has been some exercise of judgment by the parties in fixing it. But it will be found upon an analysis of the cases, that courts interfere upon the ground of fraud, and not upon the ground of inadequacy of consideration. The courts never do interfere, unless the consideration is so grossly inadequate as to amount to fraud or oppression. Mr. Pomeroy has given the subject
The question in the case at bar, therefore, comes to this:
The character of the consideration is an important matter ; for there is, as we have seen, a marked and clear distinction between a determinate money consideration and an indeterminate one. This distinction is pointed out in Schnell v. Nell, supra, and in Smock v. Pierson, supra. In this last case it was said: “ In estimating the value of a thing as the consideration for a promise, there is a manifest distinction between property of a certain and determinate value, and things which have but a contingent and^jndeterminate value. But, in any event, mere inadequacy of consideration is not sufficiént to defeat a promise.” In Kerr v. Lucas, 1 Allen, 279, it was held that where the value of a consideration is indefinite, the parties have a right to fix it for themselves, and the courts can not overturn their decision upon its sufficiency. The consideration in the case before us was, except as to the $40 paid in money, an indeterminate one, and one which the parties alone were competent to measure and determine.
Where a party contracts for the performance of an act which will afford him pleasure, gratify his ambition, please his fancy, or express his appreciation of a service another has done him, his estimate of value should be’ loft undisturbed, unless, indeed, there is evidence of fraud. There is, in such a case, absoi lutely no rule by which the courts can be guided, if once they depart from the value fixed by the promisor. If they attempt to fix some standard, it must necessarily be an arbitrary one, and ascertained only by mere conjecture. If, in the class of cases under mention, there is any legal consideration for a promise, it must be sufficient for the one made; for, if this be not so, then the result is that the court substitutes its own judgment for that of the promisor, and, in doing this, makes a new contract, Where the purpose of the party is to secure
We turn now to the cases cited by the appellee. Three of them, Jestons v. Brooke, Cowp. 793, Floyer v. Edwards, Cowp. 116, and Baxter v. Wales, 12 Mass. 365, are the same in principle, and decide that a creditor can not fix an oppressive and unconscionable sum as the measure of damages for a breach of contract. They do not proceed upon the ground of inadequacy of consideration, but upon the ground that a penalty for failure to perform a contract must not be oppressive. It may well be doubted whether they do not state the rule too broadly upon that point; for, whore the damages are indefinite and uncertain, the parties may fix a certain sum as liquidated damages, and the contract will be enforced. But we need not and do not make any decision upon this point. The case of Ex parte Young, 6 Bissell, 53, turned upon the validity of “Corner option contracts in grain,” and the question as to the sufficiency of the consideration was really not discussed or decided by the court. In the case of Cutler v. How, 8 Mass. 257, there was no consideration at all for the part of the note held invalid, for the reason that no fees were due the officer. The cases of Sehnell v. Nell and Shepard v. Rhodes decide that where the consideration is money and nothing else, courts may determine its adequacy; but they both declare that where the consideration is an indeterminate one, the rule is other
We do not agree with appellee’s counsel that where the consideration is partly in money and partly in something ■else, we must, in determining whether the consideration was adequate, exclude the money part. We suppose that if a man sells a horse for a patent hay-fork and for $40 in money, the two things must be reckoned together. But, perhaps, the general rule may not apply to a case like this, where it is made to appear that the payment of the money was little else than a mere matter of form, and that the real consideration for the promise was something other than the money. Without, however, deciding this point, we shall treat the case as resting •entirely upon the two other considerations stated in the pleadings.
There are two distinct considerations stated in the reply. The first of these, the performance of services for the intestate, is, in our opinion, a legal consideration. We are not unmindful of the rule that an executed consideration will not support a promise; on the contrary, we fully approve it, and carefully refrain from encroaching upon it. Nor do we hold, or mean to hold, that a voluntary service rendered as a mere favor or gratuity can constitute a valuable consideration for a promise. We do hold that the pleadings in this case show that the consideration was not an executed one, and that the services were not rendered voluntarily, or as a mere matter of favor. We rest our ruling upon the fact that the services
The surrender, at the intestate’s request, of the right or privilege of naming the appellant’s child, was the yielding of' a consideration. The right to give his child a name was one which the father possessed, and one which he could not be deprived of against his consent. If the intestate chose to bargain for the exercise of this right, he should be bound, for by his bargain he limited and restrained the father’s right to bestow his own or some other name upon the child. We can-perceive no solid reason for declaring that the right with which, the father parted at the intestate’s request was of no value.. It is difficult, if not impossible, to invent' even a plausible-reason for affirming that such a right or privilege is absolutely worthless. The father is the natural guardian of his child, and entitled to its services during infancy, and within this-natural right must fall the privilege of bestowing a name upon-, it. In yielding to the intestate’s request, and in consideration of the promise accompanying it, the appellant certainly suffered some deprivation and surrendered some right. The-rule is, that “It is sufficient, if there be any damage or detriment to the plaintiff, though no actual benefit accrue to the-party undertaking.” Addison Con., section 9; Glasgow v. Hobbs, 32 Ind. 440. Conceding that the intestate derived no-benefit, still, as the appellant suffered some detriment and yielded a right, there is a legal consideration.
The concession that the intestate secured no benefit is one-that can not be justly made, for he himself determined that the act done by the appellant, at his request, was a benefit to-him. It is'not necessary that the consideration for a promise should be a property one. It is true that the courts-and text-
Cases are cited showing the importance of the question of consideration where fraud and imposition are imputed to the party asserting the contract, and to the rule declared in those cases we yield undoubting assent. But here there is no question of fraud, imposition or oppression. The case is before us upon the pleadings, and there is no charge of fraud, nor any allegation that corrupt acts were done or undue advantage taken. We are not considering the case upon the evidence, and there are no inferences to be drawn from proved facts,, but we are required to do no more than examine the allegations of the pleadings, and from them determine the rights of the parties.
New rules are better settled than that fraud is never presumed, and that a party who relies upon fraud as a cause of action, or ground of defence, must charge it in his pleadings. Where there is no such charge, and no facts constituting fraud are pleaded, courts can not by any inferential process inject that element into the case.
Judgment reversed.