Hamer v. Sidway
Court of Appeals of
124 N.Y. 538, 27 N.E. 256.
Facts: Story promised his nephew to pay him $5,000 if he didnít smoke, drink or do other bad stuff until after his 21st birthday.† His nephew, Story II, performed the contract and gave someone else the right to get the money.† This party later sued the estate of Story I for the $5,000.† The trial court found for the plaintiff but the appellate court reversed.† The plaintiff appealed.
Issue: Is the promise from Story I to Story II enforceable?
Rule: The consideration for a promise may consist of, among other things, the abandonment of a legal right.
Analysis: The court finds that since Story II had a legal right to do the things he chose to give up.† The court says that this constitutes consideration for the promise of $5,000.
Conclusion: The court found that the promise from Story to his nephew was enforceable and thus overturned the appellate court ruling and affirmed the trial court ruling.