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'^/'^aiAiNiiiAV^ '^'^Aavaaii-i'^'^ ^(JAav^aii^^"^ ^ ^■"■■^^ \ 3* 2 1 ^RYCk, .^lllBRARYQc OJO"^ '^-WOJIIVJJO'^ ,\WEUNivrasyA. ^tfOJITVJJO'^ ^ ^.OFCAIIF0%^ ^6'AaYaan-^^'^ ,5y\FUNIVFR% "^J^uaKvsov^ o "^/iiUAINftJV^^ ^OFCAUFOff^ ^< ^■ ^ ^^V__A rrt ^t-UBRABY^?/ ^^^UBRARYO/^ ,5MEUHfVERSyA a^ ^OFCAUFOJ?^ ^.OFCAIIFOI?^ ^I^WE UNIVERS/^ soi^ "^aiAWrt^^v^ ^^^AHvaaiv^^^ ^^i^'^ 4 Adkinson vs. Barlleld 5!)7 Aiken vs. Duren, 4!)2 Albert vs. Winn, 122 Alcalda vs. Morales, 441 Aldrich vs. Ames, 474* Alger vs. Scoville, 3S8, 400*, 445, 4S6 C20, (i2;3, 628* Allaire vs. Oiiland, 3%, 4.5(i* Allen vs. Prvor If.!)* Allen vs. Scarli', 25i» Allen vs. Thomas, 441 Allen vs. Thompson, 5!)(i* Alliii:; vs. Munson, 116* Allshoiise vs. Ramsay, 141, 381 AlL-'tan vs. C'4 Atkins vs. Farr, (90 A'kins vs. Hill, 99, 122 A\torney General vs. Chapman, 113* Attorney General vs. Higham 114 Audul)on vs. The Excelsior Insurance Company, 74* B. Babcock ts. Eckler, 722 Backus vs. Clark, . 143, 240 Bagley vs. Sasser 30 1 B:iker vs. Dillmanu, 148, 472* Baldev vs. Parker, 77 Ball vs. Gates 252 Billiard vs. Walker 8t Bampton vs. Paulin, 566, 575*, 602 Bank of Ireland vs. Archer 264 Bank of Kimtucky vs. Brooking, 50.) Bank of Missouri vs. Benoist, 442 Bank of Trov vs. Topping, 84, 110* Barber vs. Fo.x 3t7 Barg<'r V8 Collins 52(1 Barker vs. Buckliu 413, 429*, 431, 4.39 440, 443, 543, 5'Jl, 610 Barker vs. Prentiss 161 Barkworth vs. Young, 729 Barnard vs. Pomf rett, 99 PAOI Barnstincvs. Eggart, 597 Barrel! vs. Trussell 84, 573*, 602 Barringer vs. Warden, .•}()!) Barrow vs. Barrow, ()Si Barry vs. l^insom, 464, 470*, 4S0 Barry vs. Kush, 117 Bartholomew vs. Jackson, 276* Barton's Case, 12;} Bason vs. Ilughart 381 Bastard vs. Stukely, 12;j Bates vs. SUirr, 240 Batson vs. King, 4(h1*, 480 Battersbee vs. Farrington, 71(i*, 724 Bawdcs vs. Amhurst, 712, 715 Bayard vs. HolTman, 722 Beach vs. Hungerford, 366, 367* Beal vs. Brown, 227 Beals vs. Beals, 43U Beaman vs. Russell, 483* Beaty vs. Grim, r,:A Becker vs. Torrance, 4:}5*, 590 Beers vs. Robinson, 4.')0 Belden vs. Lamb 6.")5 Bellerjcau vs. Kotts, 124 Benedict vs. Dunning, 593* Bennett vs. Pratt, 140,394* Benson vs. Walker, 525 Bentley vs. Griffin, 304 Berly vs. Taylor 4.37 Berry vs. Dorcmus, 441 Bigelow vs. Davis, 437 Billingslev vs. Dempewolf, 240, 260* Bird "s. Gammon, 200, 37 1 * Bird vs. Lanins, 439 Birkmyr vs. Darnell, . .7.5, 9.\ 1.33, 19.3, 211, 212* 216, 217, 254, 256, 301, 302, 567 Bize vs. Dickason, 6.56 Blake vs. Cole, 473* Blake vs. Parlin, 142*, 2:W Blank vs. Dreher 255, 278* Bleeker vs. Bingham 688 Blodgett vs. Town of Lowell, 277* Blount vs. Hawkins 500* Blow vs. Maynard, 722, 724 Blunt vs. Boyd, 431* Bohanau vs. Pope, 414, 42.3* Bold vs. Hutchinson 745 Bourka Mire vs. Darnell. (See Birkmyr.) Bonbonus, Ex parte, 504 Booker vs. Tally, 240, 253 Borst vs. Corey 722 Bourkmire vs. Darnell. (See Birkmyr.) Bourne vs. Mason 410, 411 Bovy's Case, Sir Ralph, 674 Bowman vs. Tallman, 122 Boyce vs. Owens, 84, 141, .597 Boyd vs. Stone 181 Boykin vs. Dohlonde 240 2H4 Bradley vs. Richardson, 662* Brady vs. Sackrider, ... 210 Braman vs. Hess ().55 Brav vs. Freeman, 200, 201* Bresler vs. Pendell, 3 13*, (i27 Brewer vs. Dyer 413. 4;J5, 445 Brewster vs. ^ott, 605 14 TABLE OF CASES. PAOE Brewster vs. Silence, 052* Urice vs. Kill":, 451 Bi-iir-s vs. Evans, 233*, ^14 BristDW vs. Lane 440 Brock vs. Thompson, 055 Brodic vs. St. Paul, 'i'T Broiison vs. Stroud 259, 269*, 284 Brooks vs. Lynde, 124 Brown vs. Adams, 482-^ ]}rown vs. Barnes C3''' Brown vs. Bradshaw, 231* Brown vs. Carter, 683 Brown vs. Curtiss. (See Curtiss vs. Brown.) Brown vs. George, 143, 240 Brown vs. Hazen 381 Brown vs. O^Brien, 441 Brown vs. Strait, 440 Brown vs. Weber 134, 295, 350*, 590, GIO Brownini,' vs, Stallard, 302* I'.rush vs. Carpenter, 483* Buchanan vs. Dt^shon, 683 Buckoridi^e vs. Ingram, 70 Bucklin vs. Ward 526 Buckniyr vs. Darnall. (See Birkmyr.) Buckniyr vs. Darnell. (See Birkmyr.) Buhner vs. Hunter, 686 Burkmire vs. Darnel. (See Birkmyr.) Burkmire vs. Darnell. (See Birkmyr.) Burr vs. Boers 435 Burr vs. Wilcox, 5S8 Burt vs. Horner 650* Burton vs. Baker, 655 Busheevs. Allen 240 Bushell vs. Beavan,.. 184*, 187, 266, 2(iT, 271 Butcher vs. Steuavt, 323, 320*, 330, 384 Button vs. Thrailkill, 140 Byrdvs. Odem, 74 Cabot Bank v8 Morton, 169*, 175 Cahill vs. Bigelow, 235*, 2.36 Cailleux vs. Hall, 552 Cameron vs. Clarke, 441 Campbell vs. Findley, 395, 451* Campbell vs. Lord Netterville, 682 Campion vs. Cotton, 685 Canfield vs. Monger, 525 Caperton vs. Gray, 141 Cardell vs. McNiel 652* Carnegie vs. Morrison, 445 Carnegie vs. Waugh, 410 Carr, E.X parte, 174, 676 Carter vs. Toussaint, 77 Carville vs. Crane, .... 187, 266*, 269, 272, 469 Case vs. Barber 320 Casey vs. Brabason, 160 Castfingvs. Aubert,... 191*, 389, 492,498, 566 571*, 573, 575, 576, 584, 601, 602, 604, 668 Caston vs. Moss, 140 Caton vs. Caton 706, 729, 746*, 751, 7.52 Chambers vs. Bobbins 121* Chandler vs. Davidson, 92, 107* Chapin vs. Lapham 300, 301, 313*, 473 Chapin vs. Merrill, .... 200, 397. 468*, 470, 472 475, 477, 478, 590 Chaplin vs. Rogers 76 Chase vs. Day 230* Chater vs. Beckett, 76, 141, 199, 330 Chichester vs. Cobb, 682 Clancv vs. Piggott, 141, 578* Clapp" vs. Lawton, 84, 106, 416, 418 446*, 558, 610 Clark vs. Hall, 536* Clark vs. Herring, 124 Clark vs. Levi, 314* Clark vs. Parker 682 Clark vs. Pendleton 690 Clarke vs. Cock, 264 PAGK Clay vs. Walton, 352, 627, 634* Clayland's lessee vs. Pearce, 48 Clerk vs. Withers 331 Cleveland vs. Farley. (See Farley vs. Cleveland.) Cleverley vs. Brett, 113 Click vs. McAfee, 381 Clymer vs. De Young, 554* Cobb vs. Titus 655 Cochrane vs. Green, 524* Cole vs. Dyer, 141 Cole vs. Shnrtletr, 381, 501* Coleman vs. Eyles,... 223 Collins vs. Row 105, 127* Colombine vs. Penhall, 686 Colt vs. Colt, 124 Colt vs. Nettervill, . . 30 Colt vs. Root, 398* Colwcll vs. Alger 104 Combs vs. Harsbaw, 194* Compton vs. Jones, 526 Conkey vs. Hopkins, 397* Conn vs. Coburn, 316* Conneratvs. Goldsmith, 300, 304, 306* Connor vs. Williams, 412, 413, 437 Conolly vs. Kettlewell 255*, 259 Consociated Presbyterian Society, etc., vs. Staples 369 Cook vs. Barrett, 369 Cook vs. Elliott, 84 Cookes vs. Mascall, 713, 714* Coolidge vs. Payson, 264 Cooper vs. Chambers, 331* Cooper vs. Ellston, 76 Cooper vs. Page 655 Cooth vs. Jackson, 77 Corbett vs. Cochran, 376*, 597 Corbin vs. McChesney, 384* Cork vs. Baker, 690* Corkins vs. Collins, 141, 591* Corporation of Clergymen's Sons vs. Swainson, 114 Cotterill vs. Stevens, 381 Couturier vs. Hastie,.. 78, 604, 667*, 668, 669 Covvell vs. Oxford, 124 Cram vs. Hendricks, 6.55 Crane vs. Gough, 683, 701*, 727 Creel vs. Bell 526 Cripps vs. Hartnoll, 465*, 467, 469 Crocker vs. Whitney, 526 Croft vs. Smalhvood, 218, 220*, 376 Cropper vs. Pittman, 240, 257*, 259, 263 Cross vs. Richardson, 631 Crow vs. Rogers, 410 Crowfoot vs. Gurney, 522* Crown vs. Brown, 175 Cumberland vs. Codrington, 437 Currier vs. Hodgdon, 526 Curtis vs. Brown, ... 106, 381, 413, 418, 443* 448, 556, 557, 558, 588 Curtiss vs. Brown,.. 646*, 647*, 648, 649, 650 651, 6.52 Cutler vs. Hinton, 249, 251, 262*, 284 Cuxon vs. Chadley 363*, 377 13. D'Aguilar vs. Drinkwater, 682 Darling vs. March, 605 Darlington vs. McCunn, 240 Darnell vs. Tratt 223*, 253, 304 Dater vs. Wellington, 74 Dauber vs. Blackney, . 653 Davenport vs. Runlett, 505 Davidson vs. Graves, 722 Day vs. Elmore, 655 Day vs. Patterson, 439 Dearborn vs. Parks 420*, 421 De Barante vs. Gott 683 Do Bcniales vs. Fuller, .... 411 TABLE OF CASES. 16 PAGE De Biel vs. Thomson. (See Haminers- ley vs. De Biel.) Decker vs. Sluiffer, 413, 438* Deeks vs. Striitt, l-'S Delaware Bank vs. Jarvis 6W Delaware, etc., Company vs. West- chester County Bank, 413, 4:U, 4.'n Derby vs. Plielps, G!tO Devlin vs. Wood«ate, 347*, ;!49, 027 Dexter vs. Blancliard 140, 315*, 5,S,S Dillon vs. Coppin, 7215 Dilts vs. Parke, 544* DiiiKeldein vs. The Third Avenue Hailroad Company, 435* Dix vs. Burford, V£i Di.xon vs. Frazee, 233* Dixon vs. Hatfield, 52!t* Doaiie vs. Newman, 47>i Dob vs. Halsey, 505 Dodson vs. Mackey, 242 Doe vs. Guy, 123 Doe vs. Mann ins, (jK4 Dot>littlo vs. Dininny, I(i3* Dorwin vs. Smith, 457 Doutchuss vs. .Jones 4it2 Doujjlas vs. Vincent 681*, 082 Downi-y vs. Hinchman, 190* Doyle vs. White, 240 Drake vs. Flewellen, 300 Drakelcy vs. De Forest, 171 Draujrhan vs. Bunting 84, 381, 482* Dufolt vs. Gorman, 2.55 Du«an vs. GittinRs 6S4 Dunbar vs. Williams 270* Duncomb vs. Tickrid>re 299, 301, 302* Duiulas vs. Dutens, 712, 716*, 717, 719, 72U, 721 Duiilap vs. Thorne, 597* Dunn vs. Tliar[), 674 Dunn vs. West, 479* Durham vs. Arledtje, 141, .597*, 610 Durham vs. Manrow, . 167, 285, 648*, 6.50, 651 Durham vs. Taylor, 678, 709 Dutton and wife vs. Poole, . . . 408*, 411, 4:58 Dyer vs. Gibs(jn, 6.54 Dyprert vs. Kemerschnider, 699*, 722 D" Wolf vs. Kabaud 210, 229, 267 E, Earle vs. Crane, 4:31* Easter vs. White 480* Eastwood vs. Kenyon,. . . . 388, 390*, 392, 395 396, 397, 398, 454 Eaton vs. Tillinghast, 688 Eddy vs. Roberts, 4i;$, 439*, 440, 010 Edwards vs. Kelly, 200, 332*, 566, .574* 576, 602 Elder vs. Warfleld, 167, 219, 240, 257 Elkins vs. Heart, 132, i:«, 184* EUicott vs. Peterson's Ex'rs, 240, 302* Elliot vs. Giese, 84 Ellis vs. Nimmo 72:3* Ellison vs. Jackson Water Co.,. 339, ;349, 627 Jlllison vs. Wi.sehart, 276, :380* Ellwood vs. Monk, 429, .5.50*, ,590 Emerick vs. Sanders, 451, .540*, .5.58 Emerson vs. Slater, . . . 230, 352, 388, .557, 620* 624, (i27 Emmet vs. Dewhnrst, . . . 142*, 271, 330*, 372* Evans vs. Bicknell, 174 Evans vs. Lohr, 321 Everett vs. Morrison, 259 Ewins vs. Calhoun, 173 Exchantre Bank vs. Rice, 159 Eyre vs. Dunsford, 172*, 173 Falres vs. Lodanc, 143, 240 Fairlie vs. Denton, 519, 522* Parish va. Wilson, La PAGB Farley vs. Cleveland, 334, 429, !>t4, 5.50* 589, 590, ti23 Farlow vs. Kemp, 439 Farmers' Bank vs. Brown, 441 Farwell vs. Jacobs 124 Faulkner, In the matter of, 97* Fay vs. Bell, 590 Felton vs. Dickinson, 445 Files vs. McLeod , 4se Finch vs. Finch, 706*, 707, 712, 726*, 728 First Baptist Church of Chicago vs. Hyde 517* Fish vs, Hutchin.son,...141,201*,205,212,591 Fish vs. Thomas 494* Fisher vs. Beckwith 161 Flskc vs. .McGregory 401*, 417 Fitzgerald vs. Dressier, 1135, 46:5, .570, .573 581*, 598, 602, (i04 Flanders vs. Crolius, 232* F'lemm vs. Whitmore, 457 Flowers vs. Kent, 674 Ford vs. Adams, 525 Ford vs. Finney, 441 Ford vs. Stuart, (i83 Forth vs. Stanton, .... 101, 1*5, 144, 167, 201 570, 571, 573, 578, 583, 603 Fowler vs. Clearwater, 6.53 F\)wler vs. Moller, 142* Fraser vs. Thompson, 683, 6.S6 F'rench vs. French, 372* French vs. Grindle, 655 French vs. New 74 F^rench vs. Thompson, 597* F'rost vs. Bengough, 241 Fullani vs. Adams, 148. 405, 4,27, 527, 611 014*, 619, (>51, 033 Furbish vs. Goodnow,. . . 84, 106, 141, 1.52, 167 444*, 527, 556, 628 Gackenback vs. Brouse, 647 Gall vs. Comber, 6,56 Gale vs. Lindo 677 Gallager vs. Brunei 178, 179*, 272 Gansevoort vs. Williams, ,505 Gardiner vs. Hopkins, .590 Gaunt vs. Hill, 3:30 Gell vs. Vermedun 674 G ibbons vs. McCasland, .502* Gibbs vs. Blanchard,... 288*, 291, 292, 29.5, 297 Gleason vs. Briggs 240, ;{81 Gold and Sill vs. Phillips,... 427*, 549*, 5.50 552, 590 Goldicutt vs. Townsend, 721*, 745 Goldsmith vs. Brown, 6.55 Goodman vs. Cliase, ... 135, 320, 324*, 329, ;330 591, 603 Goodrich vs. Gordon 264 Goodrich vs. Nickols, 188 Goodspeed vs. F'uller, 457 Goodwin vs. Chaffee, 124 Goodwin vs. Gilbert, 108* (i ordon vs. Downey, ,526 Gordon vs. Martin, 27,5* Gorin vs. Gordon, 688 Ciorton vs. Dyson, 123 Gould vs. Moring, 2i59* Grav vs. Hill, 171* Green vs. Cre.sswell, . . . 462*, 463, 464, 46.5, 406 409, 470, 471, 472, 47,5, 480, 481, 4,s;3, 003 Greene vs. Cramer 679, 683 Greening vs. Brown, 126* (ireenleaf vs. Uurbank, 50()* Gregory vs. Harinan, 123 Grillith vs. Sheffield, 03 Griggs vs. Seeley 74 Grove vs. Dubois, 0,56 Grover vs. Sims, 367* Gull vs. Lindsay 578, 580*, 60'.J Gunnels vs. Stewart, 865 16 TABLE OF CASES. „ PAGE Hackleman V3. Miller, 91, 114*, (i;j4 Hackney vs. Hackney, 713, 7i;i* Haines' Administrator vs. Tarrant, . . 310* Hair vs. Hair, 693*, TOO Hail vs. Fanner 647*, 649, 651 Hall vs. Marston, 445 Hall vs. Rogers, 6,54 Hall vs. Wood, 240 Haniar vs. Alexander, 176*, 179 Hamilton vs. Lyooniins Ins. Co., 75 Hammersley vs. De Biel,. . . 679, 680, 683, 688 697, 713, 730, 728, 731*, 736, 737, 738 739, 740, 741, 744, 745, 746, 750, 7.51, 753 Hanford vs. Hisgins, 240 Hapgood vs. Houghton, 124 Hardesty vs. Jones, 404 Hardey vs. Green, 6S5* Hargraves vs. Parsons, 391*, 643* Harrington vs. Ricli, 84, 91, 106, 118* Harris vs. De Bevoice, 411 Harris vs. Huntbach, . . . 200, 395, 299, 300, 3(J1 310*, 311, 313, 315 Harrison vs. Cage, 689*, 690 Harrison vs. Sawtel, 467*, 469, 470, 475 Hart vs. Minors, 133 Haslock vs. Ferguson, 174 Hastie vs. Couturier. (See Couturier vs. Hastie.) Hatcher vs. Robertson, 709 Hawkes vs. Saunders, 99, 123, 125* Hay vs. Green, 98, 115, 135* Haycraf t vs. Creasy, 173* Haydon vs. Christopher, 365* Hazen vs. Bearden, 340 Hearn vs. Waterhouse, 175 Heaton vs. Angier, 366*, 426 Hetfleld vs. Dow, 240, 284* Hicock vs. McKay, 430, 446 Hill vs. Doughty, 140*, 293* Hill vs. Raymond, 237* Hilton vs. Dinsmore, 141,537* Hinkley vs. Fowler, 423 Hindman vs. Langford, 597 Hitchcock vs. Lukens 171, 440 Hodges vs. Eastman, 526 Hodges vs. Hall, 240, 253 Hodgson vs. Anderson, 514*, 523, 531 Hoffman vs. Schwaebe, 430* Holland vs. Clark, 123 Hollingsworth vs. Martin, 493* Holmes vs. Knights, 75, 467, 476* HoIIis vs. Wliitoing, 712 Holloway vs. Headington, 733 Holt vs. Brien, 304 Homans vs. Lambard, 240, 244* Hoover vs. Morris, 496* Hoplcins vs. Lis well, 509 Hopkins vs. Richardson, 654 Hoppock vs. Wilson, 240 Hornby vs. Lacy, 656* Hotchkiss vs. Ladd and Warner, 283* Hough vs. Gray, 645* Hougliton vs. lioughton, 74 Houghton vs. Houghton, 707, 735*, 738 Hougliton vs. Matthews, 656 Houlditch vs. Milne, ...... 566, 570*, 578, 603 603 Howard vs. Coshow, 404 Howe vs. Buffalo, etc., R. R. Co., 331 Howe vs. Talmer, 76, 77 Howes vs. Martin, 389, 4.53* Hoyt vs. Murphy, 441 Huher vs. Ely, 437 Huckabee vs. May, 441 Hu^'hcs vs. Stringfellow, 171 Hunt vs. Adams, 2.59* Hunt vs. Brown, 647* Huntington vs. Harvey, 507* Huntington vs. Wellington, 175, 654 I. Ingalls vs. Lee, 655 Ingraham vs. Gilbert, 276 Israel vs. Douglas, 513, 519, 520* Izard vs. Izard, 72a J. Jackson vs. Bowen, 331, 337 Jackson vs. Post, 723 Jackson vs. Rayner,. . 140, 539, 542*, 544, 549 Jarmain vs. Algar, 183, 187, 266, 267 Jasigi vs. Brown, 175 Jefferys vs. Jefferys 733 Jenkins vs. Eldridge, 709 Jennings vs. Webster, . 429, 550* Jepherson vs. Hunt, 205*, 388, 628 Jessel V.S. Williamsburgh Ins. Co., 526 Johnson vs. Collings, 159, 264, 520 Johnson vs. Gilbert, 646* Johnson vs. Johnson, 123 Johnson vs. Morris, 541*, 558 Johnson vs. Noonan, 163 Jolley vs. Walker, 381 Jones vs. Ballard, 365, 597 Jones vs. Cooper, 213*, 214, 215, 254, 256 Jones vs. Henry, 723 Jones vs. Letcher, 480* Jones vs. Orchard, 467* Jones vs. Palmer, 654 Jones vs. Robinson, 410 Jones vs. The Adm'rs of Shorter, 478* Jones vs. Stienbergh, 655 Jones vs. Tanner, 123 Jones vs. Wallver, 141, 591* JordenA^^. Money,... 684, 691, 692*, 740*, 742 743, 745, 746, 751, 752 Julian vs. Shobrooke, 159 K. \ Kay vs. Crook, 728 Keate vs. Temple, 221*, 256 Keitli vs. Kibbe, 252* Kelley vs. Commonwealth Ins. Co.,.. 75 Kelly vs. Roberts, 436* Kelsey vs. Hibbs, 171, 481*, 610 Kershaw vs. Whitaker, 91 Kimball vs. Comstock, 175 Kimball vs. Newell, 304*, 308 Kimball vs. Noyes, 441 King vs. Despard, 354*, 590, 627 King vs. Hutchins, 369 King vs. Whitely, 688 King vs. Wilson, 140 Kingsley vs. Balcome, 467, 469*, 472, 475 481, 483, 591, 610 Kinloch vs. Brown 250, 251, 358* Kinnard vs. Daniel, 723 Kinning, Ex parte, 393 Kirkham vs. Marter, 140, 193*, 194 201, 303*, 31T Knapp vs. Hanford, 124 Knox vs. Nutt, 340 Kreutz vs. Livingston, 441 Kurtz vs. Adams, 340 Kutzmeyer vs. Ennis, 353, 634*, 627 L,. Lacy vs. McNeile, 513*, 521, 525 Ladd vs. Blunt, 331 Lafltte vs. Lawton, 688 Lamb vs. Donovan, 439 Lamb vs. Smith 124 Lamlee vs. Hanman, 677 Lanipson vs. Hobart,, 141, 631 TABLE OF CASES. 17 PAOK Laiidis vs. Royer, S40, 592* Lane, Ex parte ;n re Lendon, . . 383* Lane vs. BurRhart, 281, 325, 32()* Lane vs. Steward, (155 Lang vs. Fiskc, 526 Lark V8. Linstead, 124 Larson vs. Wyman, 339 Lassence vs. Tierney, 712, 736*, 738 Lathrop vs. Briijgs 331 Lavencler vs. Blackstone, 674 Laver vs. Fielder, 729* Law vs. Wilkin, 313* Lawrence, Es parte. . . 331, Wi Lawrence vs. Fox, 412, 413, 419, 434*, 346, 437 Leak vs. Morrice, 712 Ledlow vs. Becton, 281*, 387 Lee vs. Fontaine, 440 Leggat vs. Reed, '. . 218* Leggett vs. Rjiymond, 647* Leland vs. Crcyon, 240 Lennnon vs. Box, 62!)* Leonard vs. Mason, 161 Leonard vs. Vredenburgh 145, 230, 397 585, 589, 609, 610, 615, 619, &2:i Leverick vs. Meigs, 656, 657* Lieber vs. Levy, 141, 591* Lilly vs. Huy.s 411, 412, 519, 526 Lines vs. Smith 84 Lippincott vs. Ashfleld, 560*, 563 Littlefleld vs. Shee, 303 Liversidge vs. Broadbent, 520, 523* Lloyd vs. Maund, , 241 Loffus vs. Maw, 728, 746* Logan vs. Wienholt 729* Loomis vs. Ncwhall, 236*, 237, 354 Loomis vs. Smith, 240 Loonie vs. Hogan, 266 Lord vs. Davison, 381* Love's case, . .' 584*, 601 Love, ex'r vs. Iloneybourne, 117* Loxley vs. Heath 688, 720 Lucas vs. Chamberlain, 479* Lucas vs. Payne, 555* Luders vs. Austey, 679 Luff vs. Pope, 266 Lumley vs. Palmer, 159 Luqueer vs. Prosser, 645*, 647 Lyde vs. Barnard, 31, 174 LythvB. Ault, 383 m:. McBumie, Ex parte 686 McCaffll vs. Radcliff, 240, 253 McCoubray vs. Thomson, 410 McEvers vs. Mason, 264 McKay vs. Royal 122 McKenzie vs. Jackson, 440, 561*, 563 McKenzie vs. Scott, 656 McKinney vs. Whiting 175 McMuUen vs. Mayo, 74 McNeil vs. Ouince, 124 Macrory vs. Scott 497*, 643 Madden vs. McCray, ... 5.35* .Madox vs. Nowlan 682* Maggsvs. Ames 267, 304, 305* Magniac vs. Thompson, 683, 685 Mallett vs. Bateman 187, 270*, 624 Mallett vs. Halfpenny, 715* MaUory vs. Aillett, . 84, 133, 141, 146, 158 295, 332, 472, 544, 585, 588* 595, 610, 614, 615, 624 Halone vs. Keener, 654 Mann vs. Blancbard, 175 Mann vs. Mann, 441 Manny vs. Frasier, 442 Manrow vs. Durham. (See Darham vs. Manrow.) Marchington vs. Vernon, 410 Marcy vs. Crawford, 466* 3 PAoa Marshall vs. Morris, 683 Martin vs. Black 127 Martin vs. Chapman, 74 Martin vs. England •. 333* Martyn vs. Hind, 410 Mason vs. Hull 413, 440*, 441, 628 Mason vs. Hunt, 264 Masters vs. Marriott, 274*, 27.S Mather vs. Perry 551*, 553 Matheson vs. Crain, 526 Matson vs. Wharam,. 211, 214*, 216, 220, 225 256, 293. 297 Matthews vs. Milton, 291*, 292 Maule vs. Bucknell, . . 388, 450, 610, 616*, 619 620, 631 Maunscll vs. White, 739* Mawbrey vs. Cunningham, .... 213*, 214, 215 234, 256, 660 Maxwell vs. Hayries, 423 Mazuzan vs. Mead, 655 Mease vs. Wagner,... 219, 240, 279*, 300, 387 Meech vs. Smith l:J6, 690 Meert vs. Moessard, 120* Mellen vs. Whipple, 445* Merrill vs. Engfesby, 5;j4* Mercein vs. Andrus 334*, 335, 590 Merritt vs. Scott, 688 Merry vs. Ryves, 682 Mersereau vs. Lewis, 397*, 486 Metcalfe vs. Shaw, 804 Meyer vs. Haworth, 303 Miles vs. Boyden, 124 Millard vs. Porter, 369 Miller vs. Gaston, 646* Miller vs.Long, 305* Mills vs. Brown, 478* Mills vs. Wyman, 84 Moar vs. Wright, 101*, 526 Mobile, etc.. Insurance Company vs. McMillan, 75 Money vs. Jorden. (See Jorden vs. Money.) MonUcute, Lady, vs. Maxwell, . . 697, 710*, 714 716, 720 Monteflori vs. Monteflori, 677 Montgomery vs. Henderson, 674 Moore vs. Bushcll, 411 Moore vs. Crof ton, 723 Moore vs. Hart, 679, 680* Moorhouse vs. Colvln, 729* Morgan vs. Thomas 95 Morgan vs. Yarborough, 690 Morfey vs. Boothby 547* Morris vs. Cleasby, 656,. 657, 663, 664, 665, 666 Morse vs. Bellows, 526 Mosely vs. Taylor 84 Moses vs. Norton, 239* Motley vs. Manufacturers' Ins. Co., 423 Mountney vs. Andrews 331 Mount Olivet, etc., Co. vs. Shubert, 526 Mowry vs. Todd, 526 Muldrow vs. Agnew, 6.55 Mundy vs. Ross, 395 Munn vs. Commission Company, 655 Musick vs. Musick, 140 Myers vs. Morse, 8%», 486, 690 2sr. Nairn vs. Prowse 685 Nelson vs. Boynton,.. 84, 141, 586*, 589, 591 598, 623 Nelson vs. Hardy, 240, 4.39, 555* Nelson vs. Scrle 01 Neville vs. Wilkinson 676* Newell vs. Ingraham, 339,349 New England, etc., Co. vs. Robinson, . 75 Nicholson vs. Sherman, 123 Nixon vs. Van Hise 395 Noble vs. McClintock, 605 18 TABLE OF CASES. PAOE Noble vs. The National Discount Co., . 524 Noel vs. Hart 347 North vs. Kobinson, 403* Norton vs. Huxley, I'i'S Norris vs. Spencer 259* Noyes vs. Blakeraan, 122 Noyes vs. Humphreys,.. .. 251, 342*, 349, 627 O. Oakley vs. Boorman, 161, 655 O'Donnell vs. Smith, 161 Ogden vs. Ogden, 690 Okeson's Appeal, 109*, 501 Oldham vs. Allen 247* Olmstoaci vs. Greenly, 429, 549*, 550, 590 Oliphant vs. Patterson, 405* Ontario Bank vs. Worthington, . . 159, 263, 266 Orrel vs. Ooppock, 493* Osborne vs. The Farmers Loan and Trust Co 636* Ostrander vs. Walter, 337 Otway's Case, Sir John 674 Owings vs. Owings, 435 Packer vs. Willson, 140, 591, 644* Page vs. Becker, 442* Page vs. Kendrick, 685 Palethorpe vs. Lasher, 331 Palmer vs. Neave, 677 Paramour vs. Yardley, 123 Parker vs. Serjeant, 679 Parks vs. Brinckerhoff, 161 Parsons vs. Walter, 214*, 218 Pasley vs. Freeman, 172, 175, 177, 676 Payne vs. Baldwin, 341*, 349 Payne vs. Little '. . . . 113 Payne vs. Mortimer, 684 Payne vs. Smith, 124 Peabody vs. Harvey, 507* Pearce vs. Blagrave, 218, 227*, 405, 477 Pearson vs. Henry, 113,116*, 118 Peck vs. Thompson, 457* Peckham vs. Faria 213*, 214, 254 Peele vs. Northcote, 656 Pennell vs. Pentz, 234*, 260* Perkins vs. Hinsdale, .' 245* Perkins vs. Hitchcock, 423 Perkins vs. Littlefield, 404* Perloy vs. Spring, 234*, 2.35, 473 Perry vs. Swasey, 413, 446* Peter vs. Compton, 694* Pettigrew vs. Pettigrew, 124 Pfeifter vs. Adler 590, 635* Phillipps vs. Bateman, 496 Phillips vs. Gray, 516* Philpot vs. Wallet, 689*, 690 Pickering vs. Pickering, 124 Pierce vs. Pass, 505 Pierson vs. Dunlop, 264 Pijrgott vs. Thomson, 410 Pike vs. Brown, 169*, 400 Pike vs. Irwin, 559* Pillans vs. Van Mierop, 80, 81, 161, 264 Plummer vs. Lyman, 595* Porter vs. Lan^horn, 240 Post vs. .(Etna Insurance Co., 75 Postlethwaite vs. Mounsey, 113 Potts vs. Merrit, 729* Prather vs. Vineyard, 44 ) Pratt vs. Hudson River Railroad Co., . . 73 Pratt vs. Humphrey,.. 84, 91, 92,104*, 105 128, 165, 402* Preble vs. Baldwin, 400*, 417 Prentice vs. Wilkinson, 206*, 580 Prescott vs. Parker, 124 Price vs. Combs, 240 PAOB Price vs. Easton, 410 Price vs. The Earl of Torrington, 252 Proctor vs. Jones, 76 Prole vs. Soady, 745* Proprietors of Upper Locks vs. Abbott, 143, 240 Prosser vs. Luqueer. (See Luqueer vs. Prosser.) Puckett vs. Bates, 339, 627 Pulsford vs. Richards, 746 Q. Quin vs. Hanford 546* Quintard vs. De Wolf, 366* R. Rains vs. Storry, 218,224*, 253 Ramsdale vs. Horton, 369 Rand vs. Mather 237, 353* Randall vs. Morgan, 717 Randall vs. Sweet, 316* Rann vs. Hughes, 81*, 99, 120, 501 Ransom vs. Keyes, 331 Rapelye vs. Anderson 655 Raymond vs. Pritchard, 439 Read vs. Ladd, 240 Read vs. Nash, . . 133, 193, 198*, 200, 201, 202 203, 204, 205, 206, 207, 212, 301 .302, 319, 567, 574, 591, 603 Reade vs. Livingston, 722* Reader vs. Kingham, . . 392*, 394, 395, 404, 463 Redding vs. Wflkes, 712 Redman vs. Redman, . . .• 677 Reech vs. Kennegal, 99 Reed vs. Holcomb 4S0*, 629* Rcxford vs. Brunei], 499* Reynolds vs. Carpenter, 637* Rhodes vs. Leeds, 240 Rice vs. Barry, 331, 505*, 506 Rice vs. Carter, 404 Rice vs. Peet, 188 Richardson vs. Richardson, 240 Richardson vs. Williams, , . . . . 276, 379*, 388 Riddell vs. Sutton, 117 Rider vs. Riley, 404 Ridout vs. Bristow, 91 Right vs. Price, 70 Rifey vs. Riley 678, 703*, 706 Roberts vs. Roberts, 677 Robbins vs. Ayres, 441*, 442 Robinson vs. Gilman, 148, 243*, 538* Robinson vs. Lane, 107, 111* Robson vs. , 117 Roche vs. Chaplin 300, 301, 312* Rogers vs. Collier, 597 Rogers V. Kneeland, 240 Rogers vs. Rogers, 139*, 141 Rogers vs. Waters, 388, 500 Rollison vs. Hope, 526 Rothcry vs. Curry, 140 Rowe vs. Whittier 141, 321, 421* Rowland vs. Rorke, 654 Rucker vs. Cammeyer, 76 Rupp vs. Blanchard, 525* Russell vs. Babcock, 141, 537*, 538 S. SafTord vs. Stevens 437 Sailly vs. Cleveland, 437 St. Albans Bank vs. Dillon, 307* Sanborn vs. Merrill, 300, 301* Sanders vs. Clason, 441 Satterthwaite vs. Emley, 698*, 722, 724 Saunders vs. Cramer, 679, 683 Saunders vs. Ferrill, 722 TABLE OF CASES. 19 PAOB Saunders VS. Wakcfleld, 77, 84, 141 Savage vs. Lane, 113 Saxion vs. Landis, 321 Sclu'iuerhorn vs. Vanderheyden, 437 Scholcs and a.iother vs. Hampson & Merriott 285*, 298 Scott vs. Pilkington, 410 Scolt vs. Scott 677 Scott vs. Thomas 140, 188*, 545* Scuddervs. Wade 240, 251, 252, 253 Seaman vs. Hasbrouck, 412, 437* Seaman vs. Whitney, 434, 437 Sears vs. Brink, SI Semple vs. Pink, 84 Serle vs. Waterworth, 91 Severs vs. Severs, 113 Shaver vs. Adams, 539* Shaw vs. Jakenian, 717 Shaw vs. Stine, 178, 181* Shear vs. Mallory, 437 Sheen vs. Bump-^-tead, 174 Sherwood vs. Stone, G()6* Shoemaker vs. King 418, 449*, 450, 552 Shook vs. Van Meter, . . 404 Siau ads. Piijgott 597 Sibley vs. Vvniiams, 48 Sidle vs. Anderson, 108* Sigourney vs. Wetherell, . . 509* Silsbee vs. Ingalls, 10.3* Simon vs. Motives, 78 Simpson vs. Patten, 140, 542*, 54.3, 544, 540, 590 Simpson vs. Penton, 217, 225*, 247 Sinclair vs. Richardson,.. 244, 255, 345*, 627 Sinklear v. Emert 302* Skelton vs. Brewster, 3.34*, 590 Skinner vs. Conant, 255, 261* Slater vs. Emerson 621 Slingerland vs. Morse, 332*, 590 Small vs. Schaef er, 436*, 628 Smith vs. Berry, ... 526 Smith vs. Bradley, 167* Smith vs. Cherrill 687* Smith vs. Coleman, 365 Smith vs. Douglas, 74 Smith vs. Fah, 194 Smith vs. Finch, 654 Smith vs. Greer,, 722 Smith vs. Harris, 178*, 179 Smith vs. Ives 140,591,644* Smith vs. Lewis, 411 Smith vs. Mayo, 196* Smith vs. Sayward, 475* Smith vs. Stevens, 365 Smyley vs. Head, 307* Soulevs. Albee, 400*, 486 Spalding vs. Spalding, 12-1 Spann vs. Baltzell 161, 499*, 628 Spaulding vs. Andrews, 161 Spicer vs. Norton, 651 • Spooner vs. Dunn, 598* Sprat vs Agar, 410 Sproat vs. Matthews 247* Spurgeon vs. Collier, 712, 713, 717*, 720 Stanly vs. Hendricks, 369 Stark vs. Ranev, 458* Starkcv vs. Mill, 410 State Bank, &c., vs. Mettler, .... 433*, 448 Stolibins vs Smith, 91, 102*, 103, 105, 128 Steele vs. Towle 255 Steman vs Harrison, 413 Stephens vs. Pell 384* Stephens vs. Squire, 132, 198*, 201, 491*, 603 Stern vs. Drinker 141, 335* Sternburg vs. Callanen, 385* Sterry vs. Arden 683, 684 Stevens vs. Squire. (See Stephens vs. Squire.) Stiles vs. Farrar 526 Stilwell vs. Otis 5.V2 Stocking vs. Sage, 170*, 402 StCMie vs. Symmes 84, 377* PAQB Stone vs. Walker, 255, 288* Stony vs. Menzics, 3B9 Stoudt vs. Hine 553*, 555 Storer vs. Logan, 161 Styron vs. Bell, 450* Strange, Lord, vs. Smith, 682 Strohecker vs. Cohen, 161 Surdonie vs. Pinniger, 738* Swan vs. Nesmith 661*, 6ii3 Swann vs. Phillips, 174 Sweet vs Bradley, 651 * Sweetser vs. French 505 Swift vs. Pierce 237*, 284 T. Tapp vs. Lee, 174, 175* Tarbell vs. Stevens, 495* Tarr vs. Northey 219, 458* Tatlock vs. Harris, .... 361*, 365, 366, 408, 516 518, 520 Taylor vs. Bates 525 Taylor vs, Drake, 21)9* Taylor vs. Higgins, 520 Taylor vs. Hilary 265, 268* Taylor vs. Hillyer, 3£5, 504* Taylor vs. Mygatt, 122 Taylor vs. Savage 474 Tebbetts vs. Dowd, 509* Tempest vs. Fitzgerald, 77 Templetons vs. Bascom, 91*, 140, 141 387, 632* Tewksbnry vs. Hayes, 423* Therasson vs. McSpedon, . 437 Thomas vs. , 410, 411 Thomas vs. Cameron, 97* Thomas vs. Cook, 388, 460*, 462, 463 469, 471, 475, 477, 47a Thomas vs. Dodge, 654 Thomas vs. Thomas, 410 Thomas vs. Welles, 395* Thomas vs. Williams, 141, 576*, 602 Thompson vs. Blanchard, 161*, 16f. Thompson vs. Bond 182, 222*, 256 Thompson vs. Gordon, 441 Thompson vs. Harrison, 677 Thompson vs. Perci val, 383 Thompson vs. Perkins, 656 Thruston vs. Thornton, 248* Thurston vs. James 654 Thynne, Lady, vs. Lord Qlengall,... . 713 Thwaits vs. Curl, 256* Tibbetts vs. Flanders, 404, 417* Tibbitts vs. George 523 Tilestonvs. Nettleton, 2.34*, 2,35 Tindalvs. Touchberry 141,333*, 394* Titus vs. Scantling, 74 Todd vs. Tobev 422* Tollit vs. Sherstone, 410 Tomliuson vs. Gell, 141, 207, 579* im Tomlinson vs. Gill, 91. 93*, 95. 96 200, 202, 387, 567* Tompkins vs. Smith, 321 Towne vs. Grover 187* Townsley vs. Snmrall, 230* Treat vs.' Stanton 446 Trewinian vs. Howell 99 Trustees of First Baptist Church vs. Brooklyn Ins. Co 75 Trustees of Free Schools, Ac, vs. Flint, 138* 388, 500 Tupper vs. Cadwell,. 311 Turnbull vs. Trout . 161 Turner vs. Hubbell, 194, 202, 458* Turnley vs. McGregor, 174 Turton" vs. Benson, 67" Turton vs. Burke, 240 Tweddle vs. Atkinson, Ex'r., etc., 411* Tyler VB. Stevens, 350* 20 TABLE OF CASES. TJ. PAGK Undcrhill vs. Gibson, 240 Union, etc., Ins. Co. vs. Commercial etc., Ins. Co., '^2 United States Bank vs. Southard, 509* Union vs. Vail, l'^3 "V. "Valentine vs. Valentine, • • J4 Van Slyck vs. Pulver, 335, 591 Vcrplanck vs. Sterry, 684 Vincent vs. Robinson, 450 Wade vs. Tatton, 174 Waggener vs. Bells, 240 Waggoner vs. Gray, — 381 Wagnon vs. Clay 503* Wainvvright vs. Straw & Cunningham, 286* 288, 290, 291, 297, 298 Wain vs. Warlters, 70, 71, 77 Wait vs. Wait's Executor, 426*, 427, 552 Wakefield vs. Greenhood, 265*, 268 Waldo V. Simonson, 631 Walford vs. Gray, '''46* Walker vs. McDonald, 2.39* Walker vs Norton, 240, 280* Walker vs. Penniman, 377* Walker vs. Richards, 238*, 2.51, 263* Walker vs. Taylor, 566, 575, 577*, 578 Wallace vs. Freeman, 441 Wallace vs. Wortham, 291 Walters vs. Morgan, '"'4 Wanchford vs. Fotherly 681* 682, 713 Wankf ord vs. Fotherley 681 Wankford vs. Fotherby, 681 Wansborough vs. Dyer, 117 Ward vs. Evans 410 Warden vs. Jones, 709, 712, 713, 718* Ware vs. Stephenson, '-:40 Warnick vs. Grosholz, 240, 242, 341*, 627 Warren vs. Barker, — l'i'5 Warren vs. Batchelder 408, 414, 424*, 521 Warren Academy vs. Starrett, 423 Warren vs. Wheeler, . 526 Watkins vs. Perkins 211*, 256 Watson vs. Jacobs, 375* Watson vs. Randall, 141, 381*, 544, 591 Waugh vs. Carver, 283 Weed vs. Richardson, 505 Weld VB. Nichols 399* PAOB Wells vs. Lain, 74 Wells V. Mann, 453 Wells vs. Prince, 175 Westcott vs. Keeler 272* Westfall vs. Parsons, 398*, 486 Westheimer vs. Peacock, 141, 541*, 558 Westwick vs. Wyer, — 123 Weyand vs. Crichfield, 240 Wharton vs. Walker, .-. . . .364*, 513*, 520, 521 Wheatley vs. Strobe, 266 Wheeler vs. Collier, 636 Wheeler vs. Rice, 505 Whelan vs. Whelan 684 Whitchurch vs. Bevis 712 Whitchurch vs. Whitchurch, 71 Whitcomb vs. Kephart, - 553* Whittle vs. Henning 114 Wickham vs. Wickham 78, 668* Wilkinson vs. Lutwidge, 161 Williams v. Corbet 240 Williams vs. Everett, 411 Williams vs. Lee, 123 Williams vs. Leper, . . 147, 202, 319, 568*, 571 572, 574, 575, 576, 584, 587, .599 601, 602, 603, 616, 668 Williams vs. Williams, 730, 746, 7.50* Willis vs. Hobson 276* Willoughby, in the matter of, 691* Wilson vs. Coupland, 520*, 525 Wilson vs. Lorg 109 Wilson vs. Williams, — ^ . . . 505 Winckworth vs. Mills, 454* Windham vs. Chetwynd, 71 Winne vs. Elderkin, 74 Wolflf vs. Koppel 663*, 665, 666, 668 Wollaston vs. Tribe, 687* Wood vs. Corcoran, 367*, 381 Wood vs. Jackson, 685 Wood vs. Midgley, 712 Wood vs. Savage 722 Wood vs. Wheelock, 651* Woods vs. Page, 74 Worthington vs. Barlow, 117 Wyman vs. Gray 84, 388, 500 Wyman vs. Smith, 526 Y. Young vs. Holmes, 128 Zelhveger vs. Caffe, Wl STATUTES REIiATCNQ TO THE SUBJECT OF THIS WORK. rrhe original statute of frauds is given at length ; but the subsequent amendments, rfnd the extracts from statutes enacted in the United States, are confined to such as relate to the matter of the fourth and the seventeenth sections, except wliere other matters are also provided for in one section. All the enactments relative to verbal representations respecting the credit, &c., of another, are given; for they may be regarded as amendments to the fourth section; having been passed in consequence of decisious that it did not apply to such representations.] "THE STATUTE OF FRAUDS." 29 Car. II. (A. D. 1677.) B,..P„, « CHAPTER III. C. II. p. 1. no. i. An Act for prevention of Frauds and Perjuryes. For prevention of many fraudulent Practices which are commonly endeavoured to be upheld by Perjury and Subornation of Perjury Bee it enacted by the Kings most excellent Majestie by and with the advice and consent of the Lords Spirituall and Temporall arid the Commons in this present Parlyament assembled and by the authoritie of the same That from and after the fower and twentyeth day of June which shall be in the yeare of our Lord one thousand six hundi-ed seaventy and seaven All Leases Estates Interests of Freehold or Termes of yeares or any uncertaine 'Interest of in to or out of any Messuages Mannours Lands Tenements or Hereditaments made or created by Livery and Seisin o'nely or by Parole and not putt in Writeing and signed by the parties soe makein.u' S2 The Statute of Fkauds. or creating the same or their Agents thereunto lawfully authorized by Writeing, shall have the force and effect of Leases or Estates at Will onely and shall not either in Law or Equity be deemed or taken to have any other or greater force or effect, Any consideration for makeing any such Parole Leases or Estates or any former Law or Usage to the contrary notwithstanding. TT Except neverthelesse all Leases not exceeding ,.^ ^ n -| the terme of three yeares from the makeing ^ ' '-^ thereof whereupon the Rent reserved to the Landlord dureing such terme shall amount unto two third parts at the least of the full improved value of the thing demised. T TT And moreover That noe Leases Estates or Liter- P^ ^ ^ ests either of Freehold or Terms of yeares or any uncertaine Interest not being Copyhold or Cus- tomary Interest of in to or out of any Messuages Mannours Lands Tenements or Hereditaments shall at any time after the said fower and twentyeth day of June be assigned granted or surrendred unlesse it be by Deed or Note in Writeing signed, by the party soe assigning granting or surrendring the same or their Agents thereunto lawfully authorized by writeing or by act and operation of Law, T^ And bee it further enacted by the authoritie ro , T aforesaid That from and after the said fower and OGC. T. twentyeth day of June noe Action shall be brought whereby to charge any Executor or Administrator upon any speciall promise to answere damages out of his owne Estate [2] or whereby to charge the Defendant upon any speciall promise to answere for the debt default or miscarriages of another person [3] or to charge any person upon any agreement made upon consideration of Marriage [4] or upon any Contract or Sale of Lands Tenements or Hereditaments or any Interest in or concerning them [5] or upon any Agreement that is not to be performed within the space of one yeare from the makeing thereof [6] unlesse The Statute of Fkauds. 23 the Agreement upon wliicli sncli Action sliall bo brought or some Memonindum or IM ote thereof shall be in Write- ing and signed hy the partie to be charged therewith or some other person thereunto by him lawfully authorized. XT' AxD bee it further enacted by the authoritie ro K -, aforesaid That from and after the said fower and twentyeth day of June all Devises and Bequests of any Lands or Tenements deviseable either by force of the Statute of Wills or by this Statute or by force of the Custome of Kent or the Custome of any Burrough or any other perticular Custome shall be in Writeing and signed by the partie soe deviseing the same or by some other person in his presence and by his expresse directions and shall be attested and subscribed in the presence of the said Devisor by three or fower credible Witnesses or else they shall be utterly void and of none effect. VT A]srD moreover hoe Devise in Writeing of Lands j-^ P -, Tenements or Hereditaments nor any Clause thereof shall at any time after the said fower and twentyeth day of June be revocable otherwise than by some other Will or Coddicill in Writeing or other Write- ing declareing the same or by burning cancelling teareing or obliterating the same by the Testator himselfe or in his presence and by his directions and consent [2] but all Devises and Bequests of Lands and Tenements shall remaine and continue in force until the same be burnt cancelled torne or obliterated by the Testator or his direc- tions in manner aforesaid or unlesse the same be altered by some other AYill or Codicill in Writeing or other Writeing of the Devisor signed in the presence of three or fower Witnesses declareing the same, Any former Law or Usage to the contrary notwithstanding. VTT And bee it further enacted by the authoritie ro - -1 aforesaid That from and after the said fower and I OGC. i .\ twentyeth day of June Declarations or Creations of Trusts or Conlidences of any Lands Tenements or 24 The Statute of Fkauds. Hereditaments shall be manifested and proved by some Writeing signed by the partie who is by Law enabled to declare such Trust or by his last Will in Writeing or else they shall be utterly void and of none effect. 'Y'TTT Provided alwayes That where any Conveyance i-<^ J. ^ shall bee made of any Lands or Tenements by ^ ' '■' which a Trust or Confidence shall or may arise or result by the Implication or Construction of Law or bee transferred or extinguished by an act or operation of Law then and in every such Case such Trust or Confidence shall be of the like force and effect as the same would have beene if this Statute had not beene made. Anything hereinbefore contained to the contrary notwithstanding. TV Akd bee it further enacted That all Grants and P^ Q ^ Assignments of any Trust or Confidence shall likewise be in Writeing signed by the party granting or assigning the same [or^] by such last Will or Devise or else shall likewise be utterly void and of none effect. ^ Ats^d bee it further 'enacted by the authoritie re w ^ -1 aforesaid That from and after the said fower and I bee. 10. J twentyeth day of June it shall and may be law- full for every Sheriffe or other Officer to whome any Writt or Precept is or shall be directed at the Suite of any person or persons of for and upon any Judgement Statute or Recognizance hereafter to be made or had, to doe make and deliver Execution unto the partie in that behalfe sueing of all such Lands Tenements Rectories Tythes Rents and Hereditaments as any other person or persons be in any manner of wise seised or possessed [or hereafter shall be seised or possessed^] in Trust for him against whome Exe- cution is soe sued like as the Sheriffe or other Officer might or ought to have done if the said partie against whome Execution hereafter shall be soe sued had beene seised of interlined on the Roll. The Statute of Frauds. 25 such Lands Tenements Rectories Tythes Rents or other Hereditaments of such Estate as they be seised of in trust for liim at tlie time of the said Execution sued. [2J Which Lands Tenements Rectories Tythes Rents and other Here- ditaments by force and vertue of such Execution shall accordingly be held and enjoyed freed and discharged from all Incumbrances of such person or persons as shall be soe seised or possessed in Trust for the person against whome such execution shall be sued. [3] And if any Cestuy que Trust hereafter shall dye leaveing a Trust in Fee simple to descend to his Heu'e, there, and in every such case such Trust shall be deemed and taken and is hereby declared to be Assetts by descent and . the Heir shall be lyable to and chargeable with the Obligation of his Auncestors for and by reason such Assetts as fully and amply as he might or ought to have beene if the Estate in Law had descended to him in possession in like manner as the Trust descended, Any Law Custome or Usage to the contrary in any wise notwithstanding. V J Peovided alwayes That noe Heire that shall P^, ^ ^ -, become chargeable by reason of any Estate or ^ ' Trust made Assetts in his hands by this Law shall by reason of any kinde of Plea or confession of the Action or suffering Judgement by Nient dedire or any other matter bee chargeable to pay the Condemnation out of his owne Estate [2] but Execution shall be sued of the whole Estate soe made Assetts in his hands by descent in whose hands soever it shall come after the Writt pur- chased in the same manner as it is to be at and by the Common Law where the Heire at Law pleading a true Plea Judgement is prayed against him thereuj^on. Any thing in this present Act contained to the contrary not- withstanding. XII ^^^ ^^^ ^^^® amendment of the law in the par- p;^ ^ „ -. ticulars following [2] Bee it further enacted by the authoritie aforesaid That from henceforth any Estate per auter vie shall be deviseable by a Will in 3 26 The Statute of Frauds. writeing signed by the party soe deviseing the same or by some other person in his presence and by his expresse directions attested and subscribed in the presence of the Devisor by three or more Witnesses, [3] and if noe such Devise thereof be made the same shall be chargeable in the hands of the Heire if it shall come to him by reason of a speciall Occupancy as Assetts by descent as in case of Lands in Fee simple [4] And in case there be noe speciall Occupant thereof it shall goe to the Executors or Administrators of the partie that had the Estate thereof by vertue of the Grant and shall be Assetts in their hands. XIII ^^^ whereas it hath beene found mischievous l-^, ^ . ^ -, that Judgements in the Kings Courts at West- minster doe many times relate to the first day of the Terme whereof they are entred or to the day of the Returne of the Originall or fileing the Baile and binde the Defendants Lands from that time although in trueth they were acknowledged or suffered and signed in the Vacation time after the said Terme where- by many times Purchasers finde themselves agrieved re t < n Bee it enacted by the authoritie aforesaid That I oec. 14.J *' from and after the said foure and twenty eth day of June any Judge or Officer of any of his Majestyes Courts of Westminster that shall signe any Judgements shall at the signeing of the same without Fee for doeing the same sett downe the day of the moneth and yeare of his soe doeing upon the Paper Booke Dockett or Record which he shall signe which day of the moneth and yeare shall be alsoe entred upon the Margent of the Roll of the Record where the said Judgement shall be entred. V J"^ And bee it enacted That such Judgements as ra -1 K -| against Purchasers bona fide for valueable consideration of Lands Tenements or Heredita- ments to be charged thereby shall in consideration of Law be Judgements onely from such time as they shall be soe signed and shall not relate to the first day of the Terme whereof they are entred or the day of the Returne of the The Statute of Frauds. 27 Originall or fileing tlie Baile Any Law, Usage or Course of any Court to the contrary notwithstanding. "VV AxD bee it further enacted by the authoritie |.(^ ^ -. aforesaid That from and after tlie said fower and ^ * '-^ twentyeth day of June noeWritt of Fieri facias or other Writt of Execution shall binde the Property of the Goods against whome such Writt of Execution is sued forth but from the time that such Writt shall be delivered to the Sheriffe Under Sheriffe or Coroners to be executed, And for the better manifestation of the said time the Sheriffe Under- Sheriffe and Coroners their Deputyes and Agents shall upon the receipt of any such Writt (without Fee for doeing the same) endorse upon the backe thereof the day of the moneth [or^] yeare whereon he or they received the same. V'^TT And bee it further enacted by the authority re -, ^- -, aforesaid That from and after the said fower OGC 1 i ' • and twentyeth day of June noo Contract for the Sale of any Goods Wares or Merchandises for the price of ten pounds Sterling or upwards shall be allowed to be good except the Buyer shall accept part of the Goods soe sold and actually receive the same or give something in earnest to bind the bargaine or in part of payment, or that some Note or Memorandum in writeing of the said bargaine be made and signed by the partyes to be charged by such Contract or their Agents thereunto lawfully authorized. ■VTrTT And bee it further enacted by the authority l-^ . -, aforesaid That the day of the moneth ai^d ' yeare of the Enrollment of the Recognizances shall be sett downe in the Margent of the Roll where the said Recognizances are enrolled, and that from and after the said fower and twentyeth day of June noe Recog- nizance shall binde any Lands Tenements or Ileredita- > "iind" O. (omitted.) 28 The Statute of Frauds. ments in the liands of any Purcliasor bona fide and for valueable consideration but from the time of such Enroll- ment, Any Law Usage or Course of any Court to the contrary in any wise notwithstanding. VXTTTT Akd for prevention of fraudulent Practices * in setting up Nuncupative Wills which ^ ^^' ■-' have beene the occasion of much Perjury [2] Bee it enacted by the authority aforesaid That from and after the aforesaid fower and twentyeth day of June noe Nuncupative Will shall be good where the Estate thereby bequeathed shall exceede the value of thirty pounds that is not proved by the Oathes of three Wit- nesses (at the least) that were present at the makeing thereof, [3] nor unlesse it be proved that the Testator at the time of pronounceing the same did bid the persons present or some of them beare wittnesse that such was his Will or to that effect, [4] nor unlesse such Nuncupa- tive Will were made in the time of the last sicknesse of the deceased and in the House of his or her habitation or dwelling or where he or she hath beene resident for the space of ten dayes or more next before the makeing of such Will except where such person was surprized or taken sick being from his owne home and dyed before he returned to the place of his or her dwelling. "V JV Akd bee it further enacted That after six ra on t mouetlies passed after the speaking of the pretended Testamentary words noe Testimony shall be received to prove any Will Nuncupative except the said Testimony or the substance thereof were com- mitted to writeing within six dayes after the makeing of the said Will. ^^^ And bee it further enacted That noe Letters rs 91 1 Testamentary or Probate of any Nuncupative Will shall passe the Seale of any Court till fowerteene dayes at the least after the decease of the Testator be fully expired, [2] Nor shall any Nuncupative TiiK Statute of Fit.vuDS. 29 Will be at any time received to be proved unlesse Pro- cesse have first issued to call in tlie Widow or next of kindred to tlie deceased to the end they may contest the same if they please. "V V J And bee it further enacted That noe Will in v^^riteing concerning any Goods or Chattells or L ec. .J Personal 1 'Estate shall be repealed nor shall any Clause Devise or Bequest therein be altered or changed by any Words or Will by word of mouth onely except the same be in the life of the Testator committed to writeing and after the writeing thereof read unto the Testator and allowed by him and proved to be soe done by three Wittnesses at the least. VVTT Provided al waves That notwithstanding this Act any Soldier being in actuall Military L ec. .J Sepyjce or any Marriner or Seaman being at Sea may dispose of his Moveables, Wages and Personall Estate as he or they might have done before the makeing of this Act. VVJTT And it is hereby declared That nothing in * this Act shall extend to alter or change the LSec. 24.J j^j.-g^.(,^iQj^ oj. j^igi^i- of Probate of Wills concerning Personall Estates but that the Prerogative Court of the Archbishop of Canterbury and other Ecclesiasticall Courts and other Courts haveing Right to the Probate of such Wills shall retaine the same Right and Power as they had before in every respect subject neverthelesse to the Rules and Directions of this Act. "V VJY' Atid for the explaining one Act of this P^^sent Parlyament intituled An Act for the [Sec. 25.J ^^^^^ eetleing of Intestates Estates Bee it declared by the authority aforesaid That neither the said Act nor any thing therein contained shall be construed to extend to the Estates of Feme-Coverts that shall dye Intes- tate, but that their Husbands may demand and have 30 The Statute of Frauds. Administration of their Rights Credits and other Personall Estates and recover and enjoy the same as they might have done before the makeing of the said Act.^ ' The foregoing is an exact transcript of the text of the statute, with the orthography an(f punctuation of the original preserved, as contained on pages 839, 840, 841 and 842 of the fifth volume of the " Statutes of the Eealm," foUo, pubhshed in London in the year 1819, "printed by command of His Majesty, King George the Third, in pursuance of an address of the House of Commons of Great Britain." In the printed vokime the Roman numerals, designating the sections, are contained in the outer margin, and under each is a short sentence, containing an abstract of the contents of each section so designated. We have omitted these sentences, and added in brackets the numbers of the sections, as we find them in the unauthorized editions of the English statutes, and in the copies of the statute -of frauds, contained in various text-books; and we have also designated the dififerent clauses of several sections by Arabic numerals in brackets, to make them correspond with similar divisions in those editions. In all these respects the unauthorized editions of the statute are exactly alike ; and the dififerent sections are cited according to this numeration in the text-books and reported cases ; but it will be noticed that the thirteenth section, according to the official copy, is divided by the unauthorized publications into two sections, in 9onsequence of which the numbers of the subsequent sections do not correspond with those of the oflficial edition ; the seventeenth sec- tion, of which we shall treat largely in the second volume, being in reality the sixteenth of the official copy. Doubtless this distribution of the statute into sections was made in some copy published shortly after it was passed, which has been followed ever since; but we are not able to trace its origin. The cases decided soon after the passage of the statute of frauds, generally refer to its clauses by stating their substance, without reference to the numbers of the sections; and the earliest case which we have noticed where any section subsequent to the twelfth is referred to by its number, is Colt vs. Nettervill, 2 Peere Williams, 305, A. D. 1725, which speaks of the seventeenth section, meaning thereby the one known to us by that number. The South Carolina provincial statute of 1712, mentioned hereafter as the enactment whereby the statute of frauds is now in force in that State, adopts ''the several statutes, and the several paragraphs, and sections or numbers of the paragrapns of the several statutes of the Kingdom of England," thereafter contained in the enactment, "as the same are distinguished and divided into paragraphs and sections or numbers, by Joseph Keble, of Gray's Inn, Esq., in his statutes at large from Magna Charta to the end of the reign of King Charles the 2d," and the statute of 29 Charles 2d, chapter 3, is inserted at length, with the sections numbered and divided into paragraphs, as is now customary. It is quits probable that the present numeration derives its origin from that book. TnK Statute of Frauds. 31 EXTRACTS FROM "LOUD TENTERDEN'S ACT." [9 Geo. 4, char- 1 1. May 9, 18^8.] " An Act for rendering a written memorandum necessary to the validity of certain promises and engagements." Sec. 6. That no action shall be brought whereby to charge any person upon or by reason of any representa- tion or assurance made or given concerning or relating to the character, conduct, credit, ability, trade or dealings of any other person, to the intent or purpose that such other person may obtain credit, money, or goods upon,^ unless such representation or assurance be made in writing, signed by the party to be charged therewith. Sec. 7. And whereas by an Act passed in England in the twenty-ninth year of the reign of king Charles the second, intitul'ed "An Act for the Prevention of Frauds and Perjuries," it is among other things enacted, that from and after the 24th day of June, 1677, no contract for the sale of any goods, wares, and merchandises, for the price of ten pounds sterling or upwards, shall be allowed to be good, except the buyer shall accej^t part of the goods so sold and actually receive the same, or give something in earnest to bind the bargain, or in part of payment, or that some note or memorandum in writing of the said l^argain be made and signed by the parties to be charged by such contract, or their agents thereunto lawfully authorised ; And whereas a similar enactment is contained in an Act passed in Ireland in the seventh year ' So on the original roll of parliament : probably a mistake for ' tberenpon.' See the observations of Parko B. and Lord Abiuger, C. B , Lyde vs. Barnard, 1 M. &. W. 115. Note to Chilti/s Statutes. 32 The Statute of Frauds. of the reign of king William the third : And whereas it has been held, that the said recited enactments do not extend to certain executory contracts for the sale of goods, which nevertheless are within the mischief thereby intended to be remedied; and it is expedient to extend the said enactments to such executory contracts ; Be it ENACTED, That the said enactment shall extend to all con- tracts for the sale of goods of the value of ten pounds sterling and u^Dwards, notwithstanding the goods may be intended to be delivered at some future time, or may not at the time of such contract be actually made, procured, or provided, or fit or ready for delivery, or some act may be requisite for the making or completing thereof, or ren- dering the same fit for delivery. Sec. 8. That no memorandum or other writing made necessary by tliis Act shall be deemed to be an agreement within the meaning of any statute relating to the duties of stamps. Sec. 9. That nothing in this Act contained shall extend to Scotland- The Statute of Frauds. 33 EXTRACTS FROM "THE MERCANTILE LAW AMENDMENT ACT." [19 and 20 Vict., chap. 97. July 29, 1856.] ''An Act to amend the Laws of England and Ireland affecting Trade and Commerce/^ Sec. 3. No special promise to be made by aiiy person after the passing of tliis Act to answer for the debt, default, or miscarriage of another person, being in writing, and signed by the party to be charged therewith, or some other person by him thereunto lawfully authorised, shall be deemed invalid to support an action, suit, or otlier proceeding, to charge the person by whom such promise shall have been made, by reason only that the considera- tion for such promise does not appear in writing, or by necessary inference from a written document. Sec. 4. No promise to answer for the debt, default or miscarriage of another, made to a firm consisting of two or more persons, or to a single person trading under the name of a firm, and no promise to answer for the debt, default or miscarriage of a firm consisting of two or more persons, or of a single person trading under the name of • a firm, shall be binding on the person making such prom- ise in respect of anything done or omitted to be done after a change shall have taken place in any one or more of the persons constituting the firm, or in the person trading under the name of a firm, unless the intention of the par- ties, that such promise shall continue to be binding not- withstanding such change, shall appear either by express stipulation or by necessary implication from the nature of the firm or otherwise. Sec. 13. In reference to the provisions of the Acts of the ninth year of the reign of King George the fourth, chapter 5 84 The Statute of Frauds. fourteen, sections one and eight, and tlie sixteenth and seventeenth years of the reign of her present majesty, chapter one hundred and thirteen, sections twenty-four and twenty-seven, an acknowledgment or promise made or contained by or in a writing signed by an agent of the party chargeable thereby, duly authorised to make such acknowledgment or promise, shall have the same effect as if such writing had been signed by such party himself. Tin: Statute of Feauds. 35 AMERICAN STATUTES. ALABAMA. Revised Code of 1867. Part 2, Title 3, chapter 4. Sec. 1862. In the following cases, every agreement is void, unless such agreement, or some note or memorandum thereof, expressing the consideration, is in writing, and subscribed by the party to be charged therewith or some other person by him thereunto lawfully authorized in writing. 1. Every agreement, which, by its terms, is not to be performed within one year from the making thereof. 2. Every special promise, by an executor or administrator, to answer damages out of his own estate. 3. Every special promise to answer for the debt, default, or miscarriage of another. 4. Every agreement, promise, or undertaking, made upon con- sideration of marriage, except mutual promises to marry. 5. [Related to agreements for the sale of goods, &c.^ exceeding 1200 ; repealed Nov. 7, 1862.] 6. Every contract for the sale of lands, tenements, or heredita- ments, or of any interest therein, except leases for a term not longer than one year, unless the purchase money, or a portion thereof, be paid, and the purchaser be put into possession of the land by the seller. Sec. 1863. When goods, or things in action are sold, or lands, tenements, or hereditaments sold or leased at public auction, and the auctioneer, his clerk, or agent, makes a memorandum of the property, and price thereof at which it is sold or leased, the terms of sale, the name of the purchaser or lessee, and the name of the person on whose account the sale or lease is made, such memo- randum is a note of the contract within the meaning of the pre- ceding section. Sec. 1864. No action can be maintained to charge any person, by reason of any representation or assurance made, concerning 36 The Statute of Feauds. the character, conduct, ability, trade or dealings of any other person, when such action is brought by the person to whom such representation or assurance was made, unless the same is in writing, signed by the party sought to be charged. ARKANSAS. Gould's Digest, 1858. Chapter 74. Sec. 1. No action shall be brought, first, to charge any executor or administrator, upon, any special promise, to answer for any debt or damage out of his own estate ; second, to charge any person upon any special promise to answer for the debt, default, or mis- carriage of another ; third, to charge any person upon an agree- ment made in consideration of marriage ; fourth, to charge any person upon any contract for the sale of lands, tenements, or hereditaments, or any interest in or concerning them; fifth, to charge any person upon any lease of lands, tenements, or hereditaments, for a longer term than one year ; sixth, to charge any person, upon any contract, promise, or agreement, that is not to be performed within one year from the making thereof; unless the agreement, promise, or contract, upon which such action shall be brought, or some memorandum or note thereof shall be made in writing, and signed by the party to be charged therewith, or signed by some other person by him thereunto properly authorized. Sec. 2. No contract for the sale of goods, wares, and merchan- dise, for the price of thirty dollars, or upwards, shall be binding on the parties, unless first, there be some note or memorandum signed by the party to be charged ; or, second, ±he purchaser shall accept part of the goods so sold, and actually receive the same ; or, third, shall give something in earnest to bind the bargain, or in part payment thereof. CALIFORNIA. Hittel's General Laws, 1865. [Act of April 19, 1850.] 3152. Every contract for the leasing for a longer period than one year or for the sale of any lands, or any interest in lands, shall be void, unless the contract, or some note or memorandum thereof, expressing the consideration, be in writing, and be subscribed by the party to whom the lease or sale is to be made. The Statute of Feauds. 37 31j3. Every instrument required to be subscribed by any person, under the last preceding section, may be subscribed by the agent of such party, lawfully authorized. 3154. Nothing contained in this chapter shall be construed to abridge the powers of courts to compel the specific performance of agreements, in cases of part performance of such agreements- 3156. In the following cases, every agreement shall be void, unless such agreement, or some note or memorandum thereof, expressing the consideration, be in writing, and subscribed by the party charged therewith : first, every agreement that by the terms is not to be per- formed within one year from the making thereof; second, every special promise to answer for the debt, default, or miscarriage of another; third, every agreement, promise, or undertaking, made upon consideration of marriage, except mutual promises to marry. 3157. Every contract for the sale of any goods, chattels, or things in action, for the price of two hundred dollars or over, shall be void, unless, first, a note or memorandum of such contract be made in writing, and be subscribed by the parties to be charged therewith ; or, second, unless the buyer shall accept and receive part of such goods, or the evidences, or some of them, of such things in action ; or, third, unless the buyer shall at the time pay some part of the purchase-money. 3158. Whenever any goods shall be sold at auction, and the auctioneer shall, at the time of sale, enter in a sale-book a meino- randum, specifying the nature and price of the property sold, the terms of the sale, the name of the purchaser and the name of the person on whose account the sale is made; such memorandum shall be deemed a note of the contract of sale within the meaning of the last section, 3163. Every instrument required by any of the provisions of this chapter to be subscribed by any party may be subscribed by the lawful agent of such party. [Act of May 1, 1851.] 5913. No executor or administrator shall be chargeable upon any special promise to answer damages, or to pay the debts of the tes- tator or intestate out of his own estate, unless the agreement for that purpose, or some memorandum or note thereof, is in writing, and signed by such executor or administrator, or by some other person by him thereunto specially authorized. 38 The Statute of Frauds. CONNECTICUT. General Statutes, 1866. Title 25. Sec. 1. That for the prevention of many fraudulent practices which are commonly endeavored to be upheld by perjury, and subornation of perjury, no suit in law or equity shall be brought or maintained upon any contract or agreement, whereby to charge any executor or administrator, upon special promise, to answer damages out of his own estate ; or whereby to charge the defend- ant upon any special promise, to answer for the debt, default, or miscarriage of another person ; or to charge any person upon any agreement made upon consideration of marriage ; or upon any contract for the sale of lands, tenements, or hereditaments, or any interest in or concerning them ; or upon any agreement that is not to be performed within the space of one year from the making thereof; unless the contract of agreement upon which such action shall be brought, or some memorandum or note thereof, shall be made in writing, and signed by the party to be charged there- with, or by some other person thereunto by him lawfully author- ized, but all parol contracts or agreements, made for the hiring or leasing of any lands or tenements or of any interest therein, for the term of only one year, or for any less time than one year, in pursuance of which the leased premises have been, or shall be, actually occupied by the lessee, or by any person claiming under him, during any portion of the period covered by such contract or agreement shall be as valid and effectual as if the same were in Avriting, and signed by the parties thereto, and nothing herein shall be so construed as to prevent an action being brought or sustained thereon. Sec. 2. No contract for the sale of any goods, wares, or mer- chandise, for the price of thirty-five dollars or upwards, shall be allowed to be good, unless the buyer shall accept part of the goods so sold, and actually receive the same, or give something in earnest to bind the bargain, or in part payment, or unless some note or memorandum, in writing, of the said bargain, shall be made and signed by the parties to be charged by such contract, or by their agents, thereunto lawfully authorized. The Statute of Frauds. 39 DELAWAEE. Revised Statutes of 1852. Chapter 63. Sec. 5. All promises and assumptions, whereby any person shall undertake to answer or pay for the default, debt, or miscarriage of another, any sum under five dollars, being proved by the oath or affirmation of the persons to whom sucli promise and assump- tion shall be made, are good and available in law to charge the party making such promise or assumption. Sec. 6. No action shall be brought, whereby to charge any executor or administrator, upon any special promise to answer damages out of his own estate, or whereby to charge any defend- ant, upon any special promise, to answer for the debt, default, or miscarriage of another person, of the value of five dollars, and not exceeding tAventy dollars, unless such promise and assumption shall be proved by the oath, or affirmation, of one credible wit- ness, or some memorandum, or note in writing, shall be signed by the party to be charged therewith. Sec. 7. No action shall be brought whereby to charge any person upon any agreement made upon consideration of marriage, or upon any contract or sale of lands, tenements, or heredita- ments, or any interest in, or concerning them, or upon any agree- ment that is not to be performed within the space of one year from the making thereof, or to charge any person whereby to answer for the debt, deftiult, or miscarriage, of another, in any sum of the value of twenty-five dollars and upwards, unless the same shall be reduced to writing, or some memorandum or note thereof shall be signed by the party to be charged therewith, or some other person thereunto by him lawfully authorized ; except for goods, wares, and merchandise sold and delivered, and other matters which are properly chargeable in an account, in which case the oath or affirmation of the plaintiff, together with a book regularly and fairly kept, shall be allowed to be given in evidence, in order to charge the defendant with the sums therein contained. 40 The Statute of Frauds FLORIDA. Thompson's Digest, 1847. Second Division. Title 4, chap. 3, page 217. Sec. 1. No action shall be brought whereby to charge any executor or administrator upon any special promise to answer, or pay any debt or damages out of his own estate, or whereby to charge the defendant upon any special promise to answer for the debt, default, or miscarriage of another person, or to charge any person upon any agreement made upon consideration of marriage, or upon any contract for the sale of lands, tenements, or heredita- ments, or of any uncertain interest in,- or concerning them, or for any lease thereof for a longer term than one year, or upon any agreement that is not to be performed within one year from the making thereof, unless the agreement or promise upon which such action shall be brought, or some note or memorandum thereof, shall be in writing and signed by the party to be charged there- with, or by some other person by him thereunto lawfully authorized. Sec. 2. No contract for the sale of any personal property, goods, wares, or merchandise, shall be good, unless the buyer shall accept the goods or part of them so sold, and actually receive the same, or give something in earnest to bind the bargain, or in part pay- ment, or some note or memorandum in writing of the said bargain or contract be made, and signed by the parties to be charged by such contract, or their agents thereunto lawfully authorized. GEOEGIA. Irwin's Code, 1867. (Adopted 1860.) Sec. 1940. To make the following obligations binding on the promiser the promise must be in writing, signed by the party to be charged therewith, or some person by him lawfully authorized, viz.: 1. A promise by an executor, administrator, guardian, or trustee to answer damages out of his own estate. 2. A promise to answer for the debt, default, or miscarriage of another. 3. Any agreement made upon consideration of marriage, except marriage articles as herein before provided. The Statute of Frauds. 41 4. Any contract for sale of lands, or any interest in, or concern- ing them. 5. Any agreement (except contracts with overseer^) that is not to be performed within one year from the making thereof. 6. Any promise to revive a debt barred by the acts of limita- tion. 7. Any contract for the sale of goods, wares, and merchandise in existence, or not in esse, to the amount of fifty dollars or more, except the buyer shall accept part of the goods sold and actually receive the same, or give something in earnest to bind 'the bargain, or in part payment. Sec. 1941. The foregoing section dcfes not extend to the following cases viz. : 1. "When the contract has been fully executed. 2. Where there has been performance on one side, accepted by the other in accordance with the contract. 3. Where there has been such part performance of the contract as would render it a fraud of the party refusing to comply if the Court did not compel a performance. ILLINOIS. Scatea, Treat and Blackwell's Statutes, 1858. Vol. 1, pp. 541, 542. [From R. S., 1845, ch. 44.] Sec. 1. No action shall be brought, whereby to charge any executor or administrator, upon any special promise, to answer any debt or damages out of his own estate, or whereby to charge the defendant, upon any special promise, to answer for the debt, default, or miscarriage of another person ; or to charge any person upon any agreement made upon consideration of marriage, or upon any contract for the sale of lands, tenements, or hereditaments, or any interest m or concerning them, for a longer term than one year; or upon any agreement that is not to be performed witliin the space of one year from the making thereof, unless the promise or agreement upon which such action shall be brought, or some note or memorandum iliereof, shall be in writing, and signed by the party to be charged therewith, or some other person thereunto by him lawfully authorized. 42 The Statute of Frauds. INDIANA. Gavin and Herd's edition of the Statutes, 1862. Vol. 1, pp. 848, 351. [Act of June 9, 1852.] Sec. 1. No action shall be brought in any of the following cases : 1. To charge an executor or administrator, upon any special promise, to answer damages out of his own estate ; or, 2. To charge any person, upon any special promise, to answer for the debt, default or miscarriage of another; or, 3. To charge any person, upon any agreement or promise made in consideration of marriage ; or, 4. Upon any contract for the sale of lands ; or, 5. Upon any agreement that is not to be performed within one year from the making thereof; unless the promise, contract or agreement, upon which such action shall be brought, or some memorandum or note thereof, shall be in writing and signed by the party to be charged therewith, or by some person thereunto by him lawfully authorized ; excepting, however, leases not exceed- ing the term of three years. Sec. 2. The consideration of any such promise, contract, or agreement, need not be set forth in such writing, but may be proved. Sec. 5. Nothing contained in any statute of this state shall be construed to abridge the powers of courts to compel the specific performance of agreements in cases of part performance of such agreements. Sec. 6. No action shall be maintained, to charge any person by reason of any representation made concerning the character, con- duct, credit, ability, trade or dealings of any other person, iinless such representation be made in writing, and signed by the party to be charged thereby, or by some person thereunto by him legally authorized. Sec. 7. No contract for the sale of any goods for the price of fifty dollars or more shall be valid, unless the purchaser shall receive part of such property, or shall give something in earnest The Statute of Frauds. 43 to bind the bargain or in part payment, or unless some note or memorandum in writing of the bargain be made, and signed by the party to be charged thereby, or by some person thereunto by him lawfully authorized. IOWA. Revision of 18G0. Sec. 1824. All contracts in writing hereafter made and signed by the party to be bound or his authorized agent or attorney shall import a consideration in the same manner as sealed instru- ments now do. Sec. 4006. Except wlien otherwise specially provided, no evi- dence of any of t*he contracts enumerated in the next succeeding section is competent, unless it be in writing, and signed by the party charged or by his lawfully authorized agent. Sec. 4007. Such contracts embrace : 1. Those in relation to the sale of personal property, when no part of the property is delivered, and no part of the price is paid. 2. Those made in consideration of marriage, but not including promises to marry. 3. Those wherein one person promises to answer for the debt, default or miscarriage of another, including promises by execu- tors to pay the debt of their principals from their own estate. 4. Those for the creation or transfer of any interest in lands, except leases for a term not exceeding one year. 5. Those that are not to be performed within one year from the making thereof. Sec. 4008. The provision of the first subdivision of the pre- ceding section does not apply when the article of personal prop- erty sold is not at the time of the contract owned by the vendor and ready for delivery, but labor, skill, or money are necessarily to be expended in producing or procuring the same ; nor do those of the fourth subdivision of said section apply where the pur- chase-money or any portion thereof has been received by the vendor, or when the vendee, with the actual or implied consent of the vendor, has taken and held possession thereof under and by virtue of the contract, or when there is any other circumstance 44 The Statute of Frauds. which by the law heretofore in force would have taken a case out of the Statute of Frauds. Sec. 4009. The above regulations, relating merely to the proof of contracts, do not prevent the enforcement of those which are not denied in the pleadings, unless in cases where the contract is sought to be enforced, or damages to be recovered for the breach thereof, against some person other than him who made it. Sec. 4010. Nothing in the above provisions shall prevent the party himself, against whom the unwritten contract is sought to be enforced, from being called as a witness by the opposite party, nor his oral testimony from being evidence. KANSAS. General Statutes of 1868. Chapter 43. Sec. 6. No action shall be brought whereby to charge a party, upon any special promise, to answer for the debt, default, or mis- carriage of another person, or to charge any executor or adminis- trator upon any special promise to answer damages out of his own estate, or to charge any person upon any agreement made upon consideration of marriage, or upon any contract for the sale of lands, tenements or hereditaments, or any interest in or con- cerning them, or upon any agreement that is not to be performed within the space of one year from the making thereof, unless the agreement upon which such action shall be brought, or some memorandum or note thereof, shall be in writing, and signed by the party to be charged therewith, or some other person thereunto by him or her lawfully authorized. KENTUCKY. Revised Statutes, Stanton's edition, 1859. Chapter 22. Sec. 1. No action shall be brought to charge any person, 1. For a representation or assurance concerning the character, conduct, credit, ability, trade, or dealings of another, made with intent that such other may obtain thereby credit, money, or goods; nor, 2. Upon a promise to pay a debt contracted during infancy, oi a ratification of a contract or promise made during infancy ; nor, The Statute of Frauds. 45 3. Upon a promise as personal representative to answer any debt or damage out of his own estate ; nor, 4. Upon a promise to answer for the debt, default or misdoing of another; nor, 5. Upon any agreement made in consideration of marriage, except mutual promises to marry ; nor, 6. Upon any contract for the sale of real estate, or any lease thereof, for a longer term than one year ; nor, 7. Upon any agreement which is not to be performed within one year from the making thereof; unless the promise, contract, agreement, representation, assurance or ratitication, or some memo- randum or note thereof, be in writing, and signed at the close thereof by the party to be charged therewith, or by his authorized agent. But the consideration need not be expressed in the writing ; it may be proved ■\vhen necessary, or disproved, by parol or other evidence. Sec. 2. A seal or scroll shall in no case be necessary to give effect to a deed or other writing, but a signature without seal shall have the same efficacy for every purpose as if a seal were affixed thereto ; and all writings so executed shall stand upon the same footing with sealed writings, having the same force and effect, and upon which the same actions may be founded. But this section shall not apply to an assignment by indorsement on a bond, note, or bill, nor shall it alter any law requiring the state or county seal, or the seal of a court, corporation, or notary, to any writing. LOUISIANA. Acts of 1858. No. 208. Sec. 3. Be it further enacted, etc., that hereafter, parol evidence shall not be received to prove any promise to pay the debt of a third person ; but that in all such cases the promise to pay shall be proved by written evidence, signed by the party to be charged, or by his specially authorized agent or attorney in fact. Civil Code. [Various provisions of the Civil Code relate indirectly to some of the matters provided for in the 4th and 17th sections of the Statute of Frauds, but the following contain, it is believed, all the provisions relating directly thereto.] 46 The Statute of Frauds. Art, 2308. Every matrimonial agreement must be made by an act before a notary and two witnesses. The practice of marriage agreement under private signature is abrogated. Art. 2311. The most ordinary conventions in marriage con- tracts are the settlement of the dowry, and the various donations which the husband and wife may make to each other, either reciprocally or the one to the other, or which they may receive from others, in consideration of the marriage. Art. 2316. Husband and wife may, by their marriage contract, make reciprocally or one to the other, or receive from other per- sons, in consideration of their marriage, every kind of donations, according to the rules and under the modifications prescribed in the title of donations inter vivos and mortis causa. Art. 2255. Every transfer of immovable property or slaves must be in writing ; but if a verbal sale or other disposition of such property be made, it shall be good against the vendor, as well as against the vendee who confesses it when interrogated on oath, provided actual delivery has been made of the immovable property or slaves thus sold. Art. 2415. All sales of immovable property or slaves shall be made by authentic act, or under private signature. All verbal sale of any of these things shall be null, as well for third persons as for the contracting parties themselves, and the testimonial proof of it shall not be admitted. Art. 2437. A promise to sell amounts to a sale, when there exists a reciprocal consent of both parties, as to the thing and tho price thereof; but to have its effect, either between the contract- ing parties, or with regard to other persons, the promise to sell must be vested with the same formalities as are above prescribed in articles 2414 and 2415 concerning sales, in all cases where the law directs that the sale be committed to writing. The Statute of Frauds. 47 MAINE. Revised Statutes of 1857. Chapter 111. Sec. 1. No action shall be maintained in any of the following 3ase8 : 1. To charge an executor or administrator, upon any special promise, to answer damages out of his own estate. 2. To charge any person, upon any special promise, to answer for the debt, default, or misdoings of another. 3. To charge any person, upon an agreement made in consid- eration of marriage. 4. Upon any contract for the sale of lands, tenements, or here- ditaments, or of any interest in or concerning them. 5. Upon any agreement that is not to be performed within one year from the making thereof. 6. Upon any contract to pay a debt after a discharge therefrom under the bankrupt laws of the United States, or assignment laws of this state. Unless the promise, contract, or agreement, upon which such action is brought, or some memorandum or note thereof, is in writing, and signed by the party to be charged therewith, or by some person thereunto lawfully authorized. Sec. 2. The consideration of any such promise, contract, or agreement need not be expressed in said writing ; but may be proved by any other legal evidence. Sec. 4. No action shall be maintained, to charge any person by reason of any representation or assurance, made concerning the character, conduct, credit, ability, trade, or dealings of another, unless made in writing, and signed ^ by the party to be charged thereby, or by some person by him legally authorized. Sec. 5. No contract for the sale of any goods, wares, or mer- chandise, for thirty dollars, or more, shall be valid, unless the pur- chaser accepts and receives part of the goods, or gives something in earnest to bind the bargain, or in part payment thereof, or some note or memorandum thereof is made, and signed by the party to be charged thereby, or by his agent! 48 The Statute of Frauds. MARYLAND. [In Sibley v. Williams, 3 Gill and Johnson, 62, A. D. 1830, the Court of Appeals declared that " It has always been understood that the judges under the old government laid it down as a general rule, that all statutes for the administration of justice, whether made before or after the charter" (1628), " so far as they were applicable, should be adopted." A clause substantially to the same effect was contained in the third article of the Declaration of Rights adopted in 1776, and has been continued, with slight yariations, in eyery subsequent change of the Constitution ; and accordingly, all the provisions of 29 Car. II, chap. 3, have been regarded as of force within the province and the state, without any legislative re-enact- ment. Sec also, Clayland's Lessee v. Pearcc, 1 Harris & McHenry, 29, A. D. 1714. The existing Constitution, adopted in 1868, con- tains a clause (article 5,) adopting all English statutes in force on the 4th of July, 1776, which are locally applicable, and which have been introduced, used and practiced by the courts, subject to the action of the legislature of the state.] MASSACHUSETTS. Eevised Statutes of 1859. Chapter 105. Sec. 1. No action shall be brought in any of the following cases, that is to say : 1. To charge an executor, administrator, or assignee, under any insolvent law of this commenwealth, upon a special promise, to answer damages out of his own estate : 2. To charge a person, upon a special promise, to answer for the debt, default, or misdoings of another : 3. Upon an agreement made upon consideration of marriage : 4. Upon a contract for the sale of lands, tenements, or heredita- ments, or of any interest in or concerning them : or, 5. Upon an agreement that is not to be performed within one year from the making thereof: Unless the promise, contract, or agreement, upon which such action is brought, or some memorandum or note thereof, is in writing a.nd signed by the party to be charged therewith, or by some person thereunto by him lawfully authorized. The Statute of Frauds. 49 Sec. 2. The consideration of such promise, contract, or agree- ment need not be set forth or expressed in the writing signed by the party to be charged therewith, but may be proved by any other legal evidence. Sec. 4. No Oiction shall be brought to charge a person, upon or by reason of any representation or assurance made concerning the character, conduct, credit, ability, trade or dealings of any other person, unless such representation or assurance is made in writing, and signed by the party to be charged thereby, or by some person thereunto by him lawfully authorized. Sec. 5. No contract for the sale of goods, wares, or merchandise, for the price of fifty dollars or more, shall be good or valid, unless the purchaser accepts and receives part of the goods so sold, or gives something in earnest to bind the bargain, or in part payment; or unless some note or memorandum in writing of the bargain be made and signed by the party to be charged thereby, or by some person thereunto by him lawfully authorized. MIOHIGAK Compiled Laws of 1857. Chapter 104. Sec. 8. Every contract for the leasing for a longer period than one year, or for the sale of any lands, or any interest in lands, shall be void, unless the contract or some note or memorandum thereof, be in writing, and signed by tlie party by whom the lease or sale is to be made, or by some person thereunto by him lawfully authorized by writing. Sec. 9. The consideration of any contract or agreement, required by the provisions of this chapter to be in writing, need not be set forth in the contract or agreement, or in the note or memorandum thereof, but may be proved by any other legal evidence. Sec. 10. Nothing in this chapter contained, shall be construed to abridge the powers of the Court of Chancery to compel the specific performance of agreements, in cases of part performance of such agreements. Chapter 106. Sec. 2. In the following cases specified in this section every agreement, contract and promise shall be void, unless such agree- 7 50 The Statute of Fkauds. ment, contract, or promise, or some note or memorandum thereof, be in writing, and signed by the party to be charged therewith, or by some person by him thereunto lawfully authorized, that is to say : 1. Every agreement that, by its terms, is not to be performed in one year from the making thereof 2. Every special promise to answer for the debt, default, or mis- doings of another person. 3. Every agreement, promise, or undertaking made upon con- sideration of marriage, except mutual promises to marry. 4. Every special promise made by an executor or administrator to answer damages out of his own estate. Sec. 3. No contract for the sale of any goods, wares, or mer- chandise, for the price of fifty dollars or more, shall be valid, unless the purchaser shall accept and receive part of the goods sold, or shall give something in earnest to bind the bargain, or in part pay- ment, or unless some note or memorandum in writing of the bar- gain be made and signed by the party to be charged thereby, or by some person thereunto by him lawfully authorized. Sec. 4. Whenever any goods shall be sold at auction, and the auctioneer shall, at the time of sale, enter in a sale-book a memo- randum specifying the nature and price of the property sold, the terms of the sale, the name of the purchaser, and the name of the person on whose account the sale is made, such memorandum shall be deemed a memorandum of the contract of sale within the mean- ing of the last section. Sec. 5. No action shall be brought to charge any person, upon or by reason of any favorable representation or assurance, made con- cerning the character, conduct, credit, ability, trade, or dealings of any other person, unless such representation or assurance be made in writing, and signed by the»party to be charged thereby, or by some person thereunto by him lawfully authorized. Sec. 6. The consideration of any contract, agreement or promise, required by this chapter to be in writing, need not be expressed in the written contract, agreement, or promise, or in any note or mem- orandum thereof, but may be proved by any other legal evidence. The Statute of Frauds. 51 MINNESOTA. General Statutes of 1866. Chapter 41. Title II. Sec. 6. No action shall be maintained in either of the followin;^ cases upon any agreement unless such agreement, or some note or memorandum thereof expressing the consideration, is in writing and subscribed by the party charged therewith : 1. Every agreement that by its terms is not to be performed within one year from the making thereof; 2. Every special promise to answer for the debt, default or doings of another ; 3. Every agreement, promise or undertaking, made upon con- sideration of marriage, except mutual promise to marry. Sec. 7. Every contract for the sale of any goods, chattels, or things in action, for the price of fifty dollars or more, shall be void, unless, 1. A note or memorandum of such contract is made in writing and siibscribed by the parties to be charged therewith ; or, 2. Unless the buyer accepts and receives part of such goods, or the evidences, or some of them, of such things in action ; or, 3. Unless the buyer at the time pays some part of the purchase money. » Sec. 8. Whenever goods are sold at public auction, and the auctioneer at the time of sale, enters into a sale-book a memoran- dum specifying the nature and price of the property sold, tlie terms of the sale, name of tlie purchaser, and the name of the person on whose account the sale is made; such memorandum shall be deemed a note of the contract of sale within the meaning of the last section. Sec. 12. Every contract for the leasing for a longer period than one year, or for the sale of any lands, or any interest in lands, shall be void, unless the contract, or some note or memorandum thereof, expressing the consideration, is in writing and subscribed by the party to whom the lease or sale is to be made, or by his authorized agent. Sec. 13. Nothing in this chapter contained shall be construed to abridge the power of courts of equity to compel the specific perform- ance of agreements in cases of part performance of such agreements. 62 The Statute of Fkauds MISSISSIPPI. Hutchinson's Code, 1848. Chapter 47. Article 1. [Act of 1832.] Sec. 1. No action shall be brought whereby to charge any executor or administrator, upon any special promise, to answer any debt or damage out of his own estate ; or whereby to charge the defendant upon any special promise to answer for the debt, default, or miscarriage of another person ; or to charge any person upon any agreement made upon consideration of marriage ; or upon any contract for the sale of lands, tenements or heredita- ments, (or the making any lease thereof for a longer term than one year) or upon any agreement which is not to be performed within the space of one year from the making thereof, unless the promise or agreement upon which such action shall be brought, or some memorandum or note thereof, shall be in writing and signed by the party to be charged therewith, or some other person by him or her thereunto lawfully authorized. MISSOURI. General Statutes of 1865. Chapter 106. Sec. 5. No action shall be brought to charge any executor or administrator, upon any special promise, to answer for any debt or damages out of his own estate, or to charge any person upon any special promise to answer for the debt, default, or miscarriage of another person, or to charge any person upon any agreement made in consideration of marriage, or upon any contract for the sale of lands, tenements, hereditaments, or any interest in or concerning them, or upon any agreement that is not to be performed within one year from the making thereof, unless the agreement, upon which the action shall be brought, or some memorandum or note thereof, shall be in writing, and signed by the party to be charged therewith, or some other person by him thereto lawfully authorized. Sec. G. No contract for the sale of goods, wares and merchan- dise, for the price of thirty dollars, or upwards, shall be allowed to be good, unless the buyer shall accept part of the goods so The Statute of Frauds. 53 sold, and actually receive the same, or give something in earnest to bind the bargain, or in part payment, or unless some note or mem- orandum in writing be made of the bargain, and signed by the parties to be charged with such contract, or their agents lawfully authorized. Sec. 7. No action shall be brought to charge any person upon, or by reason of, any representation or assurance made concerning the character, conduct, credit, ability, trade or dealings, of any other person, unless such representation or assurance be made in writing, and subscribed by the party to be charged thereby, or by some per- son thereunto by him lawfully authorized. l^EBKASKA. Territorial Statutes of 1855. Part First. 857. Except when otherwise specially provided, no evidence of any of the contracts enumerated in the next succeeding section is competent unless it be in writing and signed by the party charged or by his lawfully authorized agent. 858. Such contracts embrace: 1. Those in relation to the sale of personal property when no part of the property is delivered and no part of the price is paid ; 2. Those made in consideration of marriage, but not including promises to marry ; 3. Those wherein one person promises to answer for the debt, default, or miscarriage of another, including promises by executors to pay the debt of their principal from their own estate ; 4. Those for the creation or transfer of any interest in lands, except leases for a term not exceeding one year ; 5. Those that are not to be performed within one year from the making thereof 859. The provision of the first subdivision of the preceding section does not apply when the article of personal property sold is not at the time of the contract owncjl by the vendor and ready for delivery, but labor, skill, or money are necessarily to be expended in producing or procuring the same: nor do those of the fourth subdivision of said section apply where the purchase money or any portion thereof has been received by the vendor, or 64 The Statute of Frauds. when the vendee with the actual or implied consent of the vendor has taken and held possession thereof, under and by virtue of the contract, or when there is any other circumstance which by the law heretofore in force would have taken a case out of the statute of frauds. 860. The above regulations, relating merely to the proof of contracts, do not prevent the enforcement of those which are not denied in the pleadings, unless in cases where the contract is sought to be enforced or damages to be recovered for the breach thereof against some person other than him who made it. NEVADA. Territorial Statutes of 1861. Chapter IX. [Continued in force by the State Constitution, Art. 17, § 3, until altered or repealed by the Legislature.] § 57. Every contract for the leasing for a longer period than one year, or for the sale of any lands, or any interest in lands, shall be void, unless the contract, or some note or memorandum thereof, expressing the consideration, is in writing, and subscribed by the party to whom the lease or sale is to be made, or by his authorized agent. Sec. 61. In the following cases every agreement shall be void, unless such agreement, or some note*or memorandum thereof, expressing the consideration, be in writing, and subscribed by the party charged thereAvith : First. Every agreement that, by the terms, is not to be performed within one year from the making thereof. Second. Every special promise to answer for the debt, default, or miscarriage of another. Third. Every agreement, promise, or undertaking, made upon consideration of marriage, except mutual promises to marry. Sec. 62. Every contract for the sale of any goods, chattels, or things in action, for the price of fifty dollars or over, shall be void, unless : First. A note or memorandum of such contract be made in writing, and be subscribed by the parties to be charged therewith; or, Second. Unless the buyer shall accept or receive part of such goods, or the evidences, or some of them, of such things in action ; or. Third. Unless the buyer shall, at the time, pay some part of the purchase money. The Statute of Frauds. 55 Sec. 63. "Whenever goods shall be soid at auction, and the auc- tioneer shall, at the time of sale, enter in a sale book a memorandum, specifying tlie nature and price of the property sold, the terms of the sale, the name of the purchaser, and the name of the person on whose account the sale is made, such memorandum shall be deemed a note of the contract of sale, within the meaning of the last section. NEW HAMPSHIRE. General Statutes of 1867. Chapter 201. Sec. 12. No action shall be maintained upon a contract for the sale of land, unless the agreement upon which it is brought, or some memorandum thereof, is in writing, and signed by the party to be charged, or by some person by him thereto authorized by writing. Sec. 13. No action shall be brought to charge an executor or administrator upon a special promise to answer damages out of his own estate, nor to charge any person upon a special promise to answer for the debt, default, or miscarriage of another, or upon any agreement made in consideration of marriage, or that is not to be performed within one year from the time of making it, unless such promise or agreement, or some note or memorandum thereof, is in writing, and signed by the party to be charged, or by some person by him thereto authorized. Sec. 14. No contract for the sale of goods, wares, or merchandise, for the price of thirty-three dollars, or more, is valid, unless the buyer accepts and actually receives part of the property sold, or gives something in part payment, or in earnest to bind the bargain, or unless some note or memorandum thereof is in writing, and signed by the party to be charged, or by some person by him thereto authorized. I:^EW JERSEY. Nixon's Digest, 1868, p. 358. [Act of 1794.] Sec. 14. No action shall be brought, whereby to charge any executor or administrator, upon any special promise, to answer damages out of his own estate ; or whereby to charge the defend- ant, upon any special promise, to answer for the debt, default, or miscarriages of another person ; oy to charge any person upon any agreement made upon consideration of marriage ; or upon any contract or sale of lands, tenements, or hereditaments, or any inter- 66 The Statute of Frauds. est in or concerning them ; or upon any agreement that is not to be performed within the space of one year from the making thereof, unless the agreement upon which such action shall be brought, or some memorandum or note thereof, shall be in writing, and signed by the party to be charged therewith, or some other person thereunto by him or her lawfully authorized. Sec. 15. No contract for the sale of any goods, wares, and mer- chandise, for the price of thirty dollars or upwards, shall be allowed to be good, except the buyer shall accept part of the goods so sold, and actually receive the same, or give something in earnest to bind the bargain, or in part payment, or that some note or memorandum in writing of the said bargain be made,, and signed by the parties to be charged by such contract, or their agents thereunto lawfully authorized. NEW YORK. Eevised Statutes. (Took effect January 1, 1830.) Part II. Chapter VI. Title V. Sec. 1. No executor or administrator shall be chargeable upon any special promise to answer damages, or to pay the debts of the testator or intestate out of his own estate, unless the agreement for that purpose, or some memorandum or note thereof, be in writing, and signed by such executor or administrator, or by some other person by him thereunto specially authorized. Part II. Chapter VII. Title I. Sec. 8. Every contract for the leasing for a longer period than one year, or for the sale of any lauds, or any interest in lands, shall be void, unless the contract, or some note or memorandum thereof, expressing the consideration, be in writing, and be subscribed by the party, by whom the lease or sale is to be made. Sec. 9. Every instrument required to be subscribed by any party, under the last preceding section, may be subscribed by the agent of such party lawfully authorized. Sec. 10. Nothing in this title contained shall be construed to abridge the powers of courts of equity, to compel the specific performance of agreements, in cases of part performance of such agreements. The Statute of Frauds. 67 Part II, chapter VII, title II. (As amended by the Statute of 1863.) Sec. 2. In the following cases every agreement shall be void, unless such agreement, or some note or memorandum thereof,' be in writing, and subscribed by the party to be charged there- with: 1. Every agreement that by its terms is not to be performed within one year from the making thereof; 2. Every special promise to answer for the debt, default, or mis- carriage of another person ; 3. Every agreement, promise or undertaking, made upon con- sideration of marriage, except mutual promises to marry. Sec. 3. Every contract for the sale of any goods, chattels, or things in action, for the price of fifty dollars or more, shall be void, unless: 1. A note or memorandum of such contract be made in writing, and be subscribed by the parties to be charged thereby ; or, 2. Unless the buyer shall accept and receive part of such goods, or the evidences, or some of them, of such things in action ; or, 3. Unless the buyer shall at the time pay some part of the pur- chase money. Sec. 4. "Whenever goods shall be sold at public auction, and the auctioneer shall at the time of sale enter in a sale-book a memo- randum specifying the nature and price of the property sold, the terms of the sale, the name of the purchaser and the name of the person on whose account the sale is made; such memorandum shall be deemed a note of the contract of sale within the meaning of the last section. Sec. 8. Every instrument required by any of the provisions of this title to be subscribed by any party, may be subscribed by the lawful agent of such party. •The amendment of 1863 expnnged in this place the words "eipressmg the con- Bideratiou." 8 58 The Statute of Feauds. NOETH CAROLINA. Revised Code of 1854. Chapter 50. Sec. 11. All contracts to sell or convey any lands, tenements, or hereditaments, or any interest in or concerning them, or any slave ; and all leases and contracts for leasing of land for the purpose of digging for gold or other minerals, or for the purpose of mining generally, shall be void and of no effect, unless such contract or lease, or some memorandum or note thereof, shall be put in writing, signed by the party to be charged therewith, or by some other person by him thereto lawfully authorized, except, never- theless, leases and contracts for leases (other than .those above named) not exceeding in duration the term of three years. Sec. 15. No action shall be brought whereby to charge an executor or administrator, upon a special promise to answer damages out of his own estate, or to charge any defendant upon a special promise to answer the debt, default, or miscarriage of another person, unless the agreement, upon which such action shall be brought, or some memorandum or note thereof, shall be in writing, and signed by the party charged therewith, or some other person thereunto by him lawfully authorized. OHIO. Revised Statutes ; Swan and Critclifield's edition, 1860. Chapter 47. ■ [Act of 1810.] Sec. 5. That no action shall be brought whereby to charge the defendant upon any special promise to answer for the debt, default, or miscarriage of another person; or to charge any executor or administrator, upon any special promise, to answer damages out of his own estate ; or to charge any person upon any agreement made upon consideration of marriage, or upon any contract or sale of lands, tenements, or hereditaments, or any interest in or concerning of them ; or upon any agreement that is not to be performed within the space of one year ft-om the making thereof; unless the agreement upon which such action shall be brought, or some memorandum or note thereof, shall be in writing, The Statute of Frauds. 59 and signed by the party to be charged therewith, or some other person thereunto by him or her hnvrully authorized. [From the note to this chapter it would appear that there is a question whether the whole of the English statute is not in force in Ohio under an act of 1795.] OREGON. Code of Civil Procedure, 1 862. Sec. 775. In the following cases the agreement is void, unless the same, or some note or memorandum thereof expressing the consideration, be in writing and subscribed by the party to be charged, or by his lawfully authorized agent; evidence therefore of the agreement shall not be received other than the writing, or secondary evidence of its contents, in the cases pre- scribed by law : 1. An agreement that, by its terms, is not to be performed within a year from the making thereof. 2. An agreement to answer for the debt, default, or miscarrfage of another. 3. An agreement by an executor or administrator to pay the debts of his testator or intestate out of his own estate. 4. An agreement made upon consideration of marriage, other than a mutual promise to marry. 5. An agreement for the sale of personal property, at a price not less than fifty dollars, unless the buyer accept and receive some part of such personal property, or pay at the time some part of the purchase money; but when the sale is made by auction, an entry by the auctioneer, in his sale-book, at the time of the sale, of the kind of property sold, the terms of the sale, the price, and the names of the purchaser and person on whose account the sale is made, is a sufficient memorandum. 6. An agreement for the leasing, for a longer period than one year, or for the sale of real property or of any interest therein. 7. An agreement concerning real property, made by an agent of the party sought to be charged, unless the authority of the agent be in writing. Sec. 776. No evidence is admissible to charge a person upon a representation, as to the credit, skill, or character of a third 60 The Statute of Frauds. person, unless such representation, or some memorandum thereof, be in writing, and either subscribed by, or in the handwriting of, the party to be charged. PENNSYLVANIA. < Purdon's Digest, Brightly's edition, p. 497. [Act of April 26, 1855, §§ 1 and 2.] 4. No action shall be brought whereby to charge any executor or administrator, upon any promise to answer damages out of his own estate, or whereby to charge the defendant, upon any special promise, to answer for the debt or default of another, unless the agreement upon which such action shall be brought, or some memorandum or note thereof, shall be in writing, and signed by the party to be charged therewith, or some other person by him authorized. 5. This act shall not go into effect until the first day of January next ; or apply to or affect any contract made or responsibility incurred prior to that time ; or for any contract the consideration of which shall be a less sum than twenty dollars. RHODE ISLAND. Revised Statutes of 1857. Chapter 176. Sec. 8. No action shall be brought — ■ 1. Whereby to charge any person upon any contract for the sale of lands, tenements or hereditaments, or the making of any lease thereof for a longer time than one year ; 2. Whereby to charge any person upon any agreement made upon consideration of marriage ; 3. Whereby to charge any executor or administrator upon his special promise to answer any debt or damage out of his own estate ; 4. Whereby to charge any person upon his special promise to answer for the debt, default or miscarriage of another person ; 5. Whereby to charge any person upon any agreement which is not to be performed within the space of one year from the making thereof; — TiiK Statute of Frauds. G] Unless the promise or agreement upon which such action shall be brought, or some note or memorandum thereof, shall be in writing, and signed by the party to be charged therewith, or by some other person by him thereunto lawfully authorized. SOUTH CAROLINA. By an act of the Province of South Carolina, passed December 12, A. D. 1712, several "statute laws of the Kingdom of England or South Britain," therein copied at length, are declared to be in *•■ as full force, power and virtue, as if the same had been specially enacted and made for this province, or as if the same had been made and enacted therein by any general assembly thereof." Among these statutes is the 29th Car. II. chap. 3. TENNESSEE. Code of 1858. Sec. 1758. No action shall be brought — 1. Whereby to charge any executor or administrator, upon any special promise, to answer any debt or damages out of his own estate ; 2. Whereby to charge the defendant upon any special promise to answer for the debt, default, or miscarriage of another person ; 3. Whereby to charge any person upon any agreement made upon consideration of marriage ; or 4. Upon any contract for the sale of lands, tenements, or here- ditaments, or the making any lease thereof for a longer term than one year ; or 5. Upon any agreement or contract which is not to be performed Avithin the space of one year from the making thereof ; Unless the promise or agreement upon which such action shall be brought, or some memorandum or note thereof, shall be in writing, and signed by the party to be charged therewith, or some other person by him thereunto lawfully authorized. 62 The Statute of Fkauds. TEXAS. Paschal's Digest, 1866. [Act of 1840.] Art. 3875. No action shall be brought, (1.) whereby to charge any executor or administrator, upon any special promise to answer any debt or damage out of his own estate, (3.) or whereby to charge the defendant, upon any special promise to answer for the debt, default, or miscarriage of another person, (3.) or to charge any person upon any contract made upon consideration of mar- riage, (4.) or upon any contract for the sale of lands, slaves, tene- ments, or hereditaments, or the making of any lease thereof for a longer term than one year, (5.) or upon any agreement which is not to be performed within the space of one year from the making thereof; unless the promise or agreement upon which such action shall be brought, or some memorandum thereof, shall be in writing and signed by the party to be charged therewith, or some person by him thereunto lawfully authorized. VERMONT. General Statutes of, 1863. Chapter 66. Sec. 1. No action at law or in equity shall be brought in any of the following cases : 1. To charge an executor or administrator upon any special promise to answer damages, out of his own estate. 2. To charge any person, upon any special promise, to answer for the debt, default or misdoings of another.* 3. To charge any person, upon any agreement made upon consideration of marriage. 4. Upon any contract for the sale of lands, tenements or here- ditaments, or of any interest in or concerning them. 5. Upon any agreement not to be performed within one year from the making thereof. Unless the promise, contract or agreement upon which such action shall be brought, or some memorandum or note thereof, shall be in writing, and signed by the party to be charged there- with, or by some person thereunto by him lawfully authorized; The Statute of Frauds. 63 and if the contract or agreement relate to the sale of real estate, or to any interest therein, such authority shall be conferred by writing. Sec. 2. No contract for the sale of any goods, "wares, or mer- chandise, for the price of forty dollars or more, shall be valid, unless the purchaser shall accept and receive part of the goods so Bold, or shall give something in earnest to bind the bargain, or in part payment, or unless some note or memorandum of the bargain be made in writing, and signed by the party to be charged thereby, or by some person thereunto by him lawfully authorized. Sec. 3. No action shall be. brought to charge any person upon or by reason of any representation or assurance, made concerning the character, conduct, credit, ability, trade or dealings of any other person, unless such representation or assurance be made in writing, and signed by the party to be charged thereby, or by some person thereunto by him lawfully authorized. VIRGINIA. Hevised Code of 1860. Chapter 143. Sec. 1. No action shall be brought in any of the following cases: 1. To charge any person upon or by reason of a representation or assurance concerning the character, conduct, credit, ability, trade, or dealings of another, to the intent or purpose tliat such other may obtain thereliy credit, money, or goods; or, 2. To charge any person, upon a promise made, after full age, to pay a debt contracted during infancy, or upon a ratifica- tion after full age of a promise or simple contract made during infancy ; or, 3. To charge a personal representative upon a promise to answer any debt or damages out of his own estate; or, 4. To charge any person upon a promise to answer for the debt, default, or misdoings of another ; or, 5. Upon any agreement made upon consideration of marriage ; or, 6. Upon any contract for the sale of real estate, or the lease thereof for more than a year ; or, 64 The Statute of Frauds. 7. Upon any agreement that is not to be performed within a year; Unless the promise, contract, agreement, representation, assur- ance, or ratification, or some memorandum or note thereof, be in writing, and signed by the party to be charged thereby, or his agent. But the consideration need not b ^ set forth or expressed in the writing ; it may be proved (where i consideration is neces- sary) by other evidence. Sec. 2. Any writing, to which the person making it shall affix a scroll by way of seal, shall be of the same force as if it were actually sealed. WEST VIEGINIA. [By the Constitution of West Virginia, adopted in 1862, the Statutes of Virginia are continued in force until altered or repealed by the Legislature.] WISCONSIN. Revised Statutes of 1838. Chapter 106. Sec. 8. Every contract for the leasing for a longer period than one year, or for the sale of any lands, or any interest in lands, shall be void, unless the contract, or some note or memorandum thereof, expressing the consideration, be in writing, and be sub- scribed by the party by whom the lease or sale is to be made. Sec. 9. Every instrument required to be subscribed by any party, under the last preceding section, may be subscribed by the agent of such party, lawfully authorized. Sec. 10. Nothing in this chapter contained shall be construed to abridge the powers of courts to compel the specific performance of agreements in cases of part performance of such agreements. Chapter 107. Sec. 2. In the following cases, every agreement shall be void, unless such agreement, or some note or memorandum thereof, expressing the consideration, be in writing and subscribed by the party charged therewith : — The Statute of Frauds. 65 1. Every agreement that by the terms is not to be performed within one year from the making thereof. 2. Every special promise to answer for the debt, default, or mis- carriage of another person. 3. Every agreement, promise, or undertaking, made upon con- sideration of marriage, except mutual promises to marry. Sec. 3. Every contract for the sale of any goods, chattels, or things in action, for the price of fifty dollars or more, shall be void, unless — 1. A note or memorandum of such contract be made in writing, and be subscribed by the parties to be charged therewith ; or — 2. Unless the buyer shall accept and receive part of such goods, or the evidences, or some of them, of such things in action ; or — 3. Unless the buyer shall, at the time, pay some part of the purchase money. Sec. 4. Whenever goods shall be sold at public auction, and the auctioneer shall, at the time of sale, enter in a sale-book a memo- randum, specifying the nature and price of the property sold, the terms of the sale, the name of the purchaser, and the name of tlie person for whose account the sale is made, such memorandum shall be deemed a note of the contract of sale within the meaning of the last section. Sec. 8. Every instrument required by any of the provisions of this title to be subscribed by any party, may be subscribed by the lawful agent of such party. The foregoing are the enactmenti now in force ; but, except in Pennsylvania and Louisiana, the recent statutes in the older States are re-enactments, sometimes with amendments, of similar provisions contained in former acta 9 A TREATISE YALIDITT OF VERBAL AGREEMENTS. ESTTRODUCTORY CHAPTER. GENERAL SURVEY OF THE STATUTE OF FRAUDS, ESPECIALLY THOSE PARTS OF IT "WHICH RELATE TO EXECUTORY CONTRACTS. ARTICLE I. Object, origin, history and effect of the statnte; different opinions which have prevailed rela- tive to the spirit in which it should be construed ; effect of such opinions upon the rules determining the application of the fourth and seventeenth sections, § 1. Probably no beneficial legislative enactment ever received from the legal profession a designation so well calculated to mislead an unprofessional person, or a jurist under other systems, respecting its contents, as the cele- brated statute of the twenty ninth of Charles the second, known as the Statute of Frauds and Perjuries, or more commonly, as the Statute of Frauds. To any mind not previously instructed respecting its subject matter, those terms suggest the idea, either that it is a part of the crimi- nal code, or that it provides some new method of detect- ing, in civil actions, the commission of the criminal acts at which it purports to have been aimed, and of nullifying their consequences. Nor is this impression much weak- ened by the phraseology of its legal title, which affords but little evidence that the leading design of its framers was to preclude the determination of the rights of liti- gants upon oral testimony merely, in certain cases, where experience had shown that such evidence tended to facili- 68 General Survey of the Statute. tate the accomplishment of fraud under the forms of law, and offered peculiar temptations to the commission of perjury. § 2. The fact that the framers of the act laid such stress in its title, and again in its general preamble, and still again in the special preamble to the nineteenth section, upon the consequences of the defects in the law of evidence which they proposed to remedy, to the exclusion of any reference to the direct purpose of the enactment, affords very striking proof of the prevalence of the evils which led to its passage. At that time the rules of evidence, derived from a period when to require written proof in support of any description of claims, would have been almost tantamount to providing that such claims should no longer be enforced by legal proceedings, imposed scarcely any limits to the power and the duty of the courts to deter- mine the rights of litigants, upon oral testimony merely. A man might be deprived of his real or personal property, in any appropriate form of action ; he might be made liable for the performance of executory contracts of every description ; and his personal property might be disposed of to strangers after his death, {a) upon proof, even in the most guarded cases, of equivocal acts ; and, in nearly every case, of spoken words only. If such a state of things could safely be permitted when the population was scanty, and men were comparatively poor, simple, and ignorant, it is evident that it opened the door to great abuses, as popula- tion, business, and wealth increased, and the vices, as well as the virtues of civilization became generally diffused among the people. It is therefore easy to understand that false swearing had become so common, that the legislature felt itself urgently called upon ' ' for the prevention of many fraudulent practices, which are commonly upheld by per- jury and subornation of perjury," to revise the rules of (a) The state of the law with respect to proof of testamentary disposi- tion of real property was not much better. Roberts on Frauds, pages 304 to 308. General Survey of the Statute. G9 evidence in cases where tlie temptation to fabricate a cause of action was the greatest, in consequence of the difficulty of detecting the falsity of the oral testimony by which it would be sustained. Indeed, one is tempted to believe, that there was something more than an accidental coin- cidence in the suppression, by the statute of frauds, of a vast field for the successful practice of perjury in the civil courts, and the scandalous instances of the same crime in the criminal courts, which have made the period immedi- ately succeeding the passage of the statute one of the most infamous in English history. § 3. The origin of the statute of frauds has been the subject of much curious inquiry, opinions having greatly differed respecting the person to whom belonged the credit, or, as some enthusiastically express it, the glory, of having framed the act, and most contributed to its passage. Common reputation upon this point was for a long time divided between Sir Matthew Hale, who died before the commencement of that session of parliament, Sir Francis North, then Chief Justice of the Common Pleas and after- wards Lord Guilford, and Sir Lionel or Leoline Jenkins, an eminent civilian. And the discussion frequently turned upon the internal evidence of its authorship, which the statute itself affords ; that is to say, whether its provisions are so wisely adapted to accomplish the ends proposed, and its language so well chosen to express clearly the ideas intended to be conveyed, that it is reasonable to suppose it to have been the work of one or all of the great jurists to whom its origin has been attributed. And while there has been considerable diversity of sentiment respect- ing the policy of some of its provisions, fiearly all com- mentators agree in condemning the awkwardness and incongruity of much of its phraseology. But this patent defect should not detract from the fame of its original draftsman, or militate against the argument that its general plan was the product of a master mind. A bill designed to accomplish the most radical changes in the law, which affected the interests of every man of substance 70 Geneeal Survey of the Statute. in the kingdom, could not reasonably be expected to pass through both Houses of Parliament without being sub- jected to numerous amendments ; and these, being doubt- less framed by different persons, some of whom were inferior in mental calibre to its original author, would naturally mar its symmetry of expression as well as of design. And the records of parliament show, that it was subjected to many alterations after its first introduction into either House ; and that when its terms were finally agreed upon, there was so much doubt as to the result of the changes which it contemplated, that an effort was made, and nearly proved successful, to render it experimental merely, by limiting the time during which it should operate. (5) (b) In the note to Right v. Price, 1 Douglas, 241, A. D. 1779, it is said that " the statute of frauds is generally supposed to have been made upon great consideration ; on an attentive perusal, hovpever, it vr'ill not appear to have been accurately penned." See to the same effect Buckeridge v. Ingram, 2 Vesey, 662, and per Lawrence, J., in Wain v. Warlters, 5 East, 10. But the published journals of the tvs'o Houses afford abundant evidence of the anxiety vs^hich its introduction occasioned, and of the care bestowed upon it; and fully account for the patchwork appearance which it now presents. In the House of Lords the bill was read the first time on the 17th, and the second time on the 19th of January, 1676; and after the second reading it was referred to a committee, to meet the next day, consisting of thirty- seven temporal and ten spiritual peers, *' Lord Chief Justice Common Pleas, Justice Windham, Justice Jones and Justice Scroggs, to assist; " on the 6th of March, the Earl of Dorset reported, that the committee " had met several times, and are of opinion that the said bill is fit to be engrossed, with some amendments," which was ordered to be done accordingly, and the next day it was read the third time and passed. On the same 7th of March, it was sent to the Commons for concurrence, and read for the first time on the 13th of March, whereupon it was ordered to be read the second time, "in a full house ; " the second reading was on the second day of April following (1677), when the bill was referred to a committee, to meet the next day, consisting of more than fifty members, including the Master of the Rolls, Mr. Serjeant Seys, and Mr. Serjeant Maynard, to whom were added "all the members cf this House that are of the long robe;" on the 12th of April, Sir Charles Harbord reported from the committee " several amend- ments agreed hy the committee to be made to the bill, which were twice read, and all but the last amendment (which was to make the hill temporary) were, upon the question, agreed," and the bill with the amendments was read the General Survey of the Statute. 71 § 4. But in the various discussions wliicli took place respecting the origin of tliis statute, after the generation which framed it had passed away, no one seems to have suspected that the "father of equity" had any hand in its composition, much less that he was its author ; and although that fact must have been known to many of his cotemporaries, and, in truth, was announced by him in the Court of Chancery, it seems to have been kept a secret from the general public for nearly one hundred and fifty years after the act took effect. It was first revealed by the publication of Mr. Swanston's Chancery Reports, about the year 1821, containing, in an appendix to the current decisions of Lord Eldon, transcripts of the notes of Lord Nottingham, of several cases decided before him when he third time, passed, and ordered to be returned to the Lords. On the same day the amendments were agreed to in the Lords; and on the IGth of April, the King being present, the bill was presented to him, and received the royal assent. Lord Ellenborough's opinion in the celebrated case of Wain v. Warlters, 5 East, 10, A. D. 1804, where it was held that the note or memo- randum in writing required by the fourth section must contain tlie considera- tion, turned chiefly upon the meaning of the word "agreement," and in defending his conclusion, he remarked that the statute was said to have been drawn by Lord Hale, "one of the greatest judges who ever sate at Westminster Hall, who was as competent to express, as he was able to con- ceive the provisions best calculated for carrying into eflfect the purposes of that law." Lord Chief Baron Gilbert, in Whitchurch v. Whitchurch, Gilbert's Equity Reports, 171, A. D. 1721, referring to the provisions of the statute on the subject of wills of real estate, said that "Sir Matthew TIale and Sir Lionel Jenkins, who prepared this statute, chose to take the plan .of a Roman law : " or according to the report of the same case in 1 Strange, 621, that it "was contrived by the Lord Chief Justice Hale and the most learned men of that time." But in Windham v. Chetwynd, 1 Burrow, 418, A. D. 1757, where the question was, what was the true construction of the word "credible" in the fifth section, Lord Mansfield said that this clause, which, considering the time when, and the circumstances under which, men were frequently called upon to follow its directions, ought to have been plain to the meanest capacity, " is so loose, that there is not a single branch of the solemnity defined or described with sufficient certainty to convey the same idea to the greatest capacity," and that the word "credible" must have slipped in, without attracting attention to its impropriety. And refer- ring to the report that the statute was drawn by Lord Hale, he added: "But this is scarce probable. It was not passed till after his death, and it 72 General Survey of the Statute. was chancellor, among them that of Ash v. Ahdy^ 3 Swanston, 664, decided in 1678, the year after the statute was enacted. This was a bill to execute a parol agree- ment, made before the passage of the act, but the bill having been filed afterwards, the defendant demurred, "supposing the new act had barred this suit," and Lord Nottingham overruled the demurrer, on the ground that the statute was not retrospective. He added : ' ' And I said that I had some reason to know the meaning of this law, for it had its first rise from me, who brought the bill into the Lords' House, although it afterwards received some additions and improvements from the judges and the civilians. And the counsellors at the bar cited another case in the King' s Bench this very term, where the same point being specially found, was so likewise adjudged upon argument, which I was glad to hear of; but said if they had adjudged it otherwise I should not have altered my opinion." was brought in in the common way, and not upon any reference to the judges." In 1 W, Blackstone, 98, this remark is quoted thus: "I can never conceive, for the reasons I formerly mentioned, that this statute was drawn by Lord Hale, any further than by, perhaps, leaving some loose notes behind him, which were afterwards unskilfully digested." The evidence, upon which rests Sir Francis North's claim to its authorship, consists mainly of the statement of his brother, Roger North, who says, in the Life of Lord Keeper Guilford, volume 1, page 109, that the Lord Keeper had a great hand in the statute of frauds and perjuries. "But," he continues, "at that time the Lord Chief Justice Hale had the pre-eminence, and was chief in the fixing that law, although the urging part lay upon him. and I have reason, to think it had the first spring from his lordship's motion." Mr. John William Smith (author of the "Leading Cases"), in his lectures on the Law of Contracts, page 32, says: "It is said to have been the joint production of Sir Matthew Hale, Lord Keeper Guilford, and Sir Leoline Jenkins, an eminent civilian. The great Lord Nottingham used to say of it, ' that every line was worth a subsidy'" (about 50,000Z.); "and it might now be said, with truth, that every line has cost a subsidy; for it is universally admitted that no enactment of any legislature ever became the subject of so much litigation. Every line, and almost every word of it, has been the subject of anxious discussion, resulting from the circumstances that the matters which its provisions regulate, are those which are of every day occurrence in the course of our transactions with one another." General Survey of the Statute. 73 § 6. The subject of this work restricts us to the consid- eration of the fourth and the seventeenth sections of the statute, which are the only parts of it relating to verbal agreements, properly so called ; for although leases, trusts, land some of the other subjects of its provisions, may in one sense be called agreements, inasmuch as tliey gene- rally arise out of a contract, that particular feature of them very rarely presents any question for the considera- tion of the court as respects the application of the statute thereto, unless they are brought within one of these sec- tions by some peculiarity of the facts. Provisions gene- rally corresponding to these sections have now the force of law in all of the United States, although in a few of them the seventeenth section has not been re-enacted, and some of the descriptions of contracts enumerated in the fourth have been omitted. They were also re-enacted in Ireland in the seventh year of king William the third, and corresponding legislative provisions are in force in most, and perhaps all of the British dependencies. Addi- tional enactments have from time to time been passed by parliament, and by the legislatures of some of the United States, whereby a writing is made necessary to the crea- tion of other kinds of liabilities ; but these vary consid- erably in the different localities ; so that for the purpose of a comprehensive discussion of the rules of law, whereby the validity of verbal agreements is tested, in countries where the common law prevails, it is necessary only to examine the principles by which the application of these sections is regulated. And it results from the fact that the common law enables all executory agreements to be created and proved without writing, that in cases not included within these sections, and where no local statute expressly or by implication establishes a different rule, a verbal agreement is always sufficient to enable the plaintiff to recover. (c) Thus a verbal submission to arbitration is good, and a verbal agreement to arbitrate entitles a party (c) Per Selden J. in Pratt v. Hudson River Railroad Company, 21 New York, 309. 10 74 General Survey of the Statute. to maintain an action thereon, when the matter in dispute is of such a character that the statute of frauds permits it to be proved by oral testimony. ((^) And although a con- trary opinion is to be found in some works of highly reputable authority, it is believed that in the countries governed by the common law, a verbal contract of marine or fire insurance is valid. It has been held in several cases in the United States that an action at law may be main- tained ujDon such a contract, even where there had been no actual payment of the premium, but only a verbal, or even an implied agreement to pay it.(e) (d) Kyd on Awards, page 10; Martin v. Chapman, 1 Alabama, 278; Byrd V. Odem, 9 id. 755; Valentine v. Valentine, 2 Barbour's Chancery (New- York), 430; Titus v. Scantling, 4 Blackford (Indiana), 89; Walters v. Mor- gan, 2 Cox's Chancery, 369 ; Winne v. Elderkin, 1 Chandler (Wisconsin), 219; Ditter V. Wellington, 1 Hill (New York), 319; Smith v. Douglas, 16 Illinois, 34; Griggs v. Seeley, 8 Indiana, 264; Houghton v. Houghton, 37 Maine, 72 ; French v. New, 28 New York, 147 ; McMuUen v. Mayo, 8 Smedes and Marshall (Mississippi), 298; Woods v. Page, 37 Vermont, 252: Wells V. Lain, 15 Wendell (New York), 99. (e) In Millar on Insurance, 30, it is said that the importance of the con- tract of insurance, and the singularity of the obligations which it is intended to create, have, in all commercial states, rendered a deed in writing essential to its validity. In Duer on Insurance, § 5, the learned author, while admit- tinsj that by the common law an unwritten contract of insurance is sufficient, expresses an opinion that the usage of a written contract has prevailed so long, that it has acquired the force of law, and he doubts whether an action could be sustained upon one which was oral. But the rule is settled the other way upon the American authorities. In Audubon v. The Excelsior Insurance Company, 27 New York, 216, A. D. 1863, the plaintiflf's testator sent five sets of " Audubon's Quadrupeds," in sheets, to a bookbinder's to be bound ; and in the afternoon of the same day, being Saturday, he sent a per- son in his employment to the defendant's office, to effect an insurance upon them for a specified sum. for one month. The messenger applied to the sec- retary, giving him all the necessary particulars; and the secretary assented and said that he would furnish a policy on the Monday morning. No amount of premium was mentioned; but there was a reference in the conversation to a policy which had been previously issued by the same company, upon other sets of the work, at the same place, and for the same time. The prop- erty was destroyed by fire on the intervening Sunday. It was held that the jury might infer a present contract to insure at the former rate of premium and to furnish the written evidence of it on Monday, and a judgment for Geiteral Survey of the Statute. 76 § 6. In the course of the decisions under these two sections, now extending over almost two centuries, many very perplexing questions have arisen, and several propositions have been from time to time laid down, as law, resulting in the exclusion from the operation of the statute of many cases, which, as it is now im- possible to doubt, are within its terms and intent. As many of these propositions depend upon such unsat- isfactory reasoning that they may almost be called arbi- trary, the rulings of the courts thereunder have fluctuated greatly, thus leading to distressing uncertainty and to much conflict of authority. The inconveniences resulting therefrom have been so great that some doubts have been expressed, especially of late years, and in the United States, whether the efffect of those sections of the statute has been, upon the whole, beneficial. (/ ) But many of these the plaintifif rendered upon a verdict was affirmed. And see Mobile, etc., Insurance Company v. McMillan, 31 Alabama, 711 ; Post v. JEtna, Insurance Co., 43 Barbour (New York), 351 ; Kelley v. Commonwealth Ins. Co., 10 Bosworth (New York), 82 ; Union, etc., Ins. Co. v. Commercial, etc., Ins. Co., 2 Curds Circuit Court, 524; S. C, 19 Howard (U. S.), 318; New Eng- land, etc., Co. V. Robinson, 25 Indiana, 53G; Trustees First Baptist Church V. Brooklyn Ins. Co., 19 New York, 305; Hamilton v. Lycoming Ins. Co., 5 Pennsylvania (Barr), 339. (/) Chief Justice Parker, in Holmes v. Knights, 10 New Hampshire, 176, said that it might well bo doubted whether the second clause of the fourth section of the statute has not promoted more fraud than it has prevented. Mr. Rawle, in his notes to Smith's Lectures on Contracts, third American edition, published in 1853, expressed his satisfaction because the State of Pennsylvania had never re-enacted the fourth section (page 1 1 8) ; and Mr. Hare concluded a long and able note to Birkmyr v. Darnell, in 1 Smith's Leading Cases, fourth American edition, 332, published in 1852, ■with the expression of an opinion that less inconvenience had resulted in Pennsylvania from its absence from the statute book, than would have been caused by its presence, and of a belief that the necessity for that section has passed away with the change of society. He added, that " all that is prac- tically useful in its provisions at the present day may perhaps be attained by providing that promises for the debt of another, in consideration solely of forbearance to bring suit, should be invalid unless reduced to writing." But the current of opinion seems to have run in the contrary direction to that of those able jurists; for in 1855 the legislature of Pennsylvania adopted that portion of the fourth section against which their remarks were particularly directed. 76 General Suevey of the Statute. evil consequences are directly traceable to departures from the spirit and meaning of the enactment, rather than to any lack of wisdom in its provisions, or any real diffi- culty in determining the true construction of its lan- guage. Most of the objectionable rules referred to had their origin in cases decided in England, within a period of time which may approximately be described as the first of the two centuries elapsed since the enactment of the statute ; and where they have not been modified by the action of the legislature, they have generally been aban- doned by the courts themselves, in consequence of a change in the views of the judges respecting the spirit in which the statute ought to be construed. This change became quite apparent towards the latter part of the eighteenth and the beginning of the nineteenth century, soon after the time when the United States came into existence as a separate nation ; and the same general views have prevailed ever since in England, (p') But the ((/) In the case of Proctor v. Jones, 2 Carrington and Payne, 532, A. D. 1826, -which arose under the seventeenth section. Best, C. J., said: "The statute of frauds and the statute of limitations were both so much objected to, at the time when they were passed, that the judges appeared anxious to get them off the statute book ; but in later times they have become desirous to give them their full effect. I think the statute of frauds is a good and wholesome statute. In other countries, contracts are made in writing." And see also his remarks in Howe v. Palmer, 3 Barnewall and Alderson, 321, A. D. 1820. It is quite noticeable that the expressions of sympathy with the object ot these section* of the. statute, began to be universal with the judges about the commencement of the present century. Lord Kenyon on several occasions expressed his approbation of them. In Chater v. Becket, 7 Term Eeports, 201, A. D. 1797, which arose under section 4, he said: "I lament extremely that exceptions were ever introduced in constru- ing the statute of frauds; it is a very beneficial statute, and if the courts had at first abided by the strict letter of the act, it would have prevented a mul- titude of suits which have since been brought." See also his remarks in Rucker v. Cammeyer, 1 Espinasse, 105, A, D. 1794; and in Chaplm v, Rogers, 1 East, 194, A. D. 1801, both under the 17th section. Grose, J., expressed the same opinion in Cooper v. EUston, 7 Term Reports, 16, A. D. 1796. Sir James Mansfield, Chief Justice of the Common Pleas, m Anstey V. Harden, 4 Bosanquet and Puller (1 New Reports), 124, A. D. 1804, said that, upon general principles, no one could wish to restrain the operation of General Survey of the Statute. Tt courts in the United States seem to have been deeply imbued, at the commencement of the independent exist- ence of this country, with tlie spirit which was then disappearing in the mother country ; and fortified by English precedents, they pushed on for many years after the reaction had taken place there, in the direction of restricting the operation of the statute, and even devised new propositions for the exclusion of cases from its pro- visions. Many of these doctrines, which were unable to endure the test of time, have since yielded to the more liberal and enlightened views, respecting the statute, which now prevail here also ; but some have become forti- fied by so many precedents, that their complete extinction has not everywhere been accomplished. And as the effects of the reaction are not yet fully developed, we are still in an uncertain, and, perhaps, in a transition state, with respect to many principles of constant practical applica- tion ; whence results a confusion, which, in some classes of cases, is almost chaotic. § 7. But out of this evil much good has also sprung ; for the reaction having taken place here later than in England, it found the general principles against which it operated much more developed than they had ever been in that country ; and out of this development have the statute. Lord EUenborough's remarks in Wain v. Warlters, 5 East, 10, A. D. 1804, have already been quoted. And see per Buller, J., Brodie v. St. Paul, 1 Vesey, 333, A. D. 1791. Lord Eldon, in Cooth v. Jackson, 6 Vesey, 37, A. D. 1801, in discussing a question arising under the fourth section, said : " I feel all the disinclination, which has been lately expressed, and strongly expressed in many cases, to carry what may be called the struggles of courts of justice to take cases out of the reach of that statute further than they have been carried." Lord Tenterden repeatedly expressed his opinion, in cases arising under both the fourth and seventeenth sections, that the statute of frauds was a wise and beneficial enactment, and should be hberally construed. Howe v. Palmer, 3 Barnewall and Aldt-rson, 321, A. D. 1820; Tempest v. Fitzgerald, id. G80; Baldey v. Parker, 2 Barne- wall and Cresswell, 40, A. D. 1823. See also per Bayley, J., in Saunders v. Wake6eld, 4 Barnewall and Alderson, 595, A. D. 1821; and Carter v. Toussaint, 5 Barnewall and Alderson, 855, A. D. 1822. 78 General Survey of the Statute. sprung many really sound and valuable rules of con- struction of the statute, which have held their ground by common consent against the receding tide, and are now well settled rules of American jurisprudence, although they are known but imperfectly, or not at all, in West- minster Hall. One of these principles has recently been borrowed from us, and appears to be now recog- nized in England as a sound rule of law, although when it was first settled here, it was supposed to be in direct conflict with the result of the English cases \{7i) and it is believed that the omission of the English courts to recognize several other principles, which stand here on a very solid foundation, proceeds from the fact that the questions have never been directly raised before them. And while it is impossible to deny, that in many respects the exclusion from the operation of the statute, of cases arising under these sections, and clearly within their literal meaning, has been pushed much further than a correct view of its spirit and policy will justify, it is equally true that the indiscriminate condemnation of rules having the eifect to restrict the broad language of the statute is unwise and indefensible. For the looseness and incongruity of expression, of which so many complaints have been made, in cases arising under other parts of the statute, is equally characteristic of these sections. Mr. Justice WHmot remarked, in a case arising under the seventeenth section, (^) that "had the statute of frauds always been carried into execution according to the letter, it would have done ten times more mischief than it has done good, by protecting rather than by preventing frauds." And the remark is also eminently true of the fourth sec- tion also, as will appear from numerous instances con- tained in the following pages, where the letter of the (A) We refer to the rule that the guaranty of a factor acting under a del credere commission is not within the statute of frauds, Couturier v. Hastie, 8 Exchequer, 40, A. D. 1852; approved in Wickham v. Wickham, 2 Kay and Johnson, 478, A. D. 1855. The subject will be fully discussed in the second article of the eighteenth chapter. (i) Simon v. Motivos, 1 W. Blackstone, 599, A. D. 1766. General Survey of the Statute. 79 enactment has been made to yield to its obvious intent, from the consideration that the case was not within the mischiefs against which it was aimed, and a literal con- struction would lead to injustice and inconveniences which the legislature could not have meant to create. ARTICLE 11. The statute Bnperadda the necessity of a ■writing, to the common law requirement that every contract mnst be founded upon a sufficient consideration. § 8. It was remarked, in the foregoing article, that the leading object of the statute of frauds was to exclude oral testimony, as a means by which the rights of litigants could be determined, in certain cases, where experience had shown that it was peculiarly liable to abuse ; and with respect to the cases included in the fourth and seven- teenth sections, such was exclusively its object and effect. At the time when the statute went into operation, there was no rule of the common law requiring any executory contract to be manifested by a writing, or any other evi- dence than that of mere words ; and we are not aware that any such rule ever existed in England, although an ingenious and learned writer on the law of evidence has collated the substance of some early but then obsolete statutes, whereby certain solemnities were rendered neces- sary to tlie actual transfer of the title to personal prop- erty, (a) (a) Professor Greenleaf says that " this statute introduced no new principle into the law ; it was new in England only in the mode of proof which it required. Some protective regulations, of the same nature, may be found in some of the early codes of most of the Northern nation?, as well as in the laws of the Anglo-Saxon princes; the prevention of frauds and perjuries being sought, agreeably to the simplicity of those unlettered times, by requiring a certain number of witnesses to a valid sale, and sometimes by restricting such sales to particular places. In the Anglo-Saxon laws, such regulations were quite familiar ; and the statute of frauds was merely the revival of obsolete provisions, demanded by the circumstances of the times, and adapted, in a new mode of proof, to the conditions and habits of the trading community." These remarks are followed up with an abstract of several of the laws of the Saxon Kings requiring witnesses to render sales 80 General Survey of the Statute. § 9. But although it would seem very clear upon prin- ciple that the statute left the common law untouched in all respects, except where it expressly provided a different rule, yet for a long time after its passage the idea was entertained by many eminent English jurists, that it had the indirect effect to create a new species of contracts, intermediate between specialties and parol agreements, which so far partook of the nature of the former, that a consideration was not necessary where the contract had been reduced to writing, so as to satisfy the requirements of the statute. And it is, perhaps, the most remarkable circumstance connected with its history, that a question of su(;h great importance, and which must have arisen very frequently in practice, should have remained unset- tled for a century after the statute took effect. As late as the year 1765, in the case of Pillans v. Van Mierop, 3 Burrow, 1663, we find no less a man than Lord Mansfield intimating an opinion that there was no such thing as a nudum pactum in writing ; because, he said, "the ancient notion about want of consideration was for the sake of evidence only, for when it was reduced to writing, as in covenants, specialties, bonds, etc., there was no objection to the want of consideration. And," he added, "the statute of frauds proceeded upon the same principle." In the sahie case Mr. Justice WHmot entered into quite an extended argument to the same effect, concluding by saying, " I cannot find that a nudum pactum evidenced by writing has been ever holden bad, and I should think it good, though where it is merely verbal it is bad." These remarks proved to be unnecessary to the decision of the case, for Lord Mansfield ultimately concluded that the question did not arise, because the particular promise valid, and an enactment of William the Conqueror to the same effect. Some of these laws also render it necessary that sales should take place in cities. But there is nothing in any of them prescribing any particular solemnity or formality for any species of executory contracts; although these were simi- larly provided for in the Roman law, and in several laws of continental countries. 1 Greenleaf 's Evidence, tenth edition, note to § 262. General Survey of the Statute. 81 before the court was a mercantile conti-act, and no objec- tion had been takcni at tlie trial on the ground of want of consideration ; and the other judges concluded that there was in fact a sufficient consideration for the promise. But so decided an expression of opinion, from jurists of such acknowledged eminence, could not fail to raise grave doubts upon this important question, which were not set at rest until the df^cision of the House of Lords to the contrar}', in a case where apparently the suggestions thrown out in Pillans v. Van Mierop had been adopted as the true rule of law, by the judgment of the Court of King' s Bench. § 10. The case to which we allude is Rann v. Hughes, decided A. D. 1778, and reported in 4 Brown's Parlia- mentary Cases, 27, where the pleadings and arguments of counsel are given at great length, but without any state- ment of the reasoning upon which the decision proceeded ; but the latter is to be found in a note to another case reported in 7 Term Reports, 350. The action was brought in the King's Bench, where the plaintiffs declared as executors against the defendant, Isabella Hughes, indi- vidually. The declaration alleged (in brief) that one John Hughes was indebted to the plaintiffs' testator in a specified sum ; that he died possessed of goods the value of which largely exceeded the amount of the debt ; that administration thereof had been granted to the defendant ; that the plaintiffs were executors of the creditor ; "by reason of which premises," the defendant, as administra- trix, became liable to pay to the plaintiffs, as executors, the said sum, etc., "and being so liable, she, the said Isabella, in consideration thereof, afterwards, etc., under- took and to the said John and Arthur then and there faithfully promised to pay them the said sum of money, etc., when she, the said Isabella, should be thereunto afterwards requested." The defendant pleaded, first, non assumpsit ; secondly, plene administravit ; thirdly, plene administravit praeter, etc., and a bond debt sufficient to absorb the balance. The plaintiffs replied to tlie pleas ; 11 82 Geisteral Survey of the Statute. and at the trial the jury found a verdict for the plaintiffs on the first issue, and for the defendant on the second. A motion for a new trial (in the King' s Bench) was denied, and a general judgment entered up against the defendant. Upon a writ of error in the Exchequer Chamber, the judg- ment was reversed, and from the judgment of reversal a writ of error was brought in the House of Lords. After very full argument upon all the points, the following question was put to the judges, namely, "whether suffi- cient matter appears upon this declaration, to warrant, after verdict, the judgment entered up against the defend- ant in her personal capacity ? " In answer to which, Lord Chief Baron Skynner delivered the opinion of the judges in extenso, referring in detail to the remarks of the Chief Justice and Mr. Justice Wilmot in the preceding case, and to another case, not reported, where the same doc- trines were advanced. With respect to the idea that a writing rendered a contract valid without a consideration, he said, that although the presumption was, after verdict, that the promise was in writing, it would not help the plaintiffs ; because the law of England recognized only two species of contracts, specialties and parol agreements, that there was no intermediate class, and a written con- tract not under seal was merely a parol agreement, the consideration of which must be averred and proved ; that the consideration for the defendant's promise, alleged in this declaration, was insufficient in law, as it consisted merely of an indebtedness of the defendant in another right, without forbearance or any other act which amounted in law to a valuable consideration. In this opinion the other judges concurred ; and the judgment of the Exche- quer Chamber was accordingly affirmed. (&) (b) The following are the material portions of this opinion : " It is undoubt- edly true that every man is by the law of nature bound to fulfil his engage- ments. It is equally true that the law of tliis country supplies no means, nor affords any remedy, to compel the performance of an agreement made without sufficient consideration ; such agreement is ' nudum pactum ex quo non oritur actio;' and Avhatever may be the sense of this maxim in the civil law, it is in the last mentioned sense only that it is to be understood in General Survey of the Statute. 83 § 11. This decision lias been justly regarded as setting the question at rest ; and wo believe that there are no fur- ther traces in common law cases, of a doctrine sanctioned by judicial opinion, that the statute effected any change whatever in the rules of the common law, requiring a consideration for every contract, and prescribing what our law. The declaration states that the defendant, being: indebted as administratrix, promised to pay when requested, and the judgment is against the defendant generally. The being indebted is of itself a sullicient con- sideration to ground a promise, but the promise must be coextensive with the consideration, unless some particular consideration of fact can be found here, to warrant the extension of it against the defendant in her own capa- city. If a person indebted in one right, in consideration of forbearance for a particular time, promise to pay in another right, this convenience will be a sufllcient consideration to war-ant an action against him or her in the latter right; but here no sufficient consideration occurs to support this demand against her in her personal capacity ; for she derives no advantage or conve- nience from the promise here made. For if I promise generally to pay upon request, what I was liable to pay upon request in another right, I derive no advantage or convenience from this promise, and therefore there is not suffi- cient consideration for it. But it is said that if this promise is in Avriting, that takes away the necessity of a consideration and obviates the objection of nudum pactum, for that cannot be where the promise is put into writing; and that after verdict, if it were necessary, to support the promise, that it should be in writing, it will be presumed that it was in writing; and this last is certainly true ; but that there cannot be nudum pactum in writing, whatever may be the rule of the civil law, there is certainly none such in the law of England." "All contracts are by the laws of England distin- guished into agreements by specialty, and agreements by parol ; nor is there any such third class, as some of the counsel have endeavored to maintain, as contracts in writing. If they be merely written and not specialties, they are parol, and a consideration must be proved. It is said that the statute of frauds has taken away the necessity of any consideration in this case; the statute of frauds was made for the relief of personal representatives and others, and did not intend to charge them further than by common law they were chargeable." His lordship added that the words of the statute are merely negative, "and that executors and administrators should not be liable out of their own estates, unless the agreement upon which the action was brought, or some memorandum thereof Avas in writing and signed by the party. But this does not prove that the agreement was not still liable to be tried and judged of, as all other agreements merely in writing are by the common law, and does not prove the converse of the proposition that when in writing the party must be at all events liable." 84 General Suiivey of the Statute. shall be a sufficient consideration to sustain an action upon it. Nevertheless it has been found necessary to reiterate in numerous subsequent cases (some of which involve no question under the statute), the principle that a writing, not under seal, will not suffice to sustain an action upon a promise, without proof of a sufficient con- sideration ; as will appear from an examination of the various elementary works on the law of contracts. But in cases arising under the statute there is a constant neces- sity for keeping this princijole in mind : for the tendency is very noticeable, to draw from rulings made in previous adjudications relating entirely to the sufficiency of the consideration, and arguments by which such rulings are sustained, conclusions upon the question whether the statute is applicable. The books contain many erroneous decisions and unsound doctrines, which may be directly traced to this species of misapprehension of prior obscure cases. It must therefore be remembered, throughout all the discussion which follows, that, in every instance where the statute is applicable, there are two requisites to the validity of an undertaking, namely, first, the common law requires that it should be supported by a sufficient consideration ; and secondly, the statute superadds the requirement that it should be manifested by a writing, (c) (') Tlie decisions to this effect are so numerous that we will make no attempt to collate tliem all; the following are but a small portion of the Avhole: Saunders v. Wakefield, 4 Barnewall and Alderson, 595; Pratt v. Humphrey, 22 Connecticut, 317; Clapp v. Lawton, 31 id. 95; Mosely v. Taylor, 4 Dana (Kentucky), 542 ; Semple v. Pink, 1 Exchequer, 74; Lines V. Smith, 4 Florida, 47 ; Wyman v. Gray, 7 Harris and Johnson (Maryland), 409 ; Elliott V. Giese, 7 id. 457 ; Draughan v. Bunting, 9 Iredell (North Caro- lina), 10; Sears V. Brink, 3 Johnson (New York), 210; Ballard v. Walker, 3 Johnson's Cases (New York), 60 ; Mills v. Wyman, 20 Massachusetts (3 Pickering), 207; Stone v. Symmes. 35 id. (18 Pickering), 467; Nelson T. Boynton, 44 id. (3 Metcalf), 39G; Furbish v. Goodnow, 98id. 29G; Boyce V. Owens, 2 McCord (S. C), 208; Cook v. Elliott, 34 Missouri, 58G; Mallory V. Gillett, 21 New York, 412 ; BarrelH-. Trussell, 4 Taunton, 117; Bank of Troy V. Topping, 9 Wendell (New York), 273; Harrington v. Rich, 6 Ver- mont, 6GG, PART FIRST. OF SPECIAL PROMISES OF EXECUTORS AND ADMINISTRATORS TO ANSWER DAMAGES OUT OF THEIR OWN ESTATES. CHAPTER FIRST. CONSIDERATION OF THE FIRST CLAUSE OF THE FOURTH SECTION OF THE STATUTE. AKTICLE I. Points of similarity and dissimilarity between cases arising nnder the first and second clanses respectively j whether this clause applies to promises made before the grant of letters. § 12, That part of the fourth section of the statute of frauds which is to be discussed in this chapter, provides that no action shall be brought upon any verbal agree- ment, "whereby to CHARGE any EXECUTOR OR ADMIN- ISTRATOR UPON ANY SPECIAL PROMISE TO ANSWER DAM- AGES OUT OF HIS OWN ESTATE." The particular object of this provision was evidently to guard executors and administrators against being held to a personal liability to pay debts, legacies, or distributive shares, in conse- quence of wilful or mistaken perversion of expressions of encouragement, which they may have used in conver- sation with claimants, and which were not justihed by the ultimate result of administration of the assets in their hands. For obvious reasons, the cases where this clause has been subjected to judicial construction are but few, when compared with those depending upon that which immediately follows it ; but in their limited sphere they present an equal proportion of perplexing questions, and conflicting authorities. As the liabilities to which the two clauses relate, resemble each other in many particulars, and the language of one seems to have been studiously framed, so as to conform as closely as possible to that of the other, it has been often said, but, we think, without due reflection, that they are practically identical, and that this 88 Peomises of Executors, etc. [Cli. i. clause calls for no special examination ; because the rules establislied for the construction of the second, are gene- rally applicable to the first, treating the estate as the original debtor^ and the executor or administrator indi- vidually as the collateral promisor. Indeed, the contracts embraced within the provisions of both clauses are fre- quently called guaranties ; a word correctly describing neither class, and peculiarly inappropriate to those within the first clause, whose terms contemplate only a change in form of a liability already resting upon the promisor. § 13. So frequent is this method of treating this clause, that it would almost seem that the impression prevails that it was inserted only from abundant caution on the part of the legislature, the second being practically suffi- cient, with, perhaps, a slight change of j)hraseology, to cover the cases embraced within both. There is, indeed, a close similarity between some of the principles, by which promises are withdrawn from the operation of one and the other, occasionally amounting to a coincidence. The latter is complete with respect to the cases which are taken out of the statute, because they fail to satisfy some word of the phrase, "any special promise to answer." As this phrase is to be found in both clauses, those cases wherein it has been decided that the second is not applicable for that reason, are very conclusive precedents to show thai the first would not be applicable under similar circum- stances. And there is a class of cases under the second clause, not appearing to depend upon its wording, which bear a very close resemblance, with respect to the princi- ple which governs them, and the facts calling for its appli- cation, to a corresponding class under the first clause. We refer to those where a promise to pay the debt of another is held to be good without a writing, because the promisor held a fund proceeding from the debtor, and applicable to the fulfilment of the promise ; in contempla- tion of which the promise was made. The similarity in the situation of the promisor, under such circumstances, and that of an executor or administrator, having sufficient Art. I.] Pkomisks of Executors, etc. 89 assets to pay the debt of the decedent, and who, in con- sideration thereof, verbally undertakes to pay it, is very striking. And the principle u^Don which each description of promises has been held to be without the statute, is substantially the same. For while the first clause expressly provides that it shall be applicable only to a promise by the executor or administrator, to answer damages "out of his own estate," the second manifestly has the same meaning, with respect to a liability incurred by one person to answer for the debt, default, or miscarriage of another. And the courts, construing the second clause as if these words, used in the first, were incorporated therein, have thereupon held, in deference to its supposed intent, that where the real debtor's property would ultimately reimburse the promisor, the result was the same as if the debt was not to be paid in the first instance out of the latter' s means. § 14. But the principles governing many other descrip- tions of cases, arising under the second clause, while they appear at first sight to be equally applicable to similar cases arising under the first, will be found, upon close examination, to depend upon features wherein the two classes of cases radically differ. The point of difference is generally dependent upon the fact that altliough in each class three interests are represented, questions can properly arise for decision under the second clause, only where the transaction concerns three persons, and under the first only where it concerns two per sons. {a) For while the per- son who undertakes to answer for the debt of another, becomes liable only by virtue of his promise, the executor or administrator is already liable, in his representative capacity, for the payment of debts, legacies, or dis- tributive shares ; and property to which he has a complete legal title is already sub modo pledged for that purpose. (a) Meaning, of course, that all persons jointly interested, or interested in subordination to a party to the contract, are counted, with such party, as one person. 12 90 Pko:>iises of Executors, etc. [Cli. i. And it will be sliown in the course of the observations hereafter to be made upon the second clause, that a very large proportion of the cases under it, constituting several distinct classes, with many subdivisions presenting nice shades of distinction, depend upon corollaries derived from the general principle that a promise to pay a debt for which the promisor or his property was already liable, is not within the intent of the statute, although it is within its terms. But where the promisor is an executor oi administrator, this is the precise case where the first clause unequivocally provides that he shall not be liable without a writing. Again, the reasons why certain other classes of promises are taken out of the statute, as not being within the second clause, may be most satisfactorily found in a peculiar signification given to some portion of the phrase "debt, default, or miscarriages of another per- son;" as, for instance, that numerous class where the original debtor was discharged, before the new promisor became liable. In all such cases it is manifest that the grounds of the exclusion of one class from the statute, are entirely inapplicable to the other, and any attempt to assimilate the two will only mislead. Hence the proposi- tion that the difference between the first and second clauses is only of a formal character is a fallacy ; the dangerous character of which is the greater, because, owing to the confusion which exists in many classes of cases arising under the second, it is not always immediately obvious, when such was the fact, that particular decisions turned upon principles inapplicable to cases arising under the first. § 15. And the supposed analogy between the two clauses has actually given rise to serious errors of this precise character, which not only have appeared in the elementary books, but occasionally have crept into the judgments of the courts, to the extent of obscuring the real point at issue, when they have not led to erroneous decisions. (&) (li) In a work which has received very high encomiums, where it is said that the distinction between the first and second clauses is more technical ;|i;in substantial, and that bpth descriptions of contracts are guaranties, the Art. I.] Promises of Executors, etc. 91 § 16, Tlie first clause of the fourth section was therefore inserted, not from abundant caution, or as a mere amplifi- cation of the second ; but to include undertakings of an entirely difierent character, and not amenable to the same proposition is laid down, in discussing the corresponding rule under the second clause, that where the estate is discharged in consideration of the executor's or administrator's promise to pay a creditor of the decedent, the promise is not within the statute. As authority for this proposition, three cases are cited ; one of which is Harrington v. Rich (post, § 38), and the other two hold that the discharge of the estate is a good consideration for an executor's written undertaking, even if there were no assets. The proposition itself is believed to be irreconcilable with the spirit as well as the letter of the statute, and to proceed solely from the confusion to which we have referred. With great deference to the learned tribunal which decided the case of Templetona V. Bascom, 33 Vermont, 132, (cited fully in chapter seventeenth), it appears to us that it presents another instance of the same species of confusion, although without leading to an erroneous conclusion. It was decided upon the hypothesis that the question arose under the second clause, and the decision has consequently provoked considerable criticism; whereas, if we err not, that clause had no connection with the case. The defendant, the only child of a man who had died intestate, leaving an estate more than suf- ficient to pay his debts, promised orally to pay a debt of the intestate to the plaintiffs in consideration of forbearance against the estate. The promise was repeated several times, before as well as after administration was granted to the defendant; and the court held that the promise was not within the second clause, by reason of the defendant's interest in the prop- erty. But none of these were promises to answer for the debt of another person ;^^0T before administration was granted there was no debtor, and afterwards the defendant himself, in his representative character, was the debtor. According to Tomlinson v. Gill, Ambler, 330, (post, § 13), the promises made before administration granted were not within the first clause of the statute ; and according to Ridout v. Bristow, 1 Crompton and Jervis, 231, as explained by Serle v. Waterworth, 4 Meeson and Welsby, 9, and Nelson v. Serle, id. 795, the forbearance was a sufficient consideration to sustain them; for although not administrator, the defendant was entitled to administration. The promises made after administration granted, were not within the statute, under the rule laid down in Stebbins v. Smith, 21 Massachusetts (4 Pickering) 97, and Pratt v. Humphrey, 22 Connecticut, 317, post, §§ 26 and 28. Apparently, Kershaw v. Whitaker, 1 Brevard (South Carolina), 9, A. D. 1794, was also a case where the two clauses were con- founded, the confusion resulting in an erroneous decision. In Harrington v. Rich, G Vermont, G66, post, § 38, there was a misapplication of the principles governing the second clause, to a case exclusively under this clause: but it did not result in any error. And see Hackleman v. Miller, post, § 35a, 92 Promises of Executors, etc. [Ch. i. rules, although possessing considerable outward resem- blance to those embraced within the other. It is quite possible for cases to occur, where the facts apparently bring the same promise within the terms of both clauses, and then questions arise under both ; but this is merely accidental, and it is matter of every day occurrence for several legal propositions, having no necessary connection with each other, to be presented upon the same state of facts, (c) But cases where it is at all doubtful upon which clause of the statute the validity of a verbal promise depends, are exceedingly rare ; indeed, we have met with none, where, if the report is not imperfect, a careful examination will not remove all such doubts. From inadvertence, some confusion has arisen upon this point, where the original debtor had deceased, and no letters testamentary or letters of administration had been granted at the time when the defendant undertook to pay the debt. It has been occasionally assumed that a promise made under such circumstances was in terms a promise to answer for the debt of another ; and if it could be saved from the operation of the statute, when it was verbal, some rule construing the second clause, according to its spirit rather than its letter, must be invoked for the pur- pose. But it is believed that if any question arises in such a case, it is whether the first clause is applicable. The promise was not to answer for the debt of ahother person; for there was no person who owed the debt, either individually or in a representative character ; and if tlie facts are not such as to raise any question under the first clause, it seems very clear that the statute does not apply at all. § 17. In cases of this kind, a question of considerable nicety sometimes arises, which will now be examined. It is presented where the promisor was the executor named in the will of the original debtor, but no letters testamen- (r) Chandler v. Davidson, 6 Blackford, 367; Pratt v. Humphrey, 22 Con- uecticut, 317, are cases where questions fairly arose under both clauses. Art. I.] Promises of Executors, etc. 93 tary had been issued to liim when the promise was made ; or where, the debtor having died intestate, tlie promisor was appointed administrator of the estate after the promise was made. And a distinction has been taken between the verbal agreement of an executor and that of an adminis- trator to pay the debt of the deceased person, when it wa** made before the granting of letters. It has been said that as an executor derives his title from the will of tlie deceased, and the interest and ofhce are completely vested in him at the instant of the testator' s death, (the probate and grant of letters being the authentication and not the origin of his title,) his promise is necessarily within the statute, whether it is made before or after probate ; whereas the administrator derives his office and title exclusively from the award of letters, and consequently a promise by him, before the award of letters, is merely that of a person who expects to represent an intestate, and for that reason not within the statute. ((^) § 18. This doctrine is supposed to be derived from the equity case of Tomlinson v. Gill, Ambler, 330, A. D. 1756. There, according to Mr. Ambler's report, the defendant, previous to his appointment as administrator, had promised the widow that, if she would permit him to be joined with her in the letters of administration, "he would make good any deficiency of assets to discharge the intestate's debts." A bill was filed by creditors of the • intestate against Gill " for a satisfaction of their debts and performance of the promise," and it was insisted on the part of the defendant, that the promise, not being in writing, was void by the statute of frauds. But Lord Hardwicke said that there were two questions, one on the right and the other on the remedy. That the case was not within the first branch of this section of the statute, "for Gill was not administrator at the time of making the promise, and it is no answer to say that he was adminis- trator afterwards." That it was not within the second {d) Roberts on Frauds, 201 ; 3 Parsons on Contracts, fifth edition, 19. 94 Peomises of Executors, etc. [Ch. i. branch because there was "a new distinct consideration," The equitable jurisdiction was sustained upon the ground that an action at law could not be maintained, because the promise was made to the widow ; but it was a proper case for equity, because the promise was for the benefit of the creditors, and the widow was a trustee for them. His Lordship added that the bill was for an account, "and that draws to it relief like the common case of a bill to be paid out of assets;" and accordingly he decreed, not merely an accounting, but payment of the debt.(e) § 19. In this case, it was only necessary, in order to dispose of the objection arising under the second clause of the statute, to say that as the original debtor had died intestate, and no administrator had been appointed when the promise was made, there was no one in being to whom the expression ' ' another person ' ' could possibly apply ; and the reason in fact assigned by Lord Hardwicke, is believed to be entirely exploded at the present time. With (e) It is said by Lord Northington, in Griffith v. Sheffield, 1 Eden, 73 (see page 77), that the defendant Robert Gill was the father of the intestate. Mr. Ambler's notorious inaccuracy (Marvin's Legal Bibliography, p. 58; Preface to 1 Eden's Reports; Preface to Blunt's Ambler;) would seriously interfere with the authority of this case, if Mr. Blunt had not verified it, by his examination of the original roll. It appears from his note that the widow and Robert Gill took out letters jointly; that the bill was filed against them both, and that the decree declared the creditors to be entitled " to have the benefit of the contract, entered into by the defendant Robert Gill with the defendant Catharine Gill, before taking out letters of administration; " and accordingly there was a decree that an account should be taken of the debts of the intestate, and the property received by the defendants; and after applying the personal estate, " that the defendant Robert Gill do pay to the plaintiff, and the several other creditors of the intestate, so much money as the personal estate should fall short to answer their several debts respect- ively." So that, although some of the remarks attributed to Lord Hardwicke in the commencement of his opinion, would seem obscurely to indicate that it was an "argument" (agreement) that a specialty creditor should have administration, on terms of paying all the debts, pari passu, there is but little room for doubt, that whatever inaccuracy the report may contain lies in what Lord Hardwicke is made to say, arguendo ; the facts and the decis- ion being ver}"^ accurately stated. Art. I.] Promises of Executors, etc. 95 respect to the application of the first clause, his Lordship's reasoning seems to be quite unanswerable. In an action at law, founded upon a verbal promise to pay the debt of a decedent, it would appear that the objection that the promise was within this clause of the statute would entirely fail, if the defendant could not show that he was administrator at the time when the promise was made, because it would be impossible to frame a good special plea, setting forth the facts upon which it was insisted that the statute avoided the promise, without making that allegation in a traversable form. Upon a principle, in all respects analogous, it is held that the validity of a promise, under the second clause, depends upon the facts existing at the time when it was made, and cannot be affected by events subsequently occurring. (/) And the fiction of law by which the administrator's appointment is allowed in some cases to relate back to the death of the intestate, is by no means of universal application ; and where it is admitted it appears to be allowed for the benefit of the estate, {g) It ought not, therefore, to be used for the mere personal benefit of the administrator, in such a way as to prevent the real facts from being shown. § 20. But there is nothing in Lord Hardwicke' s decision to warrant the conclusion that an executor' s verbal prom- ise to pay a debt of the decedent is void under the statute, if probate of the will had not been granted when it was made. If such is the rule of law, it results from princi- ples not discussed in Tomlinson v. Gill. And possibly it may be found upon examination, that the distinction sup- posed to exist between the promise of an executor and that of an administrator may correctly be characterized as "a very slight and cobweb distinction;" an epithet which Lord Hardwicke very unjustly applied to the prin- ciple established in Burlcmirc v. Darnell, 6 Modern, 248, (/) See section 152. (9) 1 Williams on Executors, sixth edition, 392, 393 ; and Morgan v. Thoma3, 8 Exchequer, 302, there cited. 96 Promises of Executors, etc. [Cli. i. now universally acknowledged to be a correct test of tlie application of the second clause. § 21. It is very true that the doctrine that an executor derives his authority from the will, and an administrator from the grant of letters, enables an executor to do many things before probate, which an administrator cannot reg- ularly do until letters have been issued to him ; such as paying, collecting, and releasing debts due to and from the estate ; taking possession of, selling, or otherwise disposing of the personal property ; assenting to or even paying legacies ; in short doing almost any act, except maintaining an action \{h) and he may even do that, provided he obtains probate before declaring, so as to be able to make profert of letters in the declaration. But it is believed that this is one phase of the principle of relation back to the death of the intestate, which is allowed for the benefit of the estate, and not of the executor or administrator individu- ally. It is very evident that the executor does not derive his office wholly from the will ; his own assent is a neces- sary ingredient to its perfection ; and if he should renounce, never having done any act of acceptance, it is believed that his verbal promise to pay a debt of the tes- tator, made before actual renunciation, could not, upon any sound reasoning, be brought within the statute. It is therefore quite possible that if the question shall be pre- sented directly for decision, it may be found that the samj^ principle upon which TomlinsoriY. Gill was decided, or an analogous principle, will sustain an executor's verbal promise to pay a debt of his testator, if there had been no probate of the will at the time when it was made. § 22. In many, and probably in most of the United States, the distinction between the powers of an executor and those of an administrator, before the grant of letters, has been to a great extent obliterated by various statutory (/<) Bacon's Abridgment, title Executors and Admistrators, E. 14; Went- worth's Office of Executor, 14th edition, 81 et seq. ; 1 Williams on Execu- tors, 6th edition, 291 et seq. Art. I. ! Promises of Executors, etc. 97 provisions, which require an executor to prove tlie will, qualify (by taking an oath and sometimes also by giving a bond), and take out letters, before he is authorized to act in that capacity. And whatever may be the correct rule, where the common law powers of executors have not been taken away, it would seem that where such enactments prevail, the two classes of personal representatives should stand upon the same footing, with respect to promises made before the actual grant of letters. That their powers and privileges are substantially the same, appears from the decision in Thomas v. Cameron, 16 Wendell (New York), 679, A. D. 1837. There it was held that, under the provisions of the Revised Statutes of New York, requiring executors to qualify, and forbidding them to interfere with the estate, except for its preservation, till they had pro- cured letters, they could not maintain an action before the actual grant of letters. The court said, "If they" (the plaintiffs suing as executors) "were not executors at the time the suit was commenced, letters subsequently obtained would not aid them by relation. The statute has introduced a new rule, by taking away the common law right to sue before probate." And accordingly a plea, that the plaintiffs were not executors at the time of the suit, was sustained on demurrer, although the declaration made profert of letters. And in another New York case, In the matter of Faulkner, 7 Hill, 181, A. D. 1845, where certain moneys belonging to the estate of a testator had been received, before probate, by Faulkner, who was named as executor in the will ; and who, after probate and grant of letters, was proceeded against as an abscond- ing debtor ; the question was whether the co-executor was entitled to a preference in payment by the trustees, under a statute providing for such preference, in case of a debt owing by the debtor as executor. The trustees having refused to allow the preference, a motion to direct them to allow it was granted, upon tlie principle of relation back to the death of the decedent, which obtains in case of an administrator acting before grant of letters. Bronson, C. J., said, "The objection urged against this claim is that 13 98 Peomises of Executoks, etc. [Cli. i. as Faulkner had not then qualified, he was not executor at the time the money was received. But the answer is that when Faulkner qualified as executor, his authority related back, and legalized the payments which had been pre- viously made to him. He afterwards held the money, and it was a debt against him as executor." ARTICLE II. When a general promise by an executor or administrator to pay a debt of tbe deceased ia without the statute, because it is not to be fulfilled " out of his own estatOi" § 23. It has been said that a promise by an executor or administrator, in his representative capacity, to pay a debt of the deceased, is a mere nudum pactum if he has no assets, and if he has assets, that the extent of the promise is measured by the extent of the assets, "or, in other words, the promise superinduces no obliga- tion upon the original representative liability ." (a) But whatever may be the legal effect, or the consequences to either party, of such a promise, apparently it is entirely unaffected by the statute of frauds. This would seem to be clear, although occasionally the distinction has not been noticed, (S) from the fact that the language of the statute expressly confines its application to a promise "to answer damages out of Ms own estate^ Indeed a question might arise, whether these words would be satis- fied by any thing except an undertaking which in express terms bound the promisor to apply his own means to its fulfilment ; and consequently whether a general promise to pay, although it might enable the promisee to maintain an action against the promisor individually, and thus obtain a personal judgment against him, was within the statutory provision. But it appears to have been assumed by common consent, that in that respect the form of the promise is immaterial. It may therefore be stated, as a (a) Roberts on Frauds, page 207. {h) As in Hay v. Green, 66 Massachusetts (12 Gushing), 282, post § 45 ; and see §§ 46 to 48. Art. II.] Promises of Executors, etc. 99 general rule, that no verbal special promise of an executor or administrator to pay any demand for which he is liable only in his representative character, will sustain an action against him individually. § 24. However, some American authorities, entitled to great respect, hold that an exception to this rule arises where the promisor was possessed of assets of the estate, applicable to the fulfilment of the promise. We find no trace of this exception in England ; for although there are some English cases holding that the possession of assets is a sufficient consideration for the promise of an executor or an administrator to respond personally, it does not appear that the courts of that country aff*ord any sanction to the idea that it is thereby taken out of the statute, (c) And it is difficult to determine, upon either principle or authority, at what period of time it must appear that the assets existed, in order to create the exception recognized by the authorities referred to: that is, whether it will suffice to show that at the time of the promise there were assets ; or whether they must be still in existence and applicable to its fulfilment, at the time of the trial. The embarrassment in settling the question upon principle, grows out of the fact that the doctrine itself rests upon questionable reasoning. In general terms, it may be said to depend upon the idea, that if the executor or adminis- trator has the means to discharge the liability out of the estate, the promise will not be ultimately fulfilled out of his own property, although such may be the immediate eff'ect of the judgment against him. And in order to give full eff'ect to this reasoning, it is quite clear that there must be sufficient assets in his hands at the time of the trial : and consequently it would seem that proof that such was (c) 2 Williams on Executors, Glh edition, 1646, 1647, citing Reech v. Ken- negal, 1 Yescy, Sr., 126; Atkins v. Hill, Cowper, 284; Hawkins v. Saimders, id. 289; per Lord Cotienham in Barnard r. Pomfrett, 5 Mylne and Craig, 71; Trewinian v. Howell, Croke Elizabeth, 91. But see Rann v. Huphes, 4 Brown's Parliamentary Cases, 25, and 7 Term Reports, 350, note, cited at length, ante, § 10 and note. 100 Promises of Executors, etc. [Cli. i. the condition of the estate at the time of the promise, is material only as raising a presumption that it continues to be in the same condition, which the defendant is at lib- erty to disprove. And if in fact there are no assets at the time of the trial, which are applicable to the payment of the plaintiff's demand, it is difficult to discover any ground upon which the plaintiff can recover, whether the deficiency has been caused by the discovery of prior claims, or by the loss of the assets, even by a subsequent devastavit of the defendant. This leads to the anomaly of avoiding an unconditional promise, valid at the time when it was made, by the subsequent act of the promisor, to which the prom- isee was no party : and practically renders the promise to respond individually, equivalent, for most purposes, to a promise to respond in a representative character. But if it be said that the legal effect of the promise is that the promisor undertook to apply the assets then in his hands to the payment of the plaintiff's demand, so that he is responsible in damages for its breach, if they are for any cause applied otherwise, this would cover a case where they subsequently became deficient, even without the fault of the promisor, and thus expose him "to answer damages out of his own estate." § 25. Tliere is also great obscurity upon another import- a,nt point in the same connection, namely, whether the assets must suffice to discharge all prior claims upon them, and all other claims standing upon the same footing as that of the promisee. Upon the plainest principles, there should be no doubt upon the first branch of this proposition ; for if the fund was liable to be exhausted by claims having a preference, the whole reasoning, whereby the promise was taken out of the statute, falls to the ground. But suppose that after paying prior claims, the fund would have sufficed only to pay a dividend to the promisee, and all others having claims of equal degree. Manifestly the recovery ought to be limited to the amount of the dividend. But if the promise is to be construed, according to its terms, as an absolute engagement to pay Art. II.] Promises of Executors, etc. 101 the debt, how can the damages for its breach be reduced be- low the actual damages sustained by the promisee ? These do not depend upon the amount of the dividend to which he would be entitled ; that is only an element by which to meas- ure the loss which the promisor sustains in consequence of his promise. So that it would appear that for this reasou also, a verbal promise to respond personally is only prac- tically equivalent to a promise to respond in a representa- tive character, except for the purpose of avoiding some statutory bar to the maintenance of the action, in conse- quence of lapse of time. And it is easy to see that if the promise of the executor or administrator will have that effect, cases will sometimes arise where he will either be compelled to respond out of his own means, or else to deprive other creditors of a preference to which they have acquired a legal right, [d) (d) Some of these difficulties pressed upon the mind of the court in Moar v. Wright, 1 Vermont, 57) A. D. 182G, in the examination of the question whether the possession of assets, more than sufficient to pay all the debts and legacies, was a sufficient consideration for an executor's promise to pay a debt of his testator to an assignee thereof, upon which an action could be maintained to charge the defendant de bonis propriis. The point was whether the declaration, which contained those allegations, was sufficient to enable the pl!iiTitifr to sustain a demurrer, which he had interposed to an insufficient plea; and the court, with considerable hesitation, decided the question in the affirmative, laying stress, however, on the fact, that as the plaintiff was an assignee of the debt, there was already an equitable obligation on the part of the defendant to pay him, which formed an essential ingredient of the con- sideration. In the course of the opinion, Royce, J., said that Forth v. Stan- ton, 1 Saunders, 210, was distinguishable from this case, because there the allegation was that the debt was 100^., and that the defendant had received a.«!sets to the amount of 100?., but it was not alleged " tnat at the time of making the promise to the plaintiff, she had assets legally applicable to that demand ; " so that the promise, if enforced, might have subjected her to per- sonal loss; and he added: "A difficulty has been started, by supposing that before the execution of the promise, the defendant had died, or had been removed from the office of executor. To this the following answer would seem sufficient. If upon accepting the personal undertaking of the executor, the creditor discharged the estate, the promise would remain in force, .ind the estate would be holden to refund the sum paid upon it; and if no dis- charge was given, the promise might become invalid, when the fund which 102 Promises of Executors, etc. [Ch. i. § 26. The subject is full of difficulties, and the decisions do but little towards removing them. The whole of this doctrine appears to derive its origin from the case of Stehbins v. Smit/i, 21 Massachusetts (4 Pickering), 97, A. D. 1826. The declaration contained a count upon an insimul computassent, and the other money counts ; and on the trial it was proved that the defendant and one Alexander Smith were residuary legatees and executors of Jonathan Smith ; that they gave a bond to the judge of probate to pay the debts and legacies of the deceased ; that afterwards the plaintiff and the defendant made an examination of the plaintiff' s demands against the estate, and found $1,186 to be due to the plaintiff, which the defendant agreed to pay, and then gave the plaintiff his negotiable note for $1,286, payable on demand, with inter- est ; and that the plaintiff then discharged the accounts and gave up the notes which he held against the deceased. . It was admitted "that the defendant received some estate by devise from the deceased," and that the note for 81,286 had been avoided by him on account of usury. Under the directions of the judge, the jury returned a verdict for the plaintiff, upon which judgment was rendered after hearing the exceptions. Wilde, J., delivering the opinion of the court, said that the note appeared to have been given subsequent to the promise, and that fact was estab- lished by the verdict : that the note would have discharged the debt and the promise had it not been avoided ; but the avoidance restored the plaintiff to his former demand ; that the discharge of the accounts and notes against the deceased was a sufficient consideration for the promise, the defendant being bound to pay them, as he had given a bond in place of returning an inventory ; and that this discharge would be sufficient even if it had not extin- guished the plaintiff' s remedy on the bond, which appeared made its principal consideration, was taken out of the promisor's hands." In this case there could be no question under the statute of frauds, as the Vermont act was not passed till after the promise had been made ; but had it been then in force it would not have affected the result, inasmuch as the pleadings did not show that the promise was verbal, Art. II."] Promises of Executojis, etc. 103 to be its legal effect. He added : "Tl^e suggestion that the promise is void by the statute of frauds is clearly unfounded. It is not a promise by an executor to answer damages out of his own estate ; for the bond given to tlie judge of probate is an admission of sufficient assets which the defendant is estopped to deny." § 27. But only four years afterwards, we find the same court, in Sllshee v. Ingalls, 27 Massachusetts (10 Picker- ing), 526, A. D. 1830, giving utterance to a dictum appar- ently in conflict with the principle upon which Stehhlns v. Smith was taken out of the statute ; and the question does not seem to have arisen again in that state, (e) (e) This was a bill in equity filed against an administratrix, wherein the phiintiff alleged, that she had repeatedly promised to pay a debt due by her intestate to the plaintiff, admitting that she had assets to pay all the debts; and that in consequence of relying upon the promise, the plaintiff forbore to prosecute for the debt, till it was barred by the statute of limitations. It was further alleged, that she obtained an order from the judge of probate to sell certain real estate of the intestate, in order to pay his debts, which had been sold accordingly, and the proceeds paid to her; that before and after the sale she had promised to pay the plaintiff out of tiie proceeds; and that she had rendered an account to the probate court, in which she had credited herself with the amount of the plaintiff's debt. Upon the whole case made by the bill, it was insisted that she had become a trustee of the pro- ceeds of the sale for the plaintiff, and the plaintiff prayed for relief accordingly. There was a demurrer to the bill, which the court sustained on the ground of want of equity, because the plaintiff once had an adequate remedy at law, and the intervention of the statute bar did not make the demand the subject of equity jurisdiction. But the court added: "It is alleged, however, that there was a promise by the defendant to pay the plaintiff. But sucii promise, not being in writing, is witliin the statute of frauds; and if it were in writing, it would only prove that there is an ade- quate remedy at law." This doctrine is of but little weight against the authority of Stebbins v. Smith, if that ca.se really holds that the possession of assets is sHifficient to take the executor's promise out of the statute. But there the defendant had already made the debt his own, by giving the bond ; and the language of the court may be referable to the fact that he was bound to pay the debt out of his own estate, independently of the verbal promi.>;e. This would make the analogy perfect between this case and one arising under the second clause, where the defendant, before making the promise, 104 Peomises of Executors, etc. [Cli. i. § 28. In Pratt v, Humphrey, 22 Connecticut, 317, A. D. 1853, the action was against the defendants in their indi- vidual capacities, and the plaintiff declared on their prom- ise to pay a certain sum, in a manner mentioned in the declaration, in consideration of the plaintiff's forbearance to present to them as administrators, for allowance and payment, within the time fixed for that purpose by the judge of probate, a debt due to him by their intestate ; whereby under the law of Connecticut the debt was lost. The defendants pleaded that there was no writing within the statute of frauds, to which plea there was a demurrer. The demurrer was overruled in the court below, and the defendants brought error to this court, where the judgment was affirmed. In deciding the question which we are now considering, the court, Storrs, J., delivering the opinion, said: "If the defendants are not to be deemed to have assets of the estate which they represent, it would be a very embarrassing question, whether this promise is within the first branch of the statute of frauds, which relates to a ' special promise ' (by an executor or administrator) ' to answer damages out of his own estate.' In that case it would be difficult to resist the claim, that it is a promise to answer damages out of their own estate. But if they are to be considered as having such assets, they would have a right to charge to the estate they represent, the amount of the damages recovered of them in this suit, and it would seem, therefore, that those damages would not come out of their own estate. They would not, ultimately at least, although they might in the first instance. For, although the judgment would be against them personally, they would be indemnified against it, by the funds of the estate in their hands. Hence the damages would substan- tially be answered out of the estate of their intestate ; and had received a fund from the debtor for the purpose of paying the debt. There can be no doubt as to the general principle that a bond for payment of debts and legacies conclusively admits assets. It vs^as so ruled again in Colwell V. Alger, 71 Massachusetts (5 Q-ray), C7, A. D. 1855, an action by a legatee against an executor and residuary legatee for a general legacy and the value of a specific legacy. Art. II.] Promises of Executors, etc. 105 the promise, in such case, would appear to be one which was not contemplated, by tliat branch of the statute. ' ' After stating the substance of the case of Stehhhis v. Smith, the learned judge proceeded : "The principle determined in that case is, that where an executor or administrator has assets, a promise by him to pay a debt due by the person he represents, is not within that branch of the statute. We are induced, although not without some hesitation, to adopt the same construction. Whether he would be liable on such promise, beyond the amount of such assets, it is not necessary to decide ; the question before us is as to the right, and not the extent of the recovery. "(/) § 29. The doctrine, that the possession of assets "will suffice to render the statute inapplicable, seems to rest entirely upon the authority of Stebhins v. SmltJi and Pratt V. Humplirey \{g) and in view of the doubtful char- acter of the reasoning by which it is sustained, and the difficulties to which its practical application will lead, they are hardly sufficient to establish it as a settled rule of American jurisprudence. It finds, however, a very close analogy, as was stated in the preceding article, in (/) The court proceeded further to determine that, upon the pleadings before them, the presumption was that the defendants had assets, and if the fact was otherwise, they should have expressly averred it. It was held, that, upon the principle adopted by the court, the mere fact that there was no note or memorandum, etc., in writing, did not necessarily or even prima facie bring the case within the statute, because the declaration was complete, without stating the fact that the defendants were adminstrators; which was properly matter for them to allege in their plea, in order to enable them to raise the defence of the statute. The effect of the plaintiff having stated that the defendants were administrators, was merely to relieve them of the necessity of so stating in their plea; they must still set forth "such facts and circum- stances as amount to a complete defence," one of which was that, as admin- istrators, they had not assets enough to pay the plaintiff's demand. There was still another question arising under the second clause of this section of the statute, with reference to which the case is again cited in a subsequent section. (jr) And see Collins v. Row, 10 Leigh, 114, cited in § 47, and comments thereon in § 48, post. 14 106 Promises of Executors, etc. [Ch. i. the principle that when the promisor controls a fund pro- ceeding from the debtor, applicable to the fulfilment of the promise, and in contemplation of which the promisor un- dertook to pay an antecedent debt of a third person to the promisee, the case is not within the second clause of tills section. But in some of the phases which that prin- ciple assumes, it is sustained upon the idea, that by the receipt of the fund the promisor became liable, in some form, to pay the debt out of his own means, inde- pendently of the promise ; whereas the duty of an executor or administrator is always confined to the legal appro- priation of the fund in his hands. Still, if the amount of the recovery is limited to the amount of assets in the hands of the defendant, applicable to the payment of the plaintiff, there is no greater violation of the intent of the statute in one case than in the other, whatever may be the embarrassments in reconciling such a limitation with other principles. But it is quite remarkable that this doctrine should rest entirely upon decisions in Massa- chusetts and Connecticut. For the courts of the former state stand alone, among all those in the United States which have spoken upon the subject, in repudiating the analogous doctrine arising under the second clause \{?i) and the Supreme Court of Connecticut, although it has not directly decided the point, has nevertheless, in a re- cent case, intimated an opinion the same way, and ex- pressed its satisfaction with one of the Massachusetts decisions, where the rule has thus been laid down.(i) § 30. Tliere are a few cases in other states, the tendency of which is towards the contrary doctrine, although they are not at all decisive upon either side of the question, (y) {h) Curtis V. Brown, 59 Massachusetts (5 Gushing), 488, and Furbish v. Goodiiow, 98 Massachusetts, 296. (0 Clapp V. Lawton, 31 Connecticut, 95, approving Curtis v. Brown. (j) In Harrington v. Rich, 6 Vermont, 666, cited in § 38, it is very probable that the defendant had some assets out of which a dividend could have been made on the plaintiff's demand; but the report does not so expressly state, and the declaration contained an averment that the estate was "represented Art. ir.] Promises of Executoks, etc. 107 In Cliandler v. Davidson, 6 Blackford (Indiana), 367, A. D. 1843, the plaintiff sued upon a verbal promise made by the female defendant, before her marriage with the other defendant, to pay a debt due to him by her deceased husband. It appeared that the first husband died in North Carolina, having bequeathed his property to his wife, and an administrator with the will annexed was then appointed, who sold the personalty. The widow removed to Indiana, bringing with her some personal prop- erty, part of which she said had been bought with means derived from the estate, and part of which formerly belonged to her husband, but it did not appear how she acquired title to it. Soon afterwards she made the promise upon which this suit was brought. The plaintiff having recovered in the court below, an appeal was taken to the Supreme Court. The. opinion, after stating that the facts showed no reason why the promise was not within the second clause of the fourth section, proceeded: "The plaintiff further says, that the wife may be viewed as an executrix de son tort, on the ground of her having wrong- fully taken possession of some of the goods, and brought them to this state ; and that her express promise, there- fore, would support the suit. But assuming her to have been such executrix, and that she would have been bound in her own right, in consideration of assets, were the promise in writing, to pay the debt in question, still there can be no doubt, we think, that the parol promise was not obligatory on her personally. The having assets was not of itself sufficient to render the promisor liable to a suit in her own right." For these reasons, as well as upon a technical objection to the pleadings, the judgment below was reversed. But it may be doubted whether the clause applies to an executor de son tort.(/t) to be insolvent." The point whether tlie possession of such assets would sustain the verbal promise, either to the extent of the plaintiff's proportion, or for the full amount of the debt was not taken. And see Robinson v. Lane, 14 Smedes and Marshall, 161, in the note at the end of this article. (Jt) In this case a question was fairly presented whether either clause ap- plied: the first, bec"use the widow was entitled to administration in Indiana ; the second, because it was a debt due by the North Carolina administrator. 108 Promises of Executors, etc. [Ch. i. § 31. From tlie ruling in Sidle v. Anderson, 45 Pennsyl- vania, 464, A. D. 1863, it would appear tliat if the doctrine under examination enunciates a correct rule of law, it is essential to its application to show possession of assets by the promisor at the time of the promise ; and although the executor or administrator might be ultimately made liable to pay the demand out of his property, in consequence of a previous devastavit, no action will lie on an express verbal promise founded upon that consideration. This action was to recover upon certain notes of the defendants, and the only question material here, was whether a set-off was properly allowed. Tliis arose upon a sealed order, executed by the plaintiff' s son, directed to one Morrison, and requiring him to pay a certain sum to one of the defendants, which Morrison had refused to accept or pay. The plaintiff was the administrator of his son' s estate ; and, as the son had died without issue, he was entitled by law to half the property, after payment of debts, the other half belonging to the widow ; but he had settled his adminis- tration account in ignorance of the defendants' claim, and had paid the whole to the widow without taking any bond to refund. Afterwards, as the jury found upon the evi- dence, he promised to settle or pay the order, by applying it upon the notes in suit. Under the instructions of the judge at the trial, that the promise was not within the statute of frauds, the jury allowed the set-off. The judg- ment upon this verdict was reversed in the Supreme Court upon a writ of error. The opinion, delivered by Thomp- son, J., commenced by discussing the question whether the order imported an indebtedness on the part of the son to the payee, upon which point he concluded, that, as it was under seal, and not negotiable, and did not purport to be for value received, it was not alone sufficient evidence 10 charge the plaintiff with the amount. The opinion then proceeded to consider the question arising under the statute of frauds. After saying that the proof of payment to the widow, -without a refunding bond, was introduced to establish a devastavit, the learned judge continued: ''It was, therefore, not possible to claim that the promise was Art. II. J Promises of ExECUTOiis, etc. 109 made on account of assets. The proof showed there was none. But it rested upon the supposed proof of a devas- tavit, which it was assumed was the consideration for the promise to pay the order. If there was a promise by the administrator to be personally liable, it had no other con- sideration than that implied in the allegation of an existing devastavit. Tliere was no express promise to pay on any such ground, and the case of Wilson v. Lonff, 12 S. & R. 68, very clearly determines that no implied contract to pay arises out of a devastavit. This would be decisive of the case on grounds independent of the statute. But suppose the promise rested on this ground expressly. It would be a promise by the administrator to ' answer the damage out of his own estate,' for 'the debt of another;' and this would certainly be within the statute, and not binding for want of writing to that effect." § 32. In Okesoji's. Appeal, 69 Pennsylvania, 99, decided A. D. 1808, it was held that an executor was not liable upon a verbal promise to pay a debt of his testator, beyond the promisee's proportionate part of the assets in his hands, although the question whether the promise created any personal liability, was not properly before the court. This was an appeal taken by Nicholas A. Okeson, admin- istrator of Samuel Okeson, from a decree of the Orphan's Court, reducing a credit in his accounts, for a sum paid to Margaret Okeson. It appeared that Samuel had been the executor of his father's will, by which a legacy of three hundred dollars was given to Margaret ; but the assets in Samuel's hands, after payment of debts, were found, upon a settlement of his accounts made in 1843, to be only $106.96. Samuel died in 1866, without having paid Mar- garet ; but evidence was offered, to the effect that he had orally promised to pay her. Nicholas paid her $803, being the full amount of her legacy and interest ; and the widow of Samuel filed exceptions to this item. It was insisted on the part of Nicholas, that, by the terms of the will, the legacy was charged upon the lands devised to Samuel; but the Orphan's Court thought otherwise, and 110 Promises of Executohs, etc. [Ch. i. reduced the credit to Margaret' s pro rata share, with the other legatees, of the balance found to have been in the hands of Samuel, at the time of the settlement of his accounts. This decree was affirmed upon appeal. The opinion of the Supreme Court, delivered by Sharswood, J., after holding that the legacy was not charged upon the land, proceeded to say that there was no consideration for Samuel' s promise, beyond the amount of personal assets in his hands, and that the cases appear to hold that where an executor or administrator promises to pay, in consid- eration of assets, the consideration and the promise must be co-extensive. "However that may be," added the learned judge, "it is clear that the executor cannot be made liable de bonis propriis, on an oral promise, on the mere consideration of assets. That would be 'to charge him upon a promise to answer damages out of his own estate,' and therefore within the Act of April 26, 1855. "(?) (?) It seems to be yet unsettled in England, whether the possession of assets suffices as a consideration to support a promise by an executor or administrator to pay a debt of the decedent, although Mr. Justice Williams inclines to think that it is sufficient, and that if the promise was in writing, he may be sued thereon in his individual capacity, and the judgment will be de bonis propriis. 2 Williams on Executors, sixth edition, 1646, 1647. And forbearance to sue him as executor, at his request, is also a sufficient con- sideiation for the same purpose, whether he had assets or not; and hence in declaring upon such a promise, it is not necessary to aver that he had assets. Id. 1642. Consequently a promise by an executor, to pay a debt of the testator at a future day, makes it his own. Id. 1644, 1645. So supplying the executor individually with goods, or delivering up to him deeds upon which the plaintiff had a lien for his debt, forms a sufficient consideration for hid individual promise to pay the debt, whether he had assets or not. Id. 1646, The leading American case, respecting the sufficiency of the consideration for an executor's or administrator's undertaking, to respond personally for a debt of the deceased, and his light to defend an action thereon on the ground of want of assets, is The Bank of Troy v. Topping, 9 Wendell (New York), 273, A. D. 1832. This was an action against the defendants individually, upon a promissory note payable sixty days after date, executed by them as the administrator and administratrix of the estate of John Topping, deceased. At tlie trial, the defendants offered to show, that the note in suit was the last of five successive notes, made by the defendants in renewal of a note held ny the plaintiffs against the intestate, at the time of his decease; and that the Art. III.] Promises of Executoks, etc. Ill ARTICLE III. When this clause of the statute does not apply, because the suhject-malter or the form of the promise, does not answer the statutory description of the liabilities embraced within it. § 33. The first and second clauses of the fourth section use precisely the same words, to describe the form of the promises, to which they severally apply; and to that extent the decisions under the one are applicable to cases arising under the other. Upon the same authorities and defendants having, in due course of .idministration, exli.nusted tlie personal property in their hands, obtained from the surrogate an order to si'll all the real estate of the intestate, for the payment of debts, which -was done accordingly; and one of tiie credits upon the note consisted of a dividend paid to the plaintiffs, out of the proceeds of the sale. This evidence was rt-jected, and the plaintiffs had a verdict fur the balance due upon the note; which was set aside by the Supreme Court, and a new trial granted upon exceptions. Savage, C. J., delivering the opinion of the court, after examining the previous authorities, concluded that they show that assets in the hands of execulors or administrators, constitute a sufficient consideration to support an express promise, which will bind them personally, to pay a debt of the deceased; that forbearance to sue ihem in iheir representative capacity, is also a suffi- cient consideration for the same purpose ; and that, inasmuch as a promissory note imports a sufficient consideration, but as between the original parties the consideration may always be inquired into, the note in suit w.as prima facie evidence of the possession of assets sufficient to pay it; but that the defendants might rebut that presumption, by showing that they had no a.«!sets; in which case the note would be void for want of consideration, inasmuch as an agreement to forbear could not be inferred, from the fact that the note was payable sixty days afterdate. The cause having been fried anew, and the second trial having also resulted in a verdict for the plaintiffs, it came again before the Supreme Court in the year 1835, the decision upon the second argument being reported in 13 Wendell, 557. The conclusions which the court reached upon the former hearing, were reiterated upon this occasion; and in addition it was expressly determined, that the onus of proving want of assets rested upon the defendants, the point not having been necessary to the decision upon the former hearing ; the ground taken here being that the note was prima facie evidence of assets, because they are the legal consideration, upon which such a promise ought to be and is presumed to be founded. And in Robinson v. Lane, 14 Smedes and Marshall (Missis- sippi), ICl, A. D. 1850, the defendant's testator had assigned to the plaintiff a note given to him individually, and indorsed upon it his written guar 112 Promises of Executors, etc. [Cli. i. for the same reasons, which exclude from the operation of the second clause implied promises, (a) liabilities which grow out of some act other than a promise, (5) and promises to do some act tending to the discharge of the promisee' s demand, other than to pay the same,(c) no doubt similar liabilities could be enforced against an executor or admin- istrator, without written evidence. Neither of these is a "special promise to answer" for any debt; and although this peculiar phraseology has not received much attention in the cases decided under the first clause, there are a few, which seem to present questions arising upon some of these words, or at least are proper to be considered in connection with them. § 34. With respect to implied promises of executors and administrators, it is quite obvious that the facts upon which the law would imply a promise to respond individu- ally, will very rarely occur. But it has sometimes hap- pened that a liability incurred in a representative capacity, without any express promise, has been enforced by the courts against the individual property of the defendant, anty of the consideration, but not of the solvency of the makers; and the declaration stated that the plaintiff had sued the makers, and had been defeated, on the ground that the note was without consideration. The defence was, first, that the consideration of the guaranty was a debt due from the estate of one Moore, of whose will the defendant's testator was executor, and tliat there were no assets of that estate ; and, secondly, that the plaintiff's demand against the estate of Moore was not a valid one, and so there was no consideration for the guaranty. The court held that the first defence could not be sustained, because the undertaking was in writing, and so satis- fied the statute of frauds, and it was founded upon a sufficient consideration, namely, the discharge of the estate of Moore ; and that after the defendant had thus personally undortaken to pay, it was immaterial whether there were assets or otherwise ; but, that the second defence was good in law, because it went to the consideration of the guaranty ; and the judge, at the trial, having ruled out testimony offered by the defendant, tending to prove that the plaintiff's demand against the estate of Moore was not a just claim, the judgment of the court below was reversed for that reason. (a) Chapter fourth, article first. (5) Id., article second. (c) Id., article third. Art. III.] Promises of Executors, etc. 113 upon principles and under circumstances which led to its being practically treated as an implied promise, although it was not so called in terms. As the question whether the executor or administrator had assets applicable to the payment of the plaintiff's demand, has been made the turning point of his personal liability, where the plaintiff relies upon an express promise not in writing; so the cases to which we refer are those where the possession of assets, and a consequent liability to pay the plaintiff, have been inferred from some act other than an express promise, or direct evidence of funds in the defendant's ha-nds.(rf) Thus, although the payment by an executor or adminis- trator of interest upon a debt due by the deceased, or even payment of part of the principal, will not generally amount to a conclusive admission of assets, (e) yet payments of interest, continued for a length of time, will be regarded as such evidence ; and under certain circumstances they will be deemed conclusive to fix the executor or administrator with a personal liability. And so where the question is whether a legatee is entitled to be paid his legacy. § 35. This is well illustrated by the case of TTie Attorney General v. Joseph Chapman, 3 Beavan, 255, A. D. 1840. This was an information against the defendant, who was executor of Daniel Chapman, to compel him to purchase such a sum of stock as would produce 20Z. per annum for a charity, which it was insisted he had made himself per- sonally liable to do. Tlie charity was first created by the will of one Terkins, who died in the year 1800, having directed his executors to purchase and stand possessed of government stock to an amount sufficient to produce (d) And in Connecticut, and some others of the United States, it is held that the possession of assets raises an imphed promise to pay a legacy, upon which an executor or administrator may be sued in assumpsit. See post § 43 (e) Savage v. Lane, 6 Hare, 32, andPostlethwaite v. Mounsey, in note to id. 33 ; Severs v. Severs, 1 Smale and Giffard, 400; Cleverley v. Brett, cited per Buller, J., in Pearson v. Henry, 5 Term Reports, 8; Payne v. Little, 22 Beavan, Gl\ 15 114 Promises of Executoes, etc. [Cli. I 201. per annum, for that purpose ; and making this the lirst charge on his personal estate, before debts and lega- cies, which he charged on his real estate, if the personalty should not be sufficient to pay them, after making that investment. He then devised his real estate, so charged, and also bequeathed his personal property to William Chapman and Daniel Chapman, and appointed them his executors. William Chapman died in 1804, and Daniel Chapman in 1820, ' ' having regularly paid the 201. down to the time of his death," but it did not appear whether any investment had ever been made ; but no such invest- ment existed. The defendant was a son of Daniel Chap- man, who devised his real estate to his other sons, making the defendant his executor. The devisees, considering the 201. a year to be a charge upon the real estate, con- tinued to pay it down to the year 1826 ; when they refused to pay it any longer. From that time till 1833 the defend- ant paid it ; but after 1833 he refused to pay it. Upon the hearing it was insisted, in behalf of the Attorn-ey-gene- ral, that the defendant had admitted assets, and thus made himself personally liable ; and in behalf of the defendant that he was entitled to an accounting, and that his liability was limited to the balance of assets of Daniel Chapman possessed by him. But the Master of the Rolls held that the defendant, having commenced six years after the tes- tator' s death to pay the 201. per annum, and having con- tinued that payment for seven years afterwards, had ample time to ascertain the state of the assets ; and that under the circumstances, this must be deemed an admission of assets; so that he "is no longer entitled to have any account of them, but must be declared to make good the fund."(/) § 35a. In Hackleman v. Miller., 4 Blackford (Indiana), 322, A. D. 1837, the plaintiff sued as administrator of the estate of one Moffitt, upon a note given for the purchase price of goods of the estate, by one of the defendants, with (/) See also Whittle v. Henning, 2 Beavan, 396; Attorney General v. Higham, 2 Younge and CoUyer, Chancery, 634; Corporation of Clergymen's Sons V. Swainson, 1 Vesey, Sr., 75. Ai-t. III.] Promises of Executors, etc. 116 the other as his surety; and the principal defendant liled as a set off an assignment made before the commencement of the action by one Whitemore to him, of a demand against the estate in favor of Whitemore, which had been adjusted by the plaintiff as administrator. It appear(!d that the de- fendant, before he received the assignment, was informed by the plaintiff that "it was good," and that if he pur- chased it he would receive the full face of it, in set off against the note on which the suit was brought. The court below gave judgment for the defendant, and, on error, the question was whether the set off was admissible. The Su- preme Court held that the plaintiff was suing in his own right, the words "administrator," &c., being only matter of description ; and that the set off, in order to be admissible, must be a demand against him personally : that the ques- tion, therefore, was whether the case was within that por- tion of the statute of frauds, relating to the promise of an executor or administrator, to answer personally for a debt of the estate ; that inasmuch as the purchase was made upon the faith of the plaintiff's promise, that the debt should be paid, the transaction was similar, in principle, to one where a bill of exchange had been purchased upon the faith of a promise to accept it, which had been con- strued to be an original promise to the purchaser, and hence that the set off should be allowed. The judgment of the court below was therefore affirmed. Apparently the first and second clauses of the section were confounded in this case, and we doubt whether the decision can be sustained ; but perhaps it may rest upon the ground that 'there was a representation, as well as a promise, or a promise to do something else than to " ansicer dam- ages.'^ff) (/) But in Hay v. Green, 66 Massachusetts (12 Gushing), 282, the defendant was present at the auction sale, when the plaintiff purchased the distributive share of one of the sons in the intestate's property, for which the action was brought, and he then " made a statement of the supposed value of the distributive share." After the plaintifiF's purchase, and the subsequent set- tlement by the probate court of the amount of the distributive share, the defendant insisted upon his right to. deduct therefrom a sum of money, which 116 PitOMisES OF Executors, etc. [Cli. i. § 36. The promise must be to the effect that the executor or administrator will "answer damages" to the promisee, that is, that he will pay the demand ; and consequently the statute has no application to a promise, the fulfil- ment of which will not, in whole or in part, discharge the demand, or at least necessarily place the promisee in a position where he can compel the executor or administrator to discharge it. Doubtless it was for that reason that a submission to arbitration of a demand against the estate was held not to be within the statute, in the case of Ailing V. Munson, 2 Connecticut, 691, A. D. 1818. This was an action brought by an administrator to recover a sum awarded to him by arbitrators, upon submission of a con- troversy growing out of a claim in favor of the plaintiff's intestate against the defendant; and upon the trial it appeared that the submission was verbal, although the award was in writing. The plaintiff had a verdict, and the defendant moved for a new trial on the ground of misdirec- tion of the jury ; and also in arrest of judgment. Upon the argument it was contended, mth other objections to the recovery, that the submission on the part of the defendant was void for want of mutuality, or for want of consideration ; because, if an award had been made against the plaintiff, he would have been personally liable to pay it, and hence it was a promise to answer damages out of his own estate. But the objection seems to have received but little attention, being briefly referred to in one only of the opinions delivered, and overruled without assigning any reasons for the decision in that respect. Both appli- cations of the defendant were denied, (p') he had paid several months before the sale took place, by reason of a note signed by the intestate as surety for the son, and he offered to pay the plaintiff the amount of the share, if he would deduct the sum paid upon the note. The couit held that the defendant could avail himself of the fact that the offer was conditional, to defeat the action. See the case more at length, post, § 45. (a) That a submission to arbitration does not amount to an admission of assets, and so subject the administrator to personal liability to discharge the award, was decided in Pearson v. Henry, 5 Term Reports, 6, A. D. 1792. This was an action of assumpsit against the defendant as administrator for Art. III.] Piio.MisES OF 'Executors, etc. 117 § 37. But, on the other liand, altliough a verbal submis- sion to arbitration is not open to the objection that it is void because it may result in fixing the executor or admin- istrator witli a personal liability, an express promise to pay the award, accompanying the submission, is clearly goods sold and delivered to his intestate, and the defendant pleaded plene admiiiistravit. In order to prove assets, the plaintiff's gave in evidence a submission to arbitration made by the defendant as administrator, and an a^v^l^d that a certain sum vi^as due to the plaintifls from the intestate's estate, but "without saying by whom it was to be paid." The plaintiflf was non- suited, and a rule nisi to set aside the nonsuit was discharged after argument. Lord Kenyon expressly held, and the other judges substantially agreed with him. that the submission to arbitration did not of itself amount to an ad- mission that the administrator had assets; and that the award, as it did not direct the defendant to pay the amount awarded, was not a decision that he had assets. And in Love, executor, v. Honeybourne, 4 Dowlingand Ryland, 814, A. D. 1824, the cause had been referred by a judge's order to arbitration, and an award had been made against the plaintiff, that a certain sum was due from his testator to the defendant, and that the executor should pay it on a certain day "out of the assets in his hands as executor." On a motion in behalf of the plaintiff to set aside the award, the court held that it was not void for uncertainty, the amount of the debt being ascertained and fixed. And Abbott, C. J., thought that the award left the question of assets open ; but Holroyd, J., said that the executor would not be bound to pay, if he had full}^ administered at the day mentioned. On the other hand it has been repeatedly held that the submission is a reference of the question of assets, as well as of the cause of action ; and therefore an unqualified award that the executor or administrator shall pay the sum awarded is conclusive upon the question of assets, and subjects him to personal liability for the amount; so that a plea of plene administravit, in an action founded thereon, will be held bad on demurrer. Barry v. Rush. 1 Term Reports, 691, A. D. 1787; Worthington v. Barlow, 7 Term Reports, 453, A. D. 1797; Riddell u. Sutton, 5 Bingham, 200, A. D. 1828. See also, for parallel cases, Wansborough v. Dyer, 2 Chitty, 40, A. D. 1815; and Robson v. , 2 Rose, 50, A. D. 1813. The result of these cases would seem to be that a submisvsion to arbitration may result in personal liability to pay the award ; because the arbitrators may, if they see fit, take into consideration the question of assets. But, if they determine that the executor or administrator is to pay personally, the result is caused by their determining that he had assets; for which reason, and more satisfactorily, because the submission is not a promise, and will not necessarily result in a personal liability, or indeed in any liability, it would seem to be clear that a submission to arbitration is not within the Statute. Perhaps the same may be said of a promise to arbitrate. 118 Pkomises of Executors, etc. [Ch. i. within the statute. This was one of the features of the case of Pearson v. Henry, 5 Terra Reports, 6, A. D. 1792 ; but the court, although they sustained the decision at nisi prius, rejecting testimony tending to prove an under- taking to pay the award, and nonsuiting the plaintiff, made no reference to the statute ; and indeed the testi- mony was apparently offered only for the purpose of showing assets in the hands of the defendant. Lord Kenyon gave no reason for rejecting it; but BuUer, J., said that it would not avail the plaintiffs, because the action was against the defendant as administrator. § 38. And the question was fairly presented in Harring- ton V. UlcJi, 6 Vermont, 666, A. D. 1831. There the declaration alleged in substance, that the plaintiff was the assignee of a debt due by one Samuel Rich deceased, of whose estate the defendant was administrator ; that, after the expiration of the time allowed by the court of probate for the presentation of claims against the estate, but before the expiration of the period allowed by law, within which the judge of probate might open the commission for the allowance of other claims, the plaintiff applied to him to open the same ; that he was about to act upon said appli- cation, when the defendant, in consideration that the plaintiff would withdraw it, and would submit his claim to arbitration, promised to pay the demand to the plaintiff "if it was decided to be justly due ;" that the application was accordingly withdrawn, and the claim submitted to arbitration, and after the arbitrators had entered upon their duties, the defendant revoked their powers, whereby the claim against the estate was lost. The defendant pleaded non assumpsit, and several objections to a recovery were taken by him upon the trial ; among them that his promise was within the statute of frauds, as being a prom- ise to answer for a third person' s debt, and a. promise by an administrator to answer damages out of his own estate. But the plaintiff had a verdict, and the judgment thereon was reversed upon exceptions. In the opinion of the Supreme Court, the question arising under the statute Art. III.] Promises of Executors, etc. 119 was discussed, as if the first and second clauses were equally applicable to the case ; and after holding that this promise was not within several classes of exceptions to the operation of the second clause, the court proceeded to consider the argument on the part of the plaintiff, that the disci large of the estate took it out of the statute. The decision of the question whether such a discharge would suffice, for the purpose, was not, it was said, necessary to the decision ; because there was no discharge of the estate at the time of giving the promise; for an agreement to arbi- trate is not a discharge of the cause of action, because the right to revoke is mutual. Nor was the case within the rule, that a new and original consideration moving between the parties would suffice, because the consideration did not move to the defendant, but only to the estate. §39. The word "damages," as used in this clause of the statute, appears to be a superfluity, as the sense would be equally clear, and perhaps even clearer, had it been omitted. Nor is the phraseology much improved by the use of the phrase "debt or damages," which has been substituted for it in several of the enactments in the United States. In two of the latter, (7i) the descriptive phrase of the sentence corresponding to this clause is, "promises by executors to pay the debt of their principals from their own estate," which, in addition to other limita- tions, confines the statutory requirement to debts of the deceased. But in general the American statutes have copied the language of the English act, or used words of like import ; and these are construed to include all liabili- ties resting upon the executor or administrator strictly in his representative character ; and which, but for the prom- ise, he would have been liable to discharge only in due course of the administration of the estate ; but not those which were originally incurred by him, in consequence of some act of his own, even although it was an official act. (A) The Iowa and Nebraska statutes ; and see the Oregon statute. 120 Promises of Executoes, etc. [Cli. i. § 40. An instance of the species of liability, whicli is not within the statute for this reason, although the point is not mentioned in the report, was presented to the Court of Common Pleas in Ifeert v. MoesSard, 1 Moore and ' Payne, 8, A. D. 1827. There the defendant was one of the administrators (doubtless with the will annexed) of one Peter Defreene, who had left an annuity to his widow, secured by 2,000^. of government stock, which was to be divided among his children after her death. Tlie widow having died abroad, the plaintiff, who had married one of the daughters, defrayed all the funeral expenses, to the payment of which all the children agreed to apply a half- year' s dividend of 60Z., then due upon the stock. After the defendant and the other administrator had sold out the stock, for the purpose of dividing it, the defendant proposed to keep 40Z. of the half-year's dividend for the purpose of paying the plaintiff, dividing the 10^. among the children, "to which all the other branches of the family assented;" and the mone}^ was retained accordingly, the defendant not being satisfied with the amount of the charges, which the plaintiff had stated at Qll. But it would appear, from the argument of counsel and what is said by the court, that the defendant made no express promise to the plaintiff at the time, and the action was for money had and received. The objection of the statute of frauds is not stated in the report to have been distinctly taken; but the plaintiff having obtained a verdict, the defendant applied for a rule nisi to set it aside, on the ground that there had been no communication between the parties ; and no promise, express or implied, to render him liable for the funeral expenses of the widow, he having received the money as administrator of Peter Defreene. (?■) The rule was refused, the court being of (t) If it had been received as administrator of the widow, he would have been Hable for the funeral expenses. From the fact that the case cited was Rann v. Hughes, ante, § 10, it is probable that the defendant relied upon the statute. Art. III.] Promises of Executors, etc. 121 opinion that, as the money was left in the defendant's hands, wdth the assent of all parties, for the purpose of paying the plaintiff, the action could be maintained. § 41. The point was very clearly taken in a recent American case, Chambers v. bobbins, 28 Connecticut, 544, A. D. 1859. There the allegations of the declaration, as far as they are material to this subject, were, in substance, that the probate court had rendered a judgment admitting to probate the will of one Mary Robbins, deceased, and appointing the defendant her administrator with the will annexed ; that the plaintiff and others, who were heirs at law, appealed from such decision of the probate court ; that, wliile the appeal was pending, it was agreed between the plaintiff and the defendant, that it should be settled and discontinued, and that the defendant would pay the costs in the cause ; but that he had not j3aid the costs, etc. At the trial in the court below, the plaintiff introduced evidence tending to prove a verbal promise to the effect stated in the declaration ; and the defendant having objected to the evidence, the damages were assessed con- ditionally, subject to the opinion of the court; and this and another question were reserved for the advice of the Supreme Court. After argument, the court below was advised to render judgment for the plaintiff. Upon the question whether the promise was within the statute, Hinman, J,, delivering the opinion, after saving that the defendant's promise was not within the statute, unless it was to answer damages out of his own estate, added: "But the promise was made in the defendant's private capacity, and was itself the foundation of his liability in this action ; and so far as the costs in the action that had been pending constituted the basis of his liability, they accrued against him personally, and not against the estate. Whether he would have a right to charge them to the estate, when paid, is unimportant. Most of the personal obligations of an executor, contracted in the course of his administration, are proper charges against the estate in the final settlement of his account; but they are none the 16 122 Promises or Executors, etc. [Cli. i. less his private debts, for which he is alone liable in his private capacity. Tliere is no more reason for saying that the promise set up in this case is within the statute, than there is for saying that the services of a laborer or of an attorney, which may be required in the course of the set- tlement of an estate, must be contracted for in writing ; or the statute will preclude any recovery for them against the executor. We have no doubt, therefore, that the parol evidence was proper to prove the promise. "(/) § 42. With respect to an express promise by an executor to pay a general, that is, a pecuniary legacy, or by an administrator to pay a distributive share, the rule seems to be settled in England, that no action at law will lie against either, in his representative capacity, upon such a promise ; but, if there was a distinct and adequate con- sideration to sustain a promise to pay out of his own means, and the promise was in writing, it is dilhcult to discover any good reason why the action will not lie to charge him de bonis propriis. It may be doubted whether the English cases, which are, at the best, quite obscure and unsatisfactory, go any further than to say, that where there is no new consideration, the action at law will not lie upon proof of assets merely. It was at one time held that a legatee might recover in an action against an execu- tor, founded upon an express promise, made in considera- tion of assets ',{7c) but it was ruled otherwise in a subse- quent case ;( Z) and, although there the executor had made no express promise, and the action was founded on Ms having sufficient assets, it is said by the leading elementary (j) See as to the persorital liability of a trustee for costs and other expenses incurred in the discharge of his trust, Taylor v. Mygatt, 26 Connecticut, 184; McKay v. Royal, 7 -Jones (North Carolina), 426 ; per Welles, J., Noyes v. Blakeman, 6 New York (2 Selden), 580; Bowman v. Tallman, 2 Robertson (New York), 385. (k) Atkins v. Hill, 1 Cowper, 284, A. D. 1775; Hawkes v. Saunders, id. 289, A. D. 1782. (0 Deeks v. Strutt, 5 Term Reports, 690, A. D. 1794. Art. TIT.] Promises of Executors, etc. 123 writers on that subject, that it is generally understood in England that this decision holds unqualifiedly that no such action will lie, either for a legacy or a distributive share. {7?i) But the rule is different with respect to a specific legacy, the title to which passes directly to the legatee upon the executor s assenting thereto, (ti) However, the rule that the executor is not liable to an action at law, is restricted to cases where nothing has been done to separate the legacy from the common stock ; so that whenever, by arrangement with the legatees, he ceases to hold the money bequeathed in his character of executor, he may be sued as in other cases, (o) § 43. In several of the United States a legatee may main- tain an action at law against an executor to recover a general legacy. This has been settled by a series of decis- ions in Massachusetts, where, although the courts concede that the common law rule is otherwise, the action is main- tained by virtue of certain statutory provisions, commenc- ing with a provincial statute of the 5th of William and Mary, and continued by subsequent enactments to the present time ; the effect of which seems to be that after the expiration of a specified time, if the executor has assets applicable to the payment of the legacy, an action may be maintained to recover the amount of the legacy de (m) 2 Williams on Executors, sixth edition (A. D. 1867), page 17S5, oiling per Littledale, J., in Jones v. Tanner, 7 Barnewall and Cresswoll, 542 ; and referring also to Johnson v. Johnson, 3 Bosanquet and Puller, 169; Parish V. Wilson, Peake's Nisi Prius, 73 ; Nicholson v. Sherman, T. Raymond, 23, and Siderfin, 45; per V. Ch. Knight Bruce, Holland v. Clark, 1 Younge and Collyer, Chancery, 167. And see Roper on Legacies, fourth edition, 1797, 1798. (n) 2 Williams on Executors, sixth edition, p. 1278; citing Williams v. Lee, 3 Atkyns, 223; Dix v. Burford, 19 Beavan, 409; Westwick v. Wyer, 4 Coke, 28, b ; Doe v. Guy, 3 East, 120; Barton's Case, 1 Freeman, 289; Bastard v. Stukely, 2 Levinz, 209; Paramour v. Yardley, Plowden, 539: Young V. Holmes, 1 Strange, 70. (o) Gorton V. Dyson, Gow, 78, A. D. 1819; Hart v. Minors, 2 Crompton and Meeson, 700 (1834) ; Gregory v. Harmanj 1 Moore and Payne, 209 (1828). 124 Peomises of Executors, etc. [Cli. i. bonis propriis, upon demand and refusal of payment. (^) In Connecticut, the existence of a similar right of action has been obscurely inferred, without any statutory pro- vision, from two early cases ;( q ) but it is fully recognized by the more modern decisions, wliich rest the action upon an implied assumpsit, raised by the possession of assets, and the expiration of the time within which the legacy should have been paid, without any express promise ; the objection which the English courts make to sustaining the action, namely, the impracticability of making suitable provisions for married women, etc., being regarded as obviated by the extensive jurisdiction of the probate courts ;(r) and it has been accordingly said that an action will not lie in equity without the existence of sj)ecial cir- cumstances to confer equity jurisdiction, as in other cases where that jurisdiction is invoked, {s) In some of the other states it has been held that the action lies, without an express promise; either by virtue of some statutory pro- vision, or because, as in Connecticut, the reasons assigned by the English courts are regarded as inoperative ;(^) while in others, an express promise only will sustain it, made either in consideration of assets, or upon a new con- sideration, (i^) (/)) Farwell v. Jacobs, 4 Massachusetts, 634, A. D. 1808; Prescott v. Parker, 14 Massachusetts, 429 (1817) ; Miles v. Boyden, 20 Massachusetts (3 Pickering), 213 (1825); Hapgood v. Houghton, 39 Massachusetts (22 Pickering),480 (1839) ; Brooks v. Lynde, 89 Massachusetts (7 Allen), 64 (1863). (5'; Lannb v. Smith, 1 Root, 419, A. D. 1792; Spalding v. Spalding, 2 Root, 271 (1795). (r) Goodwin v. Chaffee, 4 Connecticut, 163, A. D. 1822; Knapp v. Han- ford, 6 Connecticut, 170 (1826), and 7 Connecticut, 132 (1828); Adams v. Spalding, 12 Connecticut, 350 (1837). (s) Colt V. Colt, 32 Connecticut, 422, A. D. 1865. (i) Pickering v. Pickering, 6 New Hampshire, 120, A. D. 1833; Paynes. Smith, 12 New Hampshire, 34 (1841); Cowell v. Oxford, 1 Halstead (New Jersey), 432 (1798); Bellerjeau v. Kotts, 1 Southard (id.) 359 (1817); Pet- tigrew V. Pettigrew, 1 Stewart (Alabama), 580 (1828). (w) McNeil V. Quince, 2 Haywood (North Carolina), 153, A. D. 1801 ; Clark V. Herring, 5 Binney (Pennsylvania), 33 (1812). Per Johnson, Chan- cellor, Lark v. Linstead, 2 Maryland Chancery Decisions, 163 (1850). Art. irr. ] Promises of Executors, etc. 125 § 44. But wliatever may be, in general, the correct rule as to the rigltt to maintain an action at law for a legacy or distributive share, it is ck^ar that the statute applies to an express promise to pay it, when the action is foun(l<'d upon such a promise, and its object is to charge the defendant personally. Such was assumed to be its con- struction in the English case, already referred to as having been subsequently overruled, of Hawlces y. Saunders^ 1 Cowper, 289, A. D. 1782, where the question came before the King's Bench, upon a motion in arrest of judgment, the plaintiff having recovered a verdict. The declaration stated that the plaintiff was a legatee of George Saunders, and the defendant was his executrix ; that assets more than sufficient to pay all debts and legacies came to her hands ; and that in consideration thereof she promised to pay the plaintiff' s legacy. It was held, after argument, that the plaintiff was entitled to judgment in this form of action, although it would necessarily be a judgment de bonis propriis, and the rule was discharged accordingl}^. Lord Mansfield, near the beginning of his opinion, said : "It is admitted at the bar that after verdict it must be taken to have been a 'promise in writing, and that there were assets." § 45. And it has been said in a Massachusetts decision, although apparently the statute of frauds does not provide for such a case, that a promise to pay a legacy or distribu- tive share, when it was made in a representative capacity, and when the action is against the defendant in the same capacity, is not valid unless it was reduced to writing. Such appears to have been one of the points decided in Hay V. Green,, administrator jQQ Massachusetts (12 Gushing), 282, A. D. 1853. There the defendant was sued as the adminis- trator of the estate of Thomas Green, to recover the amount of the distributive share of Martin Green, a son of Thomas, in his father's estate, as decreed in the probate court. It appeared that Martin had become insolvent, and tlie plaintiff had purchased his share at a sale by his assignee, before it had been settled by the probate court ; but he 126 Peomises of Executors, etc. [Ch. i. claimed to recover upon a promise by the defendant, made after the settlement in the probate court, contained in an offer to pay to the plaintiff the sum at which the share had been settled, if he would deduct the amount of a note which the deceased had signed as Martin's surety, and which the defendant had paid before the plaintiff pur- chased the share ; but the plaintiff declined the offer, and brought this action to recover the whole of the distributive share. The plaintiff had a verdict, under the ruling of the judge that the action could be maintained ; and the verdict was set aside upon an exception to that ruling. The court held that Martin' s distributive share passed to the assignee under the insolvent law ; but that although the assignee might maintain an action therefor, his vendee could not. Upon the point that the plaintiff could maintain the action by reason of the express promise, the court said that the doctrine would not help him ; first, because the promise was subject to the set-off; and secondly, because "the promise, whatever its terms or conditions may have been, was oral only ; and the defendant, being administra- tor, and sued as such, is not liable on his promise unless it is in writing." * § 46. But it is probable that the learned judge's remark with respect to the statute of frauds was inadvertent, for it is very evident that a promise which, in terms only, binds the executor or administrator to pay out of the assets of the estate, is not within the statute, whatever may be the other legal objections to maintaining an action upon it. Thus in Oreening v. Brown, Minor (Alabama), 353, A. D. 1824, it was held that in an action against an executor in his official character, upon a note given by his testator, where the defendant pleaded the statute of limi- tations, a replication of a special promise by the executor was good upon special demurrer, although it was not averred to have been in writing, the court saying : "If the action had been on a promise by the executor to pay the debt out of his own estate, the statute of frauds would require that the promise should be in writing ; but, in order Art. iir.] Pkomises of Executor=i, etc. 127 to take the case out of the statute of limitations, it was not necessary that the promise of the executor should be in writing. "(^) § 47. Apparently a similar principle controlled the decision of tlie case of Collins v. RoiD,\i) Leigh (Virginia), 114, A. D. 1839. There an executor was sued in the County Court in his individual capacity, the declaration alleging a general promise to pay for goods sold and delivered to him for the use of the widow and legatees ; and upon the trial the plaintiff proved the sale and delivery of the goods to the defendant for the use of the widow and legatees ; and a verbal promise to pay for them out of the testatof s estate, and that there were assets sufficient for the purpose. The defendant's counsel asked the judge to instruct the jury, that if the promise was to pay out of the testator' s estate, and not out of his own estate, the promise was not binding unless it was in writing. The judge refused to give the instruction prayed for. The plaintiff had a verdict; and the judgment thereon was reversed in the Superior Court, with directions to give the instructions prayed for, if the plaintiff should give evidence that the goods were delivered to the family of the testator, or of the value or amount of assets which came to the defend- ant' s hands. The plaintiff then brought error to the Court of Appeals, where the judgment of the Superior Court was reversed and that of the County Court affirmed. § 48. The report of this case omits the arguments of counsel, and the grounds upon which the decision in either court proceeded, and it is consequently somewhat obscure ; but, if we understand it rightly, the defendant assumed no individual liability, notwithstanding tlie use of words in the statement of tlie allegations made in the declaration, and of the facts proved at the trial, which would imply that he became primarily n^sponsible for the price of the goods. No doubt the transaction was meant to (v) And see Martin v. Black, 20 Alabama, 309, A. D. 1852. 128 Promises of Executoks, etc. [Ch. i. be a sale to the widow or legatees, and an agreement by the defendant, at their request, to pay- the price out of funds ap- plicable to the payment of their legacies ; and the struggle on the defendant' s part appears to have been to bring the case within the second clause of this section. But if, accord- ing to the legal effect of the transaction, the sale was made exclusively upon the defendant' s promise to pay out of the estate, there was no primary liability of any person to which the promise could be collateral ; and if the defend- ant himself assumed a primary liability in his individual capacity, his collateral promise in the capacity of exec- utor was without the second clause, because it was to answer for the debt, not of anotlier person, but of the promisor in another capacity. The case, therefore, seems then to have turned entirely upon the question whether the promise was within this clause of the stat- ute ; and, from the language of the request for instruc- tions, it is to be inferred that the particular point dis- cussed was, whether a promise in terms to pay out of the estate was within the statutory prohibition. The proof of sufficient assets may have been introduced with a view of bringing the case within the principle of Stehhins V. Smith, and PrattY. Humphrey ;{io)'bui it W2i^ necessary, without reference to any question under the statute, for the purpose of showing that the condition had happened, upon which the defendant's promise depended, whereby he became personally liable for its breach. {w) Ante §§ 26 and 28. PART SECOND. OF SPECIAL PROMISES TO ANSWER FOR THE DEBT, DEFAULT OR MISCARRIAGES OF ANOTHER PERSON. CHAPTER SECOND. OBSERVATIONS INTRODUCTORY TO THE CONSIDERATION OF THE SECOND CLAUSE OF THE FOURTH SECTION OF THE STATUTE. AETICLE I. Explanation of the terms nsed in treating tliis snljeot. § 49. The second clause of the fourth section of the statute of frauds has given rise to more perplexing questions and contradictory decisions, than any other clause of that part of the statute which forms the subject of this treatise. It describes the species of contract embraced within its provisions as "any special promise to answer for the DEBT, DEFAULT, OR MISCARRIAGES OF ANOTHER PI:RS0N ; " and the same expression, with slight verbal alterations, has been copied into the various acts upon the same sub- ject, in force in the United States. It is sometimes said that the contract to which this clause of the statute applies is a guaranty, and that word has been defined in the lan- guage of the statute, (a) But properly speaking, a guar- anty is a contract to respond, only in case of the default of a person primarily liable for the payment of the same debt, or the performance of the same duty ;{b) whereas the (a) Chitty on Contracts, 8th English edition, p. 4G9. In some standard treatises and digests this part of the statute is treated under the head of Guaranty. (h) " A. guaranty is a promise to answer for the payment of some debt, or the performance of some duty, in case of the failure of another person, who is in the first instance liable to such payment or performance." Fell on Guaranty and Suretyship, page 1. "Guaranty is held to be the contract by which one person is bound to anotlier, for the due fulfilment of a promise 132 Collateral Undertakings. [Ch. ir. statute includes also contracts to respond in the first instance, that is without reference to a default on the part of the other person. Guaranty, in a derivative or primary sense, is identical with warranty ; this being a,n instance, of which there are some others, of the inter- change of the Celtic prefix W, with the French prefix G, in the formation of our language ; both prefixes being sometimes retained to form distinct words, having slight shades of difference in meaning, (c) § 50. As the exact meaning of the statutory definition is imperfectly conveyed by the word "guaranty," the term ' ' collateral promise' ' is more commonly used, in the discus- sions to which this clause of the statute has given rise, to designate the species of contract to which it applies ; and this term has also the advantage of admitting an antithet- ical expression, to designate an undertaking not within the provisions of the statute. Such an undertaking is com- monly styled an original promise. (tZ) The use of these or engagement of a tliird party." 2 Parsons on Contracts, 5th edition, p. 3. "A guaranty is an engagement to be responsible for the debts or duty of a third person, in the event of his failure to fulfil his engagement." 2 Story on Contracts, 4th edition, § 852. " Guaranty. — A promise made upon a good consideration, to answer for the payment of some debt, or the performance of some duty, in case of the failure of another person, who is, in the first instance, liable to such payment or performance." Bouvier's Law Diction- ary, 8th edition, vol. I, p. 570. (c) Thus guard and guardian are retained together with ward and warden ; guerre is changed to war; and among proper names William and Walter are substituted for Guillaume and Gautier (anciently Gaultier). The word guar- anty is commonly written guarantie in the modern English books, and some- times guarantee; though the latter orthography is objectionable, as it prop- erly designates the correlative of guarantor. (d) We cannot fix the precise date when the terms "original promise " and "collateral promise" acquired the meaning now generally ascribed to them. We find the word "collateral" erroneously used as late as 1730, in Elkins v. Heart, Fitzgibbon, 202, where counsel contended that a promise that a debtor should not go beyond the kingdom, without paying the plaintifi^, was not within the statute of frauds, because it was "a collateral promise." But in Stevens v. Squire, Comberbach, 362, A. D. 1696, Holt, C. J., used the Art. I,] Collateral Undertakings. 133 expressions is not restricted to cases arising under the statute of frauds ; on the contrary they are habitually employed to designate the contracts of princijjal and surety respectively, in all appropriate cases. But they are so peculiarly associated in the law with the statute of frauds, that they may almost be said to have been incor- porated into the statute by universal consent. And, as it is rare to find any two expressions which are exactly synonymous, it has happened sometimes that the constant use of the term "collateral promise,'' to designate th'e species of contract, indicated by the rather cumbrous phraseology of the statute, and of the term ' ' original prom- ise " to designate one of the opposite species, has given rise to confusion and even to error. Thus Comstock, C. J., in the course of his opinion in Mallory v. Gillett, 21 New York, 412, which will be hereafter frequently referred to, says : "There is sometimes danger of error creeping into the law through a mere misunderstanding or misuse of terms. The words ' original ' and ' collateral ' are not in the statute of frauds ; but they were used at an early day ; the one to mark the obligation of a principal debtor ; the other that of the person who undertook to answer for such debt. This was, no doubt, an accurate use of language ; but it has sometimes happened that, by losing sight of the exact ideas represented in these terms, the word ' original ' has been used to characterize any new promise to pay an antecedent debt of anotiier person. Such promises have been called original, because they are new ; and then, as original undertakings are agreed not to be within the statute of frauds, so these new promises, it is often argued, word " original " in iWmodern sense, and in Birkmyr v. Darnell, 1 Salkeld, 27 ; 6 Modern, 248; and 2 Lord Raymond, 1085, A. D. 1704, he employed the word " collateral " to designate its antithesis. The distinction between the two forms of expression, with direct reference to the application of the statute of frauds, was taken by Lee, C. J., in Read v. Nash, 1 Wilson, 305, A. D. 1751 ; and we believe that Elkins v. Heart is the latest case where the term "collateral promise" was used as descriptive of a promise not within the statute; although in some American cases we have met with the expression "an original collateral promise." 134 Collateral Undertakings. [Ch. ii. are not within it. If the terms of the statute were adhered to, or a more discriminating use were made of words not contained in it, there would be no danger of falling into errors of this description, "(d) § 51. For the purpose of avoiding circuity or redundancy of expression, we shall, in the discussion under this clause, always use certain words in a particular and somewhat conventional sense ; except where a different meaning is indicated in the passage where they appear. Thus the term ' ' promisor ' ' will be employed specifically to designate the person whose liability, under a verbal promise, which is supposed to be to answer for the debt, default, or mis- carriage of another, is the subject of discussion. Of course the person to whom the promise was made will be gene- rally styled the "promisee ;" but occasionally the word "creditor" will be used to designate him ; and the words ' ' debt " or " indebtedness ' ' to designate the liability which the promisor has assumed to discharge, without reference to the question whether such liability arises out of a con- tract to pay money, or to perform some other act ; or whether it arises out of a tort. And when we speak of "the third person," we always mean him for whose debt, default or miscarriage, the promisor has undertaken, or is supposed to have undertaken, to answer ; except of course when the language of others is quoted, wherein that term is used, as frequently happens, to denote the person whom we style the promisor. The peculiar appro- priateness and precision of the expression ' ' the third per- son," in the sense in which we use it, will appear hereafter. (e) See also Buller's Nisi Prius, page 281 ; and per Grover, J., in Brown V. Weber, 38 New York, 187, on page 190. Art. II.] Collateral Undertakings. 136 ARTICLE 11. How &r the consideration of a Terbal promise affects its Taliditji § 52. A few general suggestions upon this subject will be useful here ; although, as the question enters into nearly every discussion arising under this branch of the statute, they will necessarily be merely prefatory to a more com- plete examination hereafter. A vast amount of error has been predicated upon, and defended by arguments, grow- ing out of the nature and character of the consideration of the promise. A struggle was commenced, almost sim- ultaneously with the enactment of the statute, to with- draw from its operation, undertakings which were clearly nothing but promises to answer for the debt, default, or miscarriages of another person, but which were founded upon meritorious considerations of different kinds ; and it has been maintained ever since, with great persistence and ingenuity, and at times with considerable success. In England, the rule is now generally admitted to be that the character of the consideration is immaterial ;(«) and we believe that the courts in this country are tending to the same conclusion ; but the contrary opinion has had great prevalence among us, and its extinction has been a work of time and difficulty. At one period of our legal history, the doctrine that any new and original considtTa- tion, whether of benefit to the promisor or harm to the promisee, sufficed to sustain a verbal promise to pay the debt of another, was generally recognized as a settled (a) The correct rule, as recognized in England, is contained in the follow- ing extract from Messrs. Patteson and Williams's note to Forth v. Stanton, 1 Williams's Saunders, 211 : "The question, indeed, is, what is the promise? whether it be a promise to answer for the debt, default, or miscarriage of another, for which that other remains liable ; not what the consideration for the promise is ; for it is plain that the nature of the consideration cannot Rffect the terms of the promise itself, unless, as in the case of Goodman v. Chase, it be an extinguishment of the liability of the original party." Seo Fitzgerald v. Dressier, 7 Common Bench, N. S., 374, cited in full hereafter. loO COLLATEEAL UNDERTAKINGS. [Cll. n. principle of American jurisprudence, (5) and even to the present day, a rule not essentially different may be found laid down in some cases of very higli authority, (c) § 63. But it is believed that the proposition can now be maintained upon principle and upon the weight of authority, that, although the nature and effect of the consideration are frequently material elements in deter- mining the question, whether a particular case is within the statute, they are so only as far as they shed light upon the character of the promise ; that is, whether it is an undertaking to answer for another' s debt or default, in the sense contemplated by the statute, as the latter is construed by the rules generally recognized for that purpose. For instance, if the foundation of the prom- isor' s engagement to pay money appears to have been the delivery of goods, by the promisee, to the third person ; prima facie it is a sale to the latter, and he is liable for the price ; and, therefore, the express undertaking of the promisor to respond for the price, is collateral to the im- plied undertaking of the purchaser to the same effect. But if it be alleged that in fact there was no sale to the person to whom the goods were delivered, the delivery having been upon the credit of the defendant' s promise only, although the nature and character of the considera- tion then become the turning points of the case, their (b) In Meech v. Smith, 7 Wendell (New York), 315, A. D. 1831, Savage, Ch. J., said: " Was the contract within the statute of frauds? It is a parol agreement to pay the debt of a third person, and is therefore within the terms of the statute. The rule, however, has long been settled, that though such. a promise be by parol, if it arises out of some new and original con- sideration of benefit or harm, moving between the newly contracting parties, it is not a case within the statute; it then becomes a new and original con- tract. Such a promise is void in such cases only, when the debt of the third person is the only consideration, or when the new consideration is not suffi- cient to support the contract." " This rule has been recognized by all writers on contracts, and has been recognized by the highest court in this state; it is, therefore, as mvch the law of the land as the statute itself." (c) This question is fully discussed in the seventeenth chapter. Art. II.] Collateral Undertakings. 137 importance is not due to any eflficacy attaching directly to the consideration itself, but to ttie light which they shed upon the character of the promise. For if the third per- son was not liable, the promise must have been original in its character ; because there was no debt of another to which it could have been collateral. So when a promise to pay a debt due from a third person is taken out of the statute, because it is to be fulfilled out of a fund placed by him in the hands of the promisor, the existence of such a fund, as a part of the consideration, is material only because it shows that the promisor was already in some form liable to pay the debt, or that the promise was not to be fulfilled out of his own means, or that for some other reason his engagement was in reality of a different charac- ter from a promise to pay out of his own means, as in form it purported to be. So, also, if the consideration was the release or surrender of some lien upon property, available to the promisee for the collection of his debt ; the rule, as now understood, is that the promise is without the statute, only when the promisor was the owner of some title to or interest in the property, so that he acquired whatever was surrendered by the promisee ; the nature of the consid- eration, therefore, becomes material, as showing that the promise was in reality an undertaking to pay a charge already resting upon the promisor' s property ; and hence that he undertook merely for the payment of that which, in a qualified sense, was already his own debt. (<^) (d) As will be seen hereafter (chapter xvii), we deny the soundness of the general proposition, which some of the most respectable American authorities yet maintain, that a promise is without the statute, when the leading object of the promisor was to subserve some interest of his own; and the discharge of the third person was only to be incidentally accomplished by the fulfil- ment of the promise. Where the consideration of the promise was the simultaneous discharge of the third person from an antecedent debt, the promise is without the statute, for the same reason which obtains when the consideration of the promise was goods, etc., then delivered to the third person upon the credit of the promise only ; namely, because there was no debt to which the promisor's undertaking could be collateral. Those two classes o. cases illustrate the proposition stated in the text quite as forcibly 18 138 Collateral Undertakings. [Ch. n. § 54. In these cases, the nature, character and effect of the consideration are merely circumstances which show what was the substantial, as distinguished, (if necessary,) from the formal character of the promise. But if the cir- cumstances fail to show that the promise was not to answer for the debt, default or miscarriage of another, within some of the settled rules of construction, whereby undertakings, although in form of that character, are regarded as promises to answer for the debt, default or miscarriage of the promisor ; no consideration, however meritorious, or whatsoever may be its nature, character or effect, will suflace to enable the promisee to recover, unless he cJin produce, as evidence of the promise, a writ- ing satisfying all the requirements of the statute. This remark will be further illustrated by a reference to the general rules for testing the application of the statute, con- tained in the fourth article of this chapter ; in which, when- ever any mention is made of the consideration, it is referred to rather as descriptive of the transaction, than as a material element affecting the question whether the case is within the statute. § 55. Therefore no amount of hardship to the promisee, not even the fact that he has lost all remedy upon a meri- torious cause of action, in consequence of his reliance upon the promise, will save it from the operation of the statute. In Trustees of Free Schools, etc., v. Flint, 54 Massachusetts (13 Metcalf ), 589, A. J). 1847, the plaintiffs proved at the trial that the defendant was a member of a corporation which was indebted to the plaintiffs, and had become insolvent ; that the members had adopted a by-law as the others ; but the latter is not specially referred to with the rest, because the fact that the discharge was the consideration of the promise is believed to be immaterial. For the rule is equally applicable, when the con- sideration of the promise was something else ; provided that the debt was in fact discharged when the promise was made, or was to be discharged under such circumstances that an agreement to discharge it will suffice to satisfy the rule; a question discussed in a subsequent chapter Art. ri.] Collateral Undertakings, 139 pledging themselves to be individually liable for the debts of the corporation ; that the defendant himself had repre- sented to other creditors that the members were personally liable for the debts, and had handed them printed copies of the by-laws, upon which assurance they had advanced money to the corporation ; and that the defendant as treas- urer of the corporation, executed the note upon which the plaintiffs' demand was founded, in consideration of money advanced to it by the plaintiffs, through the defendant, as their treasurer ; but it was held, upon a case reserved, that he was not liable under the statute. § 66. And in Rogers v. Roger s^ 6 Jones (North Carolina), 300, A. D. 1859, the defendant's son had been imprisoned at Wilmington upon a charge of forgery ; and the plaintiff, at the son's request, went from his home, at a distance, to Wilmington ; procured a person at Raleigh, named Buf- falow to consent to unite with him in becoming bail for the son, provided the defendant would indemnify him ; and went to the defendant's house, at a distance in another direction, to procure him to execute the bond of indemnity. While there, the plaintiff expressed a fear that he would lose a debt which the son owed him ; whereupon the defendant replied "that if the plaintiff would go to Wil- mington with Buffaiow and become the bail of his son, he should lose nothing by what he had done or might do for him;" and afterwards, on the plaintiff requesting him to put this promise in writing, he answered that his word was as good as his bond, and called upon a witness present to take notice ; and then repeated the promise, \Ai\\ the addition that all the debts which the son owed the plaintiff should be paid. The plaintiff went to Wilmington with Buffaiow, and they became bail accordingly for the son; and the son being detained by writs in civil cases, which had been issued in the mean time, the defendant sent an agent, who, acting under a power of attorney from the plaintiff, compromised the debts upon which he was arrested, so that the son was discharged ; whereupon he left the State and did not return. In an action upon the 140 Collateral Undertakings. [Ch. ii. promise, it was held that so much of the promise as related to the debt then due by the son was within the statute, and there having been a payment of forty or fifty dollars made by the defendant, on account of the expenses of the journey, which, for aught the court could see from the evidence, was sufficient for that purpose, no notice to the contrary ever having been given to the defendant ; it was held that the judge at the trial correctly charged the jury that the defendant was not liable ; and a judgment for the defendant was accordingly affirmed on appeal. § 67. So in Hill v. Doughty, 11 Iredell (North Carolina), 195, A. D. 1850, the two defendants and their sister were equitably liable to refund to the plaintiff, a creditor of their father, so much of the distributive shares of their father' s estate received by them, as might be required to pay the* plaintiff' s demand ; and in consideration of for- bearance on the part of the plaintiff, to take proceedings to compel the defendants so to refund, they verbally prom- ised to pay the debt ; and it was held that the promise of each was void as to all but his one-third of the debt, and a joint promise by both was void in toto.(e) § 58. Of the numerous cases where the promise was held to be within the statute, when founded upon a considera- tion moving to the third person, it will be sufficient to cite only a few. Thus, where the consideration was an exten- sion of the time for payment of the debt, by the third person, or forbearance to sue him, either generally, or for a limited time,(/)or forbearing to distrain for rent upon (e) Compare this case with Templetons v. Bascom, 33 Vermont, 132. Both are fully cited hereafter. (/) Caston V. Moss, 1 Bailey (South Carolina), 14 ; Kirkham v. Marter, 2 Barnewall and Alderson, 613; Rothery v. Curry, Buller's Nisi Prius, 281; Bennett v. Pratt, 4 Denio (New York), 275; Simpson v. Patten, 4 Johnson (New York), 422 ; Jackson v. Rayner, 12 Johnson (New York), 291 ; But- ton V. Thrailkill,-5 Jones (North Carohna), 329 ; Dexter i;. Blanchard, 93 Massachusetts (11 Allen), 365; Musick v. Musick, 7 Missouri, 495; Scott v. Thomas, 1 Scammon (Illinois), 58; Kins,' v. Wilson, 2 Strange, 873; Smith V. Ives, 15 Wendell (Ne\^ York), 182; Packer v. Willson,15 Wendell (New York), 343. Art. II.] Collateral Undertakings. 141 Ms property (the defendant having no personal interest therein), (^) or forbearing to issue an attachment against h.im,{7i)eveTi although in consequence of such forbearance, upon the faith of the promise, the debt was ultimately lost to the promisee ;{i) or discontinuing or staying a suit already commenced against him,(^") or forbearing to issue an execution upon judgment recovered against him, (A:) or releasing the levy of an execution or attachment against his property,(Z) or surrendering to him a pledge, or a lien upon his property ;(m) in each of these cases, the consid- eration, however meritorious, has been held to be insuffi- cient to enable the promisee to maintain an action upon (y) Thomas v. Williams, 10 Barnewall and Cresswell, 664. (h) Jones V. Walker, 13 B. Monroe (Kentucky), 356; Watson v. Randall, 20 Wendell (New York), 201. (i) Westheimer v. Peacock, 2 Iowa, 528 ; Rogers v. Rogers, 6 Jones (North Carolina), 300; but see Larapson v. Hobart, 28 Vermont, 697, and Templetons v. Bascom, 33 Vermont, 132, commented upon in chapter xvii. (j) Tomlinson v. Gell, 6 Adolphus and Ellis, 564; Saunders v, Wakefield, 4 Barnewall and Alderson, 595 ; Cole v. Dyer, 1 Crompton and Jervis, 461'; Rowe V. Whiltier, 21 Maine, 545; Nelson v. Boynton, 44 Massachusetts (3 Metcalf), 396; Chater v. Beckett, 7 Term Reports, 201; Fish v. Hutchin- son, 2 Wilson, 94. (Je) Russell v. Babcock, 14. Maine, 138, as explained in Hilton v. Dinsmore, 21 Maine, 410; Durham v. Arledge, 1 Strobhart (South Carolina), 5; Alls- house V. Ramsay, 6 Wharton (Pennsylvania), 331; Caperton v. Gray, 4 Yerger (Tennessee), 563. (!) Boyce v. Owens, 2 McCord (South Carolina), 208; Nelson v. Boynton, 44 Massachusetts (3 Metcalf), 396; Lieber v. Levy, 3 Metcalfe (Kentucky), 292 ; Stern v. Drinker, 2 E. D. Smith (New York), 401. But there is a question whether the release of a sufficient levy, under an execution, would not have the effect to discharge the debt and to take the promise out of the statute for that reason ; which is discussed in a subsequent chapter. And it has been said in one case that such was the effect of the release of a levy under a domestic attachment, Tindal v. Touchberry, 3 Strobhart (South Carolina), 177 ; but doubtless this remark is based upon some peculiarity of the local law. (m) Per Gray, J., Furbish v. Goodnow, 98 Massachusett. 1861. There the action was to recover the value of goods sold by the plaintiffs to Cohen & Mendel, of Cincinnati, upon fraudulent repre- sentations of the defendants respecting their responsibility, and the proof showed that after the representations were made, one of the plaintiflTs, who transacted the business on behalf of his firm, said that he was not satisfied ; and the defendants then offered and agreed to indorse Cohen & Mendel' s note, on being paid two and a-half per cent therefor. The goods were then delivered, but the note given by Cohen & Mendel therefor was not paid, nor was it indorsed by the defendants. Upon the trial, the judge charged the jury that if the plaintiffs relied on the indorse- ment, and not on the representations, they should find for the defendants ; but if the goods were sold upon the faith of the representations, they should find for the plaintiffs ; and he refused to charge, as requested by the plaintiffs' counsel, that if the representations in any degree contrib- (g) See Boyd v. Stone, 11 Massachusetts, 342, A. D. 1814, where there ■was a similar ruling in a case arising under the fourth clause of this Eection. 182 Collateral Undertakings. [Ch. iv. uted to induce the plaintiffs to sell the goods, the plaintiffs were entitled to recover. The defendants had a verdict, and the judgment thereon was reversed upon an excep- tion taken to the refusal to charge ; the Court saying that the charge seemed to contain an intimation to the jury, that the plaintiffs could not recover, unless they sold the goods solely upon the faith of the defendants' representa- tions ; and to leave it to the jury to determine, upon which one of the inducements the plaintiffs parted with their property. The opinion (per White, J.) states the rule as follows : "A true test in such cases may be found in the inquiry, whether the plaintiff would have sold the goods if the false representations had not been made ? If he would, then the false representations did not contribute to the sale, for he would have made the sale without them. But if he would not have sold them without the repre- sentations, then they contributed to the sale ; and the party making them is responsible for the damage which the plaintiff suffered, notwithstanding that other equally powerful motives may have influenced his mind at the same time in the same direction, and without the exist ence of which he would not have come to the conclusion to sell. It is plain that each one of several concurring considerations or motives, may be so necessary to induce the performance of an act, that, in the absence of any one of them, the act would not be done ; and when they are all thus necessary, and all concur, each one of them must be deemed to have aided in producing the act and its conse- quences. In the case before us, the two things, the represen- tations made by the defendant respecting the responsibility of Cohen & Mendel, and the supposed security furnished Dy the indorsement of Stine & Mendel (the defendants), may have hotli heen necessary to the conclusion to which the plaintiffs finally came, to sell the goods to the Cincinnati firm. Neither separately might have been a sufiiciently powerful inducement, while both united would be. "(A) (7?) See also Thompson v. Bond, 1 Campbell, 4, where it was held that a fraudulent representation that the party to whom goods have been delivered was authorized to pledge a third person's credit therefor, will not prevent a recovery in assumpsit against the party himself, if the seller in fact gave credit to the person to whom the delivery was made. Art. III.] Collateral Undertakings. 183 ARTICLE III. Where a promise has been made to do some act, tending to the discharge of a liability of a third person to the promisee, bat not directly " to answer for " the same. § 112. The expression "to answer for," apparently implies that the cases for which the statute intended to provide, are those where the promisor enters into a direct undertaking, to assume a liability resting upon a third person, either absolutely or in case of the latter' s default. Consequently a promise is not within the language of the statute, which does not in terms bind the promisor to dis- charge such a liability, although it contemplates the per- formance of some act tending to effect such a discharge, and the damages for its breach would be measured by the amount of the demand. Whether such promises, although not strictly -within the letter, are not so far within the meaning of the statute, as to be included within its provis- ions, is a question of considerable diflBculty, which has been much debated ; but the weight of authority appar- ently favors the negative conclusion. § 113. Thus, in a nisi prius case which has been much criticised, Jarmain v. Algar, 2 Carrington and Payne, 249, and Kyan and Moody, 348, decided A. D. 1826, the declaration stated that one Flack was indebted to the plaintiff ; and for the purpose of recovering his debt by action, the plaintiff had caused to be issued against him a latitat, indorsed for bail for 34Z. ; whereupon, in consid- eration that the plaintiff would forbear to arrest Flack upon that writ, the defendant undertook to execute a bail bond for Flack, upon process to be issued to Sussex or Middlesex at the suit of the plaintiff, when tendered to him, within one week from the time of making the promise. The declaration then averred the issuing of process to Middlesex ; the tender of a bail bond to the defendant ; and his refusal to execute it. At the trial, the plaintiff proved a written undertaking of the tenor stated in the declara- tion ; but it contained no expression of the consideration. The defendant's counsel asked for a nonsuit on two 184 Collateral Undertakings. [Ch. iv. grounds, namely, that the writing was insufficient within the statute of frauds, and that the plaintiff had failed to prove a sufficient tender of a bail bond for execution by the defendant. Abbott, C. J., said: "As at present advised, I think this undertaking is not within the statute of frauds, and is not a promise to answer, etc., within the meaning of its provisions." With respect to the other point he thought that it had better be reserved till after the verdict ; and the jury having found for the plaintiff, he held that the plaintiff had failed to prove the tender, and on that ground directed that a nonsuit should be entered, with leave to the plaintiff's counsel to move to enter a verdict for the plaintiff; but the report states that no motion was ever made, (a) § 114. The case of BusTiell v. Bea-^an, 4 Moore and Scott, 622, and 1 Bingham' s ISTew Cases, 103, decided in the English Common Pleas in 1834, involves a similar principle ; and it is of much greater weight as authority than the preced- ing ; as it was elaborately argued, and carefully considered by a full court. The action was brought to recover dam- ages, for the failure to procure the signature of one Macqueen to a written guaranty ; and also upon a guar- anty of the same general tenor signed by the defendant himself ; but, as the court were with the defendant upon the last mentioned cause of action, the first only will be referred to here. At the trial it appeared that the plaint- iffs were the owners of the ship Warrior ; and she, needing some repairs, had gone into the dock for the purpose of having them made; the plaintiffs and one Sempill hav- ing previously entered into a charter-party for the hire of (a) The case of Elkins v. Heart, Fitzgibbon, 202, A. D. 1731, was similar to this, being an action upon a promise that J. G. should not go beyond the kingdom without paying a debt due from hira to the plaintiff, made in con- sideration of forbearance in an action brought against the said J. G. by the plaintiff. The plea was that there was no note in writing, etc., to which the plaintiff demurred. The report says: The court " inclined that there was a new consideration, and therefore it was not for the debt of J. G., and so not within the statute j sed adjurnatur." Art. III.] Collateral Undertakings. 185 the ship to Sempill, after the repairs should be completed. In fact the ship was not ready for sea within the time pro- vided for by the charter party ; and for that and other reasons a dispute arose between the plaintiffs and Sempill, in consequence of which the plaintiffs refused to allow the ship to go to sea. After considerable negotiation, the dis- pute was finally settled, Sempill securing the plaintiffs satisfactorily for six months hire of the ship ; and in addition it was one of the terms of settlement, that the defendant should procure T. P. Macqueen to sign a cer- tain document, which was drawn up and assented to by the parties ; by the terms of which, after reciting that the char- ter party had been entered into ; that Sempill had secured the payment of the freight for the six months, and was about to leave England in the ship ; Macqueen, in con- sideration thereof, agreed to guaranty "the due and faith- ful payment of all freight, for the use or hire of the said ship, which shall or may become due and payable from the said H. C. Sempill, for any period beyond the said six months." The defendant at the foot of a copy of the written guaranty, prepared for Macqueen' s signature, wrote and signed this undertaking: " I undertake to get a copy of the above guaranty duly signed by Thomas Potter Macqueen, Esq., M.P., and within a week delivered to Mr, Brittan" (the attorney for the plaintiffs). This settlement was made on the 6th of October, 1829 ; and in consequence of it, the plaintiffs suffered the Warrior to proceed to sea, and she sailed accordingly on the 10th of the same month. The guaranty was not executed by Macqueen, although the defendant was repeatedly applied to for that purpose ; and in this action the plaintiffs claimed damages to the amount of upwards of 1500^., being the amount unpaid by Sempill for the hire of the ship after the six months. A verdict was found for the plaintiffs, upon a case subject to the opinion of the court ; and upon the argument the defendant' s counsel insisted, among other things, that the memorandum at the foot of the letter, did not satisfy the statute of frauds, as it did not contain any expression of the consideration ; and also 24 186 Collateral Undertakings. [Ch. iv. ttiat as the proposed guaranty, to be signed by Macqueen, contained no expression of the consideration, the defend- ant was at most liable only for nominal damages, by reason of his failure to procure Macqueen to sign it. § 115. But on the point that the defendant' s agreement was not sufficient within the statute, Tindal, C. J., delivering the opinion of the court, after reciting the facts, said : ' ' Under these circumstances the contract appears to us not to be a contract to answer for the debt, default or miscarriage of any other person ; but a new and immediate contract between the defendant and the plaintiffs. If Mr. Macqueen had signed the guaranty, that guaranty would indeed have been within the statute of frauds ; for his is an express guaranty to be answerable for the freight due under the charter-party, if SempUl did not pay it. But no person could be answer- able upon the promise to procure his signature, but the defendant. Sempill had never engaged to get the guaranty of Macqueen, nor had Macqueen engaged to give it. There was therefore no default of any one for which the defendant made himself liable ; he did so simply upon his own immediate contract. For as to any default of Sempill in paying the freight, the action on the undertak- ing of the defendant, could not be dependent on that event ; for it would have been maintainable, if the guaranty were not signed at any time after the day, on which the defendant engaged it should be given ; that is, long before the time when the freight became payable." The learned Chief Justice next considered the question arising on the terms of the intended guaranty of Macqueen ; as to which he said, that there was no consideration upon the face of it, either directly expressed, or to be supplied by fan- and necessary inference. The inducement related entirely to past events ; the entering into the charter-party ; the pay- ment of the six months freight by Sempill; and his intended departure in the ship. All this, he said, is "past and by gone consideration." So that if the guaranty had been executed, an action upon it would have necessarily failed, Art. HI. J Collateral Undertakhstgs. 187 and the defendant is therefore liable to nommal damages only. The verdict was therefore ordered to stand for tlie plaintiffs, but the damages were reduced to one shilling. (J) § 116. The decision in Towne v. Grover^ 26 Massachu- setts (9 Pickering), 306, A. D. 1830, presents a very good illustration of the same general principle. The declara- tion was to the effect that the defendant had entered into a contract with one Newell, whereby Newell was to build a house for the defendant, for a specified sum, payable when the house should be completed ; that Newell, being indebted to the plaintiff, desired to procure from him more lumber to finish the house ; and on the plaintiff refusing to sell him any more, the defendant, in consider- ation that he would do so, promised the plaintiff that ' ' if he would sell and deliver to Newell, the lumber necessary to finish the house, he, the defendant, would not settle with Newell for the house, until he had given the plaintiff sufficient notice, after the completion of the house, so that the plaintiff might secure himself by process of attach- ment upon the defendant, as trustee of Newell, for the whole of the debt which should be then due from Newell to the plaintiff ; " that the plaintiff thereupon gave Newell credit ; but the defendant had settled with Newell before the com- pletion of the house, without giving the plaintiff notice. At the trial the plaintiff was permitted to prove the prom- ise by oral testimony, notwithstanding the defendant's objection ; and he had a verdict, which the court refused to set aside. The opinion of the Court upon this branch of the case was as follows : "We think the promise is not within the statute of frauds. It is a separate, independ- (6) See Mallett v. Bateman, 35 Law Journal, N. S., C. P., 40, abstracted hereafter. The cases of Jarraain v. Algar, and Bushell v. Beavan, are severely criticised by Cowen, J., in his opinion in Carville v. Crane, 5 Hill, 483; and he apparently finds it necessary to overrule them both, in order to sustain his decision in that case. But there the promise was to become contingently liable for the debt itself, which creates a very broad distinction. See the case, cited at length, in chapter vii. 188 Collateral IlNDEETAKiisrGS. [Cli. iv. ent agreement, having no reference to tlie debt of Newell, except as to the measure of damages. The defendant was not to pay the debt of Newell, but was to give notice pre- viously to making a settlement with him, which would enable the plaintiff to obtain payment of his demand. Whether Newell paid the debt or not, the promise of the defendant would remain, to be performed, "(c) § 117. But a decided expression of opinion, against the doctrine that a promise can be taken out of the statute, because it had only indirectly the effect to render the promisor answerable for the debt of another, may be found in Scott V. Thomas, 1 Scammon (Illinois), 58, A. D. 1832. There the question arose upon demurrer to a plea of the statute, interposed as an answer to certain counts of the declaration, founded upon a promise to foreclose a mort- gage, which the defendant held upon certain lands of the plaintiffs' debtor ; to permit the plaintiff to buy in the property at a certain price, if it would not sell for more ; and, after satisfying his own debts, to pay the surplus, if any, to the defendant. The Court, rendering judgment for the defendant upon the demurrer, said : "In the argu- ment of this case, a distinction was attempted to be drawn between a promise to pay the debt of another, and a promise to do some collateral act by which such payment might be obtained. No such distinction, however, is recognized by any of the cases relied on, nor does any such exist. If the act promised to be done is, in its con- sequences, to operate as a discharge of the debt of another, the circuity of the process by which that object is pro- posed to be effected, does not vaij the principle of the case."(^ (c) It may be doubted whether the last sentence, which weakens the force of what goes before, contains a sound legal proposition. (d) Sec also the cases in chapter vii, article ii, subdivision 2 ; and the fol- lowing cases upon another branch of the statute : Rice v. Peet, 15 Johnson (New York), 503 ; Goodrich v. Nickols, 2 Root (Connecticut), 498. It must be conceded that the question is involved in considerable obscurity. Art. III.] COLLATEEAL UNDERTAKINGS. 189 § 118. It was also held by the English Court of Common Pleas, in Anstey v. Marclen, 4 Bosanquet and Puller (1 New Reports), 124, A. D. 1804, that where the fulfilment of the promise will result, not in the dis- charge of the debt, but in its assignment to the promisor, it could not be said to be a promise to "answer for" the debt of another within the meaning of the statute. The defendant, in an action of assumpsit, to recover a debt of 1,OOOZ., pleaded specially to all of the cause of action except 525^., in substance, that he, being indebted to the plaintiff and others, was unable to pay them in full ; and they (the creditors) computed and agreed among themselves, that the defendant's estate would pay not more than ten shillings in the pound ; where- upon it was proposed and agreed between such cred- itors and one Thomas Weston, by the defendant's pro- curement, "that the said Thomas Weston should and would pay, out of his own proper moneys, to the plaintift and the said several other creditors of the defendant, a sum of money equivalent to 105. in the pound on the amount of their respective debts, in full satisfaction and discharge thereof," which they would respectively accept in full satisfaction and discharge of the said debts ; fur- ther averring that Weston had, out of his own moneys, but for and on account of the defendant, subsequently tendered to the plaintiff 525Z. , being ten shillings on the pound of his demand, and that he had always been ready, etc. There was another special plea, in substance the same, except that the agreement was stated to have been made between the plaintiff, the defendant, and Weston. § 119. The defendant paid into court the 525Z. At the trial, it was shown that an agreement was made between the plaintiff and three other creditors, to accept from Weston 105. in the pound, "in satisfaction of the debts due to them from the defendant, and to assign those debts to the said T. Weston ' ' ; and tliat the others had signed a writ- ten agreement to that effect, and had been paid the amount of the composition by Weston ; that the plaintiff at one time 190 Collateral Undertakings. [Cli. iv. authorized one of the others to sign for him, but after the others had signed, he refused to sign it, and withdrew the authority. It was contended, that the promise of Weston, being within the statute of frauds, formed no consideration for the plaintiff' s promise ; but, under the ruling of the Chief Justice, the defendant had a verdict ; and, after argument of a rule nisi, the court refused a new trial. Sir James Mansfield, in the opinion delivered by him, said, that when he made his ruling at the trial, he did not see how one person could undertake for the debt of another, when the debt for which he was supposed to undertake was discharged by the very bargain ; and he does not appear to have retracted that opinion. But he put his decision upon all the circumstances of the case ; saying that the object of the transaction was to assign the debts to Weston ; and, after dwelling upon the plaintiff's "ex- tremely bad" conduct, he concluded by saying that, upon the whole, he thought this was a purchase of the plaintiff' s demand, and for that reason a new trial ought not to be granted. Rooke, J., also said that it was a purchase of a debt. Chambre, J., said that it was a contract to purchase the debts ; and that "it was of the substance of the agree- ment that the debts should remain in full force to be assigned to Weston ; " and he had a right to use the names of the creditors to collect the full amount, so that "instead of being a contract to discharge Marden from his debts, it was a contract to keep them on foot;" but, as Weston wished to sustain the verdict, in the exercise of the discre- tionary power confided to them, the court ought not to set it aside. He added, that if the agreement was as repre- sented by the pleas, he should have thought that the case was within the statute. CHAPTER FIFTH. GENERAL OBSERVATTONS UPON THE CASES DEPENDING UPON THE WORDS "debt, DEFAULT, OR MISCARRIAGES." AKTICLE I. Meaning and effect of tiese words, as used in this clause of the statute. § 130. We now enter upon the examination of tlie cases within the fourth class of the second general division, being those "where there was no original liability for a 'debt, default or miscarriage,' to which the undertaking of the promisor could be collateral. ' ' {a) They are very numerous and present many difficult questions, some of which are yet entirely unsettled, and several chapters wUl be required to complete the discussion. At the outset, we propose briefly to inquire what is the precise significance to be attached to the expression " debt, default or miscarriages." § 121. In Castling v. Auhert, 2 East, 325, A. D. 1802, a case which we shall have occasion to cite at length in a subsequent chapter. Lord EUenborough apparently regarded the words "default" and "miscarriage" as synonymous, or nearly so. There the question arose upon the defendant' s verbal promise, made in consideration of the surrender to him of certain policies of insurance issued in favor of one Grayson, to provide for the payment of certain bills drawn by Grayson upon the plaintiff*, and accepted by the latter for Grayson' s accommodation, as indemnity against which the plaintiff" held the policies. At the time of the agreement one of the acceptances had matured, and an action had been commenced thereon against the plaintiff" and Grayson ; and this action was brought to (a) Ante, § 70. 192 COLLATEEAL UjSTDERTAKUSTGS. [Ch. V. recover damages for the failure to provide for that accept- ance. Lord Ellenborough, C. J., said: "lam clearly of opinion that this is neither an undertaking for the debt, default or miscarriage of another within the statute. It could not be for the debt, but rather for the credit qf another ; for when the promise was made, no debt was incurred from Grayson to the plaintiff ; therefore, if at all within the statute, it must be for the default or miscar- riage of another." § 122. The distinction suggested by his lordship between a debt and a default is undoubtedly correct, as the former word indicates a liability arising out of a contract, express or implied, to pay money to the promisee, whether the time for payment had then passed or was yet to come ; whereas the latter word is more appropriate to designate a breach of some duty to the promisee, other than to pay money, whether it arose from an express contract, or from some liability created by law. Therefore "default" forms, in one aspect, a connecting link between "debt" and "miscarriages," of which one relates exclusively to con- tracts and the other peculiarly to torts, "default" being applicable with equal propriety to either ; but, in another aspect, it serves to remove a doubt, which might have arisen, whether the statute was not confined to past trans- actions ; inasmuch as ' ' debt ' ' and ' ' miscarriages ' ' are peculiarly applicable, and might have been construed to refer exclusively to such ;(&) whereas "default " can mean nothing but the breach of a duty or the non-payment of a debt yet to be discharged. The sentence is therefore exceed- ingly comprehensive ; and the three words, taken together, seem to include every act for which the third person might be subjected to an action, either at the time of the promise or subsequently, (c) (h) In fact there was an effort made to exclude from this clause of the statute a promise to answer for a "debt" thereafter to be contracted, as we shall see in the next chapter. (c) It will be seen upon an examination of the schedule prefixed to thia volume, that in several of the acts in force in the United States, the legisla- tures have substituted " doings " or " misdoings " in place of " miscarriages." Aii;. 1.] Collateral Undertakixgs. 193 § 123. And yet considerable doubt was at one time expressed, whether the words of the statute included a promise to answer for a tort committed by another. This doubt appears to have arisen partly from the decision in Read v. Nasli^ 1 Wilson, 305, although there is nothing in that case to justify it,(<^) and partly from some remarks of the court in Buckmyr v. Dariiall, (e) as contained in the reports in 2 Lord Raymond, 1085, and 6 Modern, 248. There it is said, that one of the difficulties which the judges found, upon consultation, in holding the statute to be ap- plicable to the defendant' s promise, (which was that a third person should redeliver to the plaintiff, a horse hired to him by the plaintiff, at the defendant' s request) grew out of the argument that, if the original bailee did not rede- liver the horse to the plaintiff on demand, he would be liable only in trover or in detinue, founded upon a subse- quent tort, and not upon any promise. And the decision was finally placed upon the ground, that the bailee was liable on the bailment, in detinue on the original delivery. § 124. But whatever doubts may have arisen upon any thing said in these cases, they were set at rest by the decision in Kirkham v. Ifarter, 2 Barnewall and AMer- son, 613, A. D. 1819, where the language of the statute was subjected to a close criticism. There the question was, whether an action would lie on the defendant' s verbal promise, to the effect that he would pay the plaintiff a certain sum in consideration of his not bringing an action against the defendant's son for wrongfully riding his horse to death. (/) Upon an application for a rule to set aside a nonsuit, counsel contended that the statute did not apply to a promise to be answerable for another's tortious act; but Abbott, C. J., said that this was a case clearly within the mischief intended to be remedied by the statute, and he thought the words of the statute were (d) See the case abstracted in § 130. (e) Section 143. (/) The substance of the declaration is given, post, § 133. 25 194 COLLATEKAL UNDERTAKINGS. [Ch. V. sufficiently large to comprehend it. After quoting the words, he added : ' ' Now the word ' miscarriage ' has not the same meaning as the word 'debt' or 'default'; it seems to me to comprehend that species of wrongful act, for the consequences of which the law would make the party civilly responsible. The wrongful riding the horse of another, without his leave and license, and thereby causing his death, is clearly an act for which the party is responsible in damages, and, therefore, in my judgment, falls within the meaning of the word 'miscar- riage.'" Holroyd, J., said: "I think the term 'miscar- riage' is more properly applicable to a ground of action founded upon a tort, than to one founded upon a con- tract ; for in the latter case the ground of action is that the party has not performed what he agreed to perform ; not that he has misconducted himself in some matter, for which, by law, he is liable. And I think that both the words ' miscarriage ' and ' default ' apply to a promise to answer for another, with respect to the non-performance of a duty, though not founded upon a contract." Best, J., said that the case was within the spirit and princi- ple, as well as the words, of the act ; that there was nothing to restrain these words, 'default' or 'miscarriage'; and it appeared to him that each of them was large enough to comprehend this case.(p') § 125. Very similar to KirTcliam v. Marter, is the recent American case of Combs v. Harsliaw, 63 North Carolina, 198, A. D. 1869. There it appeared that, in 1864, the (j7) See also Tarner v. Hubbell, 2 Day (Connecticut), 457. In Smith v. Fall, 15 B. Monroe (Kentucky), 443, A. D. 1854, the court held that a promise that a third person, in whose hands the plaintiff had placed a note for collection, should collect the same and pay over the amount to the plaintiff, was void, because not in writing; but the provision of the statute cited and commented upon is the one corresponding with the sixth section of Lord Tenterden's act. (See ante, page 44.) It is singular that the court should have put the decision upon the construction of that provision, for its application is quite doubtful, while the fourth section of the statute of frauds applies unmistakably. Art. II.] COLLATEEAL UNDERTAKINGS. 195 defendant' s son, who was under age, and a soldier in the confederate service, met the plaintiff, and forcibly took from him his horse. After the war was ended, the son, in consequence of this and other acts, left his father's house ; and the defendant, upon the plaintiff demanding payment for the horse, promised "that if the former would allow his son to come home," he would refer the matter to some neighbors, who should say what ought to be done. The defendant afterwards refused to refer, and thereupon this action was brought ; and the plaintiff had a verdict, the judge holding, at the trial, that the promise was not within the statute, because it was new, and supported by a sufficient consideration. The verdict was set aside U]Don appeal, the Supreme Court holding that the promise was within the statute, it having been simply superadded to the son' s liability, without any release of the latter. ARTICLE II. The statute does not apply, unless the promisor and the third person hecame concurrently liable, for the same debt, default, or miscarriage. § 126. The general principle which governs all the cases depending upon the words "debt, default, or miscar- riages," is, that in order to set the statute in motion, there must have been, at the time when the promise took effect, TWO CONCURRENT LIABILITIES. Indeed, this principle may be said to lie at the very foundation of every inquiry, whether a case is or is not within the provisions of the second clause of the fourth section ; and, in that respect, the distinction between the class now under examination, and the other, classes, is that the latter are clearly within the condition of the principle ; so that, if the promise can be saved from the operation of the statute, some rule must be invoked for that purpose, which applies to a case where there were two concurrent liabilities. § 127. It is quite evident that the principle requires that the liability, to which that of the promisor is supposed to be collateral, should be one which can be enforced by pro- 196 COLLATEKAL UnDEKTAKINGS. [Ch. V, ceedings at law or in equity; and therefore, unless it appears that some person, other than the promisor, has incurred an actual liability with respect to the subject- matter of the promise, the agreement is not within the statute, although the third person may be under an imper- fect, or merely moral obligation to respond. Thus, in Downey v. Hincfiman, 25 Indiana, 453, decided A. D. 1865, the action was to recover upon a mutual agreement between the three plaintiffs, the defendant, and four other persons, (eight in all,) whereby the parties agreed to con- tribute equally towards the expense of procuring eight substitutes, to take the places of the minor son of the defendant and the seven parties to the agreement, other than the defendant ; all of whom had been drafted into the service of the United States. The plaintiffs were appointed a committee to procure the substitutes, and this action was brought to recover one-eighth of the expenses incurred by them in so doing. The grounds of the defence were, that the agreement was without consideration, and that it was within the statute of frauds ; both of which were overruled. Upon the latter point the court said: "To make the promise collateral, the party for whom the promise is made must be liable to the party to whom it is made." "In the case in judgment, Archibald Downey, the minor son of the defendant, was in no way liable to the plaintiffs. If the plaintiffs had procured a substitute for him without his request, there would have been no liability thereby created from him to them. The substitute was procured by the plaintiffs upon the promise and agreement of the defendant, and he alone is liable therefor." § 128. So in Smith v. Mayo, 83 Massachusetts (1 Allen), 160, A. D. 1861, the defendant had drawn an order on the plaintiffs for SlOO worth of lumber, to be delivered to one Savage, who was building an addition to the defendant' s house, under a contract to furnish all the materials and do the work for a specified sum ; by mistake the plaintiffs delivered to Savage $160 worth, and charged it to the defendant. When they discovered their mistake they Art. II.] Collateral Undertakings. 197 presented tlieir bill to the defendant, and he, with full knowledge of the facts, orally promised to pay it. It appeared, also, that the plaintiffs had stated that they regarded Savage as their debtor for the amount ; and they had taken an order from him on the defendant for the balance of $60, which they presented to the defendant for acceptance ; but the latter had paid Savage in full. It was held that the promise was made upon sufficient con- sideration ; and, also, that it was not within the statute, doubtless upon the principle now under examination, although the court assigned no specific reasons for its decision upon this point. § 129. And the two liabilities cannot be called concur- rent^ even if the third person was liable for some debt or duty, unless it was the same debt or duty which the promisor undertook to discharge. This proposition, which is, in theory, very obvious and easy of application, has nevertheless sometimes led to considerable perplexity. There are a few cases, where the promise grew out of a claim of precedent liability against the third person, and the practical effect of its fulfilment would be to relieve the latter, wholly or in part, from that claim ; and yet, it was held, that the promise was without the statute ; either because the third person' s discharge was not expressly stipulated for ; or because it did not appear, either from affirmative proof, or from any admission contained in or implied by the contract between the parties, that the claim of liability against him could have been enforced by an action. These cases have led to considerable discussion, which has not yet relieved some of them from obscurity ; and we will proceed to examine them in this place ; for we regard them as properly depending upon the general principle just stated, notwithstanding the expression of a contrary opinion from several sources entitled to great respect. § 130. The most important of those cases, and one of the most celebrated of the early decisions under the statute, is 198 Collateral Ukdertakings. [Ch. v. Beady. JVasTi, 1 Wilson, 305, decided in the King's Bench in the year 1751. («;) There the plaintiff sued as executor of one Tuack, who, the report says, had "brought an action of assault and battery against one Johnson. The cause being at issue, the record entered, and just coming on to be tried, the defendant Nash, being then present in court, in consideration that Tuack would not proceed to trial, but would withdraw his record, undertook and promised to pay Tuack 501., and the costs in that suit, to be taxed till the time of withdrawing the record ; in which taxation all such sums of money were to be allowed as Tuack had paid, and was liable to pay, to his attorney and witnesses who attended the trial. Tuack, relying upon this promise, did withdraw the record, and no further proceeding was had in that cause." Tuack being dead, his executor brought this action upon the special promise by Nash ; and the defendant pleaded non assumpsit, and specially "that there was never any agreement in writing touching this promise, or any memorandum thereof' To the special plea the plaintiff demurred, and the defend- ant joined in demurrer. The cause was twice argued, and as the opinion of the court is short, it shall be given in full. Lee, C. J. : "The single question is, whether this promise, which is confessed by the demurrer not to have (a) The precise state of facts which was presented to the court in Read v. Nash was suggested, and the rule with respect thereto stated obiter, by Lord Chief Justice Holt, in Stevens v. Squire, Comberbach, 362, A. D. 1696. (S. C, 5 Modern, 205.) The case is a direct authority only upon the question whether, where the promise admits that the promisor was liable in another action, independently of the promise, the fact that another person was also alleged to be liable in the same action, brings the promise within the statute; but the Chief Justice having stated that such a promise was original, counsel for the defendant asked him whether it would not have been within the stat- ute, if the defendant had not been a party to the original action. Holt replied: "Put that case when it comes; but if A saith do not go on against B, eic, this being to be performed within a year, it will bind hira ; 'tis like the case of buyinw goods for another man, which is every day's practice. But if A saith, do not go on against B, and I'll give you ten pounds in full satis- fadion of thr.t action, that might be within the statute; but here he appears to be a f ^' ty concerned in the former action." Art. II.] Collateral Undertakings. 199 been in writing, is within the statute of frauds and per- juries ; that is to say, whether it be a promise for the debt, default or miscarriage of another person ? And we are all of opinion that it is not, but that it is an original promise, sufficient to found an assumpsit upon against Nash, and is a lien upon Nash, and upon him only. Johnson was not a debtor ; the cause was not tried ; he did not appear to be guilty of any default or miscarriage : there might have been a verdict for him if the cause had been tried, for any thing we can tell ; he never was liable to the particular debt, damages or costs. The true differ- ence is between an original promise and a collateral promise ; the first is out of the statute ; the latter is not, when it is to pay a debt of another which was already contracted. Judgment for the plaintiff." § 131. It is very clear from this opinion, that the cause was decided upon the solitary ground that, with respect to the particular moneys which the defendant under- took to pay, the third person, who was benefited by the promise, did not incur at the time it was made, and had not previously incurred, any liability whatever ; and there- fore the only purpose to which the case can be legitimately put, is to determine how close may be the connection between a claim of precedent liability and a new promise, without bringing the latter within the statute. The prom- ise was in two parts, namely, to pay the 501. and to pay the costs. The court must have thought it a valid promise as to both parts, otherwise the demurrer would have been sustained. (J) With respect to the promise to pay the 50^. there is but little difficulty, as the plaintiff would have been under no obligation to credit that sum upon his claim for damages, or upon any verdict or judgment which he might have recovered against Johnson ; hence, as to that part of it, the promise was entirely unconnected with Johnson' s liability. But the engagement to pay the costs, 80 nomine, was assuming a liability which would have (6) See Chater v. Beckett, 7 Term Reports, 201, A. D. 1797. 200 COLLATEKAL UNDERTAKINGS. [Ch. V. rested upon Jolmson, if lie had been defeated in tlie action ; and consequently tlie payment of that amount of money would have relieved him so much. It seems, therefore, incorrect to say that the cause was decided, as has been sup- posed by an eminent writer, on the ground that Johnson's liability would continue the same after the performance of the promise as before. But probably it was rightly held that the promise respecting the costs was not an under- taking for the debt of Johnson ; because, at the time of the promise, he was liable for them only in a future contin- gency, of uncertain occurrence. The principle is analogous to that whereby if the third person was not liable, when a verbal promise was made, it cannot be affected by a liabil- ity subsequently accruing, (c) (c) See post, § 152. There was, however, one feature in the case which appears to have been entirely overlooked by the court and counsel : namely, that although no part of the promise might have been an engagement to answer for the debt or default oi Johnson, that part of it relating to the costs was a promise to answer for the debt of Tuach to his attorney. In these days such an objection would not be sustained, because the promise was not made to the creditor (chapter xi); but, as will be shown in the proper place, no such distinction was recognized till many years after Read V. Nash was decided. And, if that objection had been taken, probably the decision would have been otherwise, and much subsequent perplexity would have been avoided thereby. Perhaps it would be no exaggeration to say, that Read v. Nash was discussed in half of the cases which arose under the second clause of the fourth section of the statute of frauds, for three quarters of a century after the decision was made. But we call to mind but six, where any promise was taken out of the statute upon its authority : namely, Bray v. Freeman, 2 Moore, 114; Harris v. Huntbach, 1 Burrow, 371; Edwards v. Kelley. 6 Maule and Selwyn, 204; Bird v. G-ammon, 3 Bingham's New Cases, 883, in each of which it controlled the opinion of one judge; Tomlinson v. Gill, Ambler, 330, where, if the decision was correct on this question, the reason assigned was probably erroneous; and Chapin v. Merrill, 4 Wendell, 657, where it was referred to with Tomlinson v. Gill. All these cases are abstracted elsewhere in this volume, and in each of them the application of Read v. Nash was very remote. If we were governed entirely by our own views of the practical importance of Read v. Nash, it would not occupy as large a portion of our space as we have felt bound to assign to it; but, although the fashion, which prevailed so long and so uni- versally, of citing it, for the purpose of distinguishing it from the particular Art. II.] Collateral Undertakings. 201 § 132, The Court of Common Pleas took an early occa- sion to limit the effect of the ruling in Read v. Nash, by its decision in Fish v. Hutchinson, 2 Wilson, 94, A, D. 1759. There, according to the report, the plaintiff declared "that, whereas one Yickars was indebted to him in a cer- tain sum of money, and he had commenced an action for the same ; the defendant, in consideration that the plaintiff would stay his action against Vickars, promised to pay plaintiff the money owing him by Vickars." Probably the declaration stated the promise to have been verbal, for otherwise the court must have presumed it to have been in writing. There was a demurrer and joinder in demur- rer ; and the question whether the statute applied was alone argued. The plaintiff's counsel contended that, case under discussion, is no-w growing obsolete, it fills, nevertheless, too conspicuous a position in the text books and the reports, to justify us in passing it over without careful attention ; and besides, an explanation of the case may be necessary to avoid misapprehensions of its effect. The authori- ties are quite at variance as to the principles which it establishes. In the note to Forth v. Stanton, in the sixth edition of Williams's Saunders, vol. 1, p. 211, b, the opinion is expressed that Read v. Nash is overruled by Kirk- ham V. Marter, 2 Barnewall and Alderson, 613, on the ground that, in Kirkham v. Marter, it did not appear that the son was liable for the death of the horse, except by the admission of the defendant, contained in his request to the plaintiff to forbear to sue; while in Head v. Nash, the admis- sion that the third person was liable, contained in the request to the plaintiff not to continue the suit, was equally strong. And in Chitty on Contracts, eighth edition, p. 478, the same opinion is expressed. But in Kirkham v. Marter, the declaration alleged that the third person had, in fact, committed the tort; and the agreement upon which the action was brought wa^, that the plaintiff should accept the amount undertaken for in satisfaction of his claim; the distinction between the two cases being precisely the one sug- gested by Holt, C. J., in Stevens v. Squire. And it is very clear that, in Kirkham v. Marter, the court did not suppose that they were overruling Read v. Nash. The latter case was followed in those already mentioned, and it continues to be cited as authority to the present day. Professor Parsons, in his Treatise on Contracts, vol. 3, fifth edition, p. 23, and note, says, that the true rule established by that case and Stevens v. Squire is, that, if the liability of the third person will continue, notwithstanding the performance of the promise, the agreement is not within the statute, a con- clusion which is commented upon in the text. Mr. Roberts, in his Treatise 26 202 Collateral Undeetakifgs. [Ch. v. under the decision of Read v. NasJi, the promise was not within the statute. "But per totam curiam : This case at bar is very clearly within the statute, for here is a debt of another person still subsisting, and a promise to pay it : and it is not like the case of Read v. HasJi, for that was," etc., (giving a statement of the facts). " So in that case there was no debt of another, it being an action of bat- tery ; and it could not be known, before trial, whether the plaintiff would recover any damages or not ; but, in the present case, here is a debt of another still subsisting and a promise to pay it. Judgment for the defendant." § 133. And in Kirliliam v. Matter^ 2 Barnewall and Alderson, 613, A. D. 1819, which was cited a few pages on the Statute of Frauds, p. 233, classes it with Tomlinson v. Gill, Ambler, 330, and some other cases, as establishing the rule, that, if the consideration of the promise takes its root in a trans;' ction distinct from the original lia- bility, the case is not within the statute, a doctrine which, in the broad terms stated by him, was long ago exploded. (See post, chapters xvi and xvii.) In Browne on the Statute of Frauds, § 157, it is said, that the case proves that the statute does not apply where it does not appear m point of fact that any debt or liabihty has been incurred ; which is substantially the same view taken of it in the text. Mr. Fell, in his Treatise on Guaranty and Surety- ship, p.. 10, also cites the case as showing that the debt of the third person must be subsisting, and not a mere demand for which the party may cr may not be liable. Among the numerous reported comments of judges and counsel upon the case, we find distinguished counsel saying, in the course of the argument of Turner v. Hubbell, 2 Day (Connecticut), 457, "In England, a withdrawment of the record is a bar to another action. It might hence seem as if the 50Z. was paid as damages." If such was, in truth, the effect of withdrawing the record, the promise would be now sustained on the ground that the defendant in the original action was discharged in consideration of its being made (chapter ix) ; a prmciple which was not generally recognized even as late as 1807, when that case was argued. But we have searched the English books of practice in vain for any such rule. Under the old common law practice in New York, a withdrawal of the nisi prius record had no other effect than to put the cause over the term. Such, we doubt not, was also the rule in England. Still, it is to be noted that Sir Fletcher Norton, commenting upon the case, in the course of his argument in Williams v. Leper, 3 Burrow, 1886, speaks of it as if Johnson had been discharged. Art. II.] Collateral Undertakings. 203 back, the ruling of the last case was applied to a promise, founded upon forbearance to prosecute an action, to recover damages for a tort. There the declaration stated that the son of the defendant had, without the plaintiff's leave, wrongfully ridden the plaintiff's horse, in conse- quence whereof the horse died ; that the plaintiff had threatened to commence an action against the son therefor, and, in consideration that he would not do so, "and that the plaintiff would be content to take, for and on account of the said horse," certain sums, to be ascertained as therein particularly mentioned, the defendant agreed to pay those sums ; and they having been so ascertained, this action was brought upon that promise to recover the amount thereof. At the trial, the plaintiff proved a verbal promise as laid in his declaration, and was nonsuited. Upon a motion for a rule for a new trial, it was argued that the statute did not apply to cases of tort ; and that as the son owed no debt to the plaintiff, a verbal promise was good, under the decision in Read v. Nash ; but after over- ruling the first proposition, Abbott, C. J., said: "The case of Read v. Nash is very distinguishable from this ; the promise there was to pay a sum of money as an induce- ment to withdraw a record, in an action of assault brought against a third person. It did not appear that the defendant in that action, had ever committed the assault, or that he had ever been liable in damages ; and the case was expressly decided on the ground that it was an original and not a collateral promise. Here the son had rendered himself liable by his wrongful act, and the promise was expressly made in consideration of the plaintiff's forbearing to sue the son. I think therefore the nonsuit is right." § 134. The two latter cases confine the ruling in Read v. Nash within narrow and tolerably well defined limits. They hold, that whenever the promisor undertakes to respond for any debt or damages, for which it is conceded that the third person is also liable, the promise is within the statute ; though it may be for the payment of a definite 204 Collateral XlKDERTAKmes. [Ch. v. sum, while the debt or damages for which the third person is liable are indefinite in amount, or even grow out of a wrong committed by him. The only promises to which, under those limitations, the decision in Read v. Nasli will apply, are those where it clearly appears, in the language of the case itself, that the third person "never was liable to i\iQ particular debt," although the promise related to, and is closely connected with, some debt or demand which the promisee is, or claims to be entitled to enforce against him. § 135. The case of Read v. Nash is said to have been followed in Bray v. Freeman, 2 Moore, 114, decided in the Common Pleas, A. D. 1818. There the plaintiff, in his first count, declared upon a promise by the defendant to accept a bill of exchange particularly described, to be drawn by the plaintiff upon him, for a debt due to the plaintiff by his father, for which he "intended and was about to sue" the father; and, in consideration that he would forbear to do so, the defendant made the promise in question ; concluding with averments of forbearance by the plaintiff against the father ; of a special request to, and refusal by the defendant, to accept such a bill of exchange as the promise contemplated ; and that the debt from the father was still due and unpaid. In his second count, the plaintiff averred the acceptance of a bill of exchange by the defendant for the debt. To these were added the money counts. At the trial the plaintiff proved a letter from the defendant to him in the following words : "Mr. Bray — If you will draw a bill at six weeks' date for my father' s balance, dating it to-day, due 26th next month, I will accept it. S. W. Freeman;" and that a bill was accordingly tendered for acceptance, and acceptance refused. The defendant moved for a nonsuit, on the ground that, as no consideration was mentioned in the letter, the case came within the statute of frauds ; and also because there was a trifling variance between the declara- tion and the proof, touching the amount of the debt due from the father. But the plaintiff had a verdict, and the Art. II.] Collateral Undertakings. 205 defendant moved for a rule to show cause wh}^ it should not be set aside, on both objections. "But," the report says, "the court referred to the case of Ready. Nash, where it was decided that a parol promise to pay a certain sum to the plaintiff, in consideration of his forbearing to sue a third person in an action of assault, was not within the statute ; because there was no debt, default or miscar- riage of another for which to be answerable ; and therefore granted the rule on the ground of variance alone ; ' ' which question was subsequently argued at length, and the case decided without any further allusion to the statute of frauds; the result being that the rule was discharged. (rZ) § 136. But a recent American case, JepJierson v. Hunt, 84 Massachusetts (2 Allen), 417, A. D. 1861, well illustrates the kind of promises which are saved from the operation of the statute by the principle of Read v. Nash, although that case was not cited in the opinion. This was an action to recover interest on the agreed value of damages to the plaintiff's lands, which had been taken by a railroad com- pany for the purpose of its road. It appeared that the plaintiff and the company had agreed in writing upon the valuation of the land at one hundred and fifty dollars ; and, as a part of the arrangement, the defendant orally agreed with the plaintijQT to pay him interest on tha.t amount, until the circumstances of the company should enable it to pay the money. But the agreement with the company, so fixing the amount to be awarded to the plaintiff, was dependent upon the approval of the county {d) The case is also reported in 8 Taunton, 197, but that report contains no allusion to the question arising upon the statute. The report in 2 Moore, as far as that point is concerned, is incomprehensible, and must be inaccurate. The declaration alleged, and the proof showed, that there was a debt due from the father to the plaintiff; and that fact is assumed and commented upon in discussing the question of variance, the decision being put upon the ground that the plaintiff intended to set forth the debt due from the father, and the amount was only stated under a videlicit. On the motion for the rule nisi, counsel cited the case of Fish v. Hutchinson (ante, § 132), which is exactly in point to show that the promise was within the statute. 206 Collateral Undeetakings. [Cli. v. commissioners, by an award to be made, in a proceeding ■vvliicli had been instituted to appraise the damages to the land owners, pursuant to the statute ; and that award had not been procured at the time the suit was commenced ; in fact it would seem that no action had been taken in the proceeding for the appraisal of damages, since the agree- ment was entered into. It was objected that the defend- ant' s agreement was within the statute ; but the court held otherwise, for the reason that until the award was made, the company was under no liability to pay interest, either as a matter of contract, or as damages resulting from the withholding a sum of money justly due to the plaintiff, (e) § 137. The recent case of Prentice v. WilMnson, 5 Abbott's Practice Reports, N". S., 49, decided in the New York Common Pleas, A. D. 1868, also appears to corre- spond very closely with Bead v. Wash, and to depend upon the same principle ; although neither of the members of the court placed his decision upon that ground. The action was to recover for the services of the plaintiff, as the attorney for one Mrs. Wilkinson, in an action for a divorce against her husband, the defendant' s brother ; and it appeared at the trial that an application for alimony had been made in that action ; that, while it was pending, there was a meeting between Mrs. Wilkinson, her husband, and the plaintiff and the defendant in this action ; that the divorce suit was then settled ; and in consideration of the settlement, and as a part of the terms thereof, the defend- ant agreed to pay the plaintiff seventy five dollars for his services in that action. The plaintiff had a judgment, which was afiirmed on appeal by a majority vote. Various reasons were assigned by the judges for their respective (e) The decision was also partly put upon the ground that the main object of the promisor was to secure a benefit to himself; a doctrine which is dis- cussed in chapter xvii. But the foregoing is the ground upon which the court seem principally to have relied, and it is more satisfactory than the other, which, even if it is tenable, implies that the company was liable to pay the interest; as very clearly it was not. A it. II.] COLLATEEAL UnDEETAKINGS. 207 opinions, none of wliicli are entirely satisfactory. But it seems very evident that the promise was not within the statute, because there was no ascertained debt for which any person except the defendant was liable to the plaintiff; Mrs. Wilkinson being protected from liability by her coverture, and her husband not being liable for this debt, precisely as Johnson was not liable for the particular debt assumed by the defendant in Read v. JSfash.^f) (/) Daly, First Judge, thought that the promise was not within the statute because "it was a direct promise to pay to the phiintiff a certain sum of money for an object to be effected, and which constituted the consideration of the promise; namely, the settlement and discontinuance of the suit." And he said that it was immaterial whether the promise was made to Mrs. Wilkinson or the plaintiff; for if it was made to her, the plaintiff could recover upon it, within the principles discussed in chapter xii of this volume. Brady, J., said, that although the defendant in the divorce suit was not indebted to the plaintiff in this suit, "the latter had an inchoate claim, rest- ing upon the a^nost universal practice of allowing the wife, when plaintiff in a divorce suit, a sufficient sum to employ counsel to conduct her case; and the plaintiff, by consenting to discontinue, yielded his right to apply for it against the defendant in that suit." The learned judge thought that these circumstances brought the case within the principle, that when the original debt was extinguished the promise is not within the statute. Barrett, J., dissented, holding that the promise was within the statute, because the con- sideration did not move to the defendant. He said that the new undertak- ing was not accepted as a substitute for an original demand; for if the plaintiff had any remedy against the wife for his fees, it was still in full force; while the right to apply for a counsel fee in the divorce suit, was not an original and vested debt or demand, the extinction of which would take the case out of the statute. He added that it did not distinctly appear from the evidence that the action had been discontinued, or that the right to apply for a counsel fee had been lost; and he compared the case to Tomlinson v. Gell, 6 Adolphus and Ellis, 564 (cited in chapter xvi). For these reasons he thought that the statute prevented a recovery. But in Tomlinson v. Gell, the plaintiffs client was clearly liable for the costs. Undoubtedly the extinguishment of a contingent claim for alimony or counsel fees, in a divorce suit, would not take out of the statute a promise which otherwise would be within it; even if it was a claim which the attorney could assert against the opposite party. But the very fact that it is not a legal demand, shows, that in this case there was no original liability, to which the defendant's promise could be collateral. 208 COLLATEEAL UNDERTAKINGS. [Ch. V. § 138. With these preliminary explanations, we proceed to the examination of the two subdivisions, into which, as was stated in indicating the classification adopted in treat- ing tJiis subject, the cases depending upon the failure of the two liabilities to concur, have been divided, (g) These SuVQ, first: Cases where the third person had incurred no corresponding liability at the time when the promise took eftect ; and, secondly : Cases where a previous correspond- ing liability, incurred by him, had been discharged before the promise took effect. (gr) See ante, § 70. CHAPTER SIXTH. OASES WHICH ARE NOT WITHIN THE STATUTE, BECAUSE THE THIRD PERSON HAD INCURRED NO LIABILITY COR- RESPONDING WITH THAT OF THE PROMISOR, AT THE TIME WHEN THE PROMISE TOOK EFFECT. § 139. The cases within this subdivision of the fourth class, are those which most affect the daily business inter- course of mankind, especially among persons but little versed in the technicalities of the law. They have almost invariably this feature in common : that one person has parted with his money, his property, or his labor, to another, in whose responsibility he had little or no confi- dence, for which reason he exacted and received an under- taking from a person, other than the one so benefited, that he should receive the consideration agreed upon. Conse- quently they are very numerous, and present a great diversity of detail in the facts upon which they depend ; whence have sprung many rules and distinctions, subor- dinate to or qualifying the general principle which governs them all, and giving rise to several questions of doubt and difficulty. The rule, by which to determine the applica- tion of the statute to this class of cases, is contained in the following proposition, being the third of the nine general rules of our series : RULE THIRD. Where tiere was no antecedent liability of the third person, and the promise was fonnded upon a consideration moving to him, it is without the statute if the third person did not become liable to the promisee, together with the promisor ) and vice versa, if he did so become liable, it is within the statute. § 140. This rule may be said to admit of no exceptions, unless one arises where the promisor and the third person assumed a joint liability. Of late a strenuous effort has been made to introduce that exception, which has appar- ently been partially successful ; and we shall have occasion to examine the question carefully, both upon authority 27 210 COLLATEEAL UnDEETAKINGS. [Cll. VI. and upon principle, in a subsequent chapter, (a) But although this rule has received the sanction of a very large number of authorities, extending through a long series of years, it is of a highly technical character ; especially in the corollary deduced from it, that if the consideration is a sale of property or the like, made at the request of the third person, and for his immediate and direct benefit, the promisor is not liable, if any credit whatever was given to the third person. For upon principle it would seem, that if each of two persons, concerned in the purchase of prop- erty, undertakes to respond to the seller for the price, directly, absolutely and unqualifiedly ; or, in other words, if each agrees that Tie will pay the price, without reference to the question whether the other fulfils his promise or not, the undertaking of each is for himself, and not for the other; so that whether the promises be called joint or several, each of them is original, and only to answer for the debt of the person who makes it. And accordingly, much dissatisfaction has been from time to time expressed, with the principle of the rule, although the dissentients have invariably ended by conceding that the question is no longer open.(&) And the modern attempt to introduce an exception in the case of a joint undertaking, finds its justification in this incongruity. § 141. We have not observed, either in the cases or in the text-books, any defence of this rule upon principle. It had its origin at an early Deriod, and it is to be found laid down in the cases without argument, so that we are left to conjecture the course of reasoning by which it commended itself to its originators. But doubtless the theory of its framers was, that although both of the promisors may have agreed to pay, it is evident that none of the parties contemplated that both of the promises should be fulfilled ;, (a) Chapter viii, article i. (6)1 Smith's Leading Cases, sixth American edition, pp. 470. 471. Per Story, J , in D'Wolf v. Rabaud, 1 Peters, 476. post, § 165. Several American judges have referred to Judge Story's criticism of the rule with approba- tion, but no one has attempted to found a decision upon it. Art. I.] Collateral Undertakings. 211 on the contrary, fulfilment of one would, as matter of law, discharge the other ; and hence it is clear that the promisor, who was not benefited by the transaction, in fact undertook as the surety of the other, however absolute in form his undertaking might have been. No doubt due weight was given to the consideration, that if the courts should recognize the validity of both the undertakings, the spirit of the statute would be sacrificed to a matter of form, and its evasion in this class of cases would become very easy. ARTICLE I. Origin of the rnle | English cases firom which it is derived. § 142. The principle embodied in the foregoing rule will be found correctly stated as early as 1697, in the nisi prius case of Watkins v. Perkins, 1 Lord Raymond, 224. The following is a copy of the report of the case. Per Holt, Chief Justice : " If A promise B, being a surgeon, that if B cure D of a wound, he will see him paid, this is only a promise to pay if D does not, and therefore it ought to be in writing by the statute of frauds. But, if A promise in such case that he will be B' s paymaster, whatever he shall deserve, it is immediately the debt of A, and he is liable without writing." {a) § 143. And in Buckmyr v. Darnall, decided in 1704, the question was examined and discussed with such fullness that the case divides with Matson v. Wharam (to be pres- ently cited), the distinction of being the leading case upon this branch of the sta.tute. It is reported in 2 Lord Ray- mond, 1085, and again, under the title of Burkmire v. Darnell, in 6 Modern, 248. Many of the questions (a) It will be noticed, in several of the oases subsequently cited, that opinions have fluctuated as to the legal effect of a promise to the other party to " see him paid " for goods, etc., supplied to a third person. But it seems to be settled now, in accordance with Holt's doctrine, that the expression imports a collateral promise ; but it is open to explanation, and a jury may find that the words were spoken and received as an original undertak- ing. See chapter vii, article i, subdivision (2). 212 COLLATEEAL UNDERTAKINGS. [Cll. VI. involved in the decision grew out of the principles appli- cable to the now obsolete action of detinue, and at this late day it is hardly worth while to take up the space, which a full statement of the case would occupy. It is also to be found reported, this time under the title of BirJcmyr v. Darnell, in 1 Salkeld, 27, in such a compact form that the report may be copied here, as follows : ' ' Declaration. That in consideration the plaintiff would deliver his geld- ing to A, the defendant promised that A should redeliver him safe ; and evidence was that the defendant undertook that A should redeliver him safe, and this was held a col- lateral undertaking for another. For where the under- taker comes in aid only, to procure a credit to the party, in that case there is a remedy against both, and both are answerable according to their distinct engagements ; but where the whole credit is given to the undertaker, so that the other party is but as his servant, and there is no remedy against him, this is not a collateral undertaking. But it is otherwise in the principal case ; for the plaintiff may maintain detinue upon the bailment, against the origi- nal hirer, as well as an assumpsit upon the promise, against this defendant. This was upon a case stated at the trial for the opinion of the court ; judgment was given for the defendant. Et per cur. If two come to a shop and one buys, and the other, to gain him credit, promises the seller if Tie does not pay you I will ; this is a collateral under- taking, and void without writing by the statute of frauds but if he says let him Jiave the goods, I will he your pay- master, or / will see you paid, this is an undertaking as for himself, and he shall be intended to be the very buyer, and the other to act but as his servant. "(&) § 144. This case was succeeded by Mead v. Nashy decided in 1751, and Fish v. Hutchinson, decided in 1759, cited and commented upon in the foregoing chapter ; the first of which, for reasons there stated, we regard as a (h) The case is also reported, to the same eflfect, under the title of Burk- mire v. Darnel, in Holt's Eeports, 606 ; and as Bourkmire v. Darnell, in 3 Salkeld, 15. Art. I.] Collateral Undertakings. 213 mere illustration of the same general principle. Next fol- lowed, in the year 1778, a nisi prius case, not regularly reported, but cited in Cowper, 227, and 2 Term Reports, 80, under the title of Mawbrey v. CunninghaTn. There, goods were delivered to a third person by the plaintiff, at the request of the defendant, who said "he would see them paid for, ' ' and Lord Mansfield held, that, as the promise was before the delivery of the goods, it was not within the stat- ute, "because, at the time of the promise, there was no debt at all." And in Jones v. Cooper, Cowper, 227, decided the following year, the goods had been delivered and charged to one Smith, upon the order of the defendant, and a verbal promise in these words, "I will pay you, if Smith will not." The defendant having had a verdict. Lord Mansfield, on a motion for a new trial, although he agreed that this promise was within the statute, adhered nevertheless, to his ruling in Mawhrey v. Cunningham, that an unconditional promise, made before delivery, was good without writing. He said : "The general distinction is a clear one, and upon that distinction the case which has been cited was determined. Where the undertaking is before delivery, and there is a direction to deliver the goods and I will see them paid for, it is not within the statute of frauds. But there may be a nicety where the undertaking is before delivery, and yet conditional as this is. It turns singly upon the undertaking being in case the other did not pay. We will look into it." The next day Lord Mansfield delivered the unanimous opinion of the court, as follows: "We are all of opinion, upon the authority of the cases in the books, that the promise by the defendant in this case to pay if Smith did not, is a collateral undertaking within the statute of frauds ; and it is so clear that it would only be misspending time to go through the cases, or to say much about it. Rule for a new trial discharged." § 145. But in deciding the case of Peckham v. Farm, 3 Douglas, 13, A. D. 1781, Lord Mansfield himself aban- doned the distinction which he had endeavored to 3stab- 214 Collateral Undertakings. [Ch. vi. lisli in Mawhrey v. Cunningliam. There an action was brought upon a promise, made before delivery of the goods to a third person, and conditional in form (being "I will pay you, if he does not "), for which reason it was held to be within the statute, although it was conceded that little or no credit was given to the third person ; but, in delivering the opinion, the Chief Justice said : "Before the case of Jones v. Cooper, I thought there was a solid distinction between an undertaking after credit given, and an original undertaking to pay ; and that in the latter case the surety, being the object of the confidence, was not within the statute : but in Jones v. Cooper, the court was of opinion that whenever a man is to be called upon only in the second instance, he is within the statute ; otherwise, when he is to be called upon in the first instance." In this recession from his original opinion, he doubtless refers to what took place in the judges' consulting room, for on the day of the argument, Lord Mansfield, as we have seen, still adhered to the doctrine of Mawirey v. Cun- ningJiam. (c) § 146. And in 1787 was decided the celebrated leading case of Matson v. WJiaram, 2 Term Reports, 80, where the modern rule, which Lord Mansfield failed completely to recognize in Peckham v. Faria, was distinctly laid down ; and the doctrine of Maiohrey v. Cunningham received its finishing stroke. Since then, all traces of it have dis- appeared in the opinions of the English judges, although (c) In a note to Peckham v. Faria, there is a short report of Parsons v. "Walter, decided in 178L There, the plaintiff had agreed with one Hol- broke, a butcher, for six oxen ; five were delivered, and the sixth was refused unless the money for it was paid, on which the defendant said that he would pay the plaintiff for it next week at Bristol fair. On this promise the plaintiff delivered the sixth ox, which Holbroke, in company with the defendant, drove away. Buller, J., held the case within the statute of frauds, upon the authority of Jones v. Cooper. But probably the rule would now be the other way in such a case, if the jury should find that the plaintiff intended to abandon his contract with Holbroke, and rely exclusively upon the defendant. See post, chapters ix and x. Art. I.] Collateral Undertakings. 215 it continued for some time to be occasionally cited by counsel. There the defendant had applied to one of the plaintiffs, to know if they were willing to serve one R. C. with groceries ; and on his replying that they did not know R. C, the defendant said : "If you do not know him, you know me, and I will see you paid." The plaintiff thereupon said he would serve him, and the defendant said : "He is a good chap ; but I will see you paid.'' The goods were subsequently sent to R. C, upon his order by letter, and charged to him by the plaintiffs ; who, after applying to him for payment, by letter, without receiving an answer, applied to the defendant, who refused to pay ; whereupon this action was brought for goods sold and delivered to the defendant ; and a verdict was found for the plaintiffs, subject to the opinion of the court. Upon the argument the plaintiffs' counsel relied upon the distinction in Mawbrey v. Cunningham., but the court were clearly of opinion that that distinction had been overruled ; and Mr. Justice Buller, who was counsel for the plaintiff in Jones v. Cooper, stated that in Mawhrey V. Cunningfiam, Lord Mansfield had said: "This is a promise, made before the debt accrues, and what is the reason of the tradesman' s requiring that promise \ it is because he will not trust the person for whose use the goods are intended ; " and the plaintiff had a verdict. He added, that the reasoning of Lord Mansfield struck him very forcibly, and that if it was a new question the leaning of his mind would be that way. "But," he continued, "the authorities are not now to be shaken ; and the gene- ral line now taken is, that if the person for whose use the goods are furnished be liable at all, any other promise by a third person to pay that debt must be in writing, other- wise it is void by the statute of frauds." So, judgment was given for the defendant without hearing his counsel. 216 Collateral Undertakings. [Ch. vi. AETICLE 11. Where the consideration consisted of money, property, or services furnished to the third person at his request, but he made no express promise to pay for them, the test of the promisor's liability is, whether any credit was given to the third person. % 14:1.' Mats on v. Wliaram, being the case where the rule was finally settled, that if the third person was liable at all, the promisor' s undertaking is collateral, and vice- versa, it is generally regarded as the starting point of the principle ; although, as has been already shown, the doctrine was very clearly stated eighty-three years earlier in BirTc- myr v. Darnell. In the latter case is also to be found the germ of the rule, by which the application of the general principle is regulated, in cases where the consideration of the promise consisted of something furnished by the prom- isee, directly to the third person, and, at the time of the completion of the transaction, no express promise to respond for the price had been made by the latter ; or where such a promise was tendered, but the facts are such as to leave it in doubt whether it was accepted by the other party. It is manifest, that if an express promise to pay has been made by him who received, and accepted by him who furnished the consideration, no question can possibly arise respecting the liability of the former ; and therefore, upon the principle already stated, the promise of any other person to respond for the same debt, only "comes in aid" of the original debtor's ; that is to say, it is a collateral promise, and can only be proved by a writing which will satisfy the statute. § 148. But althoiigh the distinction between a promise which is merely tendered, and" one which is tendered and accepted, is very sharply defined in theory, its practical demarkation is frequently a matter of difiiculty. For cases of this kind generally present a state of facts, where an express promise was tendered by the person benefited, and the conduct of the promisee leaves room for doubt whether it was or was not accepted. In very many of them, the person whom we style the promisor was called in, only after the third person had unsuccessfully endeavored Art. II. 1 Collateral Undertakiis^gs. 217 to obtain the money, property or services bargained for, upon his own express promise to pay ; and the promise, so tendered, although the promisee declined to receive it as his only reliance for the price, was not withdrawn, expressly or impliedly, at any time during the subsequent negotia- tions. The question then aiises, did the promisee abso- lutely and permanently reject the third person's promise, or was the first rejection only temporary ; that is to say, until it was fortified by the additional promise of another, in whose ability to pay he had sufiicient confidence, to induce him to part with the consideration, upon the secur- ity of hotJi promises % And in all other cases of doubt, the facts generally present similar features, at least to the extent that the third person has so conducted himself, that the question whether he is liable to the promisee, depends entirely upon an acquiescence by the latter, suffi- cient to create the "aggregatio mentium" which completes a contract. § 149. It is evident that in such cases, the matter of inquiry relates to an operation of the mind of the prom- isee ; that is, whether he ga^oe credit to the third person, as well as to the express promisor. The rule in such cases is therefore said to be, that, if the promisee gave any credit whatever, however small and secondary, to the third per- son, the undertaking of the other is collateral and must be in writing. In order to make it an original promise, the fact must appear, that as between the promisee and the person expressly undertaking for the price, the sale or loan was made, or the services rendered, exclusively upon the latter' s credit; so that in the eye of the law, the third person was but a conduit, through which the promisor received the subject-matter of the contract, from the prom- isee ; although in fact it may have enured entirely to the third person's benefit. (a) (a) This principle is very clearly laid down in the report in 1 Salkeld, of Birkmyr v. Darnell (ante § 143), but the cases which most satisfactorily illus- trate it in practice are Simpson v. Penton, 2 Crompton and Meeson, 430, and 28 218 Collateral Undertakings. [Ch. yl § 150. It would seem to be hardly necessary to say, that whether any credit was given to the third person, is a question of fact to be passed upon by the jury, if the evi- dence leaves room for any doubt upon that subject ; and yet, in some of the English and American cases, includ- ing those of comparatively modern date, the court has undertaken to decide the question, under circum- stances which left it open to considerable doubt. (5) But notwithstanding these anomalies, it may be said to be a rule now universally recognized, that in all cases of this kind, except those where the language of the promise implies, that the third person is to be resorted to in the first place, the jury are to pass upon the question to whom credit was given, if the conduct of the promisee is at all equivocal ; and in so doing, they are bound to take into consideration all the attending circumstances. Several illustrations of this principle will be given in the subse- quent portions of this and the following chapters, (c) § 151. This elementary analysis of the principles upon which the doctrine depends, will materially assist us in determining, not only the application of the doctrine itself Pearce v. Blagrave, 3 Common Law Reports, 338, both of which will be found cited at length in the third article of this chapter. The case of Leggat V. Reed, 1 Carrington and Payne, 16, A. D. 1823, also very forci- bly illustrates the propositions contained in the text, although no question under the statute of frauds arose therein. It was an action for work and labor in putting up a door in a house belonging to one Earl, and it was shown that the defendant had given the order for the work, but he con- tended that he had only acted in behalf of Earl, and it appeared that the plaintiff had made out his bill against Earl, which he had left at the house. Park, J., said, " that if the plaintiff had once given credit to Earl, he could never shift his claim, to charge the defendant or any other person." He then left it to the jury to say to whom the credit was given, and they found a verdict for the defendant. See also several cases cited in the fifth article of this chapter. (b) See Parsons v. Walter, in note to § 145, also Croft v. Smallwood, and Rains v. Storry, in the next succeeding article. (c) The question how far the jury are entitled to pass upon the character of the promise will be more fully discussed in the fifth article of this chapter. Art. III.] Collateral Undertakings. 219 to several of tlie border cases, but also the solution of some perplexing questions, wliicli incidentally arise in the course of the trial of actions founded upon verbal promises of this character. For that purpose we shall have occasion to refer to it again, hereafter. § 152. But before leaving this subject, it is necessary to say, that although some of the expressions used in the cases, may at times seem to imply, that the promisor's liability depends upon vrhether the third person became liable to the promisee, at any time before actual payment of the debt, they are inadvertently, or for brevity' s sake, made more comprehensive with respect to time, than is strictly consistent with accuracy. Manifestly such lia- bility depends only upon what had taken place, when the contract was consummated ; and if at that time, it was not within the statute, the result cannot be affected by events which may have subsequently happened ; even if these should have the effect, to render the third person also liable to the promisee for the same dLeht.{d) ARTICLE III. English cases upon the qnestion of credit to the third person. § 153. Resuming the consideration of the English cases upon this branch of our subject, where we left it at the conclusion of the first article of this chapter, the next case in chronological order was Anderson v, Hayman, 1 Henry Blackstone, 120, decided A. D. 1789. There the defendant had applied verbally to the plaintiff to supply his son, a trader to the West Indies, with goods on his (the defend- ant' s) credit, and he added, " Use my son well, charge him as low as possible ; and I will be bound for the payment of the money, as far as 800^. or lOOOZ." Afterwards the son received from the plaintiff goods to the amount of {d) Roberts on Frauds, 223; Browne on Frauds, § 164; Elder v. Warfield 7 Harris and Johnson (Maryland), 391; Tarr v. Northey, 17 Maine, 113; Mease v. Wagner, 1 McCord (South Carolina), 395. 220 COLLATEEAL UnDBKTAKINGS. [CIl. VI. 800?., wMcli were delivered to him in consequence of the father's engagement, and the goods were charged to the son in the books of the plaintiff. The plaintiff, having applied to the son for payment, was put off with a letter, insisting that a further term of credit had been agreed upon, and promising to pay at the expiration of that term ; and, the son having become bankrupt, the plaintiff sued the father for the value of the goods. Mr. Justice Heath, who tried the cause, directed the jury to con- sider whether the plaintiff gave credit to the defendant alone, or to him together with his son ; and that if any credit whatever was given to the son, the promise was within the statute. The jury found a verdict for the defendant ; which the court, upon a rule nisi for a new trial, refused to set aside, holding that, "this promise, not being in writing, was void by the statute of frauds, as it appeared from the evidence of the lettet of Hayman the younger, that credit was given to him, as well as to the defendant." § 164. In Oroft v. Smallwood, 1 Espinasse' s Reports, 121, A. D. 1793, the plaintiff, who was a tailor, had made some clothes for one Foster, and they had been sent home by the plaintiff's foreman, he being out of town; but Foster, not having paid for them, as he promised, the foreman had prevailed upon him to return the clothes ; whereupon the defendant came to the plaintiff's shop, and said that if the plaintiff would send the clothes again to Foster, he (the defendant) would pay for them, and they were sent accordingly. It was objected that this was within the statute, because Foster was liable, and the original credit was given to him ; and Matson v. Wharam was cited for the defendant. But Lord Chief Justice Eyre held, "that the case was not within the statute of frauds ; that the whole credit was given to the defendant, and he was liable." Tlie report concludes here, and it would, therefore, appear that the Chief Justice left nothing to the jury upon this branch of the case. Art. III.] Collateral Undertakings. 221 § 155. The next case, Keate v. Temple, 1 Bosanquet and Puller, 158, decided in 1797, is a striking illustration of the rule, that all the circumstances of the case are to be taken into consideration, in determining the question whether the credit was given to the defendant alone. There the plaintiff was a tailor and slop seller at Ports- mouth ; and the defendant, who was the first lieutenant of the Boyne, a ship of war, applied to him to supply the crew with new clothes, saying, "I will see you paid at the pay table; are you satisfied?" to which the plaintift' answered, "Perfectly so;" and the goods were supplied accordingly. It appeared that some of the men were unwilling to take the clothes, but were told by the defend- ant that unless they did so, he would punish them. Soon after the delivery the ship was burned, and the crew dispersed into different ships ; after which the defendant again promised that he and the captain would see the plaintifi" paid. The commissioner having come on board a vessel in port to pay the crew of the Boyne, the defend- ant attempted to take out of each man' s pay the value of the clothes which he had received; but, although they were threatened with being put in irons, the men refused to part with their pay to the plaintiff, whereuj)on the defendant applied to the commissioner to stop the pay of the crew, which the latter refused to do. Tlie plaintiff thereupon sued the lieutenant, and recovered a verdict for 676Z. Is. 8d., upon a charge, leaving it to the jury to determine, whether the goods were advanced upon the credit of the defendant as immediately responsible, or upon the expectation, on the part of the plaintiff, to get his money from the crew, with the defendant' s assistance. § 156. There was a rule nisi for a new trial, aga^ist which cause was shown that the question had been left to- the jury upon a proper charge. But the court directed a new trial, being dissatisfied with the finding of the jury upon the evidence. Eyre, C. J., said that the amount of the plaintiff' s demand was so large, that it could hardly be supposed that a lieutenant in the navy intended to 222 Collateral Undertakings. [Ch. vi, make himself responsible for goods of tliat value, or that a slop seller would furnish them upon his credit. He also said that it was apparent, from the nature of the case, that the men were to pay in the first instance ; and such was the meaning of the defendant' s promise. The ques- tion was, he continued, whether the plaintiff did not rely upon the defendant' s power over the fund out of which the men were to be paid, and did not prefer giving credit to that fund, rather than to the lieutenant, "who, if we are to judge of him by others in the same situation, was not likely to be able to raise so large a sum." Considering, therefore, the whole bearing of the evidence, and that the judge who tried the cause had not expressed himself satisfied with the verdict, he thought the case a proper one for a new trial ; and with him the other judges con- curred. § 157. The next case was TJiompsouY. Bond, 1 Campbell, 4, decided A. D. 1807. There the plaintiff, a publican, sued to recover the sum of 45?. for having at an election employed himself in canvassing for Mr. Sheridan' s elec- tion as member of parliament, and opened his house for the entertainment of voters in that interest, at the instance of the defendant, and upon the defendant' s promise to see him paid. The promise was not denied ; but it was con- tended on the part of the defendant, that the plaintiff had given credit in the first instance to Mr. Sheridan' s com- mittee, and that the defendant's promise was therefore within the statute. It was proved that the defendant said that he had authority from the committee to open the house ; and that, before making any demand upon the defendant, the plaintiff sent in his bill to the committee, and^ wrote the defendant a letter, requesting his good offices to get the bill discharged. The plaintiff also showed, on cross-examination of one of the defendant's witnesses, that the committee did not authorize the defend- ant to engage the plaintiff or to open the house ; and his counsel contended that as they were not liable, the defend- ant was liable for the demand. But Lord Ellenborough Art. III.] Collateral Undertakings. 223 held that the undertaking of the defendant was merely that he would see the plaintiff paid, which in law is only a collateral promise to pay the debt of another ; and had he been authorized by tlie committee, so that they would have been liable, it would have been void for not being in writing. But, although it appeared that he was not author- ized, the debt could not be considered as that of the defendant ; because, when one induces another to deal with him, on the credit of a third, he is liable for the deceitful representation ; but the person with whom he dealt cannot recover, as upon a contract which was never entered into. The Chief Justice, however, left it to the jury to say whether the refreshments, which the defendant himself consumed, were furnished to him on his own credit, or upon the representation that the committee desired the house to be opened for the candidate' s friends ; saying that in the latter case, which seemed the more probable, the defend- ant was entitled to a verdict on the whole declaration ; but the jury found for the plaintiff with 101. damages. (a) § 158. And in Darnell v. Tratt., 2 Carrington and Payne, 82, A. D. 1825, there was an absence of all direct proof of an original undertaking by the defendant ; but it was left to be inferred by the jury from all the cir- cumstances of the case. The case was as follows. The plaintiff was a schoolmaster, and sued the defendant for the board and tuition of the latter' s nephew. It appeared that the boy was left at the school by his mother, during the father's life-time (the father having died soon after- wards), and that the plaintiff and the mother had an inter- view at the time ; but there was no evidence of what took place at the interview. After the boy had been some time at the scliool, the plaintiff sent a bill to the defendant, who said, "that it was quite right to send him the bill, for he was answerable for young Jeremy ; " that he could not con- fa) The next case, in chronological order, upon this question, was Coleman V. Eyles, 2 Starkie, 62, A. D. 1817, but it presents no features requiring par- ticular comment. « 224 COLLATEEAL UNDERTAKINGS. [Oil. VI. veniently pay it then ; but when the next bill became due he would settle them both together. The judge left it to the jury to say to whom the credit was given ; and the plaintiflf having recovered a verdict, with leave to the defendant to move to enter a nonsuit, the defendant's counsel moved accordingly. He contended that there was nothing to go to the jury, as the presumption was that the credit was originally given to the mother, the defendant not appearing to have been a party to the original con- tract ; and hence that the defendant' s promise was collat- eral. But all the judges held that it was a fair question for the jury, whether the mother was not originally acting as the agent for the defendant, and therefore refused the rule. § 159. The same principle was applied, although the court seems to have interfered with the province of the jury, in the nisi prius case of Rains v. Storry, 3 Carring- ton and Paine, 130, decided A. D. 1827. There the declara- tion was in assumpsit for goods sold and delivered to the defendant ; and the evidence showed that they were ordered by a Mrs. Stoker from one Evelyn, a bankrupt, whose assignees were the plaintiffs. Evelyn's traveller, who received the order, called upon the defendant, whom she had named as her reference, saying that he would not send the goods without the defendant's authority. The defendant, after some inquiry as to the amount, terms, etc., of the order, said: "You may send them, and I'll take care that the money shall be paid at the time." The goods were delivered to Mrs. Stoker, and Evelyn soon afterwards wrote to the defendant asking him to accept a bill for the price ; to which he answered that he was not in the habit of accepting bills, but that the money would be paid when due. At this stage of the case the defend- ant' s counsel insisted that the evidence showed the prom- ise to be collateral, apparently for the purpose of objecting that the declaration should have been special ; but Best, C. J., held that there was some evidence of a direct under- taking ; and counsel then insisting that it should be in Art. III.] COLLATEEAL UNDERTAKINGS. 225 writing, he said that, if the defendant could show that any credit was given to Mrs. Stoker, the case would be brought within the rule in Matson v. Wharam ; and if a bill had been sent to her, he would nonsuit the plaintiff. The defendant then put in a letter from the plaintiffs' attorney to Mrs. Stoker, calling on her for payment, and threatening a suit ; and two from the bankrupt to the defendant, speak- ing of the demand as one which he had guarantied. Whereupon the Chief Justice nonsuited the plaintiff, giving his counsel leave to move ; but the report adds that no motion was ever made.(&) § 160. The case of Simpson v. Penton, 2 Crompton and Meeson, 430, and 4 Tyrrwhitt, 315, A. D. 1834, is one of the most interesting and instructive upon this branch of the statute ; as it pushed the principles which we have been considering to their extreme logical consequences. It was an action by the promisor against the third person, to recover the amount' paid by him, upon an undertaking similar to those which have been held valid, in the cases previously cited. The plaintiff had introduced the defend- ant to one Ovenston, an upholsterer, and had asked the latter to supply the defendant Avitli some furniture, adding, that he (the plaintiff) "would be answerable for it," and "would see it paid at the end of six months."- Upon this undertaking the goods had been delivered to the defend- (b) It would seem that this nonsuit was erroneous, according to the modern cases in England and the United States. If the case turned solely upon the question to whom credit was given, upon the original contract of purchase and sale, supposing it to have been incomplete when the traveller called upon the defendant, the judge clearly erred in taking it from the jury; for the letters. were all written after the transaction, and were only evidence of what it was originally; the weight of which it was the province of the jury to pass upon. The only doubt arises upon the the terms of the original transaction with Mrs. Stoker. The language of the report, and still more the argument of the defendant's counsel, leave room for the inference (hat the traveller agreed with her to send the goods before he saw the defendant. But it would seem that that question was disposed of, when the judge refused to nonsuit on the point of pleading. 29 226 Collateral Undeetakings. [Ch. vi. ant on a credit of six months, and charged to "Mr. Penton per Mr. Simpson." (c) The defendant not having paid at the expiration of the six months, the upholsterer, without applying to him, called upon the plaintiff; who settled the demand, and sued the defendant for the amount. At the trial the defendant took the objection, with others, that the plaintiff's undertaking to the upholsterer was a mere guaranty, and therefore void by the statute of frauds; and hence the payment, without any special request of the defendant, raised no implied promise on the part of the latter to repay. But the judge overruled the objection, and, in substance, left it to the jury to say whether the goods were furnished upon the credit of the plaintiff exclusively, to be paid for by him in the first instance, and they found a verdict for the plaintiff. § 161. Leave having been reserved for that purpose, the defendant subsequently moved for a rule tO enter a non- suit, which the court refused. Bayley, B., after saying that the expressions, "I'll be answerable," and "I'll see you paid," are equivocal, and that the court must look into the circumstances to ascertain whether the contract was original or collateral, added, "Here it is quite clear that the goods were furnished for Penton' s benefit ; but it does not appear that he said one word by which he pledged himself, so as to give Ovenston a right to call upon him." "It was left to the jury to say whether he" (Simpson) "was the original debtor, and they have found that he was. I think the jury were warranted in that finding. My opin- ion is founded substantially upon the facts of the case, and not on the equivocal expressions, as I consider the words capable of being explained by other circumstances. I am satisfied, that, although Ovenston was willing to see if Penton would pay, he never had a legal claim upon him, but upon Simpson only. ' ' The other judges delivered (c) The reports differ as to whether the order was given by the plaintiff or the defendant, but they agree that the defendant directed the goods to be sent to his house. Art. III.] COLLATEEAL UNDERTAKINGS. 227 brief opinions, to the effect that tlie goods having been furnished upon the credit of Simpson, and the defendant having stood by and allowed Simpson to pledge his credit for him, he became liable to repay the money paid by Simpson on his account, (c?) § 162. The principle under consideration was again recognized in 1836 by the decision in Andrews v. Smithy 2 Crompton, Meeson and Roscoe, 627, which, however, chiefly turned on another point, in connection with which it is cited elsewhere. We will conclude these citations from the English reports with an abbreviation of a modern case in the Common Pleas, which shows how puzzling the application of this apparently simple principle, sometimes becomes in practice. The discussion between the court and counsel, (who made a heroic but unavailing struggle for his client against overwhelming odds,) will, it is believed, shed much light, not only upon this question, but upon some others nearly akin to it, which we shall here- after have occasion to consider. § 163. In Pearce v. Blagrane, 3 Common Law Reports, 338, decided in 1855, the action was for money lent and paid ; and the proof was that a fieri facias had issued in favx)r of one Jones against one Sayre, under which the sheriff' s officer had levied upon Sayre' s goods ; and Sayre desired the plaintiff to lend him the money to pay off the execution. This the plaintiff declined to do ; and soon afterwards the defendant (but not in Sayre' s presence) said to the plaintiff, "Well, pay it for me, and I will repay you." Thereupon the plaintiff paid the money to the sheriff's officer, and this action was brought to recover (d) It seems to have been assumed, that, if the original contract was within the statute, the action could not be maintained. But it has been ruled in Massachusetts, in a very parallel case, that the objection arising out of the statute is personal to the guarantor; and, if he chooses to waive it, and pay the amount of the debt, the principal cannot object that he might have suc- cessfully resisted the creditor's claim, on the ground that the promise was not in writing. Beal v. Brown, 95 Massachusetts (13 Allen), 114. 228 COLLATEEAL UnDEETAKINGS. [Cll. VI. it. It was objected that the promise was within the stat- ute ; but the plaintiff had a verdict, which the defendant moved to set aside. Serjeant Byles in his behalf, insisted that the payment of the money created a debt against Sayre, on the ground that it was done in pursuance of a precedent request by him. To which Maule, J., answered, that the advance to Sayre was declined; and the case was the same as if Sayre had asked the plaintiff to lend him the money, and the latter had declined ; and then the defendant had borrowed the money from the plaintiff, and paid it to the officer. The counsel replied, that the plaintiff refused to make the advance on Sayre' s request alone, but it was made after that request, and not the less upon Sayre' s request because it was also made upon another's. Whereupon Maule, J., asked if there was a joint liability ; and the counsel disclaiming the idea of a joint liability, and insisting that one liability was express and the other implied, and that the plaintiff could have sued Sayre, because Sayre assented to the advance ; Cresswell, J., said, that he could not have sued Sayre, anless there was a request from him, and an advance of money upon his request ; that mere assent was not suffi- cient ; it was evidence of a request, but not equivalent to it. Jervis, C. J., added, that, upon all the facts, no action could be maintained against Sayre ; that the advance was not even in his presence. Counsel still insisting that Sayre was liable, Cresswell, J., concluded by saying that he could not be liable before the advance ; and, when it was made, it was made upon the defendant' s request, as he said, " Pay it for me ;" and so the rule was refused. ARTICLE IV. Amerioan cases establishing and illustrating the general rule, and npon the question of credit to the third person. § 164. In treating of the American cases governed by the third rule, we find ourselves embarrassed with the abundance of materials at our command. Not only are the cases very numerous, but there is a great variety in Art. IV.] Collateral Undertakings. 229 the facts which they present, raising many nice shades of distinction respecting the correct application of the general rule ; and also various scarcely less important questions of evidence, construction, and the like, peculiar to this class of cases. In making a selection among them, the earlier cases will be given, with sufficient fullness to show the origin, growth, and general application of the rule in the United States; and among the more recent cases, we shall endeavor to present those, where a similar state of facts is likely to recur most frequently, or where the case also presents one or more of the incidental ques- tions, which we shall be called upon to discuss, before taking leave of this branch of our subject. § 165. But first we have to notice a dictum, which, though proceeding from an eminent source, and referred to with approbation by several judges, is at war with the principle settled by a great number of cases, and has never been accepted as authority. In i)' Wolf v. Rabaud, 1 Peters, 476, A. D. 1828, (a) the question arose as to the sufficiency of a written agreement to satisfy the statute of frauds, and the admissibility of parol evidence to supply its deficiencies ; but, in pronouncing judgment. Mr. Justice Story took occasion to express his dissatisfac- tion with the doctrine, that the statute applies to every case, where the collateral promise (so called) was a part of the original agreement, and founded upon the same consideration. (5) But the learned Justice at the same (a) S. C. in the court below, 1 Paine's Circuit Court, 580. (6) He said, "Whether by the true intent of the statute, it was to extend to cases, where the collateral promise (so called) was a part of the original agreement, and founded on the same consideration, moving at the same time between the parties; or whether it was confined to cases where there was already a subsisting debt and demand, and the promise was merely founded upon a subsequent and distinct undertaking, might, if the point were entirely new, deserve very grave consideration. But it has been closed within very narrow limits by the course of the authorities, and seems scarcely open for examination; at least in those states where the English authorities have been fully recognized and adopted in practice. If A agree to advance 230 Collateral Undertakings. [Ch. yi. time admitted that the course of the authorities was against him, and, as we have already stated, the case went off upon the other points. In Townsley v. Sumrall^ 2 Peters, 170, A. D. 1829, the same Justice referred to the opinion in the preceding case, in these words: "In cases not absolutely closed by authority, this court has already expressed a strong inclination, not to extend the operation of the statute of frauds, so as to embrace original and distinct promises, made by different persons at the same time, and upon the same consideration, "(c) § 166. In New York the principle established by the English cases, seems to have been first presented for direct adjudication, in Chase v. Day, 17 Johnson, 114, decided in 1819.(6^ ) The action was to recover the value of certain B a sum of money, for which B is to be answerable, but at the same time it is expressed upon the undertaking that C will do some act for the security of A, and enter into an agreement with A for that purpose, it would scarcely seem a case of a mere collateral undertaking, but rather, if one might use the phrase, a tri-lateral Contract. The contract of B to repay the money is not coincident with, nor the same contract with C to do the act. Each is an original promise, though the one may be deemed subsidiary or secondary to the other. . . . The credit is not given solely to either, but to both, not as joint contractors upon the same contract, but as separate contractors upon co-existing contracts, forming parts of the same general transaction." (c) The distinguished tribunal, in which the foregoing remarks were made, has not since had occasion, it is believed, to affirm or deny their correctness by its decision. But an expression in the opinion of Mr. Justice Clifford, in Emerson v. Slater, 22 Howard, 28, indicates that it is prepared to follow the rule now so generally recognized, with respect to promises of this character, even in cases not arising in states, whose courts have, in express terms, adopted the English rule. He says: "Cases in which the guaranty or promiie is collateral to the principal contract, but is made at the same time, and becomes an essential ground of the credit give to tic principal debtor, are. in general, within the statute of frauds." Although in a few instances, opinions have been expressed in some of the state courts approving, upon principle, Judge Story's suggestion of a tri-lateral contract, the author's researches have not enabled him to find a solitary case where such a theory has been practically applied to a decision. (d) But it is recognized as law. in the opinion of Kent, C. J., in Leonard V. Yredenburgh, 8 Johnson, 23, A. D. 1811. Art. IV.] Collateral Undertakings. 231 newspapers delivered by the plaintiff, a printer, to the nephew of the defendant, who was a news-carrier, and the proof was that the defendant called at the plaintiff's office, in his nephew's absence, and after inquiring the terms, said, "If my nephew should call for papers, I will be re- sponsible for the papers that he shall take." Soon after- wards the nephew called for newspapers, and said that his uncle would be responsible for them, and the plaintiff furnished them to him then, and for several weeks after- wards ; no regular charge for the papers was made to any person upon the plaintiff's books; but he kept a memorandum of the number delivered to the nephew, under the latter' s name, as he did with other news-carriers. The plaintiff recovered (in a justice's court), and the Su- preme Court on certiorari affirmed the judgment ; holding that the evidence warranted the inference, that "the credit was given originally and solely to the defendant;" and ' ' that this never was the debt of the nephew. His uncle made the contract ; and the nephew, when he took the papers, explained that his uncle would be responsible for them." § 167. In Brown v. BradsTiaw, 1 Duer, 199, A. D. 1852, a verdict for the plaintiffs, rendered under a proper charge of the judge at the trial, was set aside by the New York Superior Court, as against the weight of evidence. The complaint claimed to recover for lumber delivered to the defendant ; and the evidence showed that it was delivered upon the application of one M., to be used in the construc- tion by him of certain houses, upon land belonging to the defendant, but which the defendant had contracted to sell to M. at a specified price. The contract between the defend- ant and M. also provided, that the defendant should make advances to him, to aid in the erection of the buildings ; the advances and the purchase price of the land to be paid when the deed was given ; audit also contained a clause providing that all bills for materials for the houses, which the defend- ant might pay or incur, should be deemed part of the ad- vances. The evidence, in its most favorable aspect, tended 232 Collateral Undertakings. [Ch. vi. to show that the plaintiffs delivered the lumber to M. upon the defendant' s promise to one of the plaintiffs, ' ' that he would see him paid for all the lumber delivered at those buildings." A bill for the first seven items of the account had been made out by the plaintiffs in the name of M. ; and a payment made by the defendant upon the general account, had been rec:4pted by them, as paid by the defendant for M. There was some evidence that after the debt had been contracted, the defendant agreed with M. to pay all the outstanding bills, as part of the consideration of an assign- ment of his contract to another person ; but the court dis- regarded it, on the ground that it did not sustain the cause of action stated in the complaint, which was a sale of the lumber to the defendant. With respect to the original transaction, the court held that the evidence established, "that the lumber was furnished to M. on his application and on his credit," because it showed, that "the lumber was charged to M. , and not to the defendant ; that the moneys paid by the latter to the plaintiffs were paid by the defendant, and accepted by the plaintiffs, as a payment on account of a debt owing to them by M. ;" and "that there is no evidence which authorizes a court or jury to find that no credit was given to M., but that it was given exclusively to Bradshaw and with his assent." § 168. In another case decided on the same day, Flan- ders V. Crolius, 1 Duer, 206, A. D. 1852, the same court refused to set aside a referee's report in favor of the plaintiff, as against the weight of evidence. The action was for the balance due upon an account for goods fur- nished to the defendant's brother, upon the defendant's saying that the plaintiff might deliver goods to his brother, "and he himself would be responsible for the amount of all bills for goods sold and delivered." The goods were originally charged to the defendant, and the defendant having heard from his brother that the latter was buying goods from the plaintiff in his name, had only answered, " Joe, mind and pay Flanders." It was held that this evi- dence justified the conclusion of the referee, that the Art. IV.] Collateral Undertakings. 233 goods were purchased by, and the credit was given exclus- ively to the defendant. § 169. The following cases were decided in the New York Common Pleas : In Dixon v. Frazee, 1 E. D. Smith, 32, A. D. 1850, goods had been delivered at different times by the plaintiff to tlie defendant's son, at the request of the defendant and on his promise, made at the time the account was opened, "that he would see that the plaintiff was paid ;" but they were charged to the son, or a firm of which he was a member, and from time to time the accounts were settled by notes of the son or of the firm. The action was brought for goods delivered since the last settlement by note, but notes of the son had been taken on account for part of the amount. A verdict having been rendered for the plaintiff, the court on appeal reversed the judgment; the charge having been indefinite, and the court holding that the jury should have been positively instructed to find for the defendant, as the evidence sliowed clearly that the son was liable, and that the plaintiff relied on him for payment. On the other hand in Briggs v. Emns, 1 E. D. Smith, 192, A. D. 1851, the plaintiff's assignors had manufactured certain furniture on the order of a third person, to be paid for in cash, and had made out a bill to him ; but, on his requesting credit, they refused to deliver the goods ; whereupon the defendant took the bill, requested them to deliver the goods, and promised to pay the bill in two weeks ; relying upon which promise, the goods were delivered to the third person, and charged to the defendant. The court, holding that the whole credit was given to the defendant, affirmed a judgment (of the Marine Court) in favor of the plaintiff, (e) (e) Woodruff, J., in delivering the opinion of the Court in this case, said: "The promise was in form absolute, and was relied upon as such. Where the promise in such case was absolute in form to pay, the court must, as matter of law, hold it to be original, unless it further appears as matter of fact that it was made and intended as collateral." "The bill " (in the name of the third person) "was therefore made, before the contract was made upon which the plaintiff relies, and proves nothing respecting the character of that contract." 30 334 Collateral IJNDERTAKmGS. [Ch. vi. § 170. In Pennell v. Pentz, 4 E. D. Smith, 639, A. D. 1855, in the same court, the plaintiff's assignor was applied to by one B. to furnish stone, to enable B. to fulfil a paving contract with the city of New York, which he declined to do, unless B. would procure "guaranty for payment of the amount;" and on the defendant being applied to, he said he would not "guaranty" to pay, unless B. assigned to him the contract. B. having assigned the contract to the defendant, the latter said to the plaintiflT, "You can now go on and furnish the materials for those contracts, and I will pay you ; as no other person can draw the money from the corporation but me." The plaintiff's assignor there- upon furnished the stone, and after he had done so, he made out the bills to B. ; but it appeared that this was done by the direction of the defendant, to enable him to secure certain commissions. It was held by a majority of the court that the promise was original, the entire credit having been given to the defendant ; and the bills having been made out to B. by his direction, and for his accommodation ; and a judgment for the defendant in the Marine Court, was accordingly reversed on appeal. § 171. In the earliest Massachusetts case in which the doctrine now under consideration came in question, Perley V. Spring, 12 Massachusetts, 297, decided in 1815, Chief Justice Parker recognized the distinction suggested by Lord Mansfield in Mawbrey v. CunningTiam, and after- wards repudiated by him. In deciding that the plaintiff was entitled to judgment upon a verdict, subject to the opinion of the court, the Chief Justice distinctly stated, as one of the grounds of the decision, that the promise was prospective, to pay a debt which might accrue in conse- quence of the very promise which was made, and which did not exist at the time of the promise, and therefore, it was not affected by the statute. § 172. But in Tileston v. Nettleton, 23 Massachusetts (6 Pickering), 609, decided in 1828, the same court, apparently Art. TV.] Collateral Undertakings. 235 with the assent of the Chief Justice, laid down the correct rule. The defendant was the commanding officer of a militia company, and also a member of the committee of arrange- ments for a celebration of the fourth of July, which included a public dinner provided by the plaintiff. The members of the company partook of the dinner, as well as the other citizens present ; and while they were eating, the plaintiff sent two persons around, to collect one dollar from each of those present, to pay for his dinner. When they were proceeding to collect the money from the mem- bers of the company, the defendant stopped them, and said that they need not call upon the members of the com- pany, as he would be responsible for them ; to which the plaintiff assented, and no money was collected from them. The evidence was submitted to the jury upon a proper charge ; and the court, affirming a judgment for the defend- ant, stated that the members of the company w^ere the original debtors, and might have been sued severally upon an implied promise ; and their original liability proved that the defendant's engagement was only collateral. (/) § 173. And in Cahill v. Bigelow^ 35 Massachusetts (18 Pickering), 369, A. D. 1836, Chief Justice Shaw said, that Perley v. Spring was overruled by Tileston v. Nettleton. The question, which arose on a trustee process, was whether Hatch, the alleged trustee, was liable to the defendant, for board furnished by her upon his credit to his laborers. At the time when she opened the boarding- house, he had verbally agreed with her, and with other persons, who subsequently furnished her with provisions and supplies, that the latter should deliver the supplies to her and charge her therefor, and at the end of each quarter he would see them paid ; and the demands against him by reason of this promise exceeded the amount of the defendant' s bills for board. The court held, that if the (/) There was however, a question in this case, whether the members of the company had not already become liable, when the defendant's promise was made. 236 CoLLATEEAL Undeetakings. [Ch. VI. trustee chose to interpose the defence of the statute of frauds, against the demands in favor of those who fur- nished the supplies, it would constitute a defence ; because credit was given to the defendant, the supplies having been in the first instance charged to her, and she being debtor therefor. But it was also held that it was optional with the trustee, whether he would avail himself of the protection of the statute ; and as he chose not to insist upon it, he was discharged from the trustee process. § 174. The same principle had been, however, distinctly recognized in the previous case of Loomis v. Newhall, 32 Massachusetts (15 Pickering), 159, A. D. 1833, which was not cited, either by the counsel or the court, in CaMll v. Bigelow. There the action was against an administrator, upon a promise of his intestate. It appeared that the son of the intestate, who was about forty years old, and a man without means, and of bad habits, had boarded for several months with the plaintiff, who was his uncle by marriage ; and that, after the board had been so fur- nished, the intestate requested the son to continue to remain at the plaintiff' s house, and said to the plaintiff, "For what you have already done, and what you shall do for my son, I will see you paid hereafter for your services, expenses, and trouble;" but the son remained only one day after this promise. The next day after the promise, the intestate requested the plaintiff to pay a tax against the son, promising to refund the amount, and the plaintiff paid it accordingly. The court decided that, as to the board which had already been furnished, the prom- ise was within the statute, there being no evidence that it was furnished at the father' s request ; but that the prom- ise would not have been within the statute, as to the one day's board furnished afterwards, had that been separable from the promise to pay for the board previously fur- nished; and that the promise respecting the tax was original, and without the statute, {g) (g) The decision was that the plaintiff should recover only the amount paid for the tax, as the pronaise to pay for the board was held to be void as to that furnished subsequently as well as previously, because it was entire, and Art. IV.] Collateral Undertakings. 237 § 175. So in Hill v. Raymond, 85 Massachusetts (3 Allen), 540, A. D. 1862, tlie same court decided, as matter of law, that no action could be maintained for necessaries furnished to the defendant's brother, (a dissipated man,) by the plaintiff, upon a verbal promise in these words : " I don't want my brotlier to go ragged or hungry; for any necessaries of life you may furnish him, I will see you paid:" it appearing by the testimony in behalf of the plaintiff, that the plaintiff held the brother responsible for the bill and presented it to him, and took from him an order upon the defendant, which the latter refused to accept. Notwithstanding that the plaintiff, (who was sworn in his own behalf,) testified that he did not receive the order in payment of the bill, it was held at the trial, that the action was not maintainable as matter of law ; and an exception to this decision was overruled, the court holding that "the defendant's promise was clearly collat- eral. "(7i) § 176. In Swift V. Pierce, 95 Massachusetts (13 Allen), 136, decided A. D. 1866, the action was to recover upon the defendants' verbal promise to pay for certain goods delivered to one Hoar ; and it appeared that they had been charged to Hoar upon the plaintiff's books, and that the plaintiff had commenced an action for the value of the within the statute as to a part of it; but the court subsequently granted a new trial, or^ the suggestion that the previous board was furnished as a matter of charity. However, in Rand v. Mather, 65 Massachusetts (11 Gushing), 1 A. D. 1853, the court overruled so much of the decision in Loorais v. New- hall, as holds that a contract void in part under the statute of frauds is necessarily void in toto. There the defendant had agreed to pay for the work previously done, and the work to be done, to complete a contract between the plaintiflf and a third person, and it was decided that he might recover for work done after the promise, but not for that done previously. The case is cited again hereafter. (/i) The report does not state in what manner, if any, beyond presenting the bill, it appeared that the plaintiff held the person to whom the supplies were furnished, responsible for the bill; but the fact is so stated in general terms in the syllabus and in the opinion. 238 CoLLATEEAL Undeetakikgs. [Ch. VI. goods against Hoar, in which he had summoned the pres- ent defendants as trustees ; but the defendants had been discharged in the trustee proceeding, and the plaintiff had thereupon discontinued the action against Hoar. It was held that the jury was entitled to judge upon these facts, whether the credit was given to the defendants or to Hoar, and a verdict for the plaintiff upon a charge to that effect would not be disturbed ; but a new trial was granted because, although the judge charged the jury that if the plaintiff gave credit to Hoar alone, the defendants' prom- ise was collateral, he refused to charge that the same result would follow if any credit was given to Hoar ; the court holding that there was some evidence, tending to show, that the plaintiff relied upon the responsibility of both. § 177. So in the case of Wallcer v. Richards, 41 New Hampshire, 388, A. D. 1860. There the declaration con- tained several special counts, claiming to recover for goods sold and delivered by the plaintiff, to one Davis and two other persons, in the emplojrraent of the defendant, on credit, and upon a promise of the defendant, to be respon- sible and see him paid ; and also a general count for goods sold and delivered to the defendant. It appeared that the plaintiff had charged the goods to the several persons to whom they were respectively delivered ; but he proved that he had done so at the request of the defendant, in order that the latter might, from time to time, see whether they were taking up their pay for their labor, faster than they were earning it. The judge charged the jury, that if the goods were delivered to Davis and the others, at the re- quest of the defendant, and upon his absolute promise to pay for them ; and if the whole credit was given to him, and no credit was given to the workmen, the plaintiff was entitled to recover ; and a motion to set aside a verdict for the plaintiff upon exceptions to the charge was denied. Bell, C. J., said, that the special counts set forth that the goods were sold to Davis and the others on credit ; and under those counts they were the debtors, and the contract of the Art. IV.] COLLATEEAL UNDERTAKINGS. 239 defendant was entirely collateral, and could be proved only by a writing ; but the declaration also contained a count for goods sold and delivered to the defendant ; and under that count it was proper to prove that the sale was made, and the credit given, to the defendant alone. "The charges on the books to Davis, etc.," continued the learned Chief Justice, "are competent evidence, that the sales were made to them, and upon their credit ; but they are not conclusive, and are open to explanation. It is for the jury to judge, upon all the evidence, to whom the credit was given ; and whether the agreement of the defendant is original or collateral." § 178. In 3foses v. Norton, 36 Maine, 113, A. D. 1853, the mother of the defendants, being in occupation of the plaintiffs' house, under a lease (apparently verbal), at a rent agreed upon, and the plaintiffs being solicitous about their rent, the defendants verbally agreed to pay the rent during the time she should occupy the house ; under which agreement, she was allowed to remain for three years, she paying part of the rent and one of the defendants paying part. The action was brought for the remainder, and although counsel for the plaintiffs insisted that the entire credit was given to the defendants, (the conversation amounting to a refusal to allow her to remain, and to a reletting to the defendants,) the court held that the plaint- iffs could not recover, on the ground that the mother was liable, and could not have successfully defended an action for the rent ; and therefore the defendants' promise was collateral. To the same effect is Blake v. Parlin, 22 Maine, 395, A. D. 1843, although there the verbal lessee was moving in, when the collateral promise was insisted upon and obtained, as a condition of his being allowed to do so. And in Walker v. McDonald, 5 Minnesota, 455, A. D. 1861, the facts were almost identical with those in Moses V. Norton, except that the promise was to be "responsible" for the rent, which was held to be collat- eral, for the same reason. 240 Collateral Undertakings. [Ch. vi " 179. These selections by no means exhaust the variety of the cases furnished by the American reports, illustrating the general application of this rule. From the nature of the transactions to which it applies, the variety is almost endless ; each case presenting some differejit feature, upon which a question arises respecting the correct application of the rule. Frequently also, the same facts present embarrassing questions under some of the other rules, either separately or in connection with this. And we refer the reader, who wishes to pursue his researches fur- ther, to the numerous additional authorities in the note ; which maintain, with remarkable uniformity, the same general principle ; although there is occasionally, as in some of the cases already cited, a little difficulty, and perhaps discrepancy, in its application.(i) (i) Bates v. Starr, 6 Alabama, 697; Faires v. Lodanc, 10 id. 50; Boykin V. Dolilonde, 1 Alabama Select Cases, 502 ; Kurtz v. Adams, 12 Arkansas (7 English), 174; Porter v. Langhorn, 2 Bibb (Ky.), 63; Hanford v. Hig- gins, 1 Bosvvorth (New York), 441 ; Hall v. Wood, 4 Chandler (Wisconsin), 36; Loomis v. Smith, 17 Connecticut, 115; Knox v. Nutt, 1 Daly (New York), 213; Hetfield v. Dow, 3 Dutcher (New Jersey), 440; Read v. Ladd, 1 Edmonds (New York), 100; Weyand v. Crichfield, 3 Grant (Pennsylva- nia), 113; Warnick v. Grosholz, id. 234; Price u. Combs, 7 Halsted (New Jersey), 188; Elder v. Warfield, 7 Harris & Johnson (Md.) 391 ; Booker v. Tally, 2 Humphreys (Tenn.) 308; Williams v. Corbet, 28 Illinois, 262; Nelson v. Hardy, 7 Indiana, 364 ; Billingsley v. Dempewolf, 11 Indiana, 414; Backus v. Clark, 1 Kansas, 303 ; Ware v. Stephenson, 10 Leigh (Va.), 155; Richardson v. Richardson, 1 MacMullan (South Carolina), 280; Homan3 V. Lambard, 21 Maine, 308; Doyle v. White, 26 Maine, 341; Ellicott v. Peterson's Exrs., 4 Maryland, 476; Cropper v. Pittman, 13 id. 190; Leland V. Creyon, 1 McCord (South Carolina), 100; Mease v. Wagner, id. 395 ; Waggener v. Bells, 4 Monroe (Kentucky), 7 ; Underbill v. Gibson, 2 New Hampshire, 352 ; Proprietors of Upper Locks v. Abbott, 14 id. 157 ; Brown V. George, 17 id. 128; Landis v. Royer, 59 Pennsylvania, 95; McCaffil v. Radcliff, 3 Robertson (New York), 445; Brady v. Sackrider, 1 Sandford (New York), 514; Darlington v. McCunn, 2 E. D. Smith, 411; Hazen v. Bearden, 4 Sneed (Tennessee), 48 ; Hoppock v. Wilson, 1 Southard (New Jersey). 149; Scudder v. Wade, id. 249; Rhodes v. Leeds, 3 Stewart & Porter (Alabama), 212; Arbuckle v. Hawks, 20 Vermont, 538; Gleason v. Briggs, 28 id. 135 ; Hodges v. Hall; 29 id. 209 ; Walker v. Norton, id. 226 ; Bushee v. Allen, 31 id. 613; Rogers v. Kneeland, 13 Wendell (New York), 114 ; Turton v. Burke, 4 Wisconsin, 119. Some of these cases will also be found in the third article of the ninth chapter, where a question very analo- gous to that which is now under examination will be discussed at length; and many of the cases there cited are also applicable here. Art. v.] Collateral Undertakings. 241 ARTICLE V. How far the question, whether the promise was original or collateral, belongs to the jury. § 180. It is very evident, that where the language used, by the promisor, was pertinent to the creation of an abso- lute and direct undertaking to respond for the price, and at the same time the conduct of the third person was consistent with his assumption of a concurrent liability therefor ; but there is no evidence of an express assent on the part of the promisee, to the third person's assumption of liability, the question to whom credit was given belongs exclusively to the jury, (a) So also, where the testimony leaves it doubtful what was the language used by the parties, it is the province of the jury to determine, under the directions of the court respecting the effect of particu lar modes of expression, whether the promisor in fact undertook to respond absolutely, or only in case the third person did not pay. Again, where there is no question what were the words used, but they are susceptible of two meanings, the one importing an absolute, and the other a conditional promise, the question is necessarily referred to the jury, to determine in what sense they were in fact used and accepted. And in that respect, it is believed that the rule would be the same, if the contract between the parties was proved by a writing, containing words of equivocal meaning, even if no question arose under the statute of frauds. (&) (a) See ante, article ii. (6) The point has sometimes arisen in cases under the statute of limita- tions, when the question was, whether a writing of equivocal meaning con- tained an acknowledgment of the debt or a new promise. Thus, in Lloyd V. Maund, 2 Term Reports, 760, A. D. 1788, it was held, that a general ruling at the trial, that an ambiguous letter did not amount to a new promise or acknowledgment was erroneous, and a nonsuit was set aside, one of the judges saying, that " the jury should have put their construction upon it." In Frost V. Bengough, 1 Bingham, 266, A. D. 1823, the question was, whether a letter from the defendant, saying that he "must arrange matters" with the plaintiflF, was suflBicient, and the court held that it was properly left to the jury to say whether there were any other matters to which the letter referred. 31 242 CoLLATEEAL Undeetakings. [Ch. VI. § 181. But some of the cases decided under the statute of frauds have gone further ; and expressions will occa- sionally be found in the books, leading to the inference, that the jury are entitled in all cases, to pass upon the question, whether the words used imported an absolute or a conditional promise. Thus it was said in one case, War- nick V. Grosholz, 3 Grant (Pennsylvania), 234, that "where words are written, the general rule is that the court shall interpret them ; but, when they are merely spoken, their sense and meaning intended are for the jury ; their meaning being fixed by the jury, their legal eflfect and consequence are determined by the court." § 182. This question sometimes becomes of vital impor- tance ; for the rights of the parties may depend entirely upon the construction, to be placed upon words, concerning which the witnesses do not essentially differ. As will be more fully shown in the next chapter, there is a disposi- tion, especially in the modern decisions, to assign to par- ticular forms of expression, in most common use in transactions of this kind, certain definite prima facie meanings. In the case of WarnicJc v. OrosJiolz, one of those expressions was used, the promise having been that the defendant would see the plaintiffs paid, which, it is said, upon very respectable authority, presumptively imports only that the defendant would pay, in case the third person did not ; and it may be that he was defeated by leaving the question to the jury, without the produc- tion of any evidence on the part of the plaintiff", to control that prima facie meaning of his promise. § 183. It is believed that the distinction, suggested in that case, between written and spoken words, has no sub- stantial foundation ; and that when the court can clearly And in Dodson v. Mackey, 4 Nevile and Manning, 327, A. D. 1835, it was held that the judge at the trial properly left it to the jury, to say whether an ambiguous letter amounted to a promise to pay the debt, and if so, whether the promise was conditional or absolute. See several other cases cited in Angell on Limitations, § 238. Art. v.] Collateral Undertakings. 243 ascertain from the testimony, what the words really were, the determination of their meaning and the nature of the contract which they create, is to be made as a matter of law. This proposition is subject, of course, to the excep- tion already mentioned, where words of equivocal mean- ing have been used ; or, what amounts to nearly the same thing, where the law assigns to the words " a prima facie meaning" only, and there is some evidence of their having been used in a different sense. § 184. Thus, in Robinson v. Oilman, 43 New Hampshire, 485, the court below, in passing upon the validity of a set-off, had ruled, in substance, that a conversation, proved to have taken place between the witness and the plaintiff's intestate, did not amount to a promise to pay the debt ; and Bell, C. J., delivering the opinion of the Supreme Court, granting a new trial for that reason, with others, said: "The language used does not necessarily import that he would settle, or cause the notes to be settled. The terms were loose and indefinite ; and the question really was, whether the jury, weighing the evidence and the circumstances, could rightfully understand the language to be an engagement to cause the debt to be paid, or to pay it." "In many cases it is not so much the question what terms were used, as what was intended. Where the words are certain, it is generally for the court to construe them; but, where the jury must decide what was said, they must also judge what was the meaning of the parties, in the language they are found to have used. If the evidence tends to prove an engagement inconsistent with that alleged, and it is capable of no interpretation tliat can be reconciled with it, the court may pronounce the evidence incompetent on the ground of variance; but, where the evidence admits of being understood in a sense which would support the declaration, and the doubt is whether it is quite sufficient to support the writ, it seems generally more advisable to leave the c[uestion to the jury, who are supposed to be more able to judge of the weight of testimony, as to the facts, than the court." 244 Collateral Undeetakiis-gs. [Ch. vi. § 185. So, also, in Sinclair v. Richardson^ 12 Vermont, 33, the same idea was very clearly stated in the remarks of CoUamer, J., although they were directly applicable to a state of facts depending upon a different rule. In dis- cussing the question, whether it belonged to the court or to the jury, to determine, if proof of a certain conversa- tion between the parties, tended to show an abandonment by the plaintiff, of a written contract between himself and a third person, and the formation of a new contract between the plaintiff and the defendant ; or, on the other hand, merely a guaranty by the defendant of the third person's performance of the former contract, he said: "If the terms used on the occasion clearly imply that the former contract is to continue, and the new one be auxil- iary thereto, then it is matter of law that the new con- tract must be in writing. Such as the saying, ' proceed, and if he does not pay you, I will.' But if the terms be uncertain, equivocal or ambiguous, then it must always be left to the jury, to find whether in fact the former contract was to continue, or whether the whole was aban- doned, and the new contract and credit substituted in its place, "(c) § 186. The distinction arising in cases where the testi- mony is conflicting, is also illustrated by the case of Homans v. Lambard, 21 Maine, 308, where the defend- ant's counsel contended, that the judge at the trial erred, in leaving it to the jury to say, whether certain timber, for the value of which the action was brought, was furnished bv the plaintiff upon the credit of the defendant, or of the third person ; insisting that certain words, proved to have been spoken by the defendant, implied a conditional con- tract, and should be so construed as matter of law. But Tenney, J., in his opinion, said, that although it would have been the duty of the court to construe a written promise in those words, there were in this case other con- versations between the parties, and also between the ('■) S.'(\ also, per Woodruff, J., in Briggs v. Evans, ante, § 169, note. Art. v.] Collateral Undertakings. 245 plaintiff and others, in tlie presence of the defendant, which had a tendency "to manifest to the defendant the views entertained by the plaintiff on the subject of the sale of the timber ;" and that other facts were in evidence, which might have had an important influence, in satisfy- ing the jury of the true character of the transaction. "It was," he added, "for them alone to judge, from the evidence, what was said and done, and then to determine therefrom the intention of the parties. It would have been a manifest invasion of their rights, for the court to select a partici^lar portion of the evidence, which the jury might, or might not believe, and as a matter of law, inform them, that their verdict must depend upon the con- struction which the judge should give to that, independ- ent of other facts in the case. The meaning of the parties was to be gathered from all the evidence before them." § 187. So, also, in the recent case of Perkins v. Hins- dale, 97 Massachusetts, 157, A. D. 1867. The action was to recover for articles delivered to the nephew of the defendants, who were brothers and partners. At the trial, the plaintiff testified in substance, that there had been dealings between him and. the nephew, but the last credit he gave him was on the 16th of September, 1865 ; that on the 25th of that month, one of the defendants applied to him to give the nephew further credit, stating various circumstances, tending to show that he would be safe in doing so ; but the plaintiff refused, unless the defendants "would become responsible." That thereupon the parties made an oral contract, to the effect that the plaintiff would deliver to the nephew such goods as he wanted, and the defendants "would pay the bill;" that the plaintiff would "go along with him" each month; and if, by the 15th of the next month, the nephew had not paid the monthly bill, the plaintiff would notify the defendants, and they would pay it. That he delivered the goods, and notified the defendants accordingly ; and that the credit was given solely to the defendants, but the 246 Collateral Undeetakings. [Cli. yi. accounts were kept with the nephew as before. Other witnesses, on the part of the plaintiff, testified that the conversation was, in substance, that the nephew was to be "pushed up" till the 16th of each month ; and if he did not pay then, the defendants would pay the bill, or see it paid. Evidence was introduced by the defendants, tend- ^ ing to disprove the testimony on the part of the plaintiff, as to the material points of this conversation ; but on cross-examination of the defendant, with whom it took place, he admitted sending a letter to the plaintiff's attorney, inclosing a payment on account of the demand, and saying, "I hope to see my responsibility liquidated soon." Upon this evidence, the defendants contended that they were entitled to a verdict, by direction of the court ; but the plaintiff insisted that he had the right to go to the jury, upon the question to whom the credit was given. The judge directed a verdict for the defendants, which was set aside on exceptions. Hoar, J., delivering the opinion of the court, said that the evidence was strong to show that the contract was collateral ; but the plaintiff, in one part of his testimony, expressly stated that the sole credit was given to the defendants ; and the letter "has some semblance of an admission of an original and direct responsibility." "Considering, there- fore," he proceeded, "that the evidence was chiefly oral, not absolutely distinct in its terms, or consistent in its different parts ; and that its effect depends partly upon inferences to be drawn from it ; we think, on the whole, that it should have been submitted to the jury, under proper instructions, to determine the question what the contract was, as a question of fact, and that the court should not have decided it." § 188. And it would also seem, that in all cases where the words are susceptible of more than one meaning, the question is not in what sense the promisor intended to use them, but in what sense the promisee received them. The language having been selected by the promisor, and being pertinent to either species of engagement, should be Alt. v.] Collateral Undertakings. 247 regarded as a tender of either to the promisee for his accept- ance. A very striking illustration of its application in this particular connection is furnished by the decision of the King's Bench in Oldham v. Allen^ A. D. 1784, a case mentioned by Bayley, B., in the course of his opinion in Simpson v. Penton, 2 Crompton and Meeson, 430 ;((^) but nowhere reported. "There," said Bayley, B., "the defendant had sent for a farrier to attend some horses, and said to the farrier 'I will see you paid.' The plaintiff knew the parties who were owners of some of the horses, and made them debtors ; but debited the defendant for the others, whose owners he did not know; the court held that the promise was original in respect of those owners whose names he did not know, but in respect of the others whom he did know, that it was collateral." The same language was construed in this case to raise at the same time two different contracts between the same parties ; for no other reason than because it was pertinent to both contracts, and the circumstances of the case showed that the promisee, by the mere operation of his own mind, divided the subjects of the promise into two classes, as he had a right to do by the terms of the promise, (e) (d) Ante, § 160. (e) We append abstracts of two cases illustrating the principles discussed in the text, although no question arose in either, growing out of the statute of frauds. Sproat v. Matthews, 1 Term Reports, 182, A. D. 1786. This was an action by an indorsee of a bill of exchange against the acceptor, and the question was whether there had been a valid acceptance. The proof was, that on the 24th of September, the plaintiff's clerk presented the bill for acceptance, and the defendant replied that the drawer had consigned a ship and cargo to him at London and to another person at Bristol; but as he could not tell whether the ship would arrive at London or Bristol, ''he could not accept at that time; " upon which the clerk left the bill, with the understand- ing, assented to by the defendant, that if the defendant did not accept it from the day when it was presented, he should be at liberty to note it for non- acceptance as from. that time. On the 8th of October, the clerk called again with the plaintifiF; and the defendant replied, that "the bill was a good one and that it would be paid, even if the ship were lost."' The clerk thereupon took the bill to a notary, and had it noted for non-acceptance, as of the 24th of September. Afterwards the ship arrived at London, and the defend- 248 Collateral Undertakings. [Ch. vi. ARTICLE VI. Materiality of entries in the promisee's looks, and of other acts to which the promisor was not a party. § 189. One question of frequent occurrence, and which has given rise to some conflict of opinion, is whether the promisee is entitled to introduce testimony of certain acts, to which the promisor was not a party, tending to show that he was regarded by the promisee as the sole debtor ; ant received and disposed of the cargo. Buller, J., nonsuited the plaintiflf, and a rule nisi for a new trial was discharged after argument. Willes, J., thought that a new trial should be granted. He said that the defendant accepted the bill upon two conditions, namely, that the ship should arrive at London, or that she should be lost; in either case, (she being insured,) the defendant could have indemnified himself out of the cargo, but not if she had arrived at Bristol; and if there was a doubt whether it was a conditional or absolute acceptance, or whether (if conditional) the plaintiff had precluded himself by his subsequent conduct, the question should have been left to the jury. Ashurst, J., thought the nonsuit was correct. He agreed with his brother Willes, respecting the meaning of the conversations, as being a con- ditional acceptance, which the plaintiff afterwards waived; and he said that if the parties at first understood that the matter was left unconcluded, "the plaintiff is absolutely bound by his subsequent act" in protesting the bill, so there was nothing to leave to the jury. Buller, J., said that the court was now called upon to determine a point of law ; which was decisive that the question ought not to have been left to the jury. That the defendant's counsel admitted the evidence to be true, but insisted that upon that evidence the defendant was not Uable in point of law, so there was nothing for the jury. If he had insisted that the witness was mistaken, that might have been properly left to the jury. He then agreed with the other two as to the meaning of the conversations, and added : " This, therefore, was a con- ditional acceptance; and in these cases the holder may choose whether he will be satisfied with it or not; but here the plaintiff has waived it by pro- testing the bill for non-acceptance." Thruston v. Thornton, 55 Massachu- setts (I Gushing), 89, A. D. 1848. The action was to recover for services as a broker on the sale of real estate ; and at the trial the principal question was, whether the defendant employed and promised to pay the plaintiff. Upon that point, the evidence on the part -of the plaintiff related entirely to a conversation between the parties; in which the defendant expressed a wish to sell the property, and the plaintiff inquired whether he would pay a commission for that purpose ; to which the defendant replied, that he would pay a commission to any person, who could effect a sale upon his terms. Art. VI.] Collateral Uxdektakixgs. 249 as, for instance, that the promisor, and not the third person, was debited with the goods, money, or other sub- ject of the contract. It will be seen that much stress has been laid upon the debit entries, in several of the cases, which have been abstracted in the preceding pages. And it is conceded, that wherever there is doubt to whom the credit was given, the fact that the third person was debited in the promisee's books, with the price of the subject of the contract, raises a presumption that the undertaking of the promisor to respond was collateral, so strong that some satisfactory explanation must be given, to prevent its becoming conclusive. But it has been sometimes supposed that the contrary rule would not apply, when the promisor was similarly debited. § 190. Such a suggestion was made in Cutler v. Hinton^ 6 Randolph (Virginia), 509, which will be cited again The defendant's evidence was apparently confined to the question of fact, whether any such conversation took place. The judge instructed the jury, that if they should be satisfied that the conversation took place, then, in order to determine whether the defendant was liable in this action, it would be necessary for them to understand what constitutes a legal and binding contract. And for that purpose he delivered to them a short disquisition upon the legal definition of a contract; and added comments appropriate to the evidence, the substance of which was, that when the parties are face to face, one must then make an offer, and the other must then accept it; unless it is expressly agreed, that the one to whom the offer was made, shall have time to consider it. In view of these instructions, they were directed to inquire whether "the minds of the parties met, and they made a legal and binding contract; or whether the transaction was, as contended by the defendant, a loose conversation not understood or intended by them as an agreement." The jury having found a verdict for the defendant, the plaintiff moved for a new trial on exceptions, contending that there was no necessity for a formal acceptance of the defendant's offer; and that if the plaintiff acted in consequence of the defendant's offer, he was entitled to recover. But the exceptions were overruled, the coart sa5'ing, " It was for the jury to decide what was the meaning and intention of the parties. The conversation was loose and indefinite, and the jury, we think, might well find as they did, that no contract was in fact made. But however this maj' be, it was a question of fact for the jury, and we think they were in no respect misdirected." 32 260 Collateral Undertakings. [Cli. vi. in tlie next chapter, (a) where Carr, J., delivering the opinion of the court, after referring to the fact that the goods were originally charged to the defendant, and not to the third person, added: "It seems to me that such entries, made in the books of merchants, are better evi- dence against than for them. Where they charge the goods to the person to whom they are furnished, it is strong to show that they consider themselves dealing with him ; and, like the admissions of a party, may be safely taken against them ; but it would be of dangerous tend- ency to say, that by an entry made by themselves in their own books, they could change the complexion of their case, and make that an original, which would otherwise have been a collateral promise." In that case, however, the promise was held by the court to^ be collateral by its terms ; and nothing could be more proper, than a ruling that the other party could not, by any act of his own, change it into an original promise. § 191. Precisely the same observation applies to the remarks of the court in another case, which has also been cited as authority, against the admission of evidence that the goods were originally charged to the promisor ; that of Kinlocli V. Brown, 1 Richardson (South Carolina), 223. (&) There, also, the promise was held to be collateral by its terms ; and after saying that the onl}^ evidence given, was that the defendant had promised to guaranty the payment of a debt contracted by one H., the court added : "This, however, it is said, is not the sense in which the plaintiffs understood it, and in support of it, their entries are appealed to ; but, it must be remembered, that the entries are evidence of nothing, save the fact of the delivery of the specified articles and their prices. On whose credit, where the person's liability is in question, they were delivered, must appear aliunde. The testimony of H, is, that he explained to Mr. Kinloch that the defendant was (a) Section 203. (b) Cited also in chapter vii; see § 199. Art. VI.] Collateral Undertakings. 261 to be security, and see him paid. This is enough for that view of the case ; but if Brown' s promise was only collat- eral, and the plaintiffs thought proper to consider it as original, that will not help them. The defendant's liabil- ity is to be tested by his undertaking. This is stated again and again by H. to be that 'if he (H.) did not pay the amount to the plaintffs, Brown would have it to pay.' " § 192. These cases therefore prove nothing, except that where a promise is collateral by its terms, the promisee cannot change it into an original promise, by proof that he received it as original ; a proposition which admits of no question ; and, in truth, it is fairly deducible from the remarks of the court in Kinloch v. Broion, that the plaintiff's entries would be competent evidence of his understanding of the transaction, whenever that was material to the issue. But there is another criticism to be made upon the remarks quoted from the South Caro- lina case, which is, to some extent, applicable also to the Virginia case. In the former case certainly, and probably also in the latter, they apply, not to a general and common- law rule of evidence, but to a local rule, established by statute and custom in several states, including South Carolina and Virginia ; whereby a plaintiff is allowed to give in evidence entries in his books, accompanied by his suppletory oath, to prove the items of an account upon which an action is brought, (c) (c) Mr. Browne, in his Treatise on the Statute of Frauds, § 198, says, that "though the debiting of the third party on the plaintiff's books, or the pre- sentation of the account to him, is evidence against the plaintiff, to phow that he gave credit to the third party, so as to render a writing necessary to hold the defendant; his debiting of, or presenting the account to the defendant, is not evidence /or him to show that he trusted the defendant only, while, in fact, the poods were delivered, or the services rendered to the tliird party." The authorities cited are Cutler v. Hinton, and Kiuloch v. Brown, which are criticised in the text; and also Noyes v. Humphreys, 11 Grattan (Virginia), G36; Walker v. Richards, 41 New Hampshire, 388; and Scuddcr v. Wade, 1 Southard (New Jersey), 249. Of the last three cases, Noyes v. Himiphreys and Walker v. Richards, are on the first branch of the proposition (tlie latter 252 Collateral Undertakings. [Ch. vi. § 193. We have already given our reasons for the opin- ion, that in all cases where the words used are such, as to is abstracted, ante, § 177) ; and with respect to the second branch, we think that Scudderv. Wade holds the other way; for in both the opinions dehvered in the case, the charges in the plaintiffs books against the defendant, were regarded as proper evidence in his favor, that the credit was given to the defendant, and not to the third person. It is true that the reporter appends a note, saying that the judgment was ultimately reversed by the Court of Appeals, but he was not able to ascertain on what ground the reversal pro- ceeded ; it could not have been on account of the admission of the books, as the report states that they were admitted without objection. In Keith v. Kibbe, 64 Massachusetts (10 Gushing), 35, the plaintiffs sued for the value of timber used in a dwelling-house, which was in the course of erection for the defendant; and the defendant admitted the delivery, (to whom the report does not state, probably only on the premises,) but contended that it was sold to one Rollins, the contractor for the erection of the dwelling. The plaintiffs were allowed to prove by their clerk, entries in their books, made by him, charging the timber to the defendant; notwithstanding the lattcr's objection that it was " incompetent evidence of the fact to whom credit was originally given ; " and the plaintiffs having had a verdict, the judgment was reversed, on an exception taken to the admission of the evidence. The court said that it was a mere question as to the party, who was the debtor to the plaintiffs for the articles; and that in the case upon which the plaintiffs relied. Ball v. Gates, 53 Massachusetts (12 Metcalf), 491, there was other evidence rehed upon to charge the defendant as debtor; and the book was •ffered to show merely the items delivered. The case, it will be seen, turned entirely upon the competency of entries of that character, under local usage or special statute relating to that kind of evidence; no question having arisen under the statute of frauds, doubtless, because no express promise was made either by the defendant or by Rollins, it being conceded that if one was liable, the other was not. It appears to the writer, that this and the numer- ous kindred cases relating to the general competency of entries of that character, witn or witnout the plaintiff's suppletory oath, have no appli- cation to the question which we are now considering; for the reason that in those cases the issue is, whether the defendant did make the promise, while in cases under the statute the issue is, in what manner did the plaintiff accept it. But the reader who wishes to examine the decisions referred to, will find them collected, and very ably commented upon, in Messrs. Wallace's note to Price v. The Earl of Torrington, 1 Smith's Leading Cases, 390, page 515 and onward of the sixth American edition ; where, with other interesting matter, it is shown that legal lexicography is sufficiently elastic to include, among the definitions of the word book, a shingle, a notched stick, a bit of paper two inahes square, and a closet door. Art. VI.] Collateral Undertakings. 263 be consistent with either an original or a collateral engage- ment, the question of fact is simply in what sense the prom- isee accepted them ; and that the determination of this issue necessarily involves an inquiry into the operation of his mind.(- tion. Art. I.] Collateral Undertakings. 289 There the declaration contained a special count, to the effect that the defendants in the court below (Daily and Gibbs), in consideration of the sale of a horse by the plaintiff to Daily, agreed to deliver to the plaintiff their note for $60, payable in six months to the plaintiff or bearer ; that the horse was delivered to Daily ; but that the defendants had refused either to give their note, or to pay for the horse ; to which were added the common counts for goods sold and delivered. At the trial it appeared that Gibbs and Daily called together upon the plaintiff ' ' and Gibbs asked the plaintiff if he wanted to sell his mare ; plaintiff said he did ; Gibbs inquired the price, and being told sixty dollars, wanted to know if the plaintiff would take Daily's note, if he, Gibbs, would sign it, and see it paid;" the plaintiff assented; but Gibbs being anxious to return home, it was agreed that Daily should go with the plaintiff and see the mare, and if she suited him, he might take her away and give his note, and the first time Gibbs went to town, he would sign it. Daily accordingly took the mare and signed a note for $60 at six months, which Gibbs subsequently indorsed, but as the indorsement was made on Sunday, it ^vas void under the Michigan statute. The note was tendered to the defendants at the trial. The report does not expressly state that the note was not pa^^able to the order of Gibbs, or that it was in the hands of the plaintiff when Gibbs indorsed it ; but both these facts are to be inferred from the abstract of the argument of the counsel. § 236. The judge charged the jury, upon the question of joint liability, that if the understanding of the parties was "that Gibbs and Daily were the buyers of the mare, and that both were to be liable as purchasers for the purchase price, and accordingly should become joint makers of a promissory note for its payment, though Daily was less relied upon by the plaintiff than Gibbs, and though in point of fact it was understood that the mare when bought should belong to Daily, the plaintiff is entitled to recover ; that the principle in this class of cases 37 290 Collateral Undertakings. [Ch. viii. is, that if the agreement be such that two persons, in the purchase of goods, do at the same time become co-debtors to the seller for the price, then both are purchasers ; and the case is not within the statute of frauds, and no memo- randum in writing is necessary." The jury found a ver- dict for the plaintiff, and the judgment thereon was affirmed by the Supreme Court, Christiancy, J., deliver- ing the prevailing opinion, and saying that the charge "was not only correct, but that it expres-ses the true rule of law applicable to the question with remarkable clear- ness." This conclusion the learned judge supported in an argument of considerable length, the substantial effect of which is to hold that whenever there is a sale upon the joint credit of two persons, the statute does not apply, as in that case the sale is deemed to have been to the persons to whom credit was given, and the plaintiff is entitled to recover as upon a sale to both jointly. (/) (/) The learned judge began by saying that the language of the statute indicates that the class of promises required to be in writing, includes only those which are secondary or collateral to, or in aid of the undertaking or liability of some other person, whose obligation, as between the promisor and the promisee, is original and primary. Consequently it applies only to those which, if valid, would create a liability on the part of the promisor, distinct and several from that of the person in whose behalf it is made, and not a joint liability with him. For if the obligation of the two is joint, neither is collateral to the other, and the joint promise is original as to both. To say that both cannot become jointly liable upon a joint promise, not in writing, to pay for goods purchased for and delivered to one of them, is but another form of declaring that it is not competent for both to become origi- nal promisors, as between them and the promisee, unless each is under an equal obligation, as between themselves, for the ultimate payment of the debt. Such a proposition cannot be maintained upon principle or authority; and to allow the relation between the promisors to be shown, for the pur- pose of defeating a promise which both promisors made as original, would operate as a fraud upon the vendor. Passing to the consideration of Wain- wright V. Straw, the learned judge remarked, that the decision was placed in part upon the ground that the sale was made to both. "Now," said he, "I can see no difference in legal effect, between the case where A and B say to a merchant, ' We want to buy a stove for B, and both of us will be responsi- ble,' and the case where A says, 'B wishes to purchase a stove, but we will both be responsible.' " In each case it is a sale for the benefit of one on the Art. I.] Collateral Undertakings. 291 § 237. On the other hand, tliere is some authority for the contrary doctrine, namely, that a joint promise is within the statute, where the consideration moved exclu- sively to one of the promisors. This appears to have been assumed to be law in Wallace v. Wortham, 25 Mississippi, 119, A. B. 1852, although there was no direct ruling upon the point. The case being meagerly reported, we are unable to ascertain whether the facts properly raised any question connected with the present inquiry. § 238. But in a Tennessee case, Matthews v. Milton, 4 Yerger, 576, decided A. D. 1833, an opinion, directly contrary to the ruling in Gibhs v. Blanchard^ was deliv- ered by Chief Justice Catron, afterwards an associate justice of the United States Supreme Court. There the joint credit of two, and the real question is, whether the credit was given to both jointly. Wherefore he thought that the decision in Wainwright v. Straw, notwithstanding that the opinion assigns, as the reason for holding the defendants liable, that the sale was made to both, was really put upon the broad ground that the sale was upon the joint credit of the defendants; and he added that in all cases where the sale is upon the joint credit and promise of the defendants, although the property is purchased for and deliv- ered to but one of them, the legal effect of the transaction constitutes it a sale to the two jointly, the sale being to the person or persons to whom credit was given. For these reasons, he held that the plaintiff was entitled to recover upon the count for goods sold and delivered to the defeiulants, but not upon the special count, for that alleged a sale to Daily alone. The term of credit having expired, there was no objection to a recovery upon a common count, notwithstanding the special contract. With this opinion, one of the other two judges fully concurred ; but Campbell, J., Avhile con- curring in the result, said, that upon the whole he regarded the charge as having fairly presented the question, whether there was or was not a con- tract of suretyship, and for that reason there was no error in it, although he had had some doubt whether some of the rulings were not open to the objection, that they rested too much upon the question of a joint obligation. "I cannot," he said, "regard the mere form of the liability (as joint or several) as having any bearing on the applicability of the statute, inasmuch as sureties very generally assume joint obligations with their principals, and are nevertheless protected in all the rights of suretyship, and vested with all its immunities." 292 COLLATEEAL UNDERTAKINGS. [Ch. VIII. action was brought against the auxiliary promisor alone, under an act passed in 1789, which permits several actions to be brought against persons jointly liable. (^) Upon the trial it appeared that the defendant (Philip Milton) and his brother William were together in the plaintiffs' store, and the defendant said to the plaintiffs, that whatever goods William "took up" in the store, he, the defendant, would pay for out of a cotton contract, which the plaint- iffs and the defendant were about to make ; the goods were thereupon, and on the same day, delivered to Wil- liam, and debited to William and the defendant jointly. It was also proved that before the defendant's promise, the plaintiffs had told their clerk not to credit William, but subsequently William purchased, on credit, other goods at the plaintiffs' store, which were debited to him individually, and which were not in question in this action. § 239. The judge charged the jury, in substance, that if William was ever liable for the account, the defendant was not liable, and that charging the account to both was strong, though not conclusive evidence, that credit was given to William ; but if they found that credit was given exclusively to the defendant, then he would be liable. A verdict having been rendered for the defendant, the plaintiffs brought error, upon exceptions to this and other parts of the charge. The Chief Justice construed the charge as follows: "The circuit judge charged the jury, that if there was no liability resting on William, and the credit was extended to Philip alone, then the promise was (g) Carutliers and Nicholson's Compilation of the Laws of Tennessee, pa.ije 415. The learned jiidge who delivered the opinion in Gibbsv. Blanch- ard, treated as obiter all that was said in Matthews v. Milton upon the ques- tion of the promisors' joint liability, saying that there was no evidence tend- ing to prove a joint promise. The report would indicate that the promise was to pay out of a particular fund, not then in existence ; but as this is inconsistent with the Avhole opinion, which assumes that the credit was given to both brothers jointly, it is probably erroneous in tiiat particular. In all other respects, the whole transaction was not distinguishable, upon any substantial ground of difference, from that in Gibbs v. Blanchard. Art. I.] Collateral Undertakings. 293 original, and without the statute; but if AVilliam and Philip were jointly trusted, and both held responsible, and so charged on the books of the plaintiffs, then the promise was collateral on the part of Philip, because he undertook to pay the debt of William." He proceeded: "That the goods were advanced upon the joint credit of both is evident. They stand so charged on the books, and these were given in evidence for the plaintiffs for some of the articles, on the oath of one of the plaintiffs, under the book debt law." Then after quoting the Ten- nessee statute of frauds, and overruling the point that if the promise was made before the debt was contracted the statute does not apply, he added : "If William was bound to pay for the goods, it was his debt ; Philip could not be bound, unless in writing. It follows they could not be jointly charged." The learned Chief Justice then cited with approbation the rule laid down in Matson v. Wharam; and added that it accords with the intention of the legislature, which was that no one should be bound to pay for property received by another, unless the delib- eration of a written agreement had intervened, and "that a naked promise could be easily proved, and not possibly disproved, in most instances, and therefore should only be established by written evidence." Accordingly the judg- ment was affirmed. § 240. In Hill v. Doughty, 11 Iredell (North Carolina), 195, decided A. D. 1850, the question was whether a joint promise of two persons to pay the several precedent debts of the promisors, founded upon a consideration moving to both, was within the statute. The principles applicable to the validity of such a promise, and of one growing out of a new transaction are not in all respects identical ; but they are sufficiently similar to render the case a very pertinent authority upon this inquiry. The action was against two defendants to recover upon a promise to pay a debt due by their father, they having received their dis- tributive shares from his estate. There was a third child, (a daughter), who was not a party. It appeared that the 294 Collateral Undertakings. [CIl. viii. two defendants made the promise in •consideration of for- bearance, the creditor threatening to institute proceedings to compel them to refund what they had received, or enough to pay his debt. In the court below, the plaintiff had judgment upon a case stating the facts, and the defendant appealed to the Supreme Court. § 241. Ruffln, C. J., who delivered the opinion, after briefly adverting to, without deciding the question, whether there was a sufficient consideration for the promise, said that if that point be assumed for the plaintiff, it will not follow that this verbal promise, by two of the next of kin, will maintain this joint action against them. He added: "Now the liability to creditors, of the defend- ants and their sister, as next of kin, was not joint ; but arose, if at all, by reason of that portion of the assets of their father, which came to their respective hands, as their several shares of the estate. Each was there- fore liable only for an equal proportion of the money ; at all events in the first instance, and while the others were able to pay their parts, which is not questioned here. Hence, it is obvious, if one of the defendants had verbally promised to pay the whole of this demand, that the promise would not have been binding under the statute of frauds, beyond his own one-third ; for beyond that the liability was not his own, but that of another. It seems clear that an undertaking by the defendants, in a joint form, to pay the whole debt, cannot alter the rule of law, or the legal effect of the promise as to each, in that respect. For if two persons owe another separate debts, their joint oral promise to pay both debts, cannot sustain a joint action ; since it is a promise by each to answer for another in respect to all but his own original debt. Per curiam. Judgment reversed and judgment of nonsuit." § 242. These are, it is believed, all the reported cases to be found upon either side of the question. The policy of the statute clearly includes joint promises, as well as several; for it is as easy to manufacture evidence, Art. I.] Collateral Undertakings. 295 and as difficult to detect perjury, in one case as in the other. Is there then any thing in the words of the statute to exclude them, or do other legal principles require us to do so \ The argument in favor of the broad rule adopted in Gibhs v. Blanchard, commends itself to the mind upon first impressions ; but we think that further reflection will show that it is more specious than solid ; that there is nothing in the statute to justify the courts in laying down such a rule ; and that its adoption would be a long step backward in the progress of legal science, tending to the unsettlement, and the ultimate abrogation of principles, which have been regarded as well settled for upwards of a century. § 243. And first, let us examine the question upon prin- ciple. The argument in favor of excluding joint promises from the statute, appears to rest entirely upon the imity existing between the promise of the person benefited by the transaction, and that of the other promisor; which, it is said, is so complete that neither can be said to be collateral to the other. These premises may be granted, without con- ceding the conclusion that the statute is inapplicable to the auxiliary promise, thus united with the other. For, as we have had occasion to remark before, the statute does not use either of the terms " collateral " or " original ; "(^) and although it is true that all collateral promises are within the statute, the converse of the proposition, that all prom- ises within the statute are collateral, by no means necessar- ily follows. Nor can it be said with truth, that the language of the statute, by necessary implication, calls for two several liabilities. A "special promise to answer for the debt, default or miscarriages of another," may consist of a joint as well as a several undertaking, with the person answered (A) The complaint, that the use of the word " collateral'' has sometimes a tendency to lead into error in oonstruinp; the statute, is of early date. Per Lord Mansfield, C. J., in Harris v. Hunlbach, 1 Burrow, 375. See BuUer's Nisi Prius, 281 ; Roberts on Fraud?, 224, as well as the remarks of Comstock, C. J., in Mallory v. Gillett, ante, § 50, and of Grover, J., in Browu o. Weber, 38 New York, 190. 296 Collateral Undertakings. [Ch. viii. for. This will become immediately apparent, by applying the words to written promises of that character, some of which are of constant occurrence ; as for instance joint bonds, conditioned that one of the obligors shall pay a debt or faithfully discharge the duties of an office. § 244. Again, if the unity of the promise suffices to take it out of the statute in one case, it will suffice in every other ; consequently promises to answer for a previously existing debt of another are not within the statute, pro- vided the debtor joins with the new promisor in making the promise. It is difficult therefore to discover where the principle stops ; but a mere glance at its necessary consequences suffices to show, that it runs counter to cur- rents of authority in many directions ; and that its general recognition will require the remodelling of other rules, besides the one under which it is now being discussed. § 245. In truth it seems that the importance given to the unity of a joint promise, proceeds from confounding that feature, with another closely resembling it, and equally inherent to an undertaking of that description, to wit, its absolute character. If the question were still open, it would be hard to answer the argument, that a joint promise is not within the statute, because it imports a direct and absolute undertaking of each promisor to answer for himself, and not for the other. But it is too late to predicate any argument upon that characteristic of a joint promise, for it may be equally inherent to a several promise ; and, as we have already shown, and as the argument uipon the other side of the question concedes, the rule is perfectly settled that a several promise, though absolute, is within the statute, if the person primarily benefited also incurred a similar liability. (^■) § 246. ISText, let us consider the argument ab inconve- nienti, which is very properly resorted to, where it is diffi- cult to discover, upon which side lies the weight of argu- (0 See ante, § 140. Art. I.] Collateral Undertakings. 297 ment upon principle and authority. The language of the rule, as laid down in Matson v. Wharam,{j) clearly includes joint promises ; and it has been reiterated, in words to the same effect, in all the text books and in nearly every subsequent case.(/i:). If, therefore, this class of promises is to be excluded from the operation of the statute, an exception must be ingrafted upon this ancient and now universally recognized rule. Moreover, every case where the auxiliary promise is absolute in its terms, will presumptively constitute an exception, within the principle adverted to in commenting upon Wainwright v. Straw ;{l) and the effort to prove that it was the intention of the parties in the particular case, to assume several liabilities, will almost invariably fail ; not only on account of the difficulty of enabling witnessess and jurors, to understand the technical distinction between a joint and a several promise ; but also because it will very rarely occur, that the parties themselves had any knowledge of such a distinction. It would seem therefore that the exception, if once introduced, will end in practically swallowing up most of the rule, by confining it to those cases where one promise was in terms conditional upon non-fulfilment of the other. § 247. For these reasons, we think that the correct rule, with respect to joint promises, is that they are within the Btatute, under the same circumstances as those which are several. If the consideration of the promise is a (;■) Ante, § 146. {k) As far as we have noticed, there is no case where any exception to the general rule is hinted at, except those cited in this article. The text books use language equally general. Mr. Robert?, writing a century and a quarter after the statute was enacted, congratulates himself that in the effort to determine what is within the statute, "one anchorage has been gained, viz.: that the person undertaken for must be or become liable at the time the promise by the third person is made," (Roberts on Frauds, p. 223), which is very nearly the language in which, under the ruling in Gibbs r. Blanchard, a promise without tiie statute would be described. (0 Ante, § 234. 38 298 Collateral Undertakings. [Ch. viii. sale, or loan made, or services rendered by the promisee to one of the promisors, and upon his credit, the promise of the other to respond for the price is within the stat- ute, whether it takes the form of a joint or of a several undertaking. But where a sale or loan is made, or services are rendered to two persons jointly, as was clearly the case in Scholes v. Hampson, it is a matter of no moment, whether they assume a joint liability for the price, or whether each undertakes severally there- for. In that case, the consideration of the promise flows directly from the promisee to both the promisors ; and the legal title to the subject of the contract vests in both of the latter, immediately upon the consummation of the bar- gain. If one of the promisors secures the entire benefit of the transaction to himself, he does so by virtue of an arrangement with his co-promisor, with which the prom- isee has no concern, and over which he exercises no con- trol ; amounting to a release, by one of the joint owners to the other, of his undivided interest. Where the transac- tion is of this character, it is clear that each of the prom- isors undertakes for himself and for his own debt, in substance as well as in form ; and the only difficulty, if for any reason the promises are said to be several, is to reconcile that description of promise, with the character of the purchase. No doubt, in many of the border cases, it is difficult to determine whether the sale, or loan was made, or the services were rendered, to one or both of the contracting parties. WalnwrightY. Straio is such a case. But difficulties of that kind occur in the application of every legal principle ; and in this particular class of cases precisely the same difficulty would present itself, if the same question arose in any one of the many other forms, where such questions constantly arise ; for instance, if the action was against the vendor of the chattel for a breach of the implied warranty of title, or of an express war- ranty of quality. Art II.] Collateral Undertakings. 299 ARTICLE II. Wtere the person benefited and the auxiliary promisor nndertook concurrently to respond | but the person benefited was either a married woman or an infanti (1 ) Ob3e7-vations applicable to either species of auxiliary promise. § 248. We have next to consider the question whether the fact, that the person who primarily nndertook to respond, was under a disability to enter into a binding contract, necessarily renders the undertaking of the aux- iliary promisor original. It arises where an infant, not contracting for necessaries, or a married woman, not acting within the limited sphere in which her contract binds her estate in equity, or under circumstances where the local statutory provisions allow her to make general contracts, nevertheless assumes a liability, and receives credit for goods, etc., and another person enters into a concurrent promise to respond for the price. In such a case, will the latter' s promise be regarded as an original undertaking, or as a special promise to answer for the debt or default of another ? This question is not free from difficulty ; and although the text-books seem to agree that in both the cases suggested, the promise of the person not benefited by the transaction will be regarded as original, the principle upon which the doctrine is maintained, especially in the case of an infant's contract, is by no means clear ; and the authorities do not sustain the confi- dent opinions of the text- writers, (a) (a) We append some ertracts, showing a remarkable unanimity of opinion among the leading elementary writers on this subject, premising that every case cited is abstracted, or otherwise sufficiently noticed, either in this note or in the text. A reference to the cases will show how little justification they contain for so much confidence of opinion. In Chitty on Contracts (8th edition), p. 482. it is said: "If the third party be not by law liable foi the demand, as in the case of goods, not being necessaries, furnished to an infan t, the defendant's promise cannot be considered as collateral, and consequently need not be in writing;" citing Harris «. Huntbach, 1 Burrow, 373, and Duncomb v. Tickridge, Aleyn, 9 J. Mr. Browne, in his Treatise on the Statute of Frauds, § 156, says : " Thus, if the party be a minor, or a married woman, or under any other legal disability as to forming binding contracts, 300 Collateral Undeetakin-gs. [Ch. viii. § 2'i9. Manifestly those cases, where the infant or mar- ried woman, although primarily, or even exclusively benefited by the transaction, did not profess to assume any liability for the consideration, or was not made the subject of any credit, call for no special remark. For there is nothing to distinguish them from the ordinary cases, where goods were delivered, money loaned, or services rendered to one person, exclusively upon the credit of another; as the circumstance that the person primarily benefited was under a disability to enter into a contract, becomes wholly immaterial, when such person made no attempt to contract ; or theattempt was unsuc- cessful, in consequence of the non-concurrence of the other party. it is manifest that a promise by a third person, to answsr for him or her, ia a matter within the range of that disability, cannot be affected by the statute of frauds," citing Hairis v. Huntbach, 1 Burrow, 371 ; Cliapin v. Lapham, 37 Massachusetts (20 Pickering), 4G7 ; Roche v. Chaplin, 1 Bailey, 419; Connerat V. GoLlsmith, 6 Georgia, 14; Mease v. Wagner, 1 McCord, 395; and Drake v. Flewellen, 33 Alabama, 106. Of these cases, Mease v. Wagner (anie, § 223), and Drake v. Flewellen, are entirely irrelevant to the question, and mu-^t have been cited by mistake. The others are fully examined in the text. In the English notes to the posthumous edition of Smith's Lectures on Contracts, p. 47, the same doctrine is doubtless intended to be stated (altiiough unfortunately expressed), and Harris v. Huntbach is cited to uphold it. So in Burge on Suretyship, p. 29 : " If therefore the person, for whom the promise was given, was exempt from all liability by reason of his infancy, the promise given is original, and not collateral," citing Harris v. Huntbach. Messrs. Hare and Wallace, in their notes to Smith's Leading Cases, sixth American edition, vol. 1, p. 473, say: "A guaranty of the payment of a debt, or performance of a contract by a feme covert, minor, or other person under a legal disability to contract, will follow the same rule and bind the guarantor; because there is no obligation resting upon the principal." citing Harris v. Huntbach, also Chapin v. Lapham, 37 Massachusetts (20 Pickering), 467, and Sanborn v. Merrill, 41 Maine, 467. But they add : " This would seem, however, not to be true, when the con- tract of the infant is for necessaries, or when he affirms the contract after coming of full age ; although the minority of the person who receives or profits by the consideration, may tend more or less strongly to show that he was not trusted, and that credit was given exclusively to the promisor." No cases are cited in support of this last remark, and with respect to what Art. II.] Collateral Undertakings. 301 § 250. This was the ground upon which Sanborn v. Merrill, 41 Maine, 4G7, A. D. 1856, was decided ; although it lias been erroneously quoted, as authority for the propo- sition, that a contract collateral to that of an infant, is not within the statute, because the infant is not liable. There it appeared on a report from nisi prius, that the action was to recover for services and expenses of the plaintiff, as an attorney and counsellor at law, in a suit, in which the defendant was the next friend of an infant plaintiff; and the proof of the promise was, that the defendant said that he had employed the plaintiff in the tirst instance to carry on the suit, and agreed to pay him, and he should pay him. The court held that the next friend of an infant, as such, is not liable for the costs which might is said about the aflSrmance of the contract, after the infant becomes of age, it cannot be law; because, as we have frequently had occasion to say, the application of the statute is not afiected by any tiling which occurs after the cqntract was entered into. See § 152, ante. In Addison on Contracts, sixth English edition (18G9), on page 59, it is said: "If goods are furnished to an infant at tiie request of the defendant, the defendant's undeitaking or prom- ise to pay for tliem, is not a collateral promise to answer for the debt of another, inasmuch as the infant is not liable to pay for them, and cannot be indebted by reason of his minority," meaning, doubtless, that such is the rule, if they are so furnished on the request and promise of the hifant, as well as of the defendant. The authorities cited are Harris v. Huntbach, and Duncomb v. Tickridgo, Aleyn, 94. Professor Parsons, in his Treatise on Contracts, does not mention the question, except at page 4 of volume .'second of the fifth edition, where he says: "It" (a guaranty) "is a promise to pay the debt of another; but the guarantor may be held, although no suit could be maintained upon the original debt as where the guar- antor promises to be responsible for goods to be supplied to a mai ried woman, or to be sold to an infant, not being necessaries. But where the ori.t,'inal debt is not enforceable at law, the promise to be responsible for it is consid- ered, for some purposes, as direct and not collateral; as, in fact, the original promise." The authorities cited under the second branch of this proposition are Harris v. Huntbach, 1 Burrow, 37], and Read v. Nash, "there cited;" also Buckmyr v. Darnall, 2 Lord Raymond, 1085. None of the above men- tioned cases, except Chapin v. Lapham, 20 Pickering, 467, and Roche v. Chapin, 1 Bailey, 419, sustained these authors' propositions, as far as they assert that guaranties of the contracts of infants and of married women are original promises. All of them having any relevancy to the subject, are 302 COLLATEEAL UNDERTAKINGS. [Ch. VIII. be recovered against the plaintiff, if the suit should be unsuccessful ; the infant plaintiff being liable for costs. The opinion then proceeds: "The promise to answer for the debt or default of another must be in writing, to bind the person thus promising. But an individual may originally undertake to pay for services which are to be rendered, or for goods which are to be delivered to another. The question in such cases is, on whose credit the services are rendered or the goods delivered. Nothing is clearer than that a person may contract for the performance of services in which he is in no way personally interested. cited and criticised with reference to this principle, in the text of this chap- ter; except Read v. Nash, and Buckmyr v. Darnall, which will be found at §§ 130 and 143; and the case in Aleyn, 94, which is copied in full from the folio of 1681, as follows. " Duncomb v. Tickridge. In an action upon a quantum meruit for dyet. lodging, and apparel, the evidence was that the defendant, being an infant, was sent with a Rushia merchant beyond sea by his mothei-, who did agree to pay him so much for dyet, washing and apparel. And the merchant in Russia committed the care of the infant to the plaintiff, and promised to pay him for his dyet, lodging and apparel. And Roll directed the jury, that if an infant comes to a stranger and boards with him, there is a contract in law implied, that he should pay for his board as much as it is worth ; but if another undertakes to pay for his boarding, this express agreement takes away the implied contract. And the verdict was accord- ingly found for the defendant." The case was decided in 24 Car. II, and of course the statute of frauds had no application to it: it merely holds that the express contract of the "Rushia merchant" prevented an implied con- tract from arising on the part of the infant. This would be equally true if the infant was an adult, provided the jury found that credit was given exclusively to the other party ; as was decided in Sinklear v. Emert, 18 Illi- nois, 63, A. D. 1856, where a father, being about to leave home, made a special contract with the plaintiff, to board his infant son during his absence; and in an action upon a quantum meruit for the board against the infant, the plaintifif was defeated; the court holding that the rule was the sam.e as if the question of infancy was not in the case, when the father alone would be liable, as the credit was given exclusively to him. And in Ellicott v. Peter- son, 4 Maryland, 476, A. D. 1853, the defendants were executors of an infant's grandfather, who, under the Maryland law, is not bound to support a grand- child; and it was held, that they were liable upon a promise of their testator to the infiint's stepfather for the latter's maintenance, it appearing that the testator veibally undertook to respond therefor, at the time of the marriage of his daugliter (the infant's mother) to the plaintiff. Art. II.] Collateral Undertakings. 303 It is of no importance to the individual performing them, who is to be thereby benefited. It is sufficient for him, that he performed them at the instance and on the credit of his employer. In such case the promise need not be in writing." So the plaintiff had judgment. § 251. Although both married women and infants are, in common legal parlance, said to be under disability to contract, yet the effect of a married woman's contract is very different from that of an infant' s ; and this difference is supposed by many, probably with correctness, to exercise a controlling influence in the application of the statute. We will therefore consider separately, the cases bearing upon each spfecies of auxiliary contract. (2) Where the promise was auxiliary to that of a married %uoman. § 252. Where the person primarily assuming to respond was a married woman, and the transaction was not one of the exceptional cases, where her contract is valid, tliere is great weight in the argument that a guaranty of her con- tract is an original undertaking. For at common law a married woman' s executory contract is absolutely void ; and it is even held, that such a contract is incapable of ratification by her, after the cessation of the coverture, by the death of her husband or by a divorce, without such a new consideration as would suffice to sustain it, as a new and independent contract, {h) And where she has a sepa- rate estate, her general contract will not bind her estate even in equity; in order that it should have that effect she must in some form create a charge or lien upon it. When she has done so; or if the transaction is one, where she or her estate is made liable by statute ; the undertaking of a person who "comes in aid'' of such liability is clearly collateral, within the principle of all the authorities heretofore cited ; but in all other cases, as there is no legal or equitable debt of a third person, to which {h) Liltlefield v. Shee, 2 Barnewall and Adolphus, 811 ; Meyer v. Hawortb, 8 Adolphus and Ellis, 4G7. 304 Collateral Undertakings. [Ch. viii. sucli an undertaking can be collateral, the promise of the so-called guarantor would seem to be original. And yet there are many cases, where the credit of a married woman is recognized as having a legal existence, although the facts were not such as to render her or her property liable even in equity, (c) § 253. And in one case in the New York Supreme Court, Kimball v. Newell, 7 Hill, 116, A. D. 1845, which was an action of covenant, upon a sealed guaranty of the payment by a married woman, of the rent of a dwelling leased by her. Nelson, C. J., said that it had been decided by the English Court of Common Pleas, that a verbal promise to respond for a married woman' s debt is void, within the statute of frauds. The defendant insisted that as his prin- cipal, being a married woman, was not liable upon her covenant, he, the surety, was also not liable: and in dis- cussing the question, the learned Chief Justice referred to Maggs v. Ames, as an action against a surety for a mar- ried woman. "There," he said, "the question was whether the undertaking of the defendant was an original one, so as not to require it to be in writing. The court held that it was collateral, and therefore should have been in writing. But neither the counsel nor court supposed, (c) The cases referred to are those, where an action has been brought against the husband for goods furnished to the wife, and it has been held that the goods were in fact furnished upon the credit of the wife, and not of the hus- band. Bentley v. Griffin, 5 Taunton, 356; Holt v. Brien, 4 Barnewall and Alderson, 252; and Metcalfe v. Shaw, 3 Campbell, 22, are leading cases upon tliis subject. For other similar cases see 1 Parsons on Contracts, fifth edition, 348, and notes. The distinction between a wife's credit, and that of her husband, is very neatly taken in the opinion delivered in Connerat v. Gold- smith, C Georgia, 14. The case of Darnell v. Tratt, 2 Carrington and Payne, 82, cited ante, § 158, also recognizes the credit of a married woman as having a legal existence, in direct connection with the question whether a promise to respond for her is original or collateral; andalthough it was held there that the contract was not collateral, the absence of any allusion, by the court or the counsel, to a distinction growing out of the fact, that the person alleged to be the principal contractor was a married woman, is an indication that it was then supposed that no such distinction existed. Art. II.] Collateral Undertakings. 305 that the defendant would not have been bound, if the contract had been in writing. On the contrary that was assumed." But we think that a careful examination of the case referred to by the learned Chief Justice, will show that it is of no value upon this question. (<:?) § 254. However, Miller v. Long, 45 Pennsylvania, 350, A. D. 1863, is perliaps an authority for holding that the statute applies to a promise, collateral to a married wo- man' s contract. There the defendant' s wife signed a note, together with the defendant' s step- son, in her own name and for her son's benefit ; and at the same time the defend- ant, being present, was also requested to sign it ; but he refused to do so, and told his wife, in presence of the plaintiff, that she should put her name to it and he would {d) The case of Maggs v. Ames was decided in the year 1828, and is reported in 1 Moore and Payne, 294, and 4 Bingham, 470; according to both reports the declaration contained two special counts ; the first upon the defendant's promise to pay, in case of dishonor, a bill of exchange to be drawn upon and accepted by one Ann Prickett, for a debt due from her; and the second upon a promise to pay the debt itself. The defendant pleaded five pleas; the fourth was to the efiect that there was no writing as required by the statute of frauds ; and the fifth, that at the time, etc., and thence hitherto, etc., Ann Pricket was a married woman. Both reports say that these pleas were pleaded to hoth counts. There was a special demurrer to the fourth and fifth pleas ; and after argument the court gave judgment for the defendant. It will be seen, from this statement, that the question to which Chief Justice Nelson referred, could not have arisen ; as the pleas of coverture and of the statute were entirely distinct; and in considering the plea of coverture^ the court must have assumed, upon well settled rules of pleading, (the force of which was fully recognized in the opinion delivered), that both the promises set forth in the declaration were in writing. Accord- ing to the reports of the decision, the court held that a plea of coverture of the original debtor was a good defence, not only to a count upon a promise to pay her debt in case of her default, but also to a count upon an absolute promise to pay it. But the opinion says no such thing; on the contrary it is directly the other way, with respect to the plea of coverture, and the plea of the statute, to the count upon the absolute promise. There are other dis- crepancies between the decision and the opinion, and some palpable errors in the latter. As far as the question now under examination is involved, both reports are wholly unreliable, and in truth incomprehensible. 39 306 Collateral Undertakings. [Ch. viii. see it paid, and afterwards lie promised to pay it. The plaintiff had judgment in the Common Pleas ; and error was brought thereon to the Supreme Court. There it was held that the defendant was not liable on his promise ; first, because he was not the maker of the note and it would be in contradiction of the writing to hold him liable ; and secondly, because ' ' there is no promise in writing by him, and therefore no promissory note by him, and no valid promise to pay the debt of another, whether his wife' s or her son's." The judgment was therefore reversed. (e) § 255. In Connerat v, GoldsmitJi, 6 Georgia, 14, A. D. 1849, the plaintiff sued to recover the value of certain fur- niture delivered to the defendant' s wife ; and it appeared that she had a separate estate ; and that she purchased the furniture herself, and gave her note for the price, in exchange for which the plaintiff gave her a receipt in full ; but evidence was given of a subsequent verbal promise by the defend- ant to pay the note. The court held that he was not liable, because it was evident that the credit was given to the wife and not to the husband ; so that if the husband sub- sequently made a promise to pay the note, such prom- ise was void within the statute of frauds, as being an engagement to answer for the debt of another. The opin- ion, however, speaks of the wife as being, as to her sepa- rate estate, a feme sole ; and concludes by saying that the plaintiff has a remedy against her property. Unless there is something peculiar and exceptional in the law of Georgia, it is questionable whether the wife's property was answerable for the debt, either at law or in equity ; so that upon the facts of the case, it would apparently be an authority for holding, that a promise is within the statute, whenever it was collateral to that of a married woman. But as the court assumed, whether rightly or not, that the (e) The Pennsylvania married woman's act, passed in 1848, is not construed as giving a married woman any new power to contract debts. See Bright- ly's Purdon's Digest, 699 to 702, and note. The case cited in the text is shamefully reported ; and we are inclined to think that the decision turned entirely upon a point of pleading. Art. II.] Collateral Undertakings. 307 woman' s property was liable for the debt, the case cannot fairly be regarded as holding any thing more, than that an equitable liability of a married woman's property consti- tutes such a debt, that the statute of frauds will attach to a promise relating thereto ; in the same manner as if the person benetited by the transaction, out of which it arose, was under no disability. § 256. In view of these decisions, (/) it is impossible to say that the law is settled that a promise to respond, concurrently with a married woman, upon a consideration moving to her, is not within the statute of frauds. All that can be said, is that the weight of reasoning appears to favor such a doctrine ; but upon the authorities the question is an open one. Nor can we find much to shed light upon it, by consulting the cases where the undertaking was in writing. They all agree that the surety in such a case is bound, notwithstanding the coverture of the prin- cipal debtor ; and the same rule obtains where the princi- pal is an infant ; but the reasoning upon which the liability rests is vague and by no means uniform. While they assert that "for some purposes" the surety is regarded as a principal, they do not in general state definitely what those purposes are, beyond the purpose of being made liable in the particular case. Thus in St. Albans Bank v. Dillon, 30 Vermont, 122, A. D. 1857, the court said that the maker of a joint note, where a married woman is the other party, and the transaction was for her benefit, " stands in a certain sense as principal promisor." But in Smyley V. Head, 2 Richardson (South Carolina), 690, A. D. 1846, upon the same state of facts, the court said: "The liabil- ity of the surety in such case may be supported, on the ground, that he shall not protect himself, by alleging the incompetency of the supposed principal, which may have been the very motive with the other contracting party for (/) The head note to Bagley v. Sasser, 2 Jones' Equity (North Carolina), 350, A. D. 1856, impHes that it is relevant to this subject; but we fail to dis- cover its application, upon an examination of the case itself. 308 Collateral Undektakings. [Ch. viii. requiring security ; and by analogy to the law of principal and agent, the surety may be held liable as principal, for an engagement he has made in behalf of one, who was incompetent to contract," which apparently puts the lia- bility upon the ground of an estoppel in pais. And in the case already cited, Kimball v. Newell^ 7 Hill, 116, wlijle Nelson, C. J., assigned no special reason for holding the defendant liable, Beardsley, J., put it upon the ground of an estoppel by deed. He says: "The defendant by his covenant admits she was thus bound, and he shall not ... be permitted, on the ground now set up, to deny the legal existence of a covenant which is explicitly conceded by his own deed." (3) Whe,re the proviise was auxiliary to that of an infant. § 257. Passing now to the consideration of the cases, where the person who was benefited by the consideration, and who assumed the primary liability, was an infant ; we observe that the principles which govern the liability of an infant, upon an executory contract not for necessaries, would seem to render it still more questionable, whether the concurrent undertaking of another, to respond for a debt contracted by him, can be treated as original, by reason of any invalidity of the infant's promise. For while the contract of a married woman is, as we have seen, so absolutely void at common law, that a new promise, after the disability has ceased, will not suffice to sustain it, without a new consideration ; the rule is quite difl'erent with respect to that of an infant. Without undertaking to give here any comprehensive statement of an infant' s rights and liabilities, it will be sufficient for our purpose to say, that while an infant is liable for all torts committed by him, in general his contract is not void but only voida- ble ; that is, he may, either during minority or a reason- able time after majority, avoid the contract; or on the other hand, he may, after he attains majority, confirm and enforce it. It is said that contracts of suretyship, and other similar contracts, which the court can clearly see will not promote the infant' s interest, can be declared void Art. II.] Collateral Undertakings. 309 by the court ; but the better opinion seems to be that no such jurisdiction exists, and that no contract of an infant is absolutely void ; it being the exclusive privilege of the infant himself to avoid his contracts. (^) The accomplished authors of the American Leading Cases, in the course of a chapter, which contains a very full and lucid discus- sion of the liabilities and rights of infants, say: "The numerous decisions which have been had in this country, justif}" the settlement of the following definite rule, as one that is subject to no exceptions. The only contract bind- ing on an infant is the implied contract for necessaries : the only act which he is under a legal incapacity to per- form, is the appointment of an attorney : all other acts and contracts, executed and executory, are voidable or confirmable by him at his election. "('^) § 258. The solution of the question seems to depend upon the legal character of the infant' s contract, during the period which elapses between its creation, and its avoidance or affirmance. And in common legal parlance, such a contract is said to be binding on both parties, until it is disaffirmed by the infant. This expression defines with substantial accuracy the rights and liabilities of both the parties. To say that a contract is voidable imports, ex vi termini, that it is good until it is avoided. And the rule is well settled that no one but the infant himself can avoid his contract. Hence it seems very clear that after the making of a contract by an infant, and during the intermediate time elapsing before its disaffirmance, it has a legal value and character as a binding agreement, under which rights may be acquired or lost. Consequently there is a period of time, in which the collateral promisor and the principal debtor are concurrently liable, which is the test whether the former' s contract is within the statute ; for events happening after the contract has been entered into, are wholly immaterial to the determination of that question. ( / ) (7) 1 Parsons on Contracts, fiRh edition, 294, 296. (A) 1 American Leading Cases, fourth edition, 244. (t) See ante, § 152. 310 Collateral Undertakings. [Cli. vin. § 259. But, as was shown in the note to section 248, the general opinion seems to be the other way, although it is not suiDported by much authority. The case most frequently cited, in support of the theory that the auxiliary promisor is liable, because the infant' s contract does not bind him, is Harris v. Hunthach, 1 Burrow, 371, A. D. 1757, which, as we regard it, holds no such doctrine. There the promises upon which the action was brought were in writing, and so the application of the statute of frauds was not directly in question ; but the case is a pertinent authority under the statute, because the pleadings presented the precise question, whether the undertaking was original or collat- eral. The action was upon a general indebitatus assump- sit, the declaration containing two counts ; the first for money lent and advanced by the plaintiff, at the defend- ant' s request ; and the second for^ money laid out and expended by the plaintiff, at the like request. As the question respecting the first count was almost too clear for argument, it will suffice to say that it arose upon the defendant' s note of hand, the consideration of which enured to the infant's benefit. To sustain the second count, the plaintiff proved that one Davidson, the gardener upon the estate of the defendant' s infant grandson, applied to the plaintiff, by order of the defendant, for money to pay the workmen employed upon the estate ; but the plaintiff refused to furnish the money, unless the defendant would sign a receipt therefor ; whereupon the defendant wrote to the plaintiff a note requesting him to pay Davidson, ' ' on the account of Master Hillier, for the workmen' s use, the sum of 15Z." ; and upon this the plaintiff paid the money to Davidson, who executed his receipt therefor to the plaintiff. There was a verdict for the plaintiff, and a case was reserved for the opinion of the court upon the question whether the evidence was sufficient to support the verdict. § 260. Upon the argument the point was, whether the defendant' s undertaking was original or collateral ; it being conceded, that in the latter case the declaration should have been special, but in the former the general Art. II.] Collateral Undertakings. 311 count sufficed. The court held that it was an original, and not a collateral undertaking, for the reason that there was no proof that the plaintiff had any remedy against the infant. Lord Mansfield, C. J., said: " Here is a mansion- house belonging to an infant, which mansion-house has a garden belonging to it. It might not be necessary (in regard to the infant's situation and circumstances), to support this garden (which might be a pleasure garden), and no action will lie against the infant but for necessaries. It don't appear at all that there could be any remedy against the infant." Denison, J., added: "There is no privity between the plaintiff and the infant ; " and Foster, J., said: "The infant was not liable, and therefore it could not be a collateral undertaking. It was an original undertaking of the defendant to pay the money." So the postea was delivered to the plaintiff. § 261. If these remarks of the judges be disconnected from the facts upon which they were predicated, there are some expressions in them, which seem to convey the idea that the liability of the defendant was original, merely because the person undertaken for was an infant. But if due weight be given to the peculiar circumstances, under which they were spoken, we think it will be manifest, that Harsris v. Hunthach is not an authority upon either side of the question under consideration ; for the infant had made no express contract; and what is said by Lord Mansfield about necessaries, is evidently upon the ques- tion, whether there was any thing, upon which the court could raise an implied contract against him. The conclu- sion was, not that the defendant had undertaken collat- erally to respond for an infant's voidable contract; but that the infant was not liable upon any contract, express or implied ; and the result would have been precisely the same, if "Master Hillier" had been an adult; only in the latter case the remarks about necessaries would have been irrelevant. (,/) ij) In Tupper v. Cadwell, 53 Massachusetts (12 Mefcalf), 559, A. D. 1847. It was held that an infant was not liable, upon an implied contract for th© 313 COLLATEKAL UNDERTAKINGS. [Ch. VIII. § 262. The case of Roclie v. OhapUn, 1 Bailey (South Carolina), 419, A. D. 1830, has been also supposed to con- tain a judicial sanction of the proposition that a promise to pay an infant' s debt is original. The report does not disclose the circumstances of the transaction between the plaintiff and the infant; it merely says that this was a "summary process upon an open account, for a frock coat furnished by the plaintiff, a tailor, to the defendant' s ward." There was an interrogatory annexed to the process, under the local statute, requiring the defendant to answer on oath, whether he had not promised the plaintiff' s attorney, after the account had been placed in his hands for collec- tion, to pay the debt, if he should be indulged for a short period. He refused to answer on two grounds, one of which was that if such a promise had been made, it was void under the statute of frauds. In the court below the objection was overruled, on the ground that the promise " was an admission, both that the debt had been properly contracted by the ward, and that he himself had funds in hand to meet it;" and the plaintiff had judgment under the statute, in consequence of the defendant's refusal to answer. § 263. The defendant moved in the Court of Appeals to set aside the judgment. The motion was denied, Johnson, J., saying, that assuming the affirmative of the question to be true, the case was that the coat was furnished to the ward without the defendant's order, and that he subse- quently promised to pay the value, in consideration of indulgence ; and that where there was no liability on the part of the person for whom the promise was made, the promise was original. He added: "It may, I think, be well questioned, whether an infant having a guardian would, under ordinary circumstances, be himself liable expenses of repairing his dwelling house, although the repairs were necessary for the prevention of immediate and serious injury to the house; the court holding that if such repairs are needed, a guardian should be appointed to make them. Art II.] Collateral Undertakings. 313 even for necessaries furnished him. But there is clearly nothing in this case which would bind him ; and accord- ing to the rule, the promise of the defendant was original and binding on him," citing Harris v. Hunthach. The motion was therefore denied. It would seem, from the remarks which we have quoted, that the pleadings or the evidence disclosed something, relating to the original transaction between the plaintiff and the infant, which the reporter has omitted ; probably that the coat was fur- nished on the credit of the defendant, but without his authority ; especially as the decision of the court below proceeded upon that ground, and the reason there assigned was ample to sustain the action. (A-) § 264. In CJiapin v. Lapham, 37 Massachusetts (20 Pickering), 467, A. D. 1838, the defendant had requested the plaintiff to assist his minor son, whenever he should need any assistance, in a business which he was carrying on ; and had promised to indemnify him for any liabilities "which he might incur, and any assistance which he might render. Upon the faith of this promise, the plaintiff had signed a note with the son, and for the latter' s accommoda- tion, which he had subsequently paid ; and now he brought this action to recover the amount so paid. A verdict was rendered for the plaintiff, under a general charge that the (Jc) The case apparently very nearly resembles that of Law v. Wilkin, 6 Adolphus and Ellis, 718, A. D. 1837. There the action was brought by a firm of tailors for the value of a suit of clothes, supplied to the defendant's son, a boy at a boarding school. It appeared that the boy was in want of clothes, but there was no evidence to show that the father had ordered this suit. It was also shown that when the boy went home for the holidays, he took the clothes with him; but "was not wearing them; " and he returned to school with them; but there was no direct proof that the defendant had seen them. The plaintiffs were nonsuited, and the court set aside the nonsuit and ordered a new trial, partly on the ground that it appeared that the father had not made proper provision for the son. But Lord Denman, C. J., and Patterson and Coleridge, J. J., also held that the presumption was that the father saw the clothes during the vacation; and as he made no objec- tion, an authority might, for that reason, be implied. 40 314 Collateral Undertakings. [Ch. vin. promise was not witliin the statute of frauds ; and the case came on to be heard, upon exceptions to that and other portions of the charge. Shaw, C. J., delivered the opin- ion of the court, overruling the exceptions. Upon the point whether the promise was within the statute, after saying that when the whole credit was given to the person making the promise, it is original, he added: "In the present case we think the whole credit was given by the plaintiff to the defendant. The son of the defendant was a minor, and not liable to any action by the plaintiff for the money paid on his account, on the joint and several note signed by the plaintiff, in pursuance of the defendant' s request. The undertaking and promise of the defendant, therefore, was not collateral to any promise of the son ; but was separate, independent and original. "(Z) § 265. On the other hand, the case of Clarlt v. Lem^ 10 New York Legal Observer, 184, decided in the New York Common Pleas, A. D. 1851, is an authority for holding a promise to respond for an infant' s contract to be collateral ; for although in the particular case, it was conditional by its terms, it is believed, that within the principles govern- ing verbal contracts of that character, the rule is the same, in this connection, whether the promise was absolute or conditional, (m) The plaintiff had sold goods to the defend- (?) This is all in the opinion material to the point under consideration ; and if we understand it rightly, it means no more than that the infancy of the principal debtor, was a circumstance to show, that in fact credit was not given to him; rather than that it rendered the contract necessaiily original. It is true, that the infant had assumed to contract upon his own credit, but not with the plaintiff. As between the plaintiff and the defendant, the result would have been the same if the principal debtor had been an adult. It will appear hereafter, (chapter xiii,) that this is the first of a series of Massachusetts cases, which finally settled the rule in that State, that a promise to indemnify the promisee for becoming surety for the third person to a fourth person, who was not a party to the contract, is not within the statute. Still the Chief Justice failed in this case to lay down that principle distinctly, saying that it was not necessary to decide it; and placed the decision entirely upon the question of credit. (m) Chapter vii, article iii. Art. II.] Collateral UNDEKTAKmos. 316 ant' s son, at six months' credit, upon the defendant' s prom- ise to be responsible and to pay for them, if the son did not ; the son was under age, and the plaintiff had refused to trust him because he was an infant ; but finally let him have the goods, upon the defendant's promise as above stated. The defence was that the promise was within the statute. The plaintiff had judgment, which was reversed on appeal. Ingraham, First Judge, delivering the opinion of the court, held, that the promise was not taken out of the statute of frauds by the infancy of the son ; because "the contract with the infant was a good contract, which he could enforce on his part ; and which was only void- able, if he saw fit to avail himself of his personal exemp- tion ; but until the defence of infancy was made, the con- tract was otherwise valid." The learned judge added, that it was evident that the defendant did not intend or agree to be the principal debtor ; this was apparent, not only from the circumstances proved in evidence, but from the terms of the contract ; the whole credit was not given to the defendant. "If," he continued, "the promise had been, to do what was asked of the defendant in the first instance, viz., to indorse the note of Joseph, there could be no doubt that such a promise would be void." The case of Harris v. Hunfbach was distinguished from the one at bar, on the ground that there it did not appear that the infant had made any contract, or that there was any privity between the plaintiff and him. § 266. And the recent case of Dexter v. Blanchard, 93 Massachusetts (11 Allen), 365, decided A. D. 1865, although the question arose upon a promise to pay a debt antece- dently contracted by an infant, apparently covers the whole subject of the present discussion. It was an action "upon an oral promise by the defendant, to pay to the plaintiff a bill for the hire of horses and carriages, and for injury to a wagon." At the trial, " the plaintiff offered to prove that the horses and carriages were hired, and the injury done, by the defendant's minor son, to whom the credit therefor was given;" and that in consideration of 316 COLLATEEAL UnDEETAKINGS. [Ch. VIII. forbearance to trouble the son, while he was ill, the defend- ant promised to pay the debt. The judge ruled that the action could not be maintained, and a verdict was rendered for the defendant. The Supreme Court overruled an exception to this ruling, Bigelow, J., delivering the opin- ion, which, upon this branch of the case, is as follows : "The fallacy of the argument urged in behalf of the plaintiff, lies in the assumption, that there was in fact no debt due from the son of the defendant, because he was a mmor at the time he undertook to enter into a contract with the plaintiff. A debt due from a minor is not void ; it is voidable only ; that is, it cannot be enforced by a suit at law against the contracting party, on plea and proof by him of infancy. But it is voidable only at the election of the infant, and until so avoided it is a valid debt. Wor can a third person avail himself of the minority of a debtor, to obtain any right or security or title. Infancy is a personal privilege, of which no one can take advantage but the infant. " " The effect of the doctrine contended for by the counsel for the plaintiff would be, that a verbal agreement to answer for the debt of another would be valid, if it could be shown that the original contracting party could have established a good defence to the debt, in an action brought against him. We know of no prin- ciple or authority on which such a proposition can be maintained. It certainly would open a wide door for some of the mischiefs which the statute of frauds was designed to prevent. "(?i) (n) As germane to this question, we refer also to the cases of Haine's Administrator v. Tarrant, 2 Hill (South Carolina), 400, A. D. 1834, and Conn V. Coburn, 7 New Hampshire, 368, A. D. 1834, (each of which was an action to recover from an infant, the amount paid by the plaintiflf, to take up a promissory note, which he had signed with the infant, as his surety, for necessaries furnished to the infant); and to Randall v. Sweet, 1 Denio (New York), 460, A. D. 1845, where a stranger to the demand, at the request of the infant, had paid the infant's note, given upon a like consideration. In each of these cases the creditor was allowed to recover. In Conn v. Coburn, it was expressly conceded, that the note was voidable, and that it did not cancel the debt until it was paid ; and Parker, J., delivering the opinion of Art. II.] Collateral Undertakings. 317 § 267. These are, as far as we can ascertain, tlie only reported cases upon this subject ; (o) and we think that the weight of authority, as well as of argument, is very decidedly in favor of the ruling, that a promise in aid of that of an infant, is within the statute of frauds, precisely as if the infant was an adult. § 268. Here we take leave of the cases governed directly by the third general rule ; but by no means of the principle embodied in the rule. On the contrary, we shall lind it underlying many of the rules upon which depends the validity of a verbal promise relating to an antecedent debt or liability of a third person. Not unfrequently the very language of this favorite rule is used, as a test by which to determine the application of the others ; and in some cases this rule has been erroneously allowed to supercede the one, by which the validity of the promise should have been determined. the court, saj's: "If the infant is not liable upon the note, as he would not be if he elected to avoid such liability, an assumpsit, upon the delivery of the goods, must be considered as subsisting against him ; and the note of the surety be regarded as collateral security for the payment." (o) Kirkham v. Marter, 2 Barnevpall and. Alderson, 613 (ante §§ 124, 133.) is sometimes supposed to relate to this question. If it has any bear- ing upon the validity of a verbal auxiliary undertaking in behalf of an infant, it merely proves that such an undertaking is within the statute, when the infant is liable. But there is nothing m the case to show that the defendant's son was an infant. CHAPTER NINTH. CASES WHICH ARE NOT WITHIIST THE STATUTE, ALTHOUGH THE THIRD PERSON AND THE PROMISOR BECAME LIABLE FOR THE SAME DEBT, BECAUSE THEY WERE NOT SO LIABLE AT THE SAME TIME. THE SUBJECT COMMENCED WITH THOSE CASES, WHERE THE EXTINGUISHMENT OF THE THIRD PERSON'S LIABILITY RESULTED FROM SOME ACT OR OMISSION OF THE PROMISEE, OTHER THAN AN EXPRESS DISCHARGE. § 269. Having thus completed the examination of those cases, where the liabilities of the promisor and of the third person did not concur, for the reason that the third per- son had assumed no liability corresponding with that of the promisor, at the time when the promise took effect, we now come, in pursuance of the classification indicated in the second chapter, to those where the failure of the two liabilities to concur, proceeded from the fact that the person primarily owing the debt or the duty, had been discharged therefrom, before the undertaking of the new promisor took effect. These form the second subdivision of the fourth class of cases not within the statute, because the terms of the statutory description of the promises to which it applies are only partially satisfied, {a) and they are governed by the fourth general rule, namely : RULE FOURTH. A promise to assume an antecedent liability of a tliird person is ■withont the statutBi if the third person's liability had become extinct, at the time when that of the promisor came into ezistencei § 270. The cases governed by this rule are also very numerous ; and they arrange themselves into several dis- tinct groups or sub-classes, depending upon the manner m which the discharge of the tliird person was effected, (a) Section 70. Art. I.] Collateral Undertakings. 319 and presenting various incidental questions, which relate chiefly to the sufficiency of the discharge, or of the evidence to establish it. After disposing of some preliminary matters relating to all these groups, we will consider in this chapter those cases which possess in common the feature, that the third person's discharge resulted from some act of the promisee, done at the request of the prom- isor, but without any agreement to that effect with the person discharged; reserving till the next chapter the examination of those, where the discharge resulted from an agreement, to which the promisor, the promisee, and the third person were all parties. ARTICLE I. Origin and correct definition of the rule ; in what oases an eiecntory agreement to discharge the third person, or to do some act which will operate to discharge him, will satisfy it, § 271. The suggestion that the statute does not apply to cases where the third person's liability had become extinct at the time of the promise, is believed to have been first made in the year 1766, by Sir Fletcher Norton, comment- ing upon Read v. Nash, 1 Wilson, 305, in the course of his argument for the plaintiff in Williams v. Leper, 3 Burrow, 1886. (a) But the earliest case where we find any such principle distinctly suggested from the bench, is Anstey v. Mar den, 4 Bosanquet and" Puller (1 New Keports), 124, decided in the Common Pleas in the year 1804, already cited at considerable length in another con- nection. (&) There, as was mentioned when the case was formerly cited. Sir James Mansfield, the Chief Justice, said that one of the grounds of his ruling at the trial waa that he did not see "how one person could undertake for the debt of another, when the debt, for which he was sup- posed to undertake, was discharged by the very bargain." And he seems to have retained that impression, after the argument of the rule nisi ; although he ultimately fell in (a) See ante, § 130, and post § 577, 578. (6) Sections 118 and 119. 320 COLLATEKAL UNDERTAKINGS. [Ch. IX. with the conclusions of the other judges, who discharged the rule upon a ground, which seems to be wholly incon- sistent with the application of that doctrine to the case then before them. § 272. This suggestion of the Chief Justice provoked much cotemporaneous comment ; and Mr. Roberts, whose Treatise on the Statute of Frauds was published soon afterwards, condemned it in unqualified terms, (c) But fourteen years after the decision in Anstey v. Marden, the case of Goodman v. Chase, which will presently be given at length, was decided in the King' s Bench, before Lord Ellenborough and his associate justices ; wherein that principle was distinctly promulgated as the ground (c) The following extract contains the substance of his argument against the principle : " The promise mentioned by the statute is as well that whereby a man undertakes to answer for the debt, as for the default, of another; and although where the original party was liable to the performance of some act (to which case the words default or miscarriage seem properly applicable), the promise may be construed in the limited sense of an alternative under- taking only ; yet such interpretation will be too narrow where the promise is to pay the deht of another. To answer for another man's debt seems to be a phrase extending as well to promises to pay another's debt, where the promise is made in consideration of an instantaneous discharge of the party originally liable, so as to substitute the promisor in his place as the only debtor, as where the engagement is only meant to be in the alternative; and as the greatest lawyers have, for a series of years, strongly declared their conviction of the expediency of a liberal construction of the statute, there does not appear to be any just ground for confining this clause to the case of such promises only, which suppose the liability of the original debtor to remain. Where, indeed, there was no previously existing debt, as where the undertaking arises upon the furnishing and delivery of goods by a trader to a third person, to place such case within the reach of the statute, it is necessary that the deliveree should become liable ; in such case, therefore, the liabilities of the party undertaken for, and the party undertaking, must necessarily exist together. But if I undertake to satisfy the debt of a person already indebted, in consideration of his instantaneous release, there seems to be no good reason for saying that this is not a promise to answer for the debt of another, within the reason and contemplation of the act of Parlia- ment." Roberts on Frauds, pp. 224, 225. Case v. Barber, T. Raymond, 450, A. D. 1681, appears to be an authority in support of Mr. Roberts's views. Art. I.] Collateral Undertakings. 321 of the decision. Since that time, it has been universally acknowledged, as the true rule of construction of the statute, by all the English courts and text writers ; and from England it has travelled to the United States, where it has now become equally well settled, and although some ill-considered rulings to the contrary may be found scattered through our reports, our courts are practically unanimous in recognizing it.{d ) § 273. The rule is frequently stated, as though it was conhned to cases where the discharge of the third person, or the act from which his discharge resulted by operation of law, constituted the consideration of the promisor's undertaking. In practice such is almost always the fact ; but it is believed that the principle does not depend upon that circumstance ; and that all that is required is, that the two liabilities should not exist simultaneously. If we are correct in this conclusion, the consideration of the discharge and of the promise may be entirely distinct. § 274. But while it seems impossible to state any satis- factory reason for this rule, other than that the two lia- bilities did not at any time concur, it has happened that in nearly every English case of this class, there has been a period of time, more or less extended, during which the undertaking of the promisor was for some purpose a binding contract, and yet the third person was not actually discharged. This feature of the cases at once provokes the inquiry, whether an executory agreement on the part of a creditor to discharge his debtor, or to do some act fi'om whi(;h his discliarge will result by operation of law, will take out of the statute a stranger's promise to pay the debt. The question is full of embarrassment ; and we can make only an experimental effort to answer it. 1 (d) Per Lipscomb, J., Tompkins v. Smith, 3 Stewart and Porter (Ala.), G2, A. D. 1832; Saxton v. Landis, 1 Harrison (N. J.), 302 (1838); per Wilson, C. J., Evans v. Lohr, 2 Scammon (Illinois), 511 (1840) ; per Whitman, C. J., Rowe V. Whittier, 21 Maine, 550 (1842). 41 322 COLLATEKAL UNDERTAKINGS. [Ch. IX. § 275, Suppose that A and B should agree, that at some future day, A will pay B the amount of a debt which C owes him, and that upon receiving the money B will dis- charge C from the debt ; it is manifestly absurd to say, that the circumstance that B expressly agrees to discharge C, will take the promise out of the statute, when the fulhl- ment of A' s promise would extinguish the debt, without any special agreement to that effect. Doubtless no one will deny that in the case put, the statute avoids the agree- ment, unless it was in writing. The same result would follow, if A' s promise was to pay a smaller sum than the amount of the debt ; or to do some specific act in lieu of paying money, as, for instance, to give a note for all or part of the debt. In all such cases there may be two lia- bilities, which can be enforced by concurrent actions ; for if B should, at the appointed day, tender a discharge of C, and demand fulfilment of A's contract, as a condition of its taking efiect, he could maintain an action against A for breach of his promise, without affecting his original remedy against C. And it would seem, that the applica- tion of the statute depends upon the fact, that both these actions might be maintained. § 276. On the other hand, suppose that the agreement is that A will pay B a certain sum at a future day, provided that B shall have previously discharged C ; and B agrees that he will discharge C accordingly. In this case, as B can maintain no action against A, until he shall have actually discharged C, there cannot be two concurrent actions. It would therefore seem, that in such a case, the promise is not within the statute. And we suspect that in all cases, where the original debtor' s discharge was not fully accomplished, till after the making of the new agree- ment, the true test of the application of the statute will be found in the answer to the inquiry, whether the terms of the agreement were such, that the creditor could, in any contingency, maintain an action thereon, vtdthout previously discharging his debtor. Although this dis- tinction is very fine, and cases can easily be suggested, Art. I.] Collateral Undektakings. 323 where the course of the dividing line could be detected with difficulty, there seems to be no other satisfactory method of dcfcndin"; some of the cases upon principle, or of reconciling llicni with othei-s. As this question is of considerable practical importance, and the foregoing distinction has never, as far as we have noticed, been expressly taken, we shall recur to the subject again, after examining the principal English cases, where the question is presented, (e) § 277. Proceeding, therefore, to the consideration of the cases, where the extinguishment of the third person's lia- liility resulted from some act of the promisee, other than an express discharge, tendered to and accepted by the third person; we find that in some of them, wh(>re the third person's liability was in the form of an indebted- ness, ascertained and payable, the discharge resulted from some act or omission of the promisee, whence the law presumes a satisfaction, and, without considering the question of actual intent, declares the debt to be cancelled. In others, where the third person' s obligation was a con- tract to perform some act, other than the payment of a debt, or whereby a debt would be created upon a future contingency ; the promisee, without any express discharge of the obligation, has pursued such a course with respect to the subject matter of the contract, as to indicate his intention to abandon it altogether ; and to preclude him from enforcing it against the other party. Each of these descriptions of cases will be considered in its turn. (e) See the note to BiiUjher v. Stcnart, [lOst § 284. 324 Collateral Undeetakings. [Ch. ix. ARTICLE 11. Where tlie discharge of the third person's deht arose hy operation of law, in consequence of some act or omission of the promisee, without his express assent thereto. (1) Where the promisee discharged the third person from arrest under a capias ad satisfaciendum. § 278. It is well settled, that where the defendant in a judgment is taken upon a capias ad satisfaciendum, such capture amounts, for the time being, to a satisfaction of the judgment ; and the defendant' s subsequent discharge from custody, by the consent of the plaintiff, operates in law as an extinguishment of the debt, although it may have been merely temporary, and the facts may clearly indicate that the intention of both of the parties was quite other- wise. The principle, that an extinguishment of the orig- inal debt, suffices to take out of the statute, the promise of another person to pay it, was first settled in England, in a case where the debt was extinguished, in consequence of such a discharge, § 279. The case referred to, which was decided in the King's Bench in the year 1818, is Ooodman v. Chase^ 1 Barnewall and Alderson, 297. There it appeared that the plaintiffs, having recovered a judgment against the son of the defendant, sued out a capias ad satisfaciendum, under which the son was arrested ; that he applied to the plaintiffs' attorney for time to get the money, and in the mean time to be released from custody ; to which the attorney consented, provided the defendant in this action would sign a written paper, which the attorney delivered to the officer for the purpose, undertaking that he would put his son into custody of the sheriff by the next Satur- day, and in default of so doing that he would pay the damages and costs. The officer went with the paper to the defendant, and informed him of what the attorney had said ; whereupon the defendant signed the paper, and the officer returned it to the attorney, by whose consent the son was then discharged from custody ; but he did Art. II.] Collateral Undertakings. 325 not return into custody by the Saturday. Subsequently however, and on the return day of the writ, the son offered to surrenderhimself in discharge of the defendant' s agree- ment ; but the plaintiffs' attorney refused to discharge the defendant on those terms ; whereupon the son offered to surrender himself to the sheriff, who refused to receive iiim. In an action upon the promise, the plaintiffs had a verdict, subject to the opinion of the court ; and the cause was twice argued, the first argument turning chiefly upon the question, whether the writing was sufficient to satisfy the statute. Upon the opening of the second argument, Lord Ellenborough, C. J., said that it was unnecessary to discuss the question of the sufficiency of the writing, as it appeared to the court, that the debt had been discharged, by the plaintiffs permitting the younger Chase to go out of custody ; and he called upon the defendant's counsel, after hearing whom, he pronounced the judgment of the court as follows: "By the discharge of Chase, junior, with the plaintiffs' consent, the debt, as between those two persons, was satisfied. No case can be cited, in which such a discharge has not been held quite sufficient. Then if so, the promise by the defendant here is not a collateral but an original promise, for which the consideration is the discharge of the debt, as between the plaintiff and Chase, junior. That being so, it becomes wholly unnecessary to consider the question, arising out of the construction of the fourth section of the statute of frauds." — Judg- ment for the plaintiff. § 280. In Lane v. Burgliart, 6 Jurist, 125, decided A. D. 1841, (a) it was held, that where the debtor is in fact discharged, the undertaking is original, although it assume the form of a guaranty that he shall pay the debt ; as he will be regarded in such a case as the mere agent of the promisor. The validity of the promise under i\\Q statute (a) S. C, 1 Gale and Davison, 311^ and 1 Queen's Bench Reports (Adolpbus and Ellis, New Series), 933. H26 COLLATEEAL UNDERTAKINGS. [Ch. IX. was not directly involved in the de(;ision, but the case la nevertheless quite in point upon that question. (6) § 281. The more recent case of Butcher v. George Drum- mo nd Steuart, 11 Meeson and Welsby, 857, decided in the Court of Exchequer, A. D. 1843, (c) is remarkable, not only because it holds, that upon a question of this kind, the regularity of the execution and of the arrest cannot be inquired into ; but because it is, as far as we know, the only reported decision, expressly holding that the statute (h) In this case, the plaintiSs had causeJ one Bacon to be arrested on a ca. sa., issued upon a judgment in their I'avor; and the defendant, on the 17th of November, 1838, gave a written agreement addressed to them in these words: "' (Title of the judgment.) Gentlemen — In consideration of your discharging the defendant out of custody in this action, I undertake that he shall pay the debt due to you, viz. : 275^. 125., together with interest, by four equal half-yearly instalments, the first instalment to commence and be made on the 17th day of May, 1839." Within a few days after receiving this agreement, the plaintiffs discharged Bacon from custody. In an action upon this agreement, the defence was that on the 19th of April, 1839 (the date of the fiat), the defendant became bankrupt, and obtained his discharge in the following August; and the question was whether the debt could have been proved before the commissioners and valued, under a clause of the statute, providing in substance, that a debt payable on a contingency might be so proved; it being also provided that all debts which might be proved before the commissioners, should be barred by the certificate. On the part of the plaintiffs it was contended, that this was not a debt payable by the defendant on a contingency, nor in fact any debt of the defendant ; but only a liability to damages, if Bacon should fail to pay, and that Bacon had not made default at the date of the fiat. But a verdict having been rendered for the plaintiffs, with leave to the defendant to move to enter a nonsuit, a rule nisi to enter a nonsuit was made absolute. Lord Denman, C. J., delivering the opinion of the court, said : " It was argued on the authority of Good- man V. Chase, that this undertaking was an original one, on the part of the bankrupt, to pay the amount of the sum that had been due from Bacon ; and though in form it was an undertaking that Bacon should pay, yet at most it was an undertaking, by the defendant, to pay by the hands of Bacon. On consideration we agree that this is correct; the unpaid instalments might therefore have been estimated and proved under the commission. It follows that the defendant's certificate is a bar to the action." (c) S. C, 12 Law Journal, N. S., Exch., 391 ; 7 Jurist, 774 ; 1 Bowling and Lowndes's Practice Reports, 308. Art. II.] Collateral Undertakings. 327 docs not api)ly, to a promise to ]»ay a third person's debt to the promisee, wliere the consideration of the promise is an executory contract to do an act, whence liis discharge will result. The action was assumpsit ; and the de(!lara- tion alleged in substance the recovery of a judgment against one Robert Steuart ; the arrest of Robert by virtue of a capias ad satisfaciendum issued thereon ; that while Robert was in custody, ''in consideration that the plaint- iff would procure the release of the said Robert Steuart, from and out of the said custody under the said writ," the defendant promised, etc. (according to the writing i)ro- duced at the trial) ; that the plaintiff, confiding on the said promise^, did then "procure the release of the said Robert Steuart from and out of the said custody," etc. ; concluding with an averment of a breach and of damages. Upon the trial, the plaintiff proved the recovery of a judgment, and the arrest of Robert Steuart, as alleged in the declaration ; that on the next day George Drummond Steuart, the defendant in this action, entered into a written undertak- ing in the form of a letter to the plaintiff, in which, after reciting the title of the judgment, he stated that "in consid- eration of your having released the above named definid- ant from custody," he agreed that within one month from the date of the writing, he would pay the plaintiff ^(K)l., and hand him a bond for the remainder of the debt, inter- est and €osts, executed by the defendant, the said Robert, and some other responsible person, payable at periods particularly mentioned. § 282. On the receipt of this writing, and at the same interview, the plaintiff's attorneys gave an order to the sheriff, to discharge Robert Steuart on payment of the fees, "judgment having been satisfied." The fees were imme- diately i)aid by the defendant; and the sheriff's officer then said that Robert was free as to that suit ; but before discharging lilm from actual custody, he must ascertain if there were aii}' detainers lodged against him ; and it being discovered that there were two detainers, founded upon other judgments, the sheriff refused to discharge him. 328 COLLATEKAL UNDERTAKINGS. [Ch. IX. At the time when the writing was executed, and the order given, Robert Steuart had actually taken out a summons to be discharged from custody as to this action, on the ground of privilege, as a member of Parliament ; and at a subsequent hour of the same day, he procured a judge''s order to be discharged from this execution and from the detainers, on that ground ; and the sheriff returned the poundage fees. It had been agreed, however, that the discharge should not affect the defendant' s undertaking. It appeared also that the execution was irregular, it having been issued to Middlesex without any previous writ having been issued to Kent, where the venue was laid. § 283. The defendant objected to a recovery, on the ground that the promise was void under the statute of frauds, and because it was without sufficient considera- tion ; and also upon other grounds, presenting questions of variance between the declaration and the proofs, only one of which need be noticed here. It was substantially, as developed in the argument and the opinion, that whereas the declaration alleged that the consideration of the defendant' s promise, was a promise on the part of the plaintiff to procure the release of Robert Steuart, the proof consisted of a writing, reciting that such a release had already been made. There was a verdict for the plaintiff, subject to the opinion of the court, for the full amount of the debt and interest, to be reduced to 500?., etc., upon delivery of a bond, etc., with a consent that the court might draw any inferences of fact. The opinion of the Court delivered by Parke, B., and concurred in by the other Barons present, was in favor of the plaintiff upon all the points raised ; and judgment was accordingly entered in his favor. § 284. With respect to the question, whether the promise was void under the statute of frauds, the opinion said that if the case was within the statute, it would be very doubt- ful whether the writing was sufficient. ' ' But, ' ' the learned Art. II.] COLLATEKAL UNDERTAKINGS. 329 Baron proceeded, "it appears to me that this is an abso- lute promise, in consideration of the agreement to dis- charge th«' defendant from execution. It is not a promise to answ(!r for tlic debt, default or miscarriage of another ; but is a promise to pay a debt, in the event of the other contracting party doing a certain act. It is therefore within the decision of Goodman v. Chase^ and does not require a memorandum in writing to satisfy the statute of frauds." The point of variance, which we have noted, was disposed of by saying that the plaintiff's engagement recited in the memorandum, might be construed as pros- pective ; that is to say, it was not inconsistent with the words, to construe them as meaning that the defendant would pay the 500Z., and deliver the bond at the expiration of a month, in consideration of the plaintiff having then released Robert Stenart. It was further held that the irregularity in the issuing of the writ was not material ; nor was it important to inquire whether Robert' s privilege protected Mm from arrest ; for the questions affected only the consideration of the defendant's promise, and if they should be decided against the plaintiff, there was ample consideration in the plaintiff's consent to an immediate discharge, without putting Robert to his motion, {d) (d) The extract from Lord Wensley dale's remarks, quoted verbatim in tlie text, is taken from the report in the 11th of Meeson and "Welsby. The Jurist makes the corresponding portion of his opinion commence thus : " But it appears to me an absolute promise to discharge a defendant from execu- tion, and falls within the decision of Goodman v. Chase, that such a promise does not require," etc. With this absurd version the report of Bowling and Lowndes agrees. The Law Journal, equally incorrect in another direction, makes his Lordship say " that this is not an absolute promise to discharge a defendant from execution," etc. But the four reports coincide exactly, in attributing to him the expression, that the defendant's promise was " to pay a debt in the event of other contracting party doing a certain act," and this coincidence, with the decisions upon the questions of regularity and of vari- ance, (including another question of variance, not noticed in the text, which was decided upon grounds entirely similar,) leave no room for doubt that his Lordship did intend to hold, that an executory contract to discharge a debt, would sustain a stranger's verbal promise to pay part of the debt in money, and to join with the debtor in a bond for the remainder. This is 42 330 COLLATEKAL UNDERTAKINGS. [Cll. IX § 285. The rule that a voluntary discharge of a defend- ant, arrested on a capias ad satisfaciendum, releases the the question discussed in §§ 275, 276, ante, to which we now recur, after exam- ination of the Enghsh cases where it arises, with the exception of Emmet v. Dewhurst, 3 Macnaghten and Gordon, 587, which our arrangement of sub- jects required us to place in the next chapter. (See § 342.) In the earhcst of these, Goodman v. Chase, ante, § 279, it will be observed, that as the sheriff's officer was the agent of the plaintiff's attorney, and took the defend- ant's agreement in that character, upon a promise of the attorney to dis- charge the judgment debtor; which was fulfilled only after a short interval of time, it may be made to appear, by a very minute subdivision of time, that the plaintiff's executory agreement formed the consideration of the defendant's agreement, which was sustained as being founded upon the dis- charge. But the interval was so short, and the transactions were so closely connected with each other, that doubtless the discharge and the agreement would be regarded in law, as taking effect simultaneously. In Butcher v. Steuart the facts would easily admit of a construction, which would also make the discharge and the agreement take effect simultaneously ; but the court precluded that construction, by its decision upon the questions of variance. To avoid these, it was held that the consideration of the defendant's agree- ment was executory. But the construction put upon it was not such, as to enable the plaintiff to maintain his action, upon an allegation of tender of per- formance ; on the contrary the court held, that the agreement meant that the defendant would pay the money and hand over the bond, at the expiration of the month, "in the event" that the plaintiff had then discharged his original debtor. So that although the promise was made, while the original debtor con- tinued to be liable, there was no obligation to perform it, till he should be dis- charged ; and therefore there was no moment of time, when the defendant and the original debtor were concurrently liable to separate actions. On the other hand in Emmet v. Dewhurst, where it was held that the promise was within the statute, the agreement provided that the defendant's guaranty notes, and the discharge by the bank, should be delivered simultaneously, the one form- ing the consideration of the other; so that upon an allegation of tender of a discharge and demand of performance, the plaintiff's bank could have main- tained an action for damages against the defendant, without impairing its remedy against his brother. This distinction runs very fine; but it seems to afford the only method of reconciling the cases, and to furnish the true test of the application of the statute, to executory agreements of this charac- ter. The same distinction will remove an apparent inconsistency between the more modern cases, and Chater v. Beckett, 7 Term Reports, 201, A. D. 1797; Gaunt V. Hill, 1 Starkie, 10, A. D. 1815; and the reasoning of the court, particularly of Chambre, J., in Anstey v. Harden, 4 Bosanquet and Puller, 124. Art. 11.] Collateral Undertakings. 331 debt, is laid down in numerous American cases ; but there appears to be no reported decision, where such a discharge lias been expressly held to take out of the statute of frauds, a stranger's promise to pay the debt. The prin- ciple, however, abundantly appears in the cases cited under the other subdivisions of this chapter, (d) (2) Where the promisee discharged a levy npov the third person^ s goods, which had been made under a fieri facias or a distress warrant. % 286, "Where a fieri facias or a distress warrant has been levied ujion goods sufficient in amount to discharge it, the general rule is that the debt is suspended, and it is even said in some cases that it is extinguished. (/) There is accordingly considerable force in the argument, that a promise to pay the debt, made by a stranger, in considera- tion of the release of the goods levied on, is not within the statute ; at least if the value of the goods equals the amount of the debt. (e) In Cooper v. Chambers, 4 Devereux (North Carolina), 261, the original debtor had been arrested upon a ca. sa., and was discharged in consideration of the defendant's promise to "see the debt paid in trade;" but although it was held that the promise was not within the statute, the court assigned another reason for its decision, namely, that ''there Avas a new and original consideration of benefit or harm moving between the newly contracting parties." It was said that when the plainliDf discharged the original debtor, " he was entirely freed from the debt and the defendant became the debtor," but this was mentioned only to show, that although the defendant derived no benefit from the promise, the plaintiff suffered harm "by giving up those advantages with which the law had invested him to coerce the debt." See also Rice v. Barry, 2 Cranch, C. C, 447, cited hereafter. For the general rule that a debt is discharged by the defendant's release from arrest on a ca. sa., see also, among other cases, Palethorpc v. Lasher, 2 Rawle (Pennsylvania), 272; Lathrop v. Briggs, 8 Cowen (New York), J71; Ransom v. Keyes, 9 Cowen, 128; Howe v. Buffalo, etc., R. R. Co., 38 Barbour (New York), 124. (/) Mountney v. Andrews, Croke Elizabeth, 237; Clerk v. Withers, 2 Lord Raymond, 1072, 11 Modern, 34, Holt, 046, and 1 Salkeld, 322; Ex parte Lawrence, 4 Cowen (New York), 417 ; Jackson v. Bowen, 7 Cowen. 13 ; Ladd v. Blunt, 4 Massachusetts, 402. 832 Collateral Undertakings. [Ch. ix. § 287. In Edwards v. Kelly ^ 6 Maule and Selwyn, 204, A. D. 1817, (^) it was held that the defendants' promise to pay the amount of the rent in arrear, was not within the statute, where a distress warrant had been levied on the goods of the tenant, and they were surrendered to one of the promisors in consideration of the promise. The four judges concurred in the decision, for a reason which prop- erly brings the case within another class ; but two of them also thought that the promise should be sustained, because the debt was suspended by the distress. Bayley, J., said that after the plaintiff had distrained, the tenant was no longer indebted, and that the statute "was aimed at cases where a debt being due from one person, another engaged to pay it for him ; but here, for the reason above stated, at the time when the promise was made, the debt was not owing from the tenant." And Holroyd, J., also said, that as the tenant might have pleaded the distress, in an action for the rent, the debt was for the time suspended ; and the promise was therefore to pay "a debt, which at that time did not exist as a debt of another." § 288. The facts, in Slingerland v. Morse, 7 Johnson (New York), 463, A. D. 1811, were substantially like those in Edwards v. Kelly, as far as they raised this question ; but the goods were delivered to the tenant. There also the court held the promise to be original, upon the ground which chiefly controlled the decision in the former case, although it is now ranked among those where the princi- ple was erroneously applied. {7i) But the point now under consideration was not suggested. ig) Cited more at length in chapter sixteenth. {h) It is true that Comstock, 0. J., in his opinion in Mallory v. Gillett, 21 New York, 412 (on page 424), attempted to reconcile Slingerland v. Morse with the cases which were correctly decided, upon the hypothesis that the goods were delivered to the defendants, and the debt was discharged. But as we read the case, especially with the assistance of the report after the second trial, in 8 Johnson, 370, the goods were delivered to the tenant; and the court assumed that the debt was not discharged. Art. II.] COLLATEKAL UNDERTAKINGS. 333 § 289. Among the American cases on this subject, the decision in Tlndal v. Touchberry^ 3 Strobhart (South Carolina), 177, A. D. 1848, was x^^rtly put upon this ground. The levy was under a domestic attachment ; and in consideration that the plaintiff, who was the officer holding the attachment, would deliver the property to the debtor in the attachment, the defendant verbally promised that the property should be returned the next day, or he would pay the debt ; and it was held that he was liable for the value of the property, it being less than the debt. The decision was principally put upon the ground, that the debtor assumed no liability for the property ; on the con- trary, he was resisting the levy ; but the court also said that where the original debtor was discharged, the promise was within the statute, and that "the proceeding by attachment is a proceeding in rem, and is like the seizing of goods under a distress warrant, or under execution ; a presumptive satisfaction, until the goods seized are sold or are accounted for."(i) § 290. But most of the American cases, where the defend- ant' s promise was made, in consideration of the surrender of a levy upon the goods of the original debtor, were decided upon the theory, which long prevailed here, that the statute does not apply, flf the promisee surrendered to the debtor a lien, available for the collection of his debt, even though the debt remained in full force. Indeed this theory was regarded as a corollary from, or a principle concurrent with a much broad<'r doctrine ; namely, that whenever the promise was founded upon a new and orig- inal consideration, of benefit to the promisor or harm to the promisee, it was without the statute. (/) There are (t) It was held in Martin v. England, 5 Yerger (Tennessee), 313, A. D. 1833, that a verbal agreement, very similar in its character to that which was upheld in Tindal v. Touchberry, was void ; but the decision was put upon the ground that the Tennessee statute, relating to a bond for the deliv- ery of property leviod upon, avoided a verbal agreement to that effect. The statute of frauds was not alluded to in the opinion. (j) These doctrines, both of which are now exploded, will be examined in the seventeenth chapter. 834 Collateral Undertakings. [Cii. ix. consequently but few cases, where the effect of the dis- charge of such a levy, has been considered in connection with the principle now under examination. But vre find a series of decisions in the New York Supreme Court, which may perhaps be regarded as of authority, upon the subject of this discussion ; although in each of them it is quite doubtful, whether any such question was ever in the mind of the court. § 291. The first of these is Skelton v. Brewster, 8 John- son, 293, A. D. 1811. There it is said in the report, that the plaintiff recovered a judgment and "took out an execution for twenty-five dollars against W. S. ; " and that W. S. delivered all his household goods to the defendant in this action, who thereupon, "in considera- tion that the plaintifi" would discharge the said W. S. from the execution, promised to pay the plaintiff twenty- five dollars." A judgment for the plaintiff, rendered in a justice's court, was affirmed upon certiorari, the Supreme Court saying that the promise was not within the statute, because it was founded " on a new and distinct consideration, which was the delivery of the goods of such person and the plaintiff's discharge of the judgment." It would seem from the reporter' s statement of the facts, and the language of the court, thai the execution was against the person, rather than the property of the original debtor. But in a subsequent case in the same court {Jc) it was said that the execution was against the property. If so, this case is perhaps an authority for the proposition, that the discharge of a levy upon goods, by virtue of an execution, will suffice to take the promise out of the statute ; but not, we are inclined to think, for any reason connected with the present discussion. § 292. In Mercein v. Andrus, 10 Wendell, 461, A. D. 1833, the Supreme Court of the same State granted a new (Tc) Parley v. Cleveland, 4 Cowen, 432, where Savage, C. J. (on p. 437) said that the levy was upon property, and that the distinctive feature of the case was that the original debtor was discharged. Art. II.] Collateral Undertakings. 335 trial, upon exceptions taken by the defendants, to certain rulings of the judge at the trial, upon points not connected with the statute of frauds ; but there was also an exception to a ruling, that the defendant's promise to pay a certain sum, being part of the amount for which a judgment had been recovered by the plaintiff against one Reed, was not within the statute, because it was founded upon the release of certain goods of Reed, levied upon under an execution issued upon the judgment. With respect to that excep- tion, Savage, C. J., delivering the opinion of the court, said : " The judge correctly stated to the jury, that where the promise of one person to pay the debt of another, was founded upon the consideration of surrendering property levied on by an execution, the promise was an original undertaking, and need not be in writing to be valid : that it was not vdthin the statute of frauds. Whether the evidence proved such a case was submitted to the jury."(Z) § 293. But in Stern v. DrinTcer, 2 E. D. Smith, 401, A. D. 1854, the New York Common Pleas expressly held, that the release of a sufficient levy, under an execution against property, would not take a stranger's promise to pay the debt out of the statute. The action was originally brought in a justice's court, and the complaint alleged that the plaintiff had recovered a judgment against on(» (?) Mercein v. Andrus was also commented upon in 21 New York, 424, 425; where Comstock, C. J., after referring to the fact that what was said upon this point was obiter, because a new trial was granted upon another point, said that if "the charge at the trial and the observation of the Chief Justice assumed, as the law was, that the levy of an execution extinguished the debt, and that the release of the levy remitted the creditor to the new promisor as his only remedy, then the remark was strictly correct." " Such," added the learned Chief Justice, " is probably the true explana- tion." The principle of this ruling in Mercein v. Andrus was also recog- nized in Van Slyck v. Pulver, Hill and Denio, 47, A. D. 1843, but without any explanation of the grounds upon which it rested; the court distinguish- ing it from the case then at bar, on the ground that upon the most favorable aspect of the testimony, the surrender of the goods was made in considera- tion of another agreement, and not the one sued upon ; so that the latter was nudum pactum. 336 Collateral Undertakings. [Cli. ix. JsTusbann, and had issued execution thereon, which had been levied upon property sufficient to satisfy it ; and in consideration of his abandoning the levy, and delivering the property to the debtor, the defendant undertook to pay the amount of the judgment. To this complaint the plaintiff demurred, and the court below gave judgment for the defendant. Upon the argument of the appeal, it was admitted by counsel on both sides, as it was evidently assumed by the court below, that the promise was not in writing, although the complaint did not so state ; and the Common Pleas decided, under the circumstances, to fol- low the same assumption, denying costs to the plaintiff on the reversal, which was adjudged on account of a techni- cal irregularity. Ingraham, First Judge, delivered an opinion upon the merits ; in which he contended that the promise was within the statute, upon the ground, that a new consideration, moving between the promisor and the promisee, would not take a promise out of the statute, where the original debt was not discharged. Here, he said, the promise to pay the amount of the judg- ment, "did not relieve Nusbaun from liability." " In the present case, the original debt remained ; the property was given up to the debtor, and not to the defendant ; the defendant received no property, and owed no debt which he promised to pay the plaintiff ; but simply in considera- tion of the plaintiff's relinquishing to the debtor the debtor' s property, he promised to pay the debtor' s debt. I cannot imagine a promise to pay the debt of another, if the one under consideration is not one." The atten- tion of the court was evidently confined, to the terms of the actual express agreement between the parties ; the question whether, under all the circumstances, the law would not imply a discharge of the debt, without an expre-ss agreement to that effect, not having been sug- gested, (w) (ni) The rules laid down by the New York courts, touching the effect of a sufiBcient levy under a fieri facias, go so far as to make it very nearly equiva- lent to an arrest under a ca. sa. It has been said in several cases, that such Art. III.] Collateral Undertakings. 337 ARTICLE III. Where an abandonment of the third person's liability is inferred, as matter of fact, from Bome aot or omission of the promisee, without any agreement to that effect. (1) Oencral principles upon which the application of the statute to this description of cases is determined. § 294. The cases witliin this class consist almost exclu- sively of those, where an executory contract had been made between the promisee and the third person, for the performance of services, or the sale of property, to the third person by the promisee, for a reward to be paid to the latter ; and the promisor undertook, without any express rescission of the contract, that if the promisee would perform the services, or furnish the articles for which it provided, he would pay, either their value or the contract price. Unless the circumstances are such, as to bring the case within some of the rules, whereby promises, Avhich are confessedly in form to answer for the debt of another, are taken out of the statute, because they are not within its spirit, it is manifest, upon a mere statement of the case, that the only theory upon which a verbal promise of that character can be upheld, is that the old contract was dis- connected from the new. Occasionally it may happen, that the facts show, that the parties to the new contract merely stipulated for the performance of the same acts, for which the old contract provided, without reference to the question a levy extinguishes the judgment; and it has been held, that if after a levy the execution be returned unsatisfied by direction of the plaintiff, a pur- chaser of real estate, under a new execution, will get no title, unless, perhaps, where he had no notice. Jackson v. Bowen, 7 Cowen, 13. Also, that after a sufl&cient levy upon personal property, the judgment ceases to be a lien on real estate ; and while the personal property remains unsold, the judgment creditor has no right to redeem real estate, from a sale under a previous execution. Ex parte Lawrence, 4 Cowen, 417. However where a levy has been made, and subsequently abandoned at the request of the defendant in the execution, there is no satisfaction of the judgment, and a new execution may issue. Ostrander v. Walter, 2 Hill, 329. Here is the distinction, if any exists, between a promise founded upon a discharge from arrest, and one founded upon the release of a levy. 43 338 COLLATEEAL UNDERTAKINGS. [Ch. IX. wlietlier that was to be fulfilled or not. In snch cases, the statute has no application ; for then it is immaterial whether the old contract remained in force or otherwise. But in general it is entirely clear, that the parties could not have contemplated the performance of both the contracts ; and whenever this occurs, the two can be disconnected only by the abandonment of the first ; and the question whether it was or was not abandoned, becomes the turning point, upon which the application of the statute depends. § 295. In the next chapter, we shall refer with some par- ticularity to the civil law doctrine of novation, of which this species of substitution forms a part. It is, according to the rules which prevail in the civil law, one of the ways in which may be effected that kind of novation called "ex- promissio," being the intervention of a new debtor, in place of him who is already bound. Other instances of the same process will be given in the next chapter ; being cases where an antecedent liability of a third person was dis- charged, by mutual agreement between him, the creditor and the new promisor, in consideration of its assumption by the latter. The feature, wherein that process of extinc- tion of the original liability, differs from the one now to be considered, is that in this class of cases, the person origin- ally bound was not a consenting party to the transaction ; a fact which gives rise to some significant distinctions, not only with respect to the application of the fourth rule, but also with respect to the efiect of these cases, upon an important question, hereafter to be discussed, arising in connection with the eighth rule. § 296. Although, as it would seem, the civil law permits a substitution of one debtor for another, to be made in some cases, without the concurrence or consent of the original debtor, (a) such is not, strictly speaking, the rule (a) Pothier on Obligations, part 3, chapter 2, article 4, section 5; Evans's Translation, volume 1, page 562. The reason is said to be that "Ignorantis enim et inviti conditio melior fieri potest." Art. III.] Collateral Undertakings. 339 of the common law, which requiivs two parties to dis- charge a contract, as well as to make it. At common law no act, to which both the original contractors have not become parties in some form, can be pleaded hy either as a discharge of the obligation of the contract, in an action by the other to enforce it ; even although it may have been the act of the plaintiff himself. But a party may disqualify himself from enforcing a contract, against the other party to it, by acts which will prevent him from making that proof of performance, or of readiness to per- form on his part, which is essential to his right to maintain an action founded upon it. When such acts are accom- panied by the promise of another person to respond, in consideration of the promisee rendering the same services, or furnishing the same property, which formed the sub- ject-matter of the original contract, the latter' s abandon- ment of the contract, and election to rely exclusively upon the new promise, may properly be inferred ; and although he would be liable in damages to the other party, in con- sequence of his refusal to fulfil it, he would have no remedy for the services or property, except against the promisor. Hence, as far as this question is involved, the practical effect of such conduct ought always to be, and in general is the same, as if the contract had been rescinded by consent of both the parties to it. § 297. All the cases in this class agree, that the test of the application of the statute is, whether, upon the per- formance of the new contract by the promisee, he could recover against the original contractor. (/;) Sometimes it is said to be, whether the promisee has made himself liable to the original contractor, for damages, in conse- quence of his non-fulfilment of the original contract; a proposition which is frequently the correlative of the (b) See, in addition to the authorities hereafter cited, Puckettv. Bates, 4 Alabama, 390; Ellison v. Jackson Water Company, 12 California, 542; Andre v. Bodman, 13 Maryland, 241 ; Newell v. Ingraham, 15 Vermont, 422 ; Larson v. Wymau, 14 Wendell, 246. 340 Collateral Undertakings. [Ch. ix. other, but not always so ; because cases may occur, where performance was optional on the part of the promisee, or where the other party to the contract had made a previous default. § 298. When the language and the acts of the parties leave room for doubt, whether in fact the existing contract was abandoned ; or whether, on the other hand, the new contract was such as to leave the former one in force, and to add the credit of the new party to that of the original contractor, as security for its fulfilment ; questions often arise, which are very analogous to those presented upon the sale of goods, the loan of money, or the performance of services for the benefit of one person, upon a promise to respond by another, and are to be disposed of in the same way. Whether the language used imports, as matter of law, an original or collateral contract; how far the province of the jury extends, when the language is of doubtful meaning; the principles upon which to deter- mine whether credit was given solely to the promisor ; the relevancy of certain facts as evidence upon that issue ; and various other similar questions, are substantially identical in both classes of cases. On this account, the two are frequently confounded ; cases belonging to this class being treated, as if they belonged to the other. But this is manifestly an error ; for the points, in which both are alike, are merely subordinate and incidental to the determina- tion of the principal question, constituting the crucial test of the application of the statute ; and this is entirely different in the two classes. In one, it is whether the third person incurred any liability upon the original contract ; in the other, whether he was discharged from a liability which he had previously incurred. Another striking point of diff'erence between them is, that it almost invariably happens, in this class of cases, that the prom- isor is the person to be benefited by the consideration of the promise, whereas the other depends upon the fact that the third person received the benefit of the consideration. Art. III. J Collateral Undertakings. 341 § 299. But mucli of what was said under the third rule, upon these subordinate points, is closely applicable to the kindred questions arising under this rule ; and the reader is therefore referred to the places, where the former liave been fully discussed, upon principle and authority, (c) A few cases belonging to this class, where some of those questions were presented, under circumstances calling for special notice, are appended. §300. In WarnickY. Grosliolz^ 3 Grant's Cases (Penn- sylvania), 234, A. D. 1858, the plaintiffs had commenced painting certain cottages, belonging to the defendant, under a contract between them and one Barber, a builder, who had a contract with the defendant, for building and finish- ing the cottages, and Barber was to pay the plaintiffs by doing certain work for them ; he failed to do the work for the plaintiffs ; and they thereupon stopped their work upon the cottages, saying to the defendant that "with Grosholz, the owner, they had no contract, and of course were not bound to go on ;" to which the defendant made answer, "Go on with the work ; that he had security for the building, and he would see it paid." The judge at the trial referred the words to the jury, "to say whether they imported a direct undertaking or a guaranty ; ' ' and the plaintiffs having had a verdict, the judgment thereon was affirmed on error, the court holding that the meaning of the words was properly referred to the jury.(6Z) § 301. So also in Payne v. Baldwin, 14 Barbour (New York), 570, A. D. 1853. There the plaintiff had entered into a contract with one Stebbins, to furnish the marble and plaster to be used in the erection of certain houses, upon which Stebbins was doing the mason work under a con- tract with an insurance company ; and a dispute having arisen between the plaintiff and Stebbins, respecting the amount due to the plaintiff for materials previously fur- (c) See chapters sixth and seventh. (d) See the case also cited, ante, §§ 181, 182. 342 Collateral Undertakings. [Ch. ix. nished by him, lie refused to furnish any more of the materials ; whereupon the defendant, who was president of the company, told the plaintiff's agent "to go on and fur- nish the stuff, and he would see it was paid for. ' ' The action was to recover for materials subsequently furnished, and a referee having reported in favor of the plaintiff, the report was set aside as against the weight of evidence ; on the ground that Stebbins was liable for the materials, and the whole credit was not given to the defendant. This the court thought was apparent, from the following facts : "that the buildings were not tlie property of the defend- ant ;" " that when the materials were delivered, the receipts were signed by Stebbins and that the accounts in the defend- ant' s" (plaintiff's) "books were continued against Steb- bins the same as before, and that no charge was made against the defendant, and it finally appeared that the insurance company paid" (doubtless Stebbins) "for the building of the houses." § 302. Again in Noyes v. Humphreys^ 11 Grattan (Vir- ginia), 636, decided A. D. 1854, the defendant's testator had leased his salt works to one Thompson, who had undertaken to make certain improvements thereon, to aid in which the defendant' s testator was to advance to him cer- tain sums ; and the plaintiff had been employed by Thomp- son to do part of the work ; but the plaintiff, after he had partly completed the work, "apprehending that Thomp- son would not pay him, stopped his work, and refused to proceed with it under his contract with Thompson;" whereupon the defendant' s testator went to him and said, " The work is now commenced ; it must go on. Go on and finish it ; I will pay you for it," or "I will see you paid." The plaintiff then resumed his work and completed it ; the defendant' s testator attending to its execution, and giving directions. The plaintiff then rendered his account to Thompson ; and after deducting certain payments made by the latter, during the progress of the work, he took Thompson's bond for the balance; and subsequently applied for the benefit of an insolvent act, returning the Art. III.] Collateral Undertakings. 343 debt in his schedule as owing by Thompson, and saying nothing about any demand against the defendant. At the trial the plaintiff had a verdict, various exceptions having been taken by the defendant, calculated to present the question whether the promise was within the statute of frauds. The judgment rendered upon the verdict was reversed in the Court of Appeals ; partly because the court thought that even if the promise was valid, as to the work thereafter to be done, it would be within the statute ; inasmuch as it was entire, and related also to work previously done. But the court also took the distinct ground, that as to the work thereafter to be done, the evidence tended to show that Thompson continued to be liable upon his contract with the plaintiff, notwithstanding the defendant' s promise, and the comple- tion of the work in consequence thereof; the instructions, given and refused at the trial, having failed to lay down clearly the rule of law, that in such a case the defendant' a promise to pay for that work was within the statute. § 303. But the principle upon which the last case was decided, was perhaps pushed beyond its true limits, in the recent case of Bresler v. Pendell, 12 Michigan, 224, A. D. 1864. There one C. E. B. had made a contract with one St. Amour, for the erection by St. Amour of a block of buildings ; and the latter had sub-let part of the work to the plaintiff. After such sub-letting the plan of the block was twice changed, in certain particulars tending to increase the expense of erection. The plaintiff commenced the work; but St. Amour twice failed to make the payments stipulated for by his agreement with the plaintiff ; and on each occasion, as the report says, the plaintiff "abandoned said job, and refused to proceed further with the same ; that on both of said occas- ions, the defendant requested said plaintiff not to abandon said job, and promised him that if he would continue the same to completion, he, the said defendant^ would pay him, or would see him paid." Under this promise, the plaintiff on each occasion resumed his work, and finally 344 COLLATEEAL UNDERTAKINGS. [Cll. IX completed it ; the defendant being frequently present, and giving directions, while the work was going on. These facts were found by a referee, who also found ' ' that the said original contract between St. Amour and the plaintiff was still in existence and uncancelled;" that the extra work (the nature and value of which were detailed in his report), was not included in the contract between the plaintiff and St. Amour ; that it was done at the request of the defendant; and that the defendant promised to pay therefor. It was held by the referee and the court below, that the defendant was not liable for so much of the work, as was included in the contract between the plaintiff and St. Amour ; but that he was liable for the value of the extra work, and judgment was rendered for that only. § 304. The defendant brought a wi'it of error, and the judgment was reversed, the Supreme Court holding that there could be no discrimination between the work men- tioned in the contract, and the extra work. Manning, J., said that if either was done on the defendant' s promise, "it was not on his sole promise, but on his promise in connection with the previous promise of St. Amour;" for which reason, if the defendant' s engagement was supported by any consideration, it should have been in writing ; and that if the plaintiff abandoned the work, because St. Amour did not pay him, and afterwards resumed it on the defendant's promise, the evidence showed that he looked to St. Amour for his pay, and not to the defend- ant, except as a surety or a guarantor. The nature of tliis evidence is not stated in the report ; but if it supported the referee' s conclusions of fact, it is difficult to see upon what principle, a finding in favor of the plaintiff, for the whole amount of his demand, could have been properly set aside. With respect to the extra work, there is nothing to show (although a large portion of the finding is given verbatim) that St. Amour made any promise to pay for it. The decision was probably put upon the groi\ind, that the referee' s finding was against the weight of evidence. Art. III.] Collateral Undertakings. 346 § 305. It seems to be settled tliat a jury, undc^r proper instructions from the court, may find an abandonment of the original contract, from tlie mere declarations of the promisee to that effect, not communicated to tlie other party ; although he has subsequently perfoiTned precisely the acts for which the original contract provided, and would be entitled to recover against the original con- tractor, but for the fact that they were not performed in fulfilment of the contract. This doctrine is strikingly illustrated by the decision of the Supreme Court of Ver- mont in Sinclair v. Richardson^ 12 Vermont, 33, A. D. 1840. There it appeared that the plaintifi" had entered into a written contract with one Upson ; whereby he was to provide the materials and do the work, upon a house which was in the course of erection, on land of the defend- ant ; that in 1831, he erected the frame of the house and partly inclosed it ; that in the spring of 1832, when about to complete the work, the plaintifi" said to the defendant, in substance, that he would do nothing more to the house, unless the defendant would agree to pay him ; and the defendant answered, " Do you go on and finish the house, and I will pay you for it, or see you paid." Whereupon the plaintiff completed the work ; but, the report says, the original contract between Upson and the plaintiff was still in force and unrescinded. At the trial the judge charged the jury, that the promise of the defendant was void by the statute of frauds ; and a verdict and judgment having been rendered for the defendant, the cause came on to be heard upon exceptions to the ruling. Tlie judgment was reversed, on the ground that it should have been left to the jury to say, whether the contract with Upson had been wholly abandoned by the plaintiff or not ; and whether the defendant' s undertaking was original or collateral, (e) (e) This case came very near the dividing line; but, upon the whole, it appears that the jury might have inferred such an abandonment of the con- tract with Upson, as would prevent the plaintiff from recovering against him. In an action against him, he might have shown that although the work was done according to the coiitract, it was not done upon the coutract, 44 346 Collateral Undertakings. [Cli. ix, § 306. But this doctrine is subject to the qualification, that the original contract must have been of such a nature, that the promisee's claim to compensation thereunder could be abandoned by mere words, without also abandon- ing the performance of the acts for which it provided. Thus if an attorney has been employed to conduct an action or but upon another contract with the defendant in this suit. As the book is scarce, and the opinion of Collamer, J., presents very clearly and correctly the principles which govern this class of cases, we insert it nearly at length. " When a contract is once made, it cannot be rescinded but by consent of both parties. But it does not follow that because a man has entered into a contract, and entered upon its performance, he may not utterly abandon and decline to perform it. If he does so, it still remains unrescinded and in force against him, and damages may be recovered for his non-performance, yet he can have no action thereon. He may, from the employer having become insolvent, refuse to proceed without a guaranty of his credit; but he can enforce no such guaranty unless it be in writing, as it is collateral. He may, from a consideration that the employer has become insolvent, or ab- sconded, or otherwise become wholly irresponsible, entirely decline to proceed any further on the contract with him, preferring to lose what he has done, to completing the contract and losing all. I.'', in this case, a person make an entire, substantive, independent contract with him, to perform the same ser- vice, this may be enforced though not in writing, as i is not collateral. Whether the new contract be auxiliary or independent is a question of fact. If the terms used on the occasion clearly imply that the former contract is to continue, and the new one be auxiliary thereto; then it is matter of law that the new contract must be in writing. Such as the saying, 'Proceed, and if he does not pay you, I will.' But if the terms be uncertain, equivocal or ambiguous, then it must always be left to the jury to find, whether in fact the former contract was to continue; or whether the whole was aban- doned, and the new contract and credit substituted in its place. In this case there was nothing in the terms used, which shows, as matter of law, whether the Upson contract was to continue or not. That was a question of fact for the jury to find. If from the language used, and the other facts which were or may be put into the case, the jury find that it was understood that the plaintiff was to proceed upon his contract with Upson, and the defendant was only to pay upon the failure of Upson, then the plaintiff cannot recover of the defendant without a writing. But if the jury find it was then under- stood, that the plaintiff wlolly abandoned his contract with Upson, and was to proceed entirely on the employment of the defendant, then the plaintiff should recover of the defendant without any writing ; and the same facts which would enable him to recover of the defendant, would prevent his recovery of Upson" Art. III. J Collateral Undertakings. 347 other legal proceeding, by a party thereto, and lias entered upon the discharge of his duties ; he cannot afterwards, without his client's participation, abandon the original retainer, and continue to appear and act as the attorney for the same party, upon a subsequent retainer from another person, and tlie latter' s promise to compensate him. Such a promise would therefore be within the stat- ute of frauds, although the attorney' s services might have been subsequently rendered, and expenses incurred by him, entirely upon the credit of the new promisor. (/) (2) How far the question is material in this description of cases, whether the promisor received the benefit of the consideration for his promise. § 307. We should not think it necessary to add to our general remarks in another place, respecting the weight to be given to circumstances connected with the considera- tion, ((7) anything specially applicable to this description of cases, but for the fact that there is an intimation, in a recent decision of highly respectable authority, that a distinction may be predicated upon the circumstance, that the con- sideration enured wholly to the benefit of the new prom- isor. It is quite important to guard against any misap- prehension upon this point ; not orJy to avoid confusion in similar cases, but also because the principles which govern the cases of this description, will shed considerable light upon a doctrine, depending entirely upon the nature of the consideration, which will be hereafter discussed at considerable leigtli.(7i) § 308. Tlie decision referred to, (which is noticeable also on account of other questions involved,) was pronounced by the New York Supreme Court in Devlin v. Woodgate, 34 Barbour, 252, decided in the year 1861. There the plaintiff had been employed by one Cavenagh, a con- (/) Barber v. Fox, 1 Starkie, 270 ; Noel v. Hart, 8 Carrington and Payne, 230. (g) Chapter ii, article ii. (h) Chapter xvii. 348 Collateral Undertakings. [Ch. ix. tractor with the defendant, to excavate a vault in front of the defendant' s premises ; and on the second day after he commenced his work, he went to the defendant, and said to him tliat he would not go on, unless the defendant would promise to pay him ; whereupon the defendant told him "to go on, and finish the job, and he should be paid." After the work was completed, the plaintiff signed and made oath to an account there- for against Cavenagh, for the purpose of taking pro- ceedings to make the defendant' s property liable, under the mechanics' lien law. Upon a trial at the circuit, these facts were submitted to a jury under the judge's charge ; and it was held on appeal, by a majority vote, that their verdict for the plaintiff was conclusive. The verdict included compensation for the one day' s work, done before the defendant' s promise ; but as it did not appear what were the terms of the Contract with Cavenagh, Suther- land, J., one of those composing the majority, suggested that it must be assumed that the plaintiff was not entitled to any compensation from him, till the work was com- pleted ; and if so, Cavenagh owed the plaintiff no debt, to which the promise could be collateral. § 309. But the same learned judge placed his decision on the main question, principally upon the ground that the work was for the benefit of the defendant, and was to be paid for by the defendant, either to Cavenagh or the plaintiff. Under the circumstances, he thought that after the promise, the plaintiff had a right to rely upon the defendant' s retaining enough to pay him, out of the contract price payable to Cavenagh ; and he expressed a decided opinion that an entire stranger, having no interest in the work, would not be liable under like circumstances. Welles, J., although he assigned as the principal reason for his opinion, that the plaintiff had violated his contract with Cavenagh, and that the circumstances upon which the defendant relied had been fairly submitted to the jury ; also mentioned the fact that the defendant was benefited, as one of the elements which influenced his opinion in Art. III.] Collateral Undertakings. 349 support of the verdict, without pointing out in what man- ner it was significant. § 310. We must enter our entire dissent from so much of either opinion, as intimates that, as matter of law, the liability of tlie defendant would in any way be affected by the circumstance, that he was interested in the completion of the work. The remark was apparently obiter; for although the substance of the charge is not stated, no complaint was made of it; it must therefore have been in such a form, that the verdict was conclusive to show, that the contract between the plaintiff and Cavenagh had been abandoned, and that the work was done entirely on the defendant' s credit. But as soon as the fact was ascer- tained that the original contract was abandoned, the remainder of the case was in all respects analogous to one arising under the third rule ; and the chapters devoted to the discussion under that rule are crowded with decisions, to the effect that the defendant is liable if the considera- tion was furnished exclusively upon his credit, although it enured entirely to the benefit of another. And, as far as we have noticed, this case stands alone in its class, in attributing any particular legal significance, to the recep- tion of the consideration by the defendant ; although, as we have already remarked, that feature is almost invari- ably present in all cases of this description. On the con- trary there are many, where that circumstance was disre- garded ; and some where the decision was the other way, although in that respect they are not distinguishable from Devlin V. Woodgate.{i) It is impossible therefore to resist the conclusion, that the benefit received by the defendant, is material only upon the question of fact, whether the original contract was abandoned, and the sub- sequent work done entirely upon his promise. (./) (i) See particularly Noyes v. Humphreys, ante, § 302; Ellison v. Jackson Water Company, 12 California, 542; Newell v. Ingraham, 15 Vermont, 422. (j) The defendant in Payne v. Baldwin, 14 Barbour, 570, ante, § 301, was a stranger; but that circumstance is adverted to only upon the question of fact. 350 COLLATEEAL UnDEETAKINGS. [Ch. IX. § 311. The weight to be given to the interest of the promisor, and other questions discussed in this chapter, were considered by the New York Court of Appeals, in the very recent case (March, 1868,) of Brown v. Weber, 38 New York, 187, reported in the court below in 24 How- ard' s Practice Reports, 306. There the defendant had entered into two written contracts with one Horton, provid- ing that Horton would furnish the materials for, and build a saw mill for the defendant, on his (the defendant' s) land, within a specified time ; for which the defendant would pay Horton a certain sum, in a manner mentioned in the contract. After Horton had framed and raised the build- ing, he and the plaintiff entered into two contracts, also in writing, whereby the plaintiff agreed with Horton to complete the building ; for which Horton was to pay him a sum, smaller than the amount provided for in the defend- ant' s contracts, by passing over to him the defendant's obligation for that amount. After the commencement of his work, the plaintiff became fearful that Horton was not responsible, and communicated his fears to the defendant ; whereupon the latter, to induce him to go on with his work, promised him verbally "that if he would go on and finish the mill according to contract," he would see that he would not lose any thing by it, and that he got his pay. {k) These facts were found by a referee, who also found that the defendant alluded to the contracts between himself and Horton ; that the plaintiff finished the mill according to those contracts, with certain exceptions speci- fied in the report ; and that during the progress of the work, the defendant was often present, and expressed his approbation of the manner in which it was being done. The referee held that the defendant' s promise was void by the statute of frauds ; and the Supreme Court, by a Qc) There is nothing else stated in either report, to show an abandonment of the 'contracts between Horton and the plaintiff; and the report in 24th Howard further states, that the referee found that there was affirmative evidence, that the plaintiflf regarded his contracts with Horton as being in full force. Art. III.] COLLATEEAL UNDERTAKINGS. 351 majority vote, affirmed a judgment for the defendant, founded upon liis report. From this decision the plaintiff appealed to the Court of Appeals, where the judgment of the Supreme Court was aflBirmed. § 312. Grover, J., who delivered the opinion in the Court of Appeals, first remarked, that as the promise of the defendant was conditional upon the fulfilment of Hor- ton' s contracts, and as those contracts had not been fulfilled, the plaintiff could not recover, leaving out of view the question arising under the statute of frauds ; but as the referee and the court below did not proceed upon that ground, the case would be examined with reference to the statute. He then said, that the application of the statute of frauds is not necessarily affected by the fact, that the consideration was new; not arising out of the original obligation ; and received by the promisor. In most cases, he said, these facts will show whether the party contracted an independent obligation in his own behalf, or whether his position was that of a surety ; but not always, a remark which the learned judge illustrated by two sup- posed cases. Therefore, he said, "the receipt or non- receipt of the consideration by the party promising, does not determine, in every case, whether it is within the stat- ute or not ; but that the inquiry still remains, whether he entered into an independent obligation of his own, or whether his responsibility was contingent upon the act of another." In this case, therefore, the question is not determined by the fact, that the mill was built upon the defendant's land, and became his property, so that he received the consideration. The referee has determined, that the promise really was, that the defendant would become surety that Horton should pay the plaintiff for his work; and this determination accords with all the facts of the case. "It is true," the learned judge pro- ceeded, "that it was competent for the defendant, although he had made the contract with Horton," .... "to make an independent contract with the plaintiff for doing the same job, and to pay him therefor ; and such contract would 352 COLLATEEAL UNDERTAKINGS. [Ch. IX. not come within the statute; but the difficulty with the plaintiflF's case is, that the referee has found no such con- tract; nor would the evidence warrant such a finding. "(Z) § 313. The fact that the promisor is to derive a benefit from the completion of the original contract, may, how- ever, become important in connection with a question hereafter to be considered, namely, whether a promise to pay a pre-existing debt of another is within the statute, when the leading object of the promisor is to subserve some interest of his own. Some of the cases cited in the course of that discussion, are quite relevant to the princi- ples now under examination ; and the reader, who wishes to pursue the subject further, is referred to them in their proper places in that connection, (m) (3) Cases where the new promise was in terms an assumption of the liability of the original contractor. § 314. This brings us to the last question to be con- sidered here, namely, the effect of a promise, whereby the promisor in terms adopts the liability of the other party to the original contract. It is obvious that the fact that the parties adopted the terms of the original contract, will (T) The court did not, in this case, refer directly to the effect of an abandon- ment of the original contracts; for it was conceded that the plaintiff's con- tracts with Horton were still subsisting; the argument of the plaintiff's coun- sel having been, that as the referee had found that the defendant's promise, related to the contracts between him and Horton, it could not be deemed collateral to the contracts between the plaintiff and Horton ; to which the learned judge made answer, that the plaintiff's work was done upon the latter contracts; and the price to be paid by the defendant to the plaintiff, could not be determined by reference to the defendant's contracts with Horton. To which we may add, that it was a necessary consequence, from the finding that the plaintiff's contracts with Horton were not abandoned, that the defendant's promise was collateral to those contracts; for it was impossible to suppose that the plaintiff was doing his work upon two inde- pendent sets of contracts ; under both of which he would be entitled to com- pensation. (m) Clay v. Walton, 9 California, 328; Kutzmeyer v. Ennis, 3 Butcher (New Jersey), 371; Emerson v. Slater, 22 Howard (U. S.), 28, cited in chapter xvii. Art. III.] Collateral Undertakings. 353 not necessarily bring the promise Avithin the statute, if the other circumstances sliow that it has been abandoned. For then it is evidently referred to, merely as a method by which the terms of the new engagement are to be ascer- tained. Of course the question whether such was in fact the intention of the parties, will depend upon the peculiar circumstances of each case, it being impossible to lay down any general rule on the subject. § 315. An instance of a contract of this kind, where the court held, but without assigning any reasons for its con- clusion, that the statute did not apply to a promise to pay for work thereafter to be done, was presented in Rand v. Mather^ 65 Massachusetts (11 Gushing), 1, decided in 1853. There the defendant, being the owner of certain lands, made a contract with one Whiston, providing, among other things, that Whiston. should erect houses thereon; and Whiston made a contract with the plaintiffs, provid- ing that the latter should do the necessary painting upon the houses, for which Whiston would pay them a specified Drice per yard, as the work progressed. After the plaint- iffs had done part of their work, for which they were entitled to receive $45, Whiston paid them $15, and omitted to pay them the remainder ; whereupon they declined to proceed further, and discontinued work for six weeks. The defendant, in order to induce them to pro- ceed with it, then made to them one or more promises, respecting the language of which the witnesses differed somewhat ; but all the different versions amounted substan- tially to promises to pay them, or to see them paid, what they were to receive under their contract with Whiston. The plaintiffs thereupon completed the work ; and after- wards they made out and presented to Whiston a bill therefor; but the evidence left it uncertain, whether the bill had not previously been presented to the defendant. And the judge at the trial having instructed the jury to find a verdict for the defendants, upon their objection that the promise was within the statute, an exception to the ruling was sustained, and a new trial granted. Metcalf, J.. 45 354 COLLATEKAL UNDERTAKINGS. [Ch. IX. delivering the opinion of the court, said that the only ground upon which the instruction could have proceeded, was that an agreement which is void in part by the statute of frauds, is void in toto. And, referring to a previous decision of the same court to that effect, {n) he discussed the question at length, overruling the previous decision, and holding that the ruling at the trial was erroneous, because the sound part could be separated from the unsound. § 316. But the principles upon which the question depends were elaborately discussed and illustrated in King v. Despard, 5 Wendell, 277, decided in 1830, by the New York Supreme Court. There the plaintiffs had con- tracted with one Tilman to find the materials and erect a tan-house for Tilman, at a stipulated price, payable when the building should be finished; and pursuant to the contract they "got out the timber and framed it; but before the building was raised, or the sills laid, Tilman absconded and they stopt the work." Before absconding, Tilman transferred the contract to the defendant, guaran- tied its performance by the plaintiffs, and promised to indemnify the defendant against the plaintiffs' claims for erecting the building. The plaintiffs, after Tilman' s departure, said to the defendant that they had determined not to go on with the work; and to abide the conse- quences of not performing their contract. The defend- ant told them to go on and finish the building, "and he would pay them or they should have their pay ;" where- upon the plaintiffs completed the building. The defend- ant was present and gave directions, while the work was in progress ; and at his request, the building was erected upon a different part of the land from that marked out by Tilman, and some alterations were made in the plan. Both parties however insisted upon their rights under the con- tract with Tilman ; and the alterations were charged for separately as extra work ; and the plaintiffs had recovered (n) Loomis v. Newhall, cited ante, § 174, and note. Art. III.] Collateral Undertakings. 355 a judgment against the defendant for the extra work. The defendant from time to time made payments upon account of the work ; for which the plaintiffs, at the request of the defendant, drew orders in the defendant's favor upon Tilman, the defendant saying that he wanted them as vouchers in his settlement with Tilman ; and in fact they were applied upon a note, which Tilman held against the defendant. The plaintiffs sued for the balance due to them, and on the trial the judge ruled that the defend- ant's promise was within the statute. The defendant had a verdict accordingly, which the plaintiffs moved to set aside. § 317. The court granted the motion, Savage, C. J., remarking : "The defendant substantially undertook that the plaintiffs should have their pay according to their contract with Tilman. The consideration for this promise is the building of the house. The plaintiffs were bound by their contract to build it, and Tilman to pay them ; but when he became unable to pay, they preferred risking the consequences of a breach of their contract. The defendant had purchased the interest of Tilman in the work ; it was important to him to have it completed ; and the promise was, not to pay Tilman' s contract, but as I understand it, to pay for the building according to the terms of that con- tract : it was either that, or a promise to pay as much as the building was worth. It was understood by both par- ties to be an undertaking to pay according to the terms of Tilman' s contract, as an extra price was charged and paid for variations made from that contract." "There is no one circumstance in the case," continued the learned Chief Justice, "when properly explained, which proves an intention on the part of the plaintiffs to look to Tilman for their pay. They had abandoned their contract with him ; and what passed between them and the defendant must be considered as a new contract. The plaintiffs say, we will not put up the building for Tilman ; the defendant says, I stand in Tilman' s place; I have purchased his interest in tl;e work, and the building is to be erected for 356 Collateral Undertakings. [Cli. ix. my benefit ; go on and finish it according to your agree- ment with Tilman, and I will pay as he agreed to pay." Referring to the drafts upon Tilman, he added "that they favored the idea that the building was erected upon the responsibility of Tilman, and in pursuance of the con- tract with him ; but this was removed by the plaintiffs' explanation." § 318. This case was followed by the present Supreme Court of New York, under circumstances involving con- siderable nicety in the application of the principle, in Quintard v. De Wolf, 34 Barbour, 97, decided A. D. 1861. There the plaintiff had been employed by one Gardiner, an inventor, to manufacture a machine, which Gardiner had agreed to furnish, for a specified sum, to one Stead- man ; and Gardiner was to pay the plaintiff by Steadman' s accepted drafts upon D. S. & Co., a firm in New York ; the contract between Gardiner and Steadman providing for the latter furnishing such acceptances, and D. S. & Co. having agreed with Steadman that they would accept his drafts for the amount. From the opinions delivered in the case, it is apparent that by the terms of the contract, drafts for the price of the machine were to be given to the plaintiffs, when the machine should be finished and deliv- ered ; and it would seem that the delivery was to be made by the plaintiff to Steadman, and that the price was fixed at the same sum, which Steadman was to pay Gardiner therefor. § 319. The plaintiff had nearly finished the machine, when D. S. & Co. refused, or said they would refuse to accept Steadman' s drafts ; whereupon, according to the plaintiff's version of the matter, he refused to go on with the work, unless Gardiner "would give a responsible party in New York." Steadman then applied to the defendant, to accept his drafts for the price of the machine, when it should be completed, which the defendant verb- ally agreed with him to do ; and Gardiner having so informed the plaintiff, the latter saw the defendant, who Art. III.] Collateral Undertakings. 357 told the plaintiff to go on and complete the machine "and he would pay him in his notes of four and six months, or in Steadman's drafts acceptedby him, as he, the plaintiff, might prefer." When the machine was completed, Stead- man refused to take it or give his drafts therefor ; where- upon this action was brought. There was conflicting testimony as to what took place, after the refusal of D. S. & Co. to accept the drafts of Steadman ; and at the trial the judge charged the jury, (inter alia,) that if after such refusal, and the plaintiff's refusal to go on with the work, the defendant promised to pay for the machine if he would complete it, the defendant was liable for the price ; and the defendant's request to charge the jury that the original contract was not terminated, and that Gardiner continued from first to last to be liable was refused. § 320. The jury found a verdict for the plaintiff, and the judgment rendered thereon was affirmed on appeal. The court remarked that Steadman, who was to receive the machine, did not appear personally in the transaction at all; and although it might have been a question whether Gardiner or D. S. & Co. were the persons origin- ally and directly responsible, that was not material, if the original contractor, whoever he was, was discharged and the contract terminated, which was properly left to the jury; and that the defendant's request was correctly refused, because it asked a positive instruction upon a disputed question of fact ; the request should have been, that if Gardiner was from first to last liable to the plaintiff, the defendant was not liable. The material fact in the case was that the first contract was rescinded and termi- nated, and therefore the agreement upon which the action was brought was original, (o) (o) The facts of this case have been partly extracted from the opinions ; in one of which, given on a previous appeal, it is said that D. S. & Go's, agree- ment was with the plaintiff, and that it was not within the statute, they alone being liable for the price. CHAPTER TENTH. THE SAME SUBJECT CONTIISrUED — CASES WHEEE THE EXTIN- GUISHMENT OF THE THIRD PEESON'S LIABILITY WAS EFFECTED BY AN AGEEEMENT, TO WHICH HE, THE PEOMISOE, AND THE PEOMISEE WEEE PAETIES. ARTICLE I. Tlie doctrine of novation! § 321. The process by wMcli one person becomes sub- stituted as another's debtor, in place of a third, who is discharged, is called a novation ; a term which is borrowed from the civil law, together with the rules by which the doctrine known by that name is governed. The introduc- tion of the doctrine of novation into the common law has been gradual, and our courts have not yet fully adopted all its incidents, as they prevail in the system of jurisprudence from which it was taken. An instance of this has already been given, (a) although there the same result is practically accomplished, in a way more consistent with the princi- ples of the common law. In another important aspect of the doctrine, which is yet to be examined, there is great inconsistency, not to say conflict in the cases. We shall have occasion, in investigating the different phases of the application of the statute of frauds to promises to answer for the debt, etc., of another, to examine somewhat fully, how far the doctrine of novation has become engrafted upon the common law ; and we therefore append here its definition, together with a statement of its elementary principles, and the general rules of its application, as we find them laid down by one of the most eminent of the continental jurists. (fi) See section 296. Art. I.] COLLATEEAL UNDERTAKINGS. 359 § 322. "A novation is a substitution of a new debt for an old. The old debt is extinguished by the new one contracted in its stead, for which reason a novation is included amongst the different modes, in which obliga- tions are extinguished. A novation may be made in three different ways, which form three different kinds of novations. The first takes place without the intervention of any new person, where a debtor contracts a new engage- ment with his creditor, in consideration of being liberated from the former. This kind has no appropriate name, and is called a novation generally. The second is that which takes place by the intervention of a new debtor, where another person becomes a debtor in my stead, and is accepted by the creditor, who thereupon discharges me from it. The person thus rendering himself debtor for another, who is in consequence discharged, is called expromissor ; and this kind of novation is called expro- missio. The expromissor differs entirely from a surety, who is sometimes called in law, adpromissor. For a person by becoming a surety does not discharge, but accede to, the obligation of his principal, and becomes jointly indebted with him. The third kind of novation takes place by the intervention of a new creditor, where a debtor, for the purpose of being discharged from his original creditor, by the order of that creditor, contracts some obligation in favor of a new creditor. "(&) § 323. As our proposed examination of the extent to which the doctrine of novation now prevails at common law, is merely subordinate to its effect upon the applica- tion of the statute of frauds to verbal promises, the first species of novation, which does not involve that question, will receive no special attention, and the examination of the third will be deferred to a subsequent chapter -,(0) {h) Pothier on Obligations, Part III, chapter 2, article 1; Evans's Transla- tion, Vol. I, pp. 546 to 549. (c) Chapter fourteenth, article fourth. 360 COLLATEKAL UnDEETAKINGS. [Ch. X. because, although its validity at common law rests upon the same grounds as that of the others, its validity under the statute depends upon a different principle. We will therefore proceed to the examination of the application of the statute, to cases where there has been a novation by the discharge of the person originally liable, and the acceptance of a new promisor in his stead, accomplished by mutual agreement between the three persons interested. ARTICLE 11. Where, ty consent of all the parties, the third person's antecedent liability to the promisee was discharged,' in consideration of the promisor's engagement to pay to the promisee, a debt antecedently due by him to the third person. § 324. This species of novation was the first to be recog- nized by the common law, and it is sometimes said to raise an exception to the rule that a chose in action can- not be assigned ; but, whether this expression is strictly accurate or not, it is well settled that an action in favor of a transferee of a debt against the debtor, must be founded upon a promise of the defendant to the plaintiff to pay the debt to him. In the United States it seems to be held, that the debtor' s liability is sufficient as a consideration for the promise ; but in England it is said, no doubt correctly upon the strict rules of the common law, that like aU other contracts, such a promise is binding upon the promisor, only when it was founded upon a distinct consideration, moving between the parties to the promise; at least to the extent that it must be something done, or permitted to be done by the promisee, at the express or implied request of the prom- isor. Where the consideration of the transfer was a debt due to the transferee by the transferor, forbearance upon, or the discharge of which formed the consideration of the promise, by the person who owes the debt transferred, the question is at at once presented, whether the promise was to answer for the debt of another, within the statute of frauds ; and this question has given rise to many doubts and considerable nicety of distinction. We shall examine hereafter that aspect of it which is presented, where the promise was founded upon forbearance, or any other con- Art. II.] COLLATEEAL UNDERTAKINGS. 361 sideration, than the discharge of the debt due from thp transferor to the transferee. Where it was founded upon such a discharge, and the promise was verbal, its validity, under the statute of frauds, is determined by the principle embodied in the fourth rule. § 325. The common law writers generally confine the generic term novation to the latter species of contract ; but it is generally known in the civil law as a delegation, or double novation, concerning which the eminent author already quoted says : " Delegation is a kind of novation, by which the original debtor, in order to be liberated from his creditor, gives him a third person, who becomes obliged in his stead to the creditor, or to the person appointed by him." "A delegation includes a novation, by the extinction of the debt from the person delegating, and the obligation contracted in his stead by the person delegated. Commonly, indeed, there is a double novation ; for the party delegated is commonly a debtor of the per- son delegating ; and in order to be liberated from the obligation to him, contracts a new one with his creditor. In this case there is a novation both of the obligation of the person delegating, by his giving his creditor a new debtor, and of the person delegated, by the new obligation which he contracts. "(a) § 326. The principle of this kind of novation, although no name was given to it, is to be found in some very early cases, but its first promulgation in the common law, is generally attributed to Buller, J., in Tatlock v. Harris, 3 Term Reports, 174, A. D. 1789 ; a case having no special relevancy to this question, but where that eminent judge, in answer to one of the counsel, during the argument, made the following observation: "Suppose A owes B lOOZ., and B owes C 100^. ; and the three meet, and it is agreed between them that A shall pay C the 100^. ; B's (tt) Pothier on Obligations, Part III, chapter 3, article 6, sections 1 and 2. Evans's Translation, vol. I, pp. 564 and 565. 46 362 COLLATEEAL UNDERTAKINGS. [Ch. X. debt is extinguished, and C may recover that sum against A." There is no further allusion in the case to this sub- ject ; but this incidental remark of Mr. Justice Buller has been construed in subsequent cases, as laying down three rules or propositions, namely : 1. That wherever the transaction between the parties is such, that the two intermediate debts are extinguished, the promise is good at common law. 2. That the promise is not good, unless both the intermediate debts are extinguished. 3. That in the particular case put, both the intermediate debts were extinguished as matter of law, although there were no express words of discharge of either. The question whether the second of these propositions is law, will be examined at length in subsequent chapters. (6) The first is the only one with which we have any direct concern in this connection. We will illustrate it by a few cases, showing the circumstances under which the two intermediate debts are regarded as discharged, or vice versa ; and as it is fre- quently dependent upon the third, some of the cases necessarily involve that proposition also. It makes no substantial difference, whether the question, respecting the validity of the promise, arises at common law or under the statute. Indeed the cases treat it, as arising in either aspect indiscriminately. § 327. In Browning v. Stallard, 5 Taunton, 450, decided A. D. 1814, in the Common Pleas, the plaintiffs sued as assignees in bankruptcy of one Morgan, to recover the value of a cask of gin ; and it appeared that the cask was ordered from Morgan by, and delivered to one Phillips, a publican, who afterwards "gave it over" to the defend- ant, another publican; when the rider of Morgan came for his money, Phillips said to him that he had sent the cask to the defendant, who would pay him when he came around again ; and the defendant then coming in, this was repeated, and he assented to it. At the trial, it was objected that the promise was within the statute, and it (fi) Chapter twelfth, and chapter fourteenth, article fourth. Art. II.] Collateral Undertakings. 368 was contended that as the gin was originally sold to Phillips, the mere taking possession of it by the defend- ant, would not give the plaintiffs a cause of action upon any other ground; but Chambre, J., before whom the cause was tried, thought this was a transfer of the sale by consent of all parties, and not an agreement to pay the debt of another, and the plaintiffs had a verdict. A motion was made to set aside the verdict and for a new trial, but the court refused a rule, holding that the ruling below that it was a transfer was right, and adding: "An action could, after that consent, no longer have been maintained against Phillips for the goods. It was a new sale of them to the defendant." § 328. The case of Cuxon v. Chadley, 3 Barnewall and Cresswell, 591, (c) A. D. 1824, in the King's Bench, pre- sented directly, only the question whether the original debtor to the plaintiff was in fact discharged, the solution of which, however, depended upon whether the new prom- isor in fact assumed any legal liability. This was an action in favor of the assignees of one Sweet, a bankrupt, against James Chadley, to recover a sum due for goods sold to him by the bankrupt ; and the defence was that before the bankruptcy, Robert Chadley, the defendant's brother, who then had an account current growing out of various transactions with Sweet, and at the same time owed the defendant a larger sum, than the bill of goods for which this action was brought, had requested Sweet to charge this amount of James's bill to his (Robert's) account current, to which Sweet had assented ; and when the account was adjusted between Robert and Sweet at the end of the year. Sweet, by Robert's direction, entered to Robert's debit, that charge, which nearly balanced the account between them. Soon after making the arrange- ment with Sweet, Robert communicated it to his brother James, the defendant ; but the report does not state that any thing ever passed between Sweet and the defendant. (c) S C, 5 Dowling and Ryland, 417 ; and 1 Carrington and Payne, 174. 364 COLLATEEAL UnDEETAKINGS. [Cll. X. The plaintiffs had a verdict, and a rule nisi to enter a nonsuit was discharged ; on the ground that the entry was proof merely of an assent to debiting Robert with the goods, and not that the bankrupt consented to take Robert as his debtor, and discharge James. Abbott, C. J., remarked, that at most there was an accord between Robert and the bankrupt, but no satisfaction ; and he added, "We cannot say, therefore, that either Robert could have been made to pay this money to Sweet, if he had called for it, or that James is discharged from his original obligation to pay the amount of goods sold to him."(^) § 329. So in Wharton v. Walker^ 4 Barnewall and Cress- well, 163, and 6 Dowling and Ryland, 288, decided in the same court, A. D. 1825. There one Lythgoe was indebted to the plaintiff, and gave him an order for the amount of the debt upon the defendant, who was his tenant, payable out of the rent that should next become due ; and the plaintiff sent the order to the defendant, without any fur- ther communication between them. When the next rent became due, the defendant produced the order to Lythgoe, and promised him to pay the amount to the plaintiff; whereupon Lythgoe allowed him to deduct that amount, and on his paying the difference, gave him a receipt for the whole sum. The plaintiff then brought this action, declaring for money had and received, and upon an account stated. On the trial he was nonsuited, on the ground (d) The trial of this cause is reported in 1 Carrington and Payne, 174, from which it would appear that the ruHng turned upon the ground, that Robert's agreement to pay James's debt was within the statute of frauds. The notes of the argument are given at page 485 of the same volume; where it is said, that on counsel for the plaintiffs insisting that Robert could not be bound without a writing, Bayley, J., answered : " There you are quite wrong, Mr. Marryatt; for there are many cases which decide that a man, by word only, may take a debt upon himself, discharging the principal debtor. In this case Robert owes James money ; and by this arrangement, Robert is to pay Sweet what he would otherwise pay to his brother." To which Marryatt answered, that there was no evidence that Sweet knew that one brother owed the other any money. Art. II. J COLLATEEAL UNDERTAE:i:N-OrS. 365 that the promise was within the statute of frauds, and a rule nisi to enter a verdict in his favor was discharged. Although the court thought that the declaration should have been special; all the judges, delivering opinions seriatim, also agreed that the action could not be main- tained ; because, as the three parties did not concur in the arrangement, the debt due from Lythgoe to the plaintiff had not been discharged, and the plaintiff might collect it from him ; so the case did not come within Buller's rule.(e) § 330. There are a few cases in the United States, where the correctness of the first or of the third proposition, derived from the rule in Tatlock v. Harris^ has been denied, either expressly or by implication ;(/) but they run decidedly counter to the general current of the Ameri- can decisions. Indeed this seems to favor the much broader rule, that a promise by a debtor to pay his debt to a transferee thereof, is valid, at common law, without any new consideration ; and under the statute of frauds, upon the principle embodied in the sixth rule. We will cite some specimen cases where the first and third propo- sitions were recognized and their application illustrated ; and where also the validity of the transaction, under the statute of frauds, was either expressly affirmed, or admitted by implication. § 331. In Hay don v. Christopher, 1 J. J. Marshall (Ken- tucky), 382, A. D. 1829, the plaintiff was a creditor of one (e) This case, and several others not cited here, where it was ruled, upon grounds which appear to be unsatisfactory, that there was a discharge df the intermediate debts, are commented upon in the note at the conclusion of chapter xiv. (/) Smith V. Coleman, 1 Bibb (Kentucky), 488, A. D. 1809; Gunnels v. Stewart, 3 Brevard (South Carolina), 52, A. D. 1812; Jones v. Ballard, 2 Mill (South Carolina), 113, A. D. 1818; Smith v. Stevens, 3 Indiana, 332, A. D. 1852. In the last mentioned case it is said that a transaction, which was substantially the same as the supposed case put in Tatlock v. Harris, would be void under the statute of frauds; but the decision was put upon another ground, which calls for no comment here, as it did not arise under the statute. 366 COLLATEEAL UNDERTAKINGS. [Ch. X. Cock to the amount of $25, and the defendant said that he owed Cock $20 ; and thereupon an agreement was made between the three, whereby the defendant agreed to pay the plaintiff $20, and the two intermediate debts were discharged. Afterwards Cock fled from the State; and the defendant then said that he did not owe him as much as he had supposed, and refused to pay the plaintiff. It was objected at the trial, that the promise was within the statute, and the defendant had a verdict under the instruc- tions of the court. The judgment rendered thereon was reversed, and a new trial ordered ; the Court of Appeals holding that the promise was not witliin the statute, and that after procuring Cock's release by the plaintiff, the defendant could not show that he had been mistaken in the amount of his debt to Cock.(^) § 332. An American case, where a novation was sus- tained under the rule of Tatlock v. Harris^ in an action by the substituted creditor seeking to recover upon the original liability, is reported under the name of Heaton V. Angier, 7 IS'ew Hampshire, 397, decided A. D. 1835. There the plaintiff sued for the price of a wagon sold to the defendant, and it appeared that immediately after the sale, one Chase bought the wagon from the defendant, at a slight advance upon the price ; that Chase and the defend- ant went to the plaintiff ; and Chase agreed to pay to the plaintiff the purchase price of the wagon, to be paid by the defendant; "and the plaintiff agreed to take Chase as paymaster for that sum, and thereupon Chase took the wagon and went away." Upon a verdict, subject to the opinion of the court, it was held that the action could not be maintained ; as the agreement of the plaintiff to take Chase as his debtor discharged the defendant, the debt due from Chase to the defendant being simultaneously discharged. (g) The last paragraph is in accordance with part of the ruHng in Beach V. Hungerford, post § 336. Art. II.] Collateral Undertakings. 367 § 333. And in Wood v. Corcoran, 83 Massachusetts (1 Allen), 405, A. D. 1861, a verbal agreement between the plaintiflf, the defendant, and a third person, who was the plaintiff's debtor and the defendant's creditor, tliat the defendant would pay the plaintiff the debt against the third person, and that the latter should be discharged, was sustained as not being within the statute. And the court said, that the agreement operated to discharge as much of the defendant's debt to the third person, as was equal to the sum which he undertook to pay to the plaintiflf. § 334. In Grover v. Sims, 5 Blackford (Indiana), 498, A. D. 1841, it was held that a novation was good which took effect immediately, although the amount of the substituted debt was not definitely known, and payment was to be post- poned till the amount should be ascertained. There the defendants were indebted to one Treadway, "having funds or cash of his in their hands," and Treadway was indebted to the plaintiflf upon a promissory note made by him ; the parties met, and mutually agreed that the defendants should pay to the plaintiffs the amount they owed Tread- way, "so soon as the precise amount of their indebtedness to Treadway, could be ascertained by reference to their accounts." Upon the trial, various objections were taken to the recovery, among them that the plaintiflf had not proved that he had delivered up Treadway' s note, or otherwise expressly released him, but the judge charged that this was not necessary, and the plaintiflf had a ver- dict, which was aflftrmed upon appeal. The opinion of the court, reviewing the English cases, held that the debt from Treadway to the plaintiflf was extinguished, and that the action for money had and received lay against ■the defendants. § 335. An instance of double, or as the civil lawyers would perhaps call it, quadruple novation, or double delegation, occurred in the case of Beach v. Hungerford^ 19 Barbour (New York), 258, A. D. 1855. There the 368 Collateral Undertakings. [Ch. x. defendants, who were contractors with a railroad com- pany for the construction of a portion of the company's road, had made a sub-contract with one Deland for the construction of one section, reserving the right to retain sufficient moneys to pay the laborers employed by Deland, if the latter failed to pay them. Deland employed a number of laborers, and after doing a part of the work, stopped, leaving them, unpaid. The plaintiff had fur- nished supplies to them, for which they were indebted to him. Deland, the laborers, the plaintiff, and the defend- ants thereupon agreed that the defendants should pay the plaintiff' s bills against the laborers for supplies, (the amount of which was agreed upon) ; that the laborers should be discharged from liability to the plaintiff ; that the amount of the plaintiff's bills against each laborer should be deducted from the wages owing to him; and that the balance due to each laborer should be paid to him by the defendants. The defendants thereupon paid the laborers the amount due to them respectively, deducting the plaintiff's bills. It appeared further that before this arrangement was made, the laborers had taken pro- ceedings under the railroad act, to charge the company with the amount of their wages ; and that the defendants' contract with the company provided that the company might retain moneys sufficient to satisfy any such claims.. In an action brought by the plaintiff, to recover the sums thus deducted by the defendants, it was objected that the defendants' promise was void by the statute of frauds ; but the objection was overruled, and a judgment for the plaintiff, rendered upon a referee's report, was affirmed on appeal. § 336. It was held that it was of no consequence, whether the laborers had any valid claim against the company by the provisions of the act ; or whether the defendants retained enough of the moneys due from them to Deland, to pay the plaintiff ; or whether they were liable to the laborers for their wages. It was sufficient that they undertook to settle, and did, in fact, settle with the labor- Art. II.] Collateral Undertakings. 369 ers, acknowledging their liability so to do ; and that for that purpose they used the plaintiff's d(-iiiands against them, as so much money in their hands. That in this way the plaintiff's demands against the laborers were paid and satisfied, and the defendants became liable to the plaintiff for so much money had and received to his use. That the statute of frauds had nothing to do with the case ; and that the agreement was original, and the considera- tion sufficient. (7i) § 337. Other cases illustrating the application of the doctrine that the discharge of the intermediat<' debts will suffice to sustain the promise at common law and under the statute of frauds, will be found in the note.(/) They also sustain the general principle, which, notwithstanding some intimations, and even rulings to the contrary, is upon the whole, clearly established by the weight of authority; that any words or acts, manifesting either expressly or by necessary implication, a consent on the part of the? three persons concerned, that the intermediate debts should be immediately discharged, are sufficient to extinguish them. The question whether any consideration, except such a (h) Pothier (Part III, chapter 2, article 5), speaking of delegation, says: "Sometimes there intervenes a fourth party, viz. : the person indicated by tlie creditor, and in whose favor the person delegated becomes obliged upon the indication of»the creditor, and by the order of the person delegating." But here was something more, for the fourth person was a creditor of one of the intermediate persons, whose demand was also extinguished by the novation. The process was evidently double ; first the laborers' claim against Deland, and the plaintiff's claim against the laborers were extinguished by one delegation, and the plaintifl' became a creditor of Deland ; then the plaintiff's claim against Deland, and Deland's claim (pro tanto) against the defendants were extinguished by another, and the plaintiff became a creditor of the defendants. (i) Ramsdalev. Horton, 3 Barr (Pennsylvania), 330, A. D. 184G ; Barrin- ger V. Warden, 12 California, 311 (1859); Cnnsociated Presbyterian Society, etc., V. Staples, 23 Connecticut, 544 (1855); Stony v. Menzies, 4 Chandler (Wisconsin), 61(1851); Millard v. Porter, 18 Indiana, 503(1802); Stanly V. Hendricks, 13 Iredell (North Carolina), 8G (1851) ; King v. Hutchins, 28 New Hampshire, 561 (1854); Cook v. Barrett, 15 Wisconsin, 596 (1862). 47 370 COLLATEEAL UNDERTAKINGS. [Ch. X. double discharge, will sustain a promise by a debtor to pay his debt to a transferee thereof, is of course entirely distinct, at common law, and under the statute. ARTICLE III. Where the third person's antecedent liahility to the promisee was discharged, in consideration of its assumption hy the promisor, § 338. This class of cases, like that which formed the subject of the third article of the last chapter, comes within the second species of single novation described by Pothier, and called expromissio,(a) being that which takes place ' ' by the intervention of a new debtor, where another person becomes a debtor in my stead, and is accepted by the creditor, who thereupon discharges me." It is valid, at common law and under the statute of frauds, only when it is made by the concurrence of the three parties ; that is to say, the creditor, the old debtor, who is to be discharged, and the person who is to assume his place. As it consti- tutes only one half of that species of delegation, to the examination of which the preceding article is devoted, one of the elements of the consideration, necessary to the valid- ity of a contract of that kind, is unimportant in this species of contract. Here the consideration for the assumption of the new liability by the new debtor, is merely the dis- charge by the creditor of the original debtor ; and it is of no consequence what was the consideration, or whether any consideration passed, between the new debtor and the person discharged ; whereas, as we have seen, it is one of the ingredients of a delegation by double novation, that the former shall be discharged by the latter of a precedent debt owing by him. § 339. In this class of cases, as in the other, any thing which amounts to a valid discharge of the original debtor, suffices to take the promise out of the operation of the statute ; respecting which, it may, in general terms, be said (a) See ante, § 322. /.]'t. in.] Collateral Undertakings. 371 tliat any words or acts passing between liim and liis cred- itor, indicating unequivocally an intention on the part of tlie latter, immediately and thenceforth to abandon his demand, and an assent thereto on the part of the former, will suffice. (1) Cases illustrating the general principle, and the rule that the three per- sons in interest must concur, § 340. The question whether the discharge of the prin- cipal debtor, by a trii^artite agreement, sufficed to take a stranger's promise out of the statute, arose and was affirmatively decided in Bird v. Gammon, 3 Bingham's New Cases, 883, in the Court of Common Pleas, A. D. 1837. (?>) There the plaintiff had issued a lieri facias upon a judgment in his favor against one Lloyd, Subsequently Lloyd conveyed to the defendant his farm and farming stock; the defendant verbally undertaking in return, as was expressly proved at the trial, and as it also appeared by the recitals of the deed^ to satisfy Lloyd' s creditors ; and it was a part of the agreement, the plaintiff being a party to it and an attesting witness to the deed, that Lloyd should be discharged. The plaintiff then mthdrew his execution, and Lloyd continued to manage the proj^- erty as the defendant' s bailiff. About three years after- wards, the defendant, having examined the plaintiff's account, acknowledged its correctness. At the trial two objections were made to a recovery, one of which is not important in this connection ; the other was that the defendant' s engagement was within the statute of frauds. The plaintiff had a verdict ; and upon the argument of a Tule nisi, the court held that the promise was not within the statute, because Lloyd could set up the agreement, in bar of a new suit, or to stay proceedings upon the judgment ; so that the plaintiff had effectually dis- charged him, and accepted the defendant's undertaking, in lieu of any remedy against him. The rule was there- fore discharged. (b) S. C, 5 Scott, 213, and 3 Hodges, 224. 372 CoLLATEEAL Undeetakings. " [Ch. X. § 341. On tlie other hand, it was held by the same court in FrencTi v. French^ 2 Manning and Granger, 644, (c) A. D. 1841, that as it did not clearly appear that the origmal debt was discharged, the defendant's promise to pay it was within the statute. There the plaintiff sued to recover, among other items of an account, the amount of 321Z. 5s., being a debt originally contracted by the defend- ant' s father ; and it appeared that the defendant, who was a naval officer, had given to the plaintiff a writing, (insuffi- cient under the statute of frauds, ) acknowledging that he had received from the plaintiff 3211. 5s.; and desiring that in case of his death, during his absence from England, or at any time before the debt was liquidated, the plaintiff should be paid out of any property the defendant might possess. It was further shown that this writing had been given to avoid proceedings against the estate of the father, who had died abroad in embarrassed circumstances. It also appeared that the defendant's sisters had subse- quently entered into some written engagement, (which had been destroyed by a fire,) to pay the same debt. At the trial the defendant had a verdict ; and upon a motion to enter a verdict for the plaintiff, the latter' s counsel con- tended that the wiiting was evidence of a loan by the plaintiff to the defendant, to enable him to discharge his father's debt; in which object, as one of the next of kin, he was personally interested. But Tindal, C. J., said that ' ' the substratum of that suggestion must be that the debt due from Dr. French" (the father) "was satisfied. But it is inconsistent with such a supposition, that the plaintiff should afterwards obtain from Dr. French' s two daughters, a note or engagement to pay the same debt." The rule was accordingly discharged, on the ground that the prom- ise was void for want of consideration, and also as being witliin the statute. § 342. In the English chancery case of Emmet v. Dew- liUTst, 15 Jurist, 1115, 3 Macnaghten and Gordon, 587, (c) S. C, 3 Scott's New Reports, 121. -Art III.] Collateral Undektakings. 373 and 21 Law Journal, N. S., Chancery, 497, decided in the year 1851, it was held that a promise was within the statute, whereby the promisor undertook to substitute for a liability resting upon another, the joint liability of him- self and the original debtor. Such a substitution, as will presently a])pear,(c?) suffices to satisfy the principle now under examination, because the original several lial)ility is thereby extinguished. The reason, why this particular case was taken out of this class of cases not within the operation of the statute, is not given in the opinion ; and it may be that the Lord Chancellor overlooked or dis- sented from the doctrine, that a joint promise extinguishers the original debt; but probably he put his decision on the ground, that the plaintiff did not discharge tlie original liability, but only promised to do so. The plaint- iff, as public officer of the Halifax Joint Stock Banking Company, filed a bill to get the benefit of an indenture; whereby, in substance, the defendant agreed with one Turney, in behalf of himself and all the other creditors of Isaac Dewhurst, the defendant' s brother, that in consid- eration of the abandonment of a fiat in bankruptcy against Isaac, and the acceptance forthwith by the credit- ors of a composition ; he, the defendant, would guaranty a composition of eight shillings in the pound, to all the creditors of Isaac, whose debts exceeded 20/., who would sign a good and effectual release of their claims against Isaac, before a certain day. § 343. In pursuance of the agreement, the joint notes of Isaac Dewhurst and of the defendant, for the proportionate part of each creditor's debt, payable at certain periods therein stated, and a release to be executed by the credit- ors, were seasonably prepared and placed in the hands of an agent, to deliver notes for his proportion to each creditor, who should execute the release by the appointed day. The banking company represented by the plaintiff, was one of the creditors, to the amount of nearly 2000^., (d) Post § 354, et seq. 374 ■ COLLATEEAL UNDERTAKINGS. [Ch. X. part of which was for two dishonored bills drawn by Isaa(3 upon one Carter, and accepted by him ; and it declined to execute the release, or surrender the bills, until the result of certain legal proceedings then pending against Carter should be ascertained ; for which purpose it desired an extension of time, urging as a ground for granting the extension, that the amount of the composi tion notes would be diminished, by a proportionate part of whatever could be collected from Carter. But the agent refused to deliver the composition notes, unless the bills were surrendered; and after some negotiations, he made, as was alleged by the plaintiff, a verbal agreement vdth the agent of the bank, to the effect that the bank should be considered a consenting party to the agreement for the composition, and to the release ; but that it might postpone the actual execution of the release, and the delivery of the bills, until after the proceedings against Carter had terminated. These proceedings having ex- tended beyond the time stated in the indenture, and having resulted in nothing ; the bank insisted upon its right to have the benefit of the indenture, in consequence of the alleged verbal extension of time within which it was to release Isaac ; and for that purpose this bill was filed. 4 § 344. The Yice Chancellor (Knight Bruce) made a decree, referring it to a master to inquire into the author- ity of the defendant' s agent to make such an agreement, and other matters preliminary to the granting of relief; and from that decree the defendant appealed to the Lord Chancellor, (Lord Truro), who dismissed the bill with costs. Assuming, he said, that the agent had the necessary authority, nevertheless the agreement was 'vdthin the fourth section of the statute of frauds. "It is a special promise to answer for the debt of another person. It is not a promise, upon good consideration, to take the debt exclusively upon himself. It professes in terms to be a case of guaranty. The composition notes were to be the joint notes of Isaac Dewhurst, the principal debtor, and Art. III.] Collateral Undertakings. 375 of the defendant William Dewliurst, as his guaranty or surety. The agreement is clearly within the fourth miction of the statute of frauds and must be in writing. Any alteration of the agreement must also be in writing." *' Therefore whether what passed" (between the two agents) "is or is not to be contended to be a variation of the old agreement, or as the formation of a new agreement, it ought to be evidenced by some writing, and it is clear from the whole evidence that no such writing exists. "(<^) § 345. The modern American cases, with scarcely an exception, affirm the validity of verbal tripartite agree- ments of this character, at common law and under the statute of frauds. Thus in Watson v. Jacobs^ 29 Ver- mont, 169, A. D. 1857, one Solomons had furnished a piece of cloth, and employed the plaintiff (a tailor) to make a coat for him ; after it was made, the plaintiff handed it to him, and they went together, Solomons carrying the coat, to a place where Solomons said that he would get the money to pay the plaintiff. On arriving at the place, Solomons said that he had not enough money to pay for the coat, together with his fare to a place in New York, irhither he was going ; and, at his request, the defendant promised to pay the plaintiff's bill ; whereupon the plaint- iff " permitted Solomons to leave the State with the coat." These facts were found by an auditor, who also reported that the plaintiff had discharged Solomons. Upon this report the plaintiff had judgment, which was affirmed by the Supreme Court. Rediield, C. J., delivering the opin- ion said : "The general statement of facts indicates very clearly, that the plaintiff looked exclusively to the defend- ant, lie did not fully surrender his control over the coat, until the defendant consented to assume the debt. He then permitted the first contractor to depart out of the country, and the auditor says he was thereby discharged from the debt. This, we think, can. import nothing else but that the defendant was the sole debtor. If this case (e) See this case further commented upon in the note to § 284, ante. 376 COLLATEIIAL UNDERTAKINGS. [Cll. X. stood against Solomons, it would be impossible to give judgment against liim."(/) § 346. The principle was also very correctly laid down and applied in Corhett v. Cochran, 3 Hill (South Carolina), 41, and Riley's Law Cases, 44, decided in 1836. There the plaintiff had an account against one Mrs. Pellott, and had sent the account to her for payment ; soon after the defendant called upon the plaintiff with the account, and "promised to discharge the demand, by having the amount charged to himself;" and the plaintiff accord- ingly credited Mrs. Pellott with the amount in full, and charged it to the defendant, no time of forbearance having been agreed upon. The defence was that the promise was within the statute. At the trial the judge left it to the jury to say whether Mrs. Pellott was privy to the arrange- ment, and whether the credit, discharging her, was entered with the knowledge and by the direction of the defend- ant. (^) The jury found a verdict for the plaintiff. The defendant moved for a new trial and the motion was unani- mously denied by the court. Earle, J,, who delivered the opinion, after citing cases to show that if the original debtor was discharged, the defendant was liable, proceeded to con- sider the question, whether Mrs. Pellott was in fact and in law discharged. After saying that any promise may, before breach, be discharged by words only, and that although, as a general rule, a debt is not extinguished by the acceptance of a security of no higher nature, yet it will be thus extin- guished if the parties expressly so agree ; he added : " In these cases the validity of the new promise and the dis- charge of the original debt are mutually dependent ; they arise at the same time, and result from the agreement of (/) The case of Croft v. Smalhvood, 1 Espinasse, 121 (see ante § 154), presented a strikingly similar state of facts ; but the court put the decision upon an entirely different ground. This is but one of many illustrations, which might be adduced, of the extreme difficulty of classifying the cases under this branch of the statute of frauds. iff) This appears from the opinion, although the "report" of the judge below, would indicate that he ruled expressly upon those points Art. HI.] Collateral Undertakings. 377 tli(3 parties, tliat the existing debt slmll be extinguished and tlie first debtor discliarged, in consideration of the new undertaking. Tliere is no form of words or writing necessary to give (effect to these mutual undertakings. If the promise to pay is binding, tlie agreement to discharge is equally so ; eacli is binding because the other is." But in tlie case at bar, he continued, there was something more than a mere verbal agreement, as the plaintiff had entered a satisfaction upon his books, which constituted the evidence of his demand ;(r/) and he had thereby declared that he had no further claim against Mrs. Pellott, in whose stead he accepted the defendant as his debtor. In that respect the learned judge said, that the case at bar differed materially from Ciixon v. Chadley, 3 Barnewall and Cress- well, 591, where there was nothing except a debit to the new promisor. (//.) § 347. So in Walker v. Penniman, 74 Massachusetts (8 Gray), 233, A. D. 1857, the defendant had an unfinished contract with one Hamblin, for certain piano-fortes, to be mad(^ by the latter; and Hamblin was indebted to. the plaintiff upon a promissory note. A verbal agreement was made between the plaintiff and the defendant, "in the presence of Hamblin," to the effect that the plaintiff would finish up the work for the defendant, and be paid the same prices which he was paying Hamblin; "and the defend- ant agreed, that if the plaintiff would go on and finish up the instruments, the defendant would pay him the amount of the note ; to which the plaintiff consented, and agreed to give up the note, and abandon all claim on Hamblin, and afterwards did give up the note." It was held that the promise was not within the statute, and a verdict for the plaintiff was sustained upon exceptions. § 348. On the other hand, Stone v. Symmes, 35 Mas- sachusetts (18 Pickering), 467, A. D. 1836, was a case {g) See ante, § 192, as to the elTrrt i.f iln- pliiniiir's boi>ks as evidence in South Carolina. Qi) See the case ante, § 328. 48 378 Collateral Undertakhstgs. [Ch. x. where the promise, although sufficient at common law, was void by the statute, because there was not a sufficient discharge of the original debtor. There one Woodward, being indebted to the plaintiff, had agreed to pay him in labor, whenever he should be called upon, at a specified price per day. Subsequently Woodward agreed to work for the defendant for a specified time, at a less price ; before the time had elapsed, the plaintiff cajled upon Woodward to fulfil his contract, and said to the defendant that he must have his bill paid or Woodward's work, and asked if he would give up Woodward ; to which the defendant answered that he would not give up Woodward, and that he would see the bill paid, or would pay the bill on demand. This took place in the presence of Woodward, who testified that the defendant, at that time, owed him something, and that something was due to him at the time of the trial ; but he could not tell how much ; and that he continued in the defendant' s employment, in consequence of the latter' s agreement to pay the plaintiff, and would not have remained, if the defendant had not so agreed. In an action upon this promise, the defendant objected that it was without consideration, and also void by the statute of frauds, but the court below, on a case stated, held that the plaintiff could recover. § 349. The judgment thereupon was reversed by the Supreme Court, and the plaintiff nonsuited, Putnam, J., delivering the opinion of .the court, held that the benefit, which the defendant received from Woodward' s remaining in his employment, constituted a sufficient consideration for the promise ; but that it was void within the statute of frauds, because the plaintiff's demand against Woodward was not discharged. He said : "It would, perhaps, have been sufficient, if the plaintiff had then expressly dis- charged AVoodward in consideration of the defendant's promise, so relying upon it as an original undertaking, and upon the loss of his claim against Woodward, as the consideration for the promise of the defendant ; but there is no evidence of such an express discharge, and no facts Art. III.] COLLATEKAL UNDERTAKINGS. 379 ai'o .stated, from wliicli even an implied discliarge of Wood- ward is to be necessarily inferred. AVoodward's liability to tlie plaintiff continued. At most, the plaintiff agreed to suspend his claim for such time as he pleased, but not to abandon or discharge it at all events." The opinion makes no reference to the fact that. the defendant was indebted to Woodward at the time ; which circumstance aj)parently presented a question of delegation rather than of simple novation; but as the plaintiff's demand was small, it is probable that the intention of the parti(^s was that the defendant should pay it, witliout deducting it from Woodward' s wages. § 350. So in Ricliardson v. Williams, 49 Maine, 558, decided in 1861, the promise was void, both at common law and under the statute, because the original debtor was not discharged, there having been no suflScient concurrent action of the three parties in interest, to create a novation. There a certain railroad company was indebted to the plaintiff; and the defendant (who was, it is to be gathered from the case, an officer of the company) verbally agreed to pay. the debt to the plaintiff, and in fact afterwards paid the amount into the hands of one Means, for the plaintiff, and charged it to the company. Means failed ; and the plaintiff thereupon brought this action. There was no evidence, that the company had any knowledge of the verbal agreement between the plaintiff and the defend- ant ; or that the plaintiff' had ever discharged the company; but it was nevertheless ruled at the trial, that, as the defendant had charged to the company the amount, and had promised to pay it, he must be considered as having the money in his hands to the use of the plaintiff; and therefore that he was liable on the count for mon(\y had and received, unless he was authorized to pay it to Means as the ])laintiff's agent. The jury found a verdict for the plaintiff. Upon an exception to the decision of the judge at the trial; a new trial was granted, the Supnmie Court holding that the promise was without considei-ation, and also within the statute of frauds ; because the plaintiff 380 Collateral Undertakings. [Ch. x. relinquished nothing and the defendant obtained nothing, as he could not make the company his debtor, by paying or agreeing to pay its debts, without its request or consent. § 351. A similar principle controlled the decision in the more recent case of Ellison v. WlseJiart, 29 Indiana, 32, A. D. 1867. There the action was brought to recover a sum due to the plaintiffs for goods sold to the defendant's mother ; and there was much conflict of testimony in the court below ; the plaintiffs recovered judgment, from which the defendant appealed to the SuxDreme Court, where the judgment was reversed. The strongest testi- mony against the defendant, was that of one of the plaint- iffs, who testified in substance that some time after the goods were bought, he had a conversation with the defend- ant, and informed him that the plaintiffs intended to sue his mother immediately for the price. The defendant requested him not to do so, saying, " I have means in my hands, and it may have a tendency to make the old lady worse." The plaintiff then said, "If you will assume this debt of $104.77, and let me charge it to you, I will let the old lady alone, and wait with you till Christmas for the money." The defendant replied, "You may charge it to me and I will pay." The account was thereupon charged to the defendant. Gregory, J., delivering the opinion of the court on the appeal, said that it was clear that the defendant's promise was collateral unless his mother was discharged. "She was not present; and in no wise participated in the arrangement. She had no knowledge 'of it. It does not appear that she was dis- charged, or the account against her credited." "The defendant could not make Susannah his debtor by a vol- untary assumption of her debt to the plaintiffs. How could she, in a suit by the plaintiffs against her for this account, set it up as a defence to her liability to them ? The plaintiffs did not release her in terms. If she was released it was the result of the arrangement, not of any agreement on the part of the plaintiffs." "Tlie plaintiffs might, at any time before the assent of Susannah was Art. III.] Collateral Undertakings. 381 given to the arrangement, have disregarded this voluntary assumption by the defendant, and have sued on the original promise. This suit can only be maintained on the ground of a substitution of one debtor for another." § 352. The foregoing cases are cited as specimens of the nice distinctions which obtain, in the application of this rule. Other American cases, of the same general charac- ter, are collected in the note. (/) In each of them it was held that the immediate discharge of the original debtor, was the test by which to determine the validity of the defendant' s promise to paj the debt. § 353. It is not necessary, however, that the debt of the third person, which is discharged by the promisee, should be a clearly ascertained legal liability ; provided it is a claim, which might form the subject of an action. Thus in Lordv. Davison, 85 Massachusetts (3 Allen), 131, A. D. 1861, a married woman had invested money, w^hicli was her separate property, in a firm of which her husband (i) Jolley V. Walker, 26 Alabama, 690, A. D. 1855; per Roane, J., Wag- goner V. Gray, 2 Hening and Munford (Virginia), 603 (1808); Draughan v- Bunting, 9 Iredell (North Carolina), 10 (1848); Curtis v. Brown, 59 Mas- sachusetts (5 Gushing), 488 (1850) ; Wood v. Corcoran, 83 id. (1 Allen), 405 (1861); Brown v. Hazen, 11 Michigan, 219 (1863); Armstrong v. Flora, 3 T. B. Monroe (Kentucky), 43 (1825); Click v. McAfee, 7 Porter (Alabama), 62, per Collier, J. (1838) ; Antonio v. Clissey, 3 Richardson (South Carolina), 201 (1832); Bason v. Hughart, 2 Texas, 476 (1847); Anderson v. Davis, 9 Vermont, 136 (1837); Gleason v. Briggs, 28 id., 135 (1855); Cole v. Shurt- leflT, 41 id., 311 (1868); per Gibson, J., Allshouse v Ramsay, 6 Wharton (Pennsylvania), 331 (1841); Cotterill v. Stevens, 10 Wisconsin, 422 (1860). In Walson v. Randall, 20 Wendell (N. Y.), 201, A. D. 1838, the same princi- ple was applied to a promise of the defendant to pay his mother's debt, in consideration of the plaintiff's promise not to sue her. The court assumed, (though doubting the correctness of the proposition,) that by the terms of the plaintiff's promise the forbearance was to be perpetual, no time therefor being specified ; but it was held that the mother could not have availed herself of it, because she was not a party to the agreement, and lor that rea.<;on the defendant's promise was within the statute. The effect, upon this class of cases, of the doctrine mentioned and the cases collected in chapter xii, article ii, has never been discussed, as far as our observation extends. 382 Collateral Undertakings. [Cli. x. was a member with others, intending thereby to become a partner ; but, (as had been held in a previous case,) the Massachusetts married women' s act did not confer upon her the power to become a partner with her husband. The defendants bought the stock, etc., of the firm, and in addition to the purchase price paid by them to the firm, they verbally agreed with her to pay her a certain sum for her "share, interest, contribution, and investment" therein ; in consideration of which she relinquished what- ever rights she had against the firm. At the trial the judge ruled, that the legal effect of the transaction was to. make her a creditor of the firm, and "that she was not the owner of any part of the stock, fixtures and mate- rials ; ' ' but he declined to rule, as requested by the defendants' counsel, that she had no claim against the partnership, which she could enforce at law. The plaintiff had a verdict ; and upon the hearing of the exceptions to the judge's rulings, it was held that there was no error in the rulings actually made, as applied to the facts proved ; and that it was entirely immaterial whether the refusal to rule as requested was correct or otherwise ; that although her rights were not very well defined, neverthe- less their relinquishment constituted a sufficient considera- tion, for an express promise to pay her therefor ; and that as her claim against the firm had been extinguished, in consideration of the promise of the defendants, the latter Was a substituted and not a collateral undertaking, and therefore was not within the statute of frauds, {j ) (2) Where the third person and the new promisor assumed a joint liability, in discharge of a previous liability of the third person only, § 354. The principle now under examination will sus- tain, at common law and under the statute, a promise made by two persons jointly, and accepted by the cred- itor, to assume the payment of the individual debt of one of them ; as in the familiar instance of a copartnership assuming the debt of one of its members. In such a case. (y) It is to be inferred in this case, althougli it is not very clearlj'' stated, that the firm was a party to the agreement. Alt. in.] COLLATKHAL UXDKRTAKIXGS. 383 it is true, that in one sense the original debtor continues to be liable for the debt ; but he is not liable in the same manner as before. The incidents and consequences of a liability jointly with others, and of a sole liability, are so different, that the conversion of the one into the other is very properly deemed an extinguishment of the old liability, and the substitution of a new oQe in its place. (/r) Such was the decision in Ex parte Lane, in re Lendon, 16 Law Journal, N. S., Bankruptcy, 4, and 1 De Gex's Bank- ruptcy Reports, 300, decided in the year 1847. This was a petition for leave to prove a debt of 4000Z. against the joint estate of two bankrupts (partners) ; and it appeared that before the formation of the partnership, one of the bankrupts was indebted to the petitioner, in the amount claimed ; that at the time of the formation of the partner- ship, all parties had verbally agreed that the firm became liable to pay the debt, as the money had been embarked in the business; and that there had since been several conversations and transactions between the parties, on that footing. It was objected, on the part of the assignees, that the case was within the statute of frauds ; but the Chief Judge (Vice-Chancellor Knight Bruce) said: "If A is a creditor of B, and B and C propose to enter, or have entered into partnership together, and address themselves to A, the creditor of B, and say, ' We wish that this debt, due hitlierto from B alone, shall be a debt from B and C together,' and A accedes to the proposal, although no writing passes, that agreement is valid and effectual, and is not impeached or affected by the statute of frauds. (h) Lord Denman, C. J., in his opinion in the case of Thompson v. Percival, 5 Barnewall and Adolphus, 925, and 3 Novile and Manning, 1G7, thus speaks of the correlative proposition, that a joint liabiHty may be discharged by the assumption in its place of a several liability, by one of the parties already jointly liable: "Many cases may be conceived, in which the sole liability of one of two debtors may be more beneficial than the joint liability of two, cither in respect to the solvency of the parties, or the convenience of the remedy, as incases of bankruptcy, or survivorship, or in various other ways; and whether it was actually more beneficial in each particular case, cannot bo made the subject of inquiry." And see further on the same subject, Lyth V. Ault, 7 Exchequer, 6G9, and 21 Law Journal, N. S., Exch., 217. 384 Collateral Undertakhstgs. [Cli. x Tlie effect of it is, for a valuable consideration, to extin- guish the first ; and for a valuable consideration to sub- stitute the second for it. Of course the very vv^ords I have referred to need not be used; and if there is sufficient evidence that the intention of the parties was so, that will be as effectual as if the most formal expressions had been used." His Honor then examined the evidence ; which he said, satisfied him as a judge of fact, that such was the agreement of the parties in this case, and he therefore granted the application. (^) § 355. The same principle is well illustrated in the case of CorMn v. McChesney^ 26 Hlinois, 231, decided A. D. 1861, where there was in one sense a double novation. There the plaintiff in the court below, (McChesney,) had become indebted to the defendants, who were partners, in the sum of $60, and the defendant Duffy was indebted individually to the plaintiff in the sum of $119 ; by tiie latter' s direction, in pursuance of a mutual agreement between McChesney and Duffy, the bookkeeper of the firm credited the plaintiff in the last named sum, and charged it to Duffy, upon the books of the firm. There was evi- dence that Corbin, the other defendant, afterwards assented to the arrangement ; and it was objected that as to him, the promise was within the statute of frauds ; but the court below held that as the debt against Duffy was extin- guished, no writing was necessary in order to bind Corbin. The plaintiff having recovered judgment, the defendants brought a writ of error, and the judgment below was affirmed. It appears from some observations in the opin- ion of the court, although the reporter' s statement of facts is silent on the subject, that the firm had been dissolved, and that Corbin had retained assets to pay this debt ; but these facts seem to be mentioned more as evidence of his assent to the transaction, than as a distinct ground of his liability; for the court distinctly held that the verbal promise was sufficient, for the reason given in the court below ; namely, that the individual debt due from Duffy (0 See also Butcher v. Steuart, ante, §§ 281 to 284, and note. Art III.] Collateral Undertakings. 385 was extinguished, and a new debt due the plaintiffs from the defendants created by the arrangement. § 356. The converse of the principle controlled the decis- ion of Sternhurg v. Callanen, 14 Iowa, 251, A. D. 1862. There the action was founded upon an alleged agreement, between the defendants and the plaintiff, made soon after the formation of a copartnership between the defendants ; whereby the firm agreed to pay a debt due to the plaintiff from the defendant Stevens. There were various defences, among them that the alleged agreement was, as to the defendants Callanen and Ingham, without consideration and within the statute of frauds. There was some evi- dence of an assumption of the debt by one of the new partners, in behalf of the firm, but nothing to show that the other assented to it, or subsequently ratified it. The plaintiff had a verdict and judgment, which was reversed upon appeal. The court held that in order to sustain a promise of that character, either at common law or within the statute of frauds, "there must be a novation of the debt before the new firm is liable. In order to make it a new debt the old one must no longer exist." And the judge having ruled at the trial that the new firm was liable even if the debt was not discharged, it was held that an exception to the ruling was well taken, and the judgment was reversed for that reason, and also because the alleged promise was the unauthorized act of one part- ner only.(??^) § 357. The correlative of the proposition which we have been discussing, namely, that the creditor of a partnership, by accepting the individual liability of one of the partners in lieu of the liability of the firm, discharges the otlier partner, seems to have been generally recognized, without reference to any question arising under the statute of frauds, (/i) (m) And see Taylor v. Hillycr, 3 Blackford (Indiana), 433, cited in chapter xiv, article iii, and other partnership cases there cited. (n) Collyer on Partnership, §§ 557 to 562. 49 CHAPTEK ELEVENTH. OASES DEPENDING UPON THE WOKDS " ANOTHEE PEKSON." THE SUBJECT COMMENCED WITH THOSE ILLUSTKATING THE GENERAL PROPOSITION, THAT IN ORDER TO BRING THE PROMISE WITHIN THE STATUTE, IT MUST HAVE BEEN MADE TO THE CREDITOR. § 358. The la>st chapter completes the examination of that numerous class of cases depending upon the words, ''debt, default, or miscarriages ; " constituting the fourth class of the second general division. We are now to con- sider the fifth and last class ; which was stated, in defining the terms of our classification, to consist of those, where there was nobody in the transaction, to whom the term ' ' another person ' ' could apply, {a) It was mentioned, at the same time, that upon principle, it would seem that this class might be extended further than the decisions carry it. Especially is this true with respect to the contract of a factor, in whose hands goods are placed by his principal for sale upon credit, with the stipulation that he shall respond for the payment of the purchase price, by the persons to whom he shall make sales ; in other words, a factor who acts under a del credere commission. It appears to be well settled, in England and in the United States, that contracts of this kind are not within the statute of frauds, but the reasons assigned for this con- clusion are not entirely satisfactory. These cases are made to depend upon considerations connected with the degree of diligence, which the agent assumes by his con- tract ; whereas it is very clear that no diligence, however great, not even the continued solvency of the purchaser, will exempt the agent from liability to pay the debt, if the (a) Section 70, and note. COLLATEKAL UNDERTAKINGS. 887 purchaser has in fact failed to discharge it at maturity. (&) In that aspect, such undertakings are contracts of guaranty in the most undisguised form, and can only be taken out of tlie statute upon the ground, that altliough within its letter, they are not within its intent and meaning. But it is believed, that in truth they are not within its letter ; because, at the time when the contract was made, no per- son was designated, for whose debt or default the factor undertook to answer. In other words, there was no one, to whom the term "another person" could by any pos- sibility apply. § 359. For the same reason it would appear, that when the promise was to pay the debt owing by a person, who had deceased intestate, or without having appointed an executor, and no administrator had been appointed at the time of the promise, the case was not within the statute. Perhaps, also, the principle would extend to a case where the deceased had left a will, designating an executor, but the executor named therein had not accepted the trust, or qualified, if a special qualification is required by statute. The original debtor being dead, and no one having become liable for the debt, in a representative capacity, it would seem impossible, in such cases, to satisfy the words, "another person." But although this state of facts has occasionally been presented, and it has been held tliat the promise was not within the statute, the courts have failed to assign this as a reason for the decision ; and hence we can only speculate, whether it would not have solved the difficulty, without resorting to some other theory which was of less obvious application, (c) § 360. Although the point has never been expressly decided, as far as we have noticed, it has been several times assumed that the statute includes a corporation, in (&) See chapter eighteenth, article second. (c) Mease v. Wagner, 1 McCord (South Carolina), 395 ; Tomlinson v. Gill, Ambler, 330; LeJlow v, Becton, 36 Alabama, 696; Templetons v. Bascom, 33 Vermont. 132. 388 Collateral Undertakings. [Ch. xi. the word "person ; "(<^) ^^^ such is doubtless its true sig- nification, irrespective of any positive enactment that such shall be deemed the construction of that word, in any statute where it is used. § 361. Confining ourselves, therefore, to the construction given by actual adjudications to the expression "another person," we find the principle growing out of its use in this clause of the statute, to be that which is contained in the following rule : RULE FIFTH. A promise to discliarge the debt or duty of another is not within the statute, unless it was made to the person to whom the debt or duty was to be discharged. AETICLE I. Origin of the ruloi How it is reconciled with the language of the clause under examination! § 362. Although this rule is regarded in England, as being the most recent of all those which are recognized there, as controlling the application of the statute, its traces are to be found in reported cases in the United States, from about the beginning of this century. Some of the most perplexing of the early English cases called for its application, but were decided upon other grounds ; the suggestion that such was the true construction of the statute, not having occurred either to the counsel or the court. Lord Denman claimed it as original with him, in delivering his opinion, in a case which will presently be cited at length, Eastwood v. Kenpon, decided in the year 1840 ; and the English text books accordingly agree in attributing its origin to his lordship ; but, to say nothing of the American cases, Bayley, J., in 1828, put his opin- ion in Thomas v. CooTc, 8 Barnewall and Cresswell, 728, (d) Rogers v. Waters, 2 Gill and Johnson (Maryland), 64 ; Wyman v. Gray, 7 Harris and Johnson (Maryland), 409 ; Emerson v. Slater, 22 Howard (U. S.), 28 J Richardson v. Williams, 49 Maine, 558; Trustees, etc., v. Flint, 54 Massachusetts (13 Metcalf ), 539 ; Alger v. Scoville, 67 Massachusetts (1 Gray), 391 ; Jepherson v. Hunt, 84 Massachusetts (2 Allen), 417 ; Maule V. Bucknell, 50 Pennsylvania, 39, Art. I.] Collateral Undertakings. 389 upon the ground, that the promise was not made to the creditor, for whicli reason, he thought that it was not witliin the statute ; and the case of Adams v. Dansey, 6 Bingham, 506, decided in 1830, seems to have turned upon the same principle. It is to be regretted that the court failed to discover this rule of construction, in either of two earlier cases, which plainly called for its applica- tion, Howes V. Martin, 1 Espinasse, 162, A. D. 1794 ; and Castling v. Auhert, 2 East, 325, A. D. 1802. Had the last named case been decided, as it ought to have been, upon this principle, many perplexing questions, to which it has given rise, would have been avoided; and considerable error might have been kept out of the books, for the entrance of which it has at least helped to open the door, (a) § 363. The effect of this rule is precisely the same as if the statute read, that no action shall be maintained, upon a verbal special promise to answer for the debt, default, or miscarriages "of a third person." And we have accordingly used the latter expression, throughout this work, as designating him, for whom the promisor under- took, or is supposed to have undertaken to answer, more accurately than that used by the statute itself. § 364. It would be difficult to suggest a form of words more comprehensive than "another person;" and at first sight, the meaning of the statute would seem to be, that a promise to answer for the debt, default, or miscarriages of any one, except the promisor himself, was within its terms. But the more limited construction given to this expression, is justifiable upon consideration of the evident intent of the framers of the act, who appear to have had in mind three persons ; and as the word "another" calls for a correlative, the latter may, without violence to the grammatical construction, be found in the person whose (a) All the cases referred to in this section, are cited at length in subse- quent pages. 390 COLLATEKAL llNDERTAKmOS. [Cll. XI. existence is implied, rather than in him who is expressly named ; and thus the intention of the framers of the stat- ute may be reconciled with its letter. In other words, this part of the statute may be construed, as if it read : " No action shall be brought" "whereby to charge the defendant upon any special promise to one person, to answer for the debt, default, or miscarriages of another person." But whatever may be the grounds upon which the rule can be defended, it is now well settled, both in England and in the United States ; although it incidentally gives rise to some very perplexing questions, respecting which the decisions are irreconcilably at variance. ARTICLE II. Oases where the promise was not made to the creditor j where it did not relate to s liability thereafter to he incurred by the promisee j and where the promisee was the plaintiff in the aotion to enforce it. § 365. The case whence is derived the general recogni- tion of this rule in England, is Eastwood v. Kenyon, 11 Adolphus and Ellis, 438, decided A. D. 1840. (a) There the declaration stated in substance that the plaintiff, as the executor of the will of one John Sutcliflfe, and as guardian and agent of Sarah Sutcliflfe, his only daughter and heiress at law, had during her minority expended large sums of money, in maintaining and educating the said Sarah, and taking care of her property ; that the estate was insufficient to allow the plaintiflf to make such payments out of it, and he had advanced 140?. of his own moneys for the purpose ; and to reimburse himself, he had borrowed the 140?. from one Blackburn, upon his promis- sory note ; that after Sarah became of age, she had promised the plaintiff to pay the note, and had actually paid one year' s interest thereon to Blackburn ; and that the defend- ant had married the said Sarah, and afterwards he had promised to pay the plaintiff the said note to Blackburn ; but had not done so. Upon the trial, it was objected that (a) S. C, 3 Perry and Davison, 276, and 4 Jurist, 1081. Art. ir.] Collateral Undertakings. 391 tlie promise was Avitliin the statute ; but the plaintiflf had a verdict. A rule nisi was obtained to enter a verdict for the defendant, on the ground that the promise was \\ithin the statute, and also on a point of pleading ; and for arresting judgment on tlie ground tliat the declaration showed no consideration for the promise. After argument, judgment was arrested ; but the rule to enter the verdict for the defendant was discharged. Upon that point. Lord Denman, C. J., delivering the opinion of the court, said: *'If the promise had been made to Blackburn, doubtless the statute would have applied ; it would then have been strictly a promise to answer for the debt of another ; and the argument on the part of the defendant is, that it is not less the debt of another, because the promise was made to that other, viz., the debtor, and not to the creditor; the statute not having in terms stated to whom the promise, contemplated by it, is to be made. But upon considera- tion, we are of opinion, that the statute applies only to promises made to the person to whom another is answera- ble. We are not aware of any case in which the point has arisen ; or in which any attempt has been made to put that construction upon the statute, which is now sought to be established, and which, we think, not to be the true one." § 366. The rule established by this case, is frequently stated to be, that a promise made to the debtor is not within the statute. But it will be observed that the prin- ciple laid down by Lord Denman takes a wider range, and excludes from the operation of the statute, all prom- ises not made to the person to whom another is answer- able, or to some one directly representing him for the purpose of the promise ; not only in cases where the prom- isee is the debtor, but also where he occupies some other relation to the subject matter of the promise. And such has been the effect given to the decision in subsequent cases. Thus, in Har greaves v. Parsons, 13 Meeson and Welsby, 561, A. D. 1844,(2') the defendant had sold to the Q}) S. C, 14 Law Journal, N. S., Exch., 250. 392 Collateral Undertakings. [Cli. xi. plaintiff a contract for the sale by one Parker, of the "j)ut or call" of certain foreign railway shares, and had guarantied the performance of the agreement by Parker. In the United States it is well settled, that such a promise would be excluded from the statute by the operation of the ninth rule, under which the case will be cited more at length, (c) But that rule seems to be unknown in England ; and the court put its decision upon the principle estab- lished in Eastwood v. Kenyon, holding that the promise was not one to answer for a debt of, or a default in any duty by Parker towards the promisee ; because he had made no contract with the plaintiff, and there was no privity between them. § 367. And the Court of Common Pleas has recently made a novel application of the doctrine, where the prom- isee was neither the debtor ; nor one to whom the person, for whom the promisor undertook to answer, owed any debt or duty whatever ; nor a representative of a person, to whom such a debt or duty was owing. In Reader v. Kingham,, 13 Common Bench Reports, N. S., 344, decided A. D. 1862, ((^) the plaintiff, who was bailiff of the Buck- inghamshire County Court, had received a warrant for the commitment of one Hitchcock to jail, for non-payment of a judgment for 34^., recovered against Hitchcock by one Malins ; but by the county court act, such commit- ment is not a discharge of the debt, as in the ordinary case of a ca. sa., but merely a means of compelling pay- ment, (e) Malins had authorized the plaintiff to accept 111. in satisfaction of the judgment. The plaintiff, being about to arrest Hitchcock at the house of the defendant, his relative, the latter promised that if he would abstain from doing so, he, the defendant, would, on the following Saturday, either pay the plaintiff 111. (which the plaintiff (c) See cnapter eighteenth. {d) Same case, 9 Jurist, N. S., 797 ; 32 Law Journal, N. S., C. P., 108 ; 11 Weekly Reporter, 366 ; 7 Law Times, K S., 789. (e) Per Wilde, C. J., Ex parte Kinning, 4 Common Bench, 522. Art. II.] COLLATKKAL UNDERTAKINGS. 393 then said to him that he was authorized to accept in full satisfaction), or else surrender Hitchcock ; whereupon the plaintiff did abstain from arresting Hitchcock ; but the defendant neither surrendered him nor paid the lll.{f) The plaintiff brought this action on the promise ; at the trial, a verdict was rendered for the defendant, under the instruction of the court ; and the plaintiff obtained a rule nisi to set it aside, and enter a verdict in his favor. § 368. Tills rule was made absolute, all the judges deliv- ering opinions. Erie, C. J., said: "The debt was due to Malins from Hitchcock ; the promise was made to Reader. It has been distinctly settled, that to bring the promise within the statute, the promisee must be the original creditor. . . . The debts are totally distinct debts, as well as the debtors. No satisfaction resulted to Malins on account of what passed between Kingham and Reader. Reader was the agent of Malins to accept 17Z., in sat- isfaction of the debt and costs in the county court; but he was not his agent to postpone the payment. If Malins had chosen, he might have revoked Reader's authority, between the time of Hitchcock's release and the Saturday ; and the payment of 111. would have been no discharge of Malins' s claim under the judgment. The payment of the 111., therefore, would not necessarily have been a discharge of Malins' s demand ; but only a discharge or satisfaction of the contract between Kingham and Reader. The case is clearly not one to which the statute of frauds can apply." Williams, J., concurred, without discussing the peculiar circumstances of this case, on the ground, that the statute applies only to "a promise made to one to whom another is answerable." Byles, J., after concurring with the general doctrine, as laid down by Williams, J., added: "It was contended by the counsel for the defendant, that Reader was the agent of Malins. But the answer is that the transaction (/) In some of the reports it is said that the plaintiflf had actually arrested him, and that he discharged him upon the promise. 50 394 Collateral Undertakings. [Cli. xi was not for his benefit, and lie lias not recognized Reader's act." Keating, J., said tliat although some of the cases tended to throw some doubt upon the proposition, the balance of authority was clearly in favor of the rule, that to bring the case within the statute, "the promise must be made to the original creditor, "(p') (g) Although this case presents some novel, and at first sight, startling features; it is believed that a critical examination will show that the decision was correct. The point upon which the case presents the most embarrass- ment, is the plaintiflf's relation to Mahns, the judgment creditor; and the question suggests itself whether, in case the 17?. had been paid by the defendant, the plaintifif could have put the money in his pocket, leaving the judgment in full force against Hitchcock? The answer is, that although the plaintiff assumed to act as Malins's agent, in accepting the defendant's prom- ise, he had in fact no such authority ; but if Malinshad subsequently accepted the 17?., he would have affirmed the plaintiff's act. But he might have dis- affirmed it, and sued the plaintiff for an escape, or a failure to execute the writ; which shows that at the time of the promise, the plaintiff was not his agent. No question arose as to the effect of a subsequent affirmance of the plaintiff's act by Malins ; or whether the promise had not been exacted colore officii ; or whether, if Hitchcock had promised to return to the plaint- iff's custody, the defendant's promise would not have been collateral to that of Hitchcock. In the latter respect, this case is very similar to Tindal v. Touchberry, 3 Strobhart (South Carolina), 177, A. D. 1848, cited in § 289, as authority upon another proposition, which the court held to be also apphcable. It was an action brought by a constable who had levied upon a mare, the property of one June, under a domestic attachment against June, and the plaintiff gave up the mare to June, upon a verbal promise of the defendant, which was construed by the court to mean that he would "stand security,"' that the mare should be delivered to the plaintiff the next day, or pay the debt, amounting to $67.47. On the trial, the defendant objected that the promise was within the statute; but the plaintiff had a verdict for $40, the value of the mare. The court refused a motion for a new trial, on the ground that the debt was discharged by the levy ; and also because the con- tract was not an engagement, that June should deliver back the mare, but that the defendant would do so. It was said that the bailment was made to the defendant, and not to June, the latter having made no promise what- ever; and the evidence showing that on the contrary, he was endeavoring (,o recover the mare forcibly. As a contrast to Reader v. Kingham, we append a statement of a New York case, Bennett v. Pratt, 4 Denio, 275, A. D. 1847. There the plaintiffs had procured a summons, to be issued against one Crosby by a justice of the peace, to collect a demand of $4.09, and had placed it in the hands of a constable to serve, instructing him not to serve it "if Art. II.] Collateral Undertakings. 395 § 369. The American authorities generally recognize the rule very clearly, as the same was laid down by Lord Denman in Eastwood v. Kenyon, although there are a few decisions, where promises not made to the creditor or any one representing him, have been held to be within the statute, without adverting to the distinction taken by the nile.(7i) The cases, English and American, where the Crosby would pay or secure the debt and expenses." Crosby procured the defendant to execute the instrument, upon which the action was brought, in these words: "I agree to be security for the payment of J. Crosby's debt, to J. & W. C. Pratt" (the plaintiffs), "to the amount of $4.09, and the legal costs," etc. ; " to be paid in nine months." The constable lliereupon teceipted the demand to Crosby as paid, and omitted to serve the summons. Crosby at the same time agreed to pay to the defendant the sum which he undertook to pay to the plaintiffs. The plaintiffs recovered judgment in the court below, which was reversed by the Supreme Court, because the defend- ant's agreement did not express the consideration. It does not appear what were the points made by the counsel on either side; and the opinion contains an elaborate discussion upon the question, whether the writing sufficiently expressed the consideration, under the New York Revised Statutes ; and no reference to any of the peculiar features of the case. But here the agreement was made in terms with the plaintiffs ; and although the constable perhaps exceeded his authority, they ratified his act by bringing this suit. A grave question arose upon the facts, whether the discharge of the debt was not sufficient to take the promise out of the statute within the fourth rule ; but it seems not to have occurred to the court or the counsel. But one of the oldest reported American cases, Thomas v. Welles, 1 Root (Connecticut), 57, decided A. D. 1773, is appa- rently in direct conflict with Reader v. Kingham. The report states that "Welles," the plaintiff below, "was a constable of the town of Hartford, and had a rate-warrant and a rate against Jacob Brown, for which he levied upon Brown's body, and was about to commit him to jail: Thomas, in con- sideration that Welles would suspend any further proceedings that night, assumed and promised, that he would see him forthcoming to said officer the next morning, or he would pay the debt; upon this Welles released said Brown, and Thomas did not see him forthcoming, nor has he paid the debt.'' The court below, upon demurrer to a plea of the statute of frauds, gave judgment for the plaintiff, which the Superior Court reversed, saying that this was " manifest error ; for this is clearly a promise for the debt and duty of another." Qi) Mundy v. Ross, 3 Green (N. J.), 466, A. D. 1836; Campbell v. Find- ley, 3 Humphrey (Tennessee), 330, (1842); Nixon v. Van Eise, 2 Southard (New Jersey), 491, (1819.) 396 COLLATEEAL UNDERTAKINGS. [Ch. XI. promise consisted of an indemnity against a liability, there- after to be incurred by the promisee, on the faith of the promise, depend npon the same principle ; and those where no other person than the promisor would be liable, in any event, to the promisee, might appropriately be cited here ; but they are so intimately connected with the cases where the promise was to indemnify the promisee, under such circumstances that he would also have a remedy against another person, which are irreconcilably conflicting, that it has been deemed better to consider both classes of cases together in another place, {i) We will now proceed to the examination of the American decisions, upon prom- ises to discharge a debt previously contracted, or other liability previously incurred by the promisee ; confining our citations to the cases, where the action is brought by the other party to the contract. The question whether the creditor can maintain an action for the breach of such a promise ; and, if so, whether the statute of frauds requires it to be proved by a writing, when the attempt to enforce it is made in that form, will be the subject of examination in the next succeeding chapter. § 370. It was said, a few pages back, that the principle under discussion was recognized in the United States, for many years before Lord Denman's decision in Eastwood V. Kenyon. It is in fact to be found distinctly stated in Allaire v. Ouland, 2 Johnson' s Cases, 52, decided in New ^York in the year 1800 ; which will be again referred to with the other cases, where the promise was to indemnify the promisee, against a liability thereafter to be incurred. But it was apparently overlooked in the next case, Myers V. Morse, 15 Johnson, 425, A. D. 1818, where another reason was given for the decision, although the facts called for the application of this principle. There the court sus- tained an action upon a verbal promise to indemnify the plaintiffs against their previous indorsement of a third person' s note, under Chancellor Kent' s third proposition in (i) Chapter thirteenth. Art. II.] Collateral Undertakings. 397 Leonard v. VredenhiLrg7i,{j) holding that there was a new and original consideration of benefit to the promisor, which sufficed to take the promise out of the statute. § 371. But the correct rule was again stated and applied by the Supreme Court of New York in Conkey v. Hop- Jclns, 17 Johnson, 113, decided A. D. 1819. There the plaintiff had bound himself to pay a certain sum annually to the trustees of a religious society, towards the support of the defendant, as a minister of the gospel ; and after- wards the defendant, for the consideration of $25, verbally agreed to save the plaintiff harmless, and indemnify him against the subscription ; the trustees sued the plaintiflf upon his subscription, and recovered judgment against him ; whereupon this action was brought upon the defend- ant' s promise of indemnity ; and the court held that it was not within the statute, on the ground that the defend- ant was not bound to the trustees. § 372. The rule was again laid down, even more dis- tmctly, in Chapin v. Merrill, 4 Wendell, 657, A. D. 1830, which will also be found in the thirteenth chapter, and again, in the same year, when Eastwood v. Kenyon was decided (1840), by the judgment of the Court of Errors of New York in Mersereau v. Lewis, 25 Wendell, 243. Tliere the plaintiffs sued upon a verbal agreement, that the defendant would undertake the collection of the debts due to a late firm, composed of himself and one Jacobus, and assume as his own all that he should not have put in suit by a certain time; the plaintifi's, who were the assignees of the interest of Jacobus, agreeing that they would pay one-half of certain debts due by the firm, particularly specified. It was held by the Court of Errors that the defendant's promise was valid, because the statute did not relate "to contracts made with the debtor himself, to assume the responsibility of paying his debts, or to furnish him the means of pay- (/) See § 63. 398 COLLATEEAL UnDEETAKINGS. [Cll. XI. ing them, founded upon a valid consideration between such debtor and the person promising," the Chancellor citing as authority Eastwood v. Kenyon, decided in the earlier part of the same year. The case is somewhat obscure, but probably the objection was that the plaintiffs' agreement was within the statute ; and therefore, that the defendant' s agreement was without consideration. § 373. In Westfall v. Parsons, 16 Barbour, 645, decided by the Supreme Court of the same state in 1853, the defendant was the first indorser, and the plaintiff the second indorser of a promissory note, made by one Par- sons ; and before its maturity they verbally agreed with Parsons, in consideration that he would make an assign- ment, preferring the note in question, that they would take up the note, and look to the assignment for reim- bursement. Parsons made the assignment accordingly; and the parties to this action provided for the payment of the note before its maturity ; whereupon the plaintiff brought this action to recover the sum paid by him, claiming that the agreement was void by the statute of frauds, and that he was entitled to recover against the defendant, as the first indorser of the note. There was another point which is not material here, but upon this point, the court held that the relation of the parties was changed by the agreement; that it bound them jointly, so that the plaintiff could recover no more than enough, to enforce the defendant' s liability to pay one-half of the note ; and that the agreement was not within the statute because it was an agreement with the debtor and- without the creditor. § 374. In Massachusetts the principle was laid down in the year 1821 in the case of Colt v. Root, 17 Massachusetts, 229. There the defendant was a member of a manufac- turing corporation, and as such made liable by statute, in certain events, for the payment of its debts; and the plaintiff held a dishonored note against the corporation, upon which he wished to raise the money, in order to Art. II.] Collateral Undertakings. 399 enable him to pay a note due by him to one Janes. It was thereupon agreed between the plaintiff, (who was about to leave the state,) and the defendant, that the plaintiff, instead of suing the company upon the note, would deposit it in another's hands ; and if Janes sued the plaintiff upon the note held by him, the defendant would indemnify the plaintiff from all cost and harm. The plaintiff deposited the note accordingly, and went away ; and during his absence he was sued by Janes, and judg- ment recovered and execution issued against him, of which the defendant had notice ; and, he neglecting to pay the execution, the plaintiff's personal property was sold thereon. In an action upon the defendant's promise, the court held that the promise was not within the statute, Parker, C. J. , saying : " It is not a promise to pay the debt of another^ it is a promise to pay to another the debt of the plaintiff; and is in principle, like the case of a debtor giving money to another to pay his debt, and he neglecting to do it." § 375. In Weld v. McTiols, 34 Massachusetts (17 Picker- ing), 538, A. D. 1836, the plaintiff and the defendant had entered into an indenture, whereby the plaintiff agreed to sell, and the defendant to purchase, a certain house lot in Boston, by warranty deed, free from all incumbrances ; and the defendant agreed to indemnify the plaintiff against all claims, in consequence of a brick wall on the adjoining lot being partly upon the plaintiff' s lot. Subsequently the plaintiff made the conveyance, and in consideration that he would cancel the indenture, the defendant agreed verbally that if any claim should be enforced against the plaintiff concerning the wall, the defendant would reimburse the same to the plaintiff. The defendant having used the wall, the plaintiff was sued for his share of the expense of erecting it ; and having been defeated, he brought an appeal at the request of the defendant, upon which he was again defeated. In an action upon the promise it was held that it was not within the statute, either as relating to an interest in lands, or as a promise 400 Collateral Undeetakings. [Cli. xi. to answer for the debt of another ; nor was it contrary to the covenants of the deed; and the cancelling of the indenture was a sufficient consideration to sustain it. § 376. The case of PiTce v. Brown, 61 Massachusetts (^7 Gushing), 133, A. D. 1851, already cited under another point, {Jc) was also decided on the ground that the promise was to the debtor and not to the creditor, as well because it was implied by law. And in Alger v. Scomlle, 67 Mas- sachusetts (1 Gray), 391, A. D. 1854, where the plaintiff transferred to the defendant certain shares of stock in a manufacturing company, and a note he held against the company ; and the defendant, in consideration thereof, conveyed to him a farm, and verbally agreed to indemnify him against his indorsements upon certain outstanding notes of the company, not then payable, it was held that the promise was not within the statute. Shaw, C. J., said, that there was no debt then due to any body; but if there had been an absolute debt, it was ' ' a promise to pay the plaintiflF's own debt, which is equivalent to a promise to pay the money to him, by which he himself could dis- charge the debt." And he referred to the previous case of Preble v. Baldwin, 60 Massachusetts (6 Gushing), 549, A. D. 1850, where a promise by a grantor of land to the grantee to pay taxes upon the land, which were not yet assessed, was held not to be within the statute, Wilde, J., assigning the same reason for the decision which has been heretofore given in these pages, namely, that the words " another person " refer to a third person. § 377. The same result was attained in Soule v. Alhee, 31 Vermont, 142, A. D. 1858, although the decision was put upon a more questionable ground. This was an action to foreclose a mortgage, given by the defendant Albee to the plaintiffs, to indemnify them against all sums which the plaintiffs or A. G. S. should become liable to pay for the mortgagor, "in consequence of signing or (fc) See § 98. Art. II.] Collateral Undertakings. 401 otherwise ;" and the question was whether a certain sum, paid by the plaintiffs to A. G. S., was included in the con- dition of the mortgage. It appeared that Albee had been sued by one Buck, and a trustee process had been. issued in favor of Buck against A. G. S., who owed Albee $500 ; while that suit was pending, Albee, wishing to collect the money due to him, procured the plaintiffs to make a verbal agreement with A. G. S., that if the latter would pay Albee the $500, they would pay him whatever judgment should be rendered in favor of Buck against him as trus- tee of Albee ; relying upon which promise, A. G. S. paid Albee the money. Afterwards and before Buck's suit was determined, the mortgage in questijon was given, for the purpose, as the case states, of protecting the plaintiffs against their liability to A. G. S., as well as a liability which they had incurred by signing a certain note for Albee. The suit brought by Buck terminated in a judg- ment in his favor against Albee, and a judgment on the trustee process against A. G. S. ; and the plaintiffs, being called upon by the latter, paid an execution issued thereon against him. It was objected in this suit, that as the plaintiffs' promise to A. G. S. was void by the statute of frauds, the payment to him was voluntary, and conse- quently the mortgage did not include their demand ; but the court held that the payment by A. G. S. to Albee, was virtually advancing the money to the plaintiffs, upon their promise to pay it; and that such promise was not within the statute of frauds, but was a valid undertaking, which A. G. S. might have enforced against the plaintiffs ; so that it came within the terms of the mortgage. § 378. So in Mske v. McGregory, 34 New Hampshire, 414, A. D. 1857, the plaintiff had sold his real and personal prop- erty at auction, and certain land had been struck off to one F. F. At the time when the land was offered, the auctioneer stated that there was a mortgage upon it to one Keyes, and bids were invited for the value of the land beyond the mortgage. Other parol evidence was given, tending to show an understanding, that the purchaser should pay 51 402 COLLATEEAL UNDERTAKINGS. [Ch. XI. Keyes. The defendant was present at the sale, and afterwards purchased the bid of F. F. for $25 ; and a deed was thereupon executed by the plaintiff to the defendant, with the usual covenants for title, excepting as against the Keyes mortgage. This action was brought for breach of a promise to pay the mortgage, and the plaintiff had a verdict, which the court refused to set aside. It was held that the evidence warranted the jury in finding, that the defendant was to take the place of F. F., and made the promise declared upon ; and that inasmuch as it was a promise made to the debtor himself and not to the creditor, to which the creditor was not privy, it was not within that part of the statute relating to a promise to answer for the debt of another. And the court also held that it was not within that part of the statute relating to a contract for the sale of lands. § 379. In Connecticut the principle was correctly laid down by Gould, J., as early as 1816, in Stoclcing v. Sage, 1 Connecticut, 519, although the other judges put the decis- ion upon different grounds ; and it was distinctly affirmed by the judgment of the court in Pratt v. Humphrey, 22 Connecticut, 317, A. D. 1853. There the plaintiff ' s declara- tion alleged, in substance, that the defendants were admin- istrators on the estate of one Andrew Pratt ; and that in consideration that the plaintiff would forbear to present for allowance, a debt of $1,200, due to him by the deceased, the defendants promised to him to pay whatever debts he, the plaintiff, might owe, to the amount of $200 ; and to apply that amount of money to the liquidation of the plaintiff' s debts ; and furnish him that amount of money to be applied to the payment of his debts ; concluding with an allegation of a breach. To which declaration the defend- ants pleaded that there was no note, etc., in writing, and the plaintiff demurred to the plea. The court below gave judgment for the plaintiff upon the demurrer, which was affirmed by the Supreme Court, Storrs, J., saying, upon the point that this was a promise to answer for the debt, etc., of another : "The promise here was made, not to the Art. II.] Collateral Undertakings. 403 creditors of tlie plaintiff, but to himself, to pay debts wliicli lie owed to such creditors. Whether the terms of ■ttie statute are, or are not, sufficient to embrace such a prom- ise, the object and occasion of it show plainly, that it was intended to apply only to promises made to the person to whom another is answerable, and that such therefore is its true construction." The case is cited elsewhere upon the other point taken, namely, that it was a special prom- ise by administrators to answer damages out of their own estates. (Z) §380. This principle was also fully recognized in Ken- tucky, in the recent case of North v. Bobinson, 1 Duvall, 71, A. D. 1863, There the petition alleged, in substance, that the plaintiff had subscribed for $2,000 of stock in a certain railroad company ; for which he had executed to the company a mortgage and two bonds, payable in ten years, with semi-annual interest ; that the company sub- sequently passed a resolution, that all subscribers, in the plaintiff's situation, might reduce their stock one-half, by paying thirty one per cent of the reduced subscription, at a specified time, and agreeing to pay the balance of the reduced subscription whenever called upon ; that the defendant, being interested in the company, urged the plaintiff to accept those terms ; that the plaintiff hesitated so to do, on the ground that he did not believe that his acceptance would have the effect to release him from his original subscription; that in order to induce him to accept the terms the defendant undertook to save him harmless on account of his original subscription. And that relying upon such promise he accepted the terms, and paid the thirty one per cent within the specified time, and the balance of the $1,000 when called upon ; but the company had enforced the original subscription, and recovered judgment for the remainder of it, which the plaintiff had been compelled to pay. A demurrer to this petition was sustained in the court below, on the ground (0 See § 28. 404 Collateral Undeetakings. [Ch. xi. that there was no allegation that the promise was in writ- ing. On appeal the judgment was reversed, on the ground that the promise was not made to the company, but to the debtor himself, the court remarking that this doctrine "may be now regarded as conclusively settled both in England and in this country." § 381. Other American cases (besides those in the thir- teenth chapter) in which it has been held that a promise made to the debtor was not within the statute, and it has accordingly been enforced between the original parties to the contract will be found in the note, {m) This constitutes for obvious reasons, the state of facts upon which the question generally arises. But occasionally it happens, as in Header v. Kingham, that the promisee was neither the creditor nor the debtor. § 382. Thus in Perkins v. Littlefield, 87 Massachusetts (5 Allen), 370, A. D. 1862, the defendant, who was the owner of a vessel, requested the plaintiff to pay to certain ship chandlers a debt for supplies, contracted by the master of the vessel, promising to repay the amount ; and it was held, (overruling the exceptions taken at the trial,) that the promise was not within the statute. Bigelow, J., delivering the opinion of the court, said, "It was not a promise to pay the debt of another, in the sense in which those words are used in the statute. Such would have ben the case, if the defendant had agreed to pay the debt to the persons to whom it was originally contracted, and they had brought an action upon such promise. It is the well settled doctrine, that the provision in the statute is applicable only to promises made to the person to whom another is answerable." The learned judge added that (m) Hardesty v. Jones, 10 Gill and Johnson (Maryland), 404, A. D. 1839; Rice V. Carter, 11 Iredell (North Carolina), 298(1850); Rider v. Riley, 2 Maryland Chan'^ery Decisions, 16(1849); Howard v. Coshow, 33 Missouri, lis (1SG2); Tibbettsu. Flanders, 18 New Hampshire, 284 (1846); Shook v. Van Meter, 22 Wisconsin, 532 (1868). ^rt. II.] Collateral Undektakings. 405 this was a new, distinct and independent agreement with the plaintiff, to repay mont^y (^xpend(»d by liim at the instance of tlie defendant, and u2:)on his promise to repay it ; in which aspect of the case it was wliolly immaterial whether the defendant was or was not liable for the original debt.(7i) § 383. It may therefore be safely said, that the rule is well established, in England and the United States, that in order to render the statute of frauds at all applicable, to a promise to assume the debt or duty of another per- son, the promisee must be the person to whom the debt or duty is owing. Of late years, some obscurity has been cast around this principle, by the general language used, not only in some of the cases where the right of a creditor to enforce such a promise is denied, (o) but in others where it is argued that every promise to assume a pre-existing debt, of a person other than the promisor, is within the statute, if the debt subsists after the promise ; unless the consideration upon which it was founded, consisted of a fund furnished by either the creditor or the debtor, for the purpose of paying the debt.{p) But whatever may be the correct rule, with respect to the questions directly involved in those cases, the general language used in the course of the argument, was not intended, it is believed, to go beyond those questions ; certainly not to infringe upon the princi- ple now under examination. § 384. The decisions which hold that the promisee may sustain an action, upon a verbal promise to indemnify him against his own debt, when it was founded upon any (n) See also Pearce v. Blagrave, ante, § 163. The case of Oliphant v. Patterson, 56 Pennsylvania, 368, A. D. 1867, is of the same general char- acter. There the plaintiff had paid certain debts of a firm of which the defendant was a member, at the defendant's request; and the objection that the statute prevented a recovery, without joining: all the mcmbtTS of the firm, was overruled. (o) Cases in chapter xii, article iii. (jj) For instance, Fuliam v. Adams, 37 Vermont, 391. 406 Collateral Undertakit^gs. [Ch. xi. valuable consideration, are too nnmerons and of too high authority to be overthrown by general dicta ; and it is believed that no attempt to do so by direct decision, would command the approbation of the profession. We must acknowledge that the principle is sustained by incon- clusive reasoning, and that it opens the door to many difficult questions; but after it has been settled for so many years, and approved in so many cases, an attempt to uproot it would involve consequences far more disas- trous than any which could possibly ensue from suffering it to remain. And every attempt to escape from the results to which it legitimately leads, by engrafting arbitrary ex ceptions upon it, will lead to greater perplexity and con fusion, than to allow it to be pushed to its logical conclu- sions; a proposition which we shall have occasion to maintain and apply, in each of the two folio wing chapters. CHAPTER TWELFTH. THE SAME SUBJECT CONTINUED — CASES WHERE A CREDITOR SEEKS TO ENFORCE A CONTRACT BETWEEN HIS DEBTOR AND ANOTHER PERSON, PROVIDING FOR THE PAYMENT OF THE DEBT BY THE LATTER. ARTICLE I. The questioa arising under the statute stated, and examined npon principle i the English rule with respect to the creditor's right to sue, § 385. Before proceeding to the discussion of the other classes of cases governed by the rule, that a promise to pay the debt of another is not within the statute, unless it is made to the creditor ; it is necessary to consider a ques- tion which we regard as depending upon that rule, as the same is explained and applied in the cases examined in the last chapter ; namely, in what manner the statute affects the right of a creditor to maintain an action, for the breach of a promise to pay the debt, which has been made to his debtor, upon a consideration proceeding from the latter. It will be seen, that althougli the step between an action upon such a promise by the debtor, and one by the creditor, is but short, its consequences are quite moment- ous, involving the indirect accomplishment of a result, which the statute clearly forbids to be accomplished directly. Indeed it seems, at first sight, a mere evasion of the statute to say, that when it has confessedly forbid- den an action to be maintained by A, upon B's verbal promise, made to him, to pay him a debt due to him by C ; it will nevertheless permit A to maintain such an action, provided B has made the same promise to C. But per- haps, upon a further examination of the subject, this will not appear so unreasonable. 408 Collateral Undertakings. [Ch. xii. § 386. Tlie doubts upon this question are confined to the United States ; for in England it is altogether prevented from arising, not only because it is diametrically opposed to the second proposition deduced from the rule in TatlocJc V. Harris ; (a) but also because it contravenes the rule of the common law, that a stranger to the consideration cannot maintain an action upon a contract. The latter rule has been somewhat relaxed by the English courts in modern times ; but not sufficiently to permit a creditor to sue, in the case now under examination. This appears to be entirely settled by the modern English decisions ; although the American authorities in support of the action are founded, more or less directly, upon certain early English cases, which were supposed to establish the principle, that a person for whose benefit a contract was made, might enforce it at law, although he was a stranger to the contract and to the consideration. (5) (re) See ante, § 326. But an attempt was made to reconcile it with that proposition in Warren v. Batchelder, 16 New Hampshire, 580. (h) The principal of these is Button and wife v. Poole, 29 Car. II, in the King's Bench, reported in 1 Ventris, 318 and 332; 3 Keble, 786, 814, 830,^ and 836 ; 2 Levinz, 210; and T. Jones, 102; and affirmed upon writ of error to the Exchequer Chamber, T. Raymond, 302. These various reports are very discordant respecting the minor incidents of the case, some of them representing that facts were before the court, the absence of which is :.tated in others, to have formed grounds of objection to the recovery. As it came up on a motion in arrest of judgment, the contents of the declaration are all that is really material; and no doubt- they are most correctly given in the report in Raymond, which professes to contain an abbreviation of the plead- ing itself. The action was assumpsit; and ihe substance of that part of the declaration upon which the question arose, was, that whereas Sir Edward Poole, father of Grizil Button, the female plaintiff, was possessed of certain timber trees, growing in a certain park, etc., and intended to cut down and sell the same to raise portions for his children ; the defendant, in considera- tion that Sir Edward would forbear from cutting the trees, " did promise the said Sir Edward, that he, the said defendant;, Avould well and faithfully pay to the said Grizil, 1,000?.;" that Sir Edward did not cut the trees, but the defendant did not pay Grizil while sole, or the plaintiffs, or either of tl.em, after their marriage, the said sum of 1,000?., although, etc. We also gather from the other reports, as part of the history of the case, that the trees were in a park attached to an estate, of which Sir Edward was tenant Art. I.] COLLATEEAL UNDERTAKINGS. 409 § 387. It is evident that the question, whether the statute of frauds permits auch an action to be maintained, is not necessarily connected in any manner with that arising at common law. Indeed the latter question is frequently presented in such a form, that the statute can have no application ; as, for instance, where the contract is evi- denced by a writing expressing the consideration ; or, being verbal, is for the performance of some act for the benefit of the plaintiff, other than the payment of a debt due to him by the other party. But in many cases the controversy arises upon a promise, either verbal, or con- tained in some writing which does not satisfy the require- ments of the statute, to pay a debt due from the promisee to the plaintiff; and then the effect of the statute and the common law question are both involved in the decision, and discussed in the opinion, the one reflecting upon the other. Again, the cases which hold that the statute is for life, without impeachment of waste; that the defendant was his son and the remainderman; and that Grizil's mother, who was. the executrix of Sir Edward, was the only witness, "so cannot bring the action as on a promise to him." After verdict for the plaintiff, a motion was made in arrest of judg- ment, and upon the argument the judges appeared to be divided ; at a sub- sequent term two new judges had been made, and the cause was argued anew. The substance of the arguments, which, as well as the remarks of the judges, are given at considerable length, was, for the defendant, that the action should have been brought by the father or his executors, because the daughter was not privy to or interested in the consideration ; that the case was different from many others put, as for instance, where a father promises J. S., that if the latter's son will marry his daughter, he will give him 1,000Z. ; there the son might sue, for he vvas privy to the consideration ; but here the daughter had done nothing, and she could not have released the defendant; but Sir Edward might at any time have released him, or he might have cut the wood after the promise. The plaintiff had judgment; according to 1 Ventris, 332, Scroggs, C. J., said: "It might be another case, if the money had been to have been paid to a stranger; but there is such a near- ness of relation between the father and child, and 'tis a kind of debt to the child to be provided for, that the plaintiff is plainly concerned." This sub- stantially accords with the report in Levinz, which adds, "for the son hath the benefit, by having of the wood, and the daughter hath lost her portion by this means." But Sir ThomavS Jones states that the ground of the decis- ion was merely that "the benefits belong to the daughter, and she may 53 410 Collateral Undertakings. [Ch. xii. inapplicable to such promises, are not in harmony respect- ing the reasons for its failure to apply ; and the discussion release it." The report of the case, in the Exchequer Chamber, says only, with respect to the reason for the decision, that Pollexfen, for the plaintiff, argued that " the action is maintainable by the party to whom the promise was made, or to " (by) " the cestuy que use the promise was, indifferently ; and of this opinion were all the justices and barons, and judgment was affirmed." T. Raymond, 302. The case has been much criticised; and those who deny the creditor's right to maintain the action, explain it as having proceeded upon the ground taken by Scroggs, and so not to be a precedent where the consideration proceeds from an entire stranger. Other early cases where the beneficiary was allowed to maintain the action, are open to the same critici.^m. Sprat v. Agar (A. D. 1658) cited, together with an anonymous case, in Bourne v. Mason, 1 Ventris, G; Thomas r, , W. Style, 461 (A. D. 1655). But on the other hand, several very strong expressions, and some decisions, may be found scattered through the English reports, down to as late a period as the commencement of the present cen- tury, to the effect that the person for whose benefit a contract between others was made, may maintain an action for its breach, irrespective of any relationship which he might bear to the promisee. Starkey v. Mill, Style, 296 (A. D. 1651); Ward v. Evans, 2 Lord Raymond, 928 (1704); Martyn v. Hind, 2 Cowper, 437, see p. 443 (1776); Per Buller, J., Marchington v. Vernon, 1 Bosanquet and Puller, 101, note c (1786) ; Per Lord Alvanley, C. J., Piggott V. Thomson, 3 Bosanquet and Puller, 149 and note a (1802). And see Carnegie v. Waugh, 2 Dowling and Ryland277 (1823). But now it is conclusively settled, by the uniform course of the modern EngTish decisions, that a person who is a stranger to the contract and to the consideration, cannot sue for a breach of the contract; and it is debatable whether one Avho is a stranger to the consideration can sue, even if he was a party to the contract. Bourne v. Mason, 1 Ventris, 6 (A. D. 1669); Crow v. Rogers, 1 Strange, 592 (1724); Price v. Easton, 4 Barnewall and Adolphus, 433, and 1 Nevile and Manning, 303 (1833) ; Per Maule, B., Tollit v. Sherstone, 5 Meeson and Welsby, 283, and 7 Dowling's Practice Cases, 455 (1839) ; Per Patteson, J., Thomas v. Thomas, 2 Queen's Bench, 859 (1842); Per Parke, B., Jones v. Robinson, 1 Exchequer, 456 (1847), and per totam curiam', according to 11 Jurist, 934; Scott v. Pilkington, 2 Best and Smith, li, (A. D. 1862); S. C, 8 Jurist, N. S., 557, 31 Law Journal, N. S., Q. B., 81, 6 Law Times, N. S., 21. The same principle is to be found in a still more recent case in the Irish Common Pleas, McCoubray v. Thomson, 2 Irish Reports, Common Law, 226, and 16 Weekly Reporter, 367 (1868)» See also the cases raising an exception to the rule, where the defendant has received money from another person to the use of the plaintiff ; in which case it seems that the* action can be maintained, only Art. I.] Collateral Undertakings. 411 of that question involves an inquiry into the principles, upon which the action is sustained at common law. It after the defendant has actually promised the plaintiff to pay him the f money, or in some equivalent form recognized the plaintiff as his creditor. Harris v. De Bevoice, 2 Rolle, 440 (A. D. 1624) ; Williams v. Everett, 14 East, 582 (1811) ; De Bernales v. Fuller, id. in note to p. 590; Lilly v. Hays, 6 Adolphus and Ellis, 54S, 1 Neviie and Perry, 26, and 2 Harrison and Wollaston, 338 (1836); Moore v. Bushell, 27 Law Journal, N. S., Exch., 3 (1857). The last vestiges of authority which modern decisions suffered Button V. Poole to retain, were swept away by the recent case of Tweddle V. Atkinson, Executor, etc., 1 Best and Smith, 393, (S. C, 8 Jurist, N. S., 332, 30 Law Journal, N. S., Q. B., 205, 9 Weekly Reporter, 781, 4 Law Times, N. S., 408), decided in the Queen's Bench, A. D. 1861. There the declara- tion stated in substance, that in consideration of an intended marriage between the plaintiff and the daughter of William Guy, the defendant's testator, Mr. Guy verbally promised the plaintiff to give his daughter a mar- riage portion, and the plaintiff's father also verbally promised to give the plaintiff a marriage portion; and after the consummation of the marriage, neither of the said verbal agreements having been performed, the plaintiff's father and Mr. Guy, as a mode of giving effect to their verbal promises, and each acting for the benefit of his child, and for the purpose of providing and procuring the other to provide a marriage portion for his child, entered into an agreement in writing with each other, a copy of which was set out in the declaration; being a mutual promise, on the part of each of the contracting parties, to pay to the plaintiff a certain sum of money, at a time therein mentioned; and containing further a stipulation, that the plaintiff might sue the parties "for the aforesaid sums hereby promised and specified." The declaration then averred, that the plaintiff and his wife afterwards ratified and assented to that agreement; and concluded with the necessary formal allegations. The defendant demurred to this declaration, and the plaintiff's counsel cited Dutton v. Poole, Thomas v. , and the two cases in Bourne V. Mason. Wightman, J., said: "Some of the old decisions appear to sup- port the proposition, that a stranger to the consideration of a contract may maintain an action upon it, if he stands in such a near relationship to the party from whom the consideration proceeds, that he may be considered a party to the consideration. The strongest of these cases is that cited in Bourne v. Mason, in which it was held that the daughter of a physician might maintain assumpsit, upon a promise to her father, to give her a sum of money, if he performed a certain cure. But there is no modern case in which the proposition has been supported. On the contrary, it is now estab- lished, that no stranger to the consideration can take advantage of a contract, although made for his benefit." Crompton, J., and Blackburn, J., delivered opinions to the same effect; so there was judgment for the defendant. 412 Collateral Undertakings. [Cli. xii. will therefore be impossible fully to examine the question arising under the statute, without also bestowing con- siderable attention upon the common law rule. § 388. Let us therefore inquire whether those cases, which affirm that the creditor may maintain the action at common law, advance any theory for that purpose, which in any way affects the queston arising under the statute of frauds. It has been sometimes said that the promise may be regarded as having been made to the debtor, in the character of an agent of the creditor, and that the latter, by bringing the action, affirms the assumed agency, (c) If the creditor' s action rested upon that idea, there would be no feature to distinguish a case of this kind from one where the promise was made to him directly, without any partici- pation by the debtor ; and consequently every attempt of the creditor to maintain an action thereon, when it was verbal, must be defeated by the objection arising under the statute. And again, it would be impossible for the debtor to mnintain an action upon the promise, under any circumstances. (cZ) But the theory of an agency in the debtor has not been so generally advanced as to call for an elaborate discussion ; it is supposed to be derived from a remark in one of the English cases, referring to a supposed agency on the part of the defendant when he has received money for the use of the plaintiff, (e) and to be entirely inapplicable where the liability assumed by the promisor was such as to create a simple debt.(/) (c) Per Johnson, C. J., and Denio, J., in Lawrence v. Fox, 20 New York, 268, post, § 412, and note; Per Hogeboom, J., Seaman v. Hasbrouck, 35 Barbour, 151, in note to § 412. (cZ) All this is very clearly shown by Robertson, C. J., in Connor v. Wil- liams, 2 Robertson (K Y.), 46. (e) Lilly v. Hays, 5 Adolphus and Ellis, 548. (/) Professor Parsons, in the fifth edition of his work on Contracts (Volume 1, page 468), has added this paragraph to the observation, con- tained in the earlier editions, that the prevailing rule with us, is that the party benefited may sue: "Indeed it has been held that such a promise is to be deemed made to the third party, if adopted by him, Art. I.] Collateral Undertakings. 413 § 389. It has been said with greater show of authority that the express promise made by the defendant to the debtor, raises also an implied promise in favor of the creditor (^); but it is believed that the expression is used ill the sense that a duty or obligation is created, by the actual or constructive receipt of money in consideration of the promise ; which enables the creditor to draw to himself the fulfi^nent of the latter, and to insert the formal allegation of an assumpsit in a declaration adapted to the facts ; rather than as indicating that the law implies a promise, upon wliicli he may specially declare as having been made to himself. No precedent of such a declara- tion has come under our observation ; on the contrary it has been held that in pleading the promise, it should be stated to have been made to the debtor, according to the fact.(^) And it is believed that the theory of an implied promise is an unnecessary excrescence upon the doctrine, tending to increase the perplexity in which the whole subject is enveloped. But if the common law action rests upon this ground, it is clear that the statute does not apply, for the latter includes only express promises. (/) though he was not cognizant of it when made." The authorities cited in the note are Lawrence v. Fox, 20 New York, 2G8, and Steman v. Harrison, 42 Pennsylvania, 49. Doubtless the reference to Lawrence V. Fox is intended for the reasons assigned by the Cliief Justice and Denio, J., for concurring with the majority. The case in 42 Pennsyl- vania does not bear out the observation. It holds merely that a prom- ise to accept a bill of exchange for a fixed amount is equivalent to an acceptance, not only as to the drawer, but as to every person who takes the bill on the faith of the promise; and the rule in the case of an ordinary con- tract is not alluded to in the opinion. (g) Per Gray. J., in Lawrence v. Fox, 20 New York, 2G8, and cases cited by him, § 412; Per Bigelow, J., in Brewer v. Dyer, 61 Massachusetts (7 Cashing), 337. note to §420, Per Shaw, C. J., Perry v. Swasey, GG Massa- chusetts (12 Gushing), 36; Per Robertson, C. J., Connor v. Williams, 2 Robertson, N. Y., 46. (/i) Delaware, etc., Company v. Westchester County Bank, 4 Denio, 97 ; Barker v. Bucklin, 2 Denio, 45 ; Decker v. Shaffer, 3 Indiana, 187; Mason i. Hall, 30 Alabama, 599. Contra, per Skinner, J., in Eddy v. Roberts, 17 Illinois, 508. Sf-e remarks upon Curtis v. Brown, 59 Massachusetts (5 Cush- ing), 488, post, §418, 419. (J.) See chapti r iv, article i. 414 Collateral Undertakings. [Ch. xn. § 390. An examination of the cases contained in the second article of this chapter, will suffice to show that the modern authorities sustaining the creditor' s action, agree in holding, that where no trust was raised by the acts of the parties, the right of the creditor to sue depends upon the presumption, that he is the person for whose benefit the contract between his debtor and the defendant was made. And although there is not absolute uniformity among them, the weight of authority is decidedly to the effect, that the action must rest upon that contract ; and that the declaration must allege that it was made between the debtor and the defendant ; which is entirely repugnant to the notion, that it was a constructive promise to the plaintiff, either by reason of the debtor being his agent, or for any other cause. Consequently the action is not founded upon the idea that the plaintiff was, or at any time became a party to the contract either in fact, or by fiction of law ; but upon the ground that the law entitles him to acquire a privity, with respect thereto, by reason of his interest. These propositions are very distinctly stated in some of the cases, and they are to be inferred from all those which carry much weight of authority. It is believed that a collation of the cases will also result in establishing the proposition, that from the time when the contract is entered into, the right of the promisee therein to release or enforce it is suspended, awaiting the action of the person for whose benefit it was presumptively made ; and that an inchoate right to enforce it vests imme- diately in the creditor, which remains in abeyance, until he determines his election, by the commencement of a suit or some other unequivocal act; but reverts to the promisee, if renounced by him. Some of the cases go much further ; but this is far enough for our purpose, (y) It results inevitably from these conclusions, that the creditor {j) According to the decision in Warren v. Batchelder, IG New Hamp* shire, 580, and apparently also as a consequence of the decision in Bohanan V. Pope, 42 Maine, 93, an election to enforce the promise amounts to an extinguishment of the original debt. Art. I.] Collateral Undertakings. 415 was not in any sense a party to the contract, at the time when it was made ; and that, if the privity which the law raises in liis favor makes him a quasi party, or creates an implied promise in his favor, it does so only from the time when his election to enforce it was determined. § 391. If these propositions state truly the rules of law, to be deduced from the authorities sustaining the credit- or' s right of action, it would seem that all questions aris- ing under the statute of frauds are completely disposed of, by the principle that the statute does not apply to promises made to the debtor. Every additional reason for taking this class of cases out of the statute is suppr- fluous ; and if it leads to doubt or confusion its introduc- tion is mischievous. § 392. But this principle, if indeed it solves the diffi- culty, has been overlooked, in the discussions which have arisen, respecting the application of the statute to such promises. This was quite natural in the earlier cases, because the principle itself has been definitely incorpor- ated into the law but recently ; and even if it had been established, when they were decided, the uncertainty which long existed, with respect to the grounds of maintaining the action, would have prevented the recognition of its importance. So vague are the reasons assigned in the early cases, for permitting the plaintiff to sue, that in most of them, where, in addition to the promise to the debtor, a subsequent promise was made to the creditor, (either verbal or not supported by any distinct consideration ;) we find ourselves at a loss to determine, which of the two promises the court intended to sustain or condemn ; and in others we are forced to the conclusion that the court has intentionally blended the promise to the debtor, with a real or fictitious promise to the creditor, in an attempt to make the consideration of one take the other out of the statute. The prevalent opinion then was that the promise, (whatever might be meant by that term,) was not \vithin the statute, because it came within Chancellor Kent's 416 Collateral Undertakings. [Ch. xii, third class, (A*) being founded npon a new and independ- ent consideration, moving between the debtor and the promisor. Much error was promulgated under that theory, the traces of which appear to linger, notwithstand- ing the abandonment in modern times of the theory itself.(^) § 393. For although most of the modern cases, which sustain the creditor's right to sue, hold, as we have already stated, either expressly or by necessary conse- quence from their other rulings, that he was neither actually, constructively, nor by retroactive relation a party to the promise ; they continue to seek in the con- sideration of that promise, for some ground on which to take it out of the statute of frauds. And not only do they fail to agree with respect to the true ground; but occasionally, after some peculiar feature of the considera- tion has been fixed upon, as affording a satisfactory reason for taking the particular promise out of the statute, a corollary is deduced that all cases not possessing that feature are within the statute. Hence arise new and perplexing questions upon this branch of the law, with their usual concomitant, discordance of judicial authority. § 394. This will disappear with the recognition of the principle, that all cases of this class are without the statute of frauds, because the promise was not made to the creditor. The only answer to this proposition, is that which seemed to press upon the mind of the court, in a recent case, where it was held that the action could not be maintained upon a verbal promise ;(w) namely, that the policy of the act requires, that a creditor should not be allowed to enforce such a promise. But at the same time it was conceded, that the reasoning had no application, when the debtor was suing ; and that he could maintain (Jc) Section 63. ( Z ) Chapter xvii. On) Clapp V. Lawton, 31 Connecticut, 95, fully abstracted, and the remarks of the court upon this point quoted in §§ 421, 422. Art. I.] Collateral Undertakings. 417 the action. And this conclusion apparently neutralizes the whole argument. For the statute is directed against certain promises, and not against their enforcement by particular persons ; and it would aeem that the province of the courts ends, in this respect, with the decision that promises to the debtor are not within its provisions. Such is the precise effect of the cases cited in the last chapter, {n) And the exception proposed to be engrafted upon the general rule, which they establish, will fail of accomplishing, in the great majority of instances, any practically useful purpose. For although the decisions upon the common law question have thrown much obscurity around the debtor's rights, there can be no doubt that he is entitled to enforce the promise, in every respect in which the creditor' s ability to do so falls short of completeness. The proposed exception will therefore affect no substantial right, but only turn the parties in interest over to another action, (o) On the other hand, it is believed that if the rule be maintained in its integrity, (n) It is true, that in nearly all tlie cases cited in the eleventh chapter, the promise took the form of an indemnity to the debtor. But the language in which the rule is laid down, and the principles upon which it rests, preclude the idea of any distinction arising out of the form of the promise. It would indeed be an absurdity, as respects the rights of the promisee, under the statute, to say that a promise to indemnify him against a debt is governed by one rule, and a promise to pay the debt by another. And in some of the cases the promise was in terms to pay the debt. Preble v. Baldwin, 62 Massachusetts (C Gushing), 549 ; Fiske v. McGregory, 34 New Hampshire, 414. (o) See Tibbetts v. Flanders, 18 New Hampshire, 284 (A. D. 184G). There the action involved a question of title to a table, and the plaintiff proved that one Balch being indebted fo one R. Tibbetts, the plaintiff's father, an agreement was made in the presence of Balch, R. Tibbetts, and the plaintiff, to the effect that the plaintiff should take the table and some other furniture belonging to Balch, and guaranty the payment of Balch's debt to R. Tibbetts within a time agreed upon, and if it was not then paid by Balch the furniture should be the plaintiff's. Various objections were taken, one of which was that this verbal agreement was not valid. But the court said: "The plainiiff might, without any writing, upon good consideration, make a valid agreement with Balch to pay his debt. Whether Richard Tibbbets could or could not enforce the guaranty is not material. Balch might enforce the promise to him." 53 418 Collateral UisrDEETAKiiirGS. fCii. xii. the conflict of authority upon the question whether the statute applies may be reconciled, {p) § 395. Regarding this principle as controlling the appli- cation of the statute, we observe that the question whether a creditor can enforce the promise to the debtor is purely a common law question, whatever may have been the evi- dence of the promise, and by whatsoever consideration it may have been supported. And for all purposes con- nected with the application of the statute, it is immaterial whether, after the consideration passed from, and the promise was made to the debtor, the promisor repeated his verbal promise to the creditor, either with or without the intervention of a new consideration ; unless the new transaction was of a character to take the case out of the statute, without reference to the original transaction. But where the original agreement was one to which the creditor was a party ; that is to say, where he, together with the debtor and the new promisor, participated in an agreement, whereby the latter undertook with the creditor, to pay him the debt ; although, if the consideration was furnished by the debtor, the common law question is in substance the same, that arising under the statute of frauds is essentially different. For then the debtor's presence and participation in the contract are entirely immaterial, as far as the application of the statute is involved ; and the promise, having been made to the creditor, must, if verbal, stand or tall by the same rules which govern other verbal promises to pay a debt due by another to the promisee. We haye therefore severed from this class of cases, those presenting the feature of a tripar- (p) In Clapp V. Lawton the suggestion to which we have referred, wsa made incidentally and disposed of without much consideration. Of the other cases which assert that the statute applies to such an action, Shoemaker v. King, 40 Pennsylvania, 107, was decided upon the idea that the creditor's action depended upon an implied promise to him ; and in Curtis v. Brown, 59 Massachusetts (5 Gushing), 488, the proposition referred to was not sug- gested, nor could it properly have influenced the decision, as the pleadings stood. Art. I.] Collateral Undertakings. 419 tite agreement, which have been generally, altliongh erro- neously, confounded with those where the debtoi- and the promisor were the only parties to the contract. They con- sist principally of a class where the consideration was a fund placed in the promisor' s hands by the debtor ; which are fully examined in a subsequent chapter, under the seventh TVile.{q) § 396. With these preliminary remarks, we proceed to the examination of the cases, where the debtor and the promisor were the only parties to the contract ; confining ourselves in the text, to those wlojere the application of the statute of frauds formed the ground of the decision ; except in a few instances, where the facts involved such an adjudication, although the question was not expressly passed upon ; or the ground of the decision, upon the common law question, has an important bearing upon that arising under the statute. For obvious reasons we shall be com- pelled to select certain cases as types of the class to which they belong. Others will be cited in the notes, where also will be found the cases involving only the common law question ; the citation occasionally extending itself into an abstract of the case, where the particular point decided bears upon some of the numerous and perplexing ques- tions, which incidentally arise from the prevalent Ameri- can doctrine, summed up in the expression "that a promise made to one for the benefit of another, he for whose benefit it is made may bring an action for its breach." (r) (q) Chapter fifteenth, article third. There are nevertheless a few cases oiled in the succeeding articles, where the agreementwas made between the three; but as the facts did not call for the application of any rule which would take them out of the statute, as promises made to the creditor, they are left with the others, where the promise was made to the debtor. (r) Gray, J., in Lawrence v. Tox, 20 New York, 2G8, says that this prin- ciple "concisely states the case in hand." (p. 274.) But although the embarrassing questions, referred to in the text, mostly relate to the rights of the party who is summarily ousted by this doctrine, from the control of his own contract, it is not always easy to ascertain the principle upon which it is determined, whether a particular person is deemed to be the 420 Collateral Undertakings. [Ch. xii. ARTICLE 11. American oases holding that the statute does not apply to the actioni § 397. In Maine, the rule that neither the common law nor the statute of frauds interposes any obstacle to the creditor' s right to recover, upon the defendant' s promise to the debtor that he will pay the debt, has been settled by a series of decisions, commencing in 1827 with Dear- horn V. Parks, 5 Greenleaf, 81. There the plaintiff sued as treasurer of the Monmouth academy, for money had and received by the defendant to the use of the academy ; and it appeared that one Heald had purchased land from the academy, and had given his notes for the purchase money ; and that before the notes became payable, he sold the land to the defendant, who retained enough of the consid- eration money to pay the notes, and promised Heald to pay them. Afterwards, Heald having died, the defendant said that he had paid him in another way. There was no one for whose benefit the contract was made, so as to entitle him thus to draw to himself the exclusive right to sue for its breach. It seems to be generally settled that where the contract is to pa}' a debt, the creditor is pre- sumed to be the person intended to be benefited ; although, as a matter of fact, it very rarely happens that his interests had any influence on the mind of the parties, their purpose being generally to take care of the debtor merely. And the presumption has been asserted in words so strong, that it is not probable that the courts would listen to evidence tending to overthrow it. In Missouri alone has there been any attempt to ascertain, whether the parties really had the benefit of the creditor in view; and this the court seeks to discover, not from parol evidence, but from the contents of the instrument itself. (See § 417.) It has been held, however, that a surety for the promisee cannot avail himself of the promise. Thus in Hofiman v. Schwaebe, 33 Barbour (N. Y.), 194, A. D. 1860, the plaintifiF was surety for one Miller, on two promissory notes, given by Miller upon the purchase of a contract for land ; and before the maturity of the notes, Miller assigned the contract to the defendant, upon his verbal agreement to pay the notes. This he neglected to do, and the plaintiff was compelled to pay them ; whereupon he brought this action to recover the amount paid by him. It was held by the New York Supreme Court, that although the promise was valid, and not within the statute of frauds, the plaintiff could not recover upon it; because he was not a party to the contract, nor was it made expressly for his benefit. See also Hicock v. McKay, 78 Massachusetts (12 Gray), 218. Art. II.] Collateral Undertakings. 421 proof of any promise to the plaintiff, or to any other per- son in behalf of the academy. A verdict having been found for the plaintiff, subject to the opinion of the court, it was held that the promise was not within the statute of frauds, because it was merely to pay a debt of the promisor ; and also that the plaintiff could sue upon the promise, notwithstanding the objection of want of privity. § 398. The case of Rowe v. Whittier, 21 Maine, 646, decided A. D. 1842, recognizes the same rule ; but the court refused to sustain the action, apparently because the promise was not made to the debtor, but to the plaintiff; although the opinion is not very clear, and it asserts one proposition which is not law. There the defendant had proposed to one Patten to settle a lawsuit pending in favor of Patten, against him, by giving to Patten, security for the debt, to which Patten assented, provided the defendant would pay his expenses ; on the defendant asking what would be the amount of the expenses, the plaintiff, who was the attorney for Patten in the suit, made out his bill to Patten ; and the defendant in the presence of Patten, then promised the plaintiff to pay it, and the plaintiff answered that that would be satisfactory, whereupon the security was given, and the suit discon- tinued. The bill was for taxable costs and commissions ; the defendant had paid the costs ; and this suit was to recover the commissions. It was held that the plaintiff could not recover. The opinion stated that if the defend- ant had been under any liability to Patten for the com- missions, the plaintiff might have recovered upon the promise within the principle of Dearborn v. Parks ; but Patten was liable to the plaintiff therefor, and he could have recovered against the defendant only the taxable costs, if the suit had proceeded to judgment ; consequently as to the commissions the defendant' s promise was without con- sideration. It proceeds to say that even if the plaintiff had discharged Patten in consideration of the defendant's promise, the latter would not have been obligatory under the statute of frauds, without a memorandum in writing. 422 Collateral Undertakings. [Ch. xii. § 399. In Todd v. Tobey, 29 Maine, 219, A. D. 1848, the plaintiff, with R. M. T. and others, had jointly guarantied the payment by one Haycock of a bill of goods purchased from one Hale ; and the defendant had afterwards pur- chased Haycock' s stock of goods, and agreed with him to pay Hale. Then Hale called upon the guarantors for payment, and they referred him to the defendant, who verbally promised R. M. T. to settle the demand. He failed to do so ; and the plaintiff paid his proportion of the amount, and the like sum for R. M. T. ; after which the defendant again promised R. M. T. to pay the demand. Still later a person employed by the defendant to settle his accounts with the plaintiff, allowed the amount so paid by the plaintiff for his proportion, as an item in his favor in certain accounts between the parties ; leaving a balance due to the plaintiff, to recover which this action was brought ; whereas if that sum had not been allowed there would have been a balance due to the defendant. The settlement of the account was in writing, the agent having signed the defendant's name at the foot of a statement thereof. The defendant having been shown by the agent a copy of this statement assented to it. There was no evidence of any direct promise by the defendant to the plaintiff, except what might be inferred from these facts. The case came before the court upon a statement of facts, upon which judgment was ordered for the plaintiff. The court in their opinion refer to the settlement of the accounts between the parties ; but place their decision distinctly upon the ground that the defendant's promise to Haycock was not within the statute of frauds, because it was upon a new consideration moving between them, and that the person for whose benefit it was made would be entitled to enforce it. That person was Hale ; and he had two remedies besides the liability of Haycock; namely, one against the defendant, and one against the plaintiff and his fellow guarantors. He availed himself of the latter. After the guarantors had paid the demand, Haycock would be liable to them ; and if he had paid them, he would have had a remedy against the defendant. Art. II.] Collateral Undertakings. 423 *'The law applied to tlie facts admitted, authorizes tliem to reach this object directly, instead of being obliged to resort to the circuity of action supposed." (o^) § 400. In New Hampshire a ruling has been adopted, without special reference to the question arising under the statute of frauds, which, if folio wed elsewhere, will not only (a) Here the defendant's promise, through his agent, to the plaintiff, appears to have been resorted to in support of the action ; but only to avoid a technical objection to maintaining it. The validity of the transaction under the statute of frauds was made to depend upon the circumstances attending the transaction between the defendant and Haycock. The question respect- ing the application of the statute, in an action by a creditor to recover upon a contract between his debtor and i, stranger, to pay the debt, also arose and was decided the same way, in the more recent cases of Maxwell v. Haynes, 41 Maine, 559, A. D. 1856, and Perkins v. Hitchcock, 49 Maine, 468, decided A. D. 1860, but they present no features requiring special comment. In the following cases no question arose except as to the right of the person to be benefited by the contract to enforce it at common law. His right was affirmed in Hinkley v. Fowler, 15 Maine, 285; Warren Academy v. Starretl, id., 443 ; and Motley v. Manuf. Ins. Co., 29 Maine, 337. And conversely it was held in Tewksbury v. Hayes, 41 Maine, 123, that the plaintiff could not maintain an action upon a contract in writing, reciting that in consideration of a conveyance by him to the defendant of the plaintiff's interest iii a mill, the defendant agreed to pay to Cornelia E. Blake the amount of her interest in the mill; because the contract contained no promise to the plaintiff. The general common law rule, deducible from the cases above mentioned and those cited in the text, was reaffirmed in Bohanan v. Pope, 42 Maine, 93, A. D. 1856; where it was also held, that if the person to be benefited by a contract between two others, is also a debtor of the party from whom the consideration flows, and if he should "disregard it and seek his remedy directly against the party with whom his contract primarily exists," then "such party may recover against the party contracting with him, in the same manner, as if the stipulation in the contract had been made dircctl}"- with him, and not for the benefit of a third person," and that an election of one remedy implies the abandonment of the other. And it appearing that the plaintiff had been hired by one Whitney to do certain work; that the defend- ants had previously made a contract with Whitney, whereby they agreed to pay his men ; that this contract was shown to the plaintiff when he was hired ; and that after the plaintiff had done the work, Whitney gave him an order on the defendants, which they refused to pay; whereupon the plaintiff sued and recovered judgment atrainst Whitney; it was held that he could not maintain an action against the defendants. 424 Collateral Undertakings. [Cli. xii. remove all doubt as to the application of the statute, and the true rule at common law, but will also completely turn the current of the decisions upon various questions which are now the subject of much debate. We refer to the case of Warren v. BatcJielder, 16 New Hampshire, 580, decided in 1845, but not published till 1863. The action was for money had and received. The defendant had been a debtor to one Dow upon a promissory note ; and the plaintiff had commenced a suit against Dow, in which he had summoned the defendant by a trustee process as Dow's debtor. Pending the suit Dow called on the defendant for payment of his debt ; but the defendant objected to paying, on account of the trustee process. Thereupon Dow and the defendant agreed that the latter should pay the former the amount of the debt, less a sum equal to the plaintiff' s demand against Dow and the costs, which sum the defendant should pay to the plaintiff; and the balance was paid to Dow, who surrendered the defendant's note. The plaintiff proceeded with his suit against Dow, and finally recovered a judgment therein ; but before judgment the trustee was discharged. Nearly four years afterwards, the plaintiff demanded from the defendant payment of the money left in his hands by Dow, and upon his refusal commenced this action. § 401. The cause was first heard in 1844, and the decis- ion thereon is reported in 15 New Hampshire, 129. Upon that occasion, a verdict for the plaintiff was set aside on exceptions ; an opinion having been delivered by Gilchrist, J., concluding, after an examination of the authorities, that the plaintiff could not recover because he was a stranger to the consideration. This decision was generally supposed to have settled the rule in that state, until the publication of the 16th New Hampshire, nineteen years afterwards. From the latter report it appears, that upon a new trial of the cause, the plaintiff had a verdict, subject to the opinion of the court ; there being no material differ- ence between the evidence upon the two trials, except that the report of the first trial states that the plaintiff issued Art. II.] Collateral Undertakings. 426 an execution upon his judgment. But upon the second verdict the court rendered judgment for the plaintiff. Upon the latttrT occasion, an (^ahorate opinion was deliv- ered by Woods, J., wherein he insisted that when a con- tract has been made between a debtor and a stranger, providing for the payment of the debt by the latter, the creditor may make himself a party to it, and entitle him- self to recover upon it, by a subsequent ratilication ; that such a ratification is accomplished by a demand of fulfil- ment, made upon the person who had und<*rtaken to pay the debt, and the commencement of an action against him, in case'of his refusal ; and that such a demand, followed by the commencement of an action, amounts in law to an extinguishment of the original debt, {b) An extended com- (/;) The learned judge commenced by assenting to the broad proposition, that the person to be benefited might maintain the action; and after exam- ining anew the authorities, he said, that the pUiintiff, in order to recover, must be a party to the arrangement between Dow and the defendant, either by an original participation in it, or by a subsequent assent to it, and adop- tion of its provisions. That it was well settled, that unless the demand of the plaintiff against Dow was to be considered as cancelled by the arrangement, his assent to it was not so perfect and unqualified as to entitle iiim to tiie bene- fit which it was intended to provide for him. But that such an assent, and an acceptance of the provision so made for him, whether cotemporaneous with, or subsequent to, the acts of the other parties, must operate to discharge the debt, unless there should be cause for holding that the provision was merely collateral; and no such cause existed in the present case. And it was stated to be the unanimous opinion of the court, that in such cases of a deposit by a debtor with a third person for the payment of his debt, upon the promise of the depositary to pay the same to the creditor, together with the assent of the creditor to the arrangement, and his acceptance of the provision thus made for him, his original demand must be deemed to be discharged, and a new debt and a new debtor substituted. The next question was, whether the evidence showed such an assent, so that a privity Between the parties became established. Upon this point the learned judge said, that something more than the comraencement of a suit was necessary to indicate the assent, and something anterior to that measure was needful to establish the necessary privity. A mere demand, he thought, was insufficient for the purpose; "but," he concluded, "a demand and refusal, followed by a suit, or any other equally plain demonstration of a purpose to adopt and to insist upon the new provision, is such evidence of an election of it, in preference to the 54 426 Collatp:kal Undertakings. [Ch. xii. ment upon this opinion would be out of place here. It suffices to say that its doctrines are so novel, not to say revolutionary, that it cannot be regarded as a precedent elsewhere, until they shall have received the sanction of other adjudications. § 402. It would seem that the courts of Vermont sustain the creditor's remedy, at common law and under the statute, according to the case of Wait v. Waifs Executor^ 28 Vermont, 350, decided in 1856 ; although the distinction between a promise to the debtor and one to the creditor does not appear to have been clearly taken. There the plaintiff appealed from the decision of the probate court, disallowing a claim in his favor, against the estate of Joseph H. Wait, and the auditor reported the following facts: The plaintiff had erected a barn upon premises then owned by one Joseph Wait, under his assurance that the premises should be conveyed to the plaintiff, or, if they were conveyed to another, that the grantee should pay the plaintiff for erecting the barn. Afterwards the premises were conveyed by Joseph Wait to Joseph H. Wait, the deceased ; and the latter, soon after the convey- ance was made, informed the plaintiff that he was to pay him for building the barn and that he would do so as soon as he could ; and on several other occasions he recognized the debt and promised to pay it. The defence was that "this promise to pay the plaintiff his claim" original debt, as to conclude the party, and to bar him from the pursuit of a collateral remedy, against the terms and intentions of the parties who have furnished the new. A direct and explicit assent, in terms, to accept the provision as payment, would clearly, upon the authorityof Heaton v. Angler, (see ante, § 332,) discharge the antecedent debt. Whether the assent be contemporaneous or not. seems immaterial. If the assent appear, not by the clear and unambiguous language of the party creditor, but by his unam- biguous act, it is equally availing as an election between two remedies, of which he is entitled to only one. The bringing of an action, following a demand, is an act that may well be regarded as an election of remedies, and should be attended by the proper consequences of an election in excluding the party from the alternate and collateral remedy." Art. II.] Collateral Undertakings. 427 was void by the statute of frauds. But the court held that the fair construction of the auditor's rei)ortwas, that payment of the debt to the plaintiff, was part of tlie con- sideration of the conveyance to the deceased ; and, as matter of law, that where property had been placed in the hands of the promisor by the debtor for the purpose of paying a debt, the promise was out of the statute. The decision of the probate court was therefore reversed. § 403. In the opinion of the Supreme Court in this case, it was said that the rule that a promise to pay the debt is collateral, as long as the original liability continues, has no application "to cases where the original debtor places property of any kind in the hands of a third person, and that person promises to pay the claim of a particular creditor. The promise in such case is an original promise, and the property placed in his hands is its consideration." This remark seems to indicate that the court had in mind a tripartite agreement, of which there was no evi- dence ; and in Fullam v. Adams ^ 37 Vermont, 391, (c) the case of Wait v. Wait was cited, as holding that the prom- ise to the plaintiff was not within the statute ; and as showing that where the promisor holds a fund of the debtor for the purpose of paying the debt, so that as between him and the debtor he is primarily liable for it, his promise to the creditor is not witliin the statute, because it is substantially to pay his own debt. § 404. In the State of New York the right of the person for whose benefit a contract was made, to sue for its breach, and, where he is a creditor of the promisee, to maintain the action without reference to the statute of frauds, has, after considerable conflict of authority, been cf)nclusively settled by a number of modern decisions ; which generally take the correct distinction between the original promise to the debtor, and a subsequent promise to the creditor. In the earliest. Gold and Sill v. Phillips, 10 Johnson, (c) Cited at length in chapter xvii. 428 Collateral Undertakings. [Cli. xii. 412, decided A. D. 1813, in the Supreme Court, the action was really founded upon a promise to the debtor, but there was a subsequent promise to the creditor, upon which the declaration counted ; and the case furnishes an instance of that confusion between the two promises, referred to in the first article of this chapter. (cZ) The report says that the action was brought by the plaintiffs "to recover their fees as attorneys and counsellors." The proof was that one Wodd had conveyed a farm to the defendants, for a specified consideration ; which was se- cured to be paid by a bond of the defendants, and a mort- gage on the premises. By the terms of the bond, part of the consideration was to be paid in money to Wood ; and the remainder was made up of debts due by Wood, mentioned in the bond, which the defendants assumed to pay, and to indemnify Wood against the same ; among others the debt due to the plaintiffs. Subsequently the defendants conveyed the farm to another person, who agreed with them to pay the debts of Wood which they had assumed ; and thereupon the defendants' bond was cancelled. On the day when the conveyance from Wood to the defend- ants was made, they wrote a letter to the plaintiffs, saying that by an arrangement between them and Wood, they were accountable to the plaintiffs for the balance due them by Wood. The letter was not however sufficient, as a memorandum of the agreement, to satisfy the statute. The plaintiffs having sued to recover from the defendants the debt due to them by Wood, a verdict was taken for them, subject to the opinion of the court. § 405. The court said that the promise of the defendants was not within the statute of frauds, because it "was founded on a new and distinct consideration. ' ' That ' ' the defendants made the promise, in consideration of a sale of lands made to them by Wood ; and they assumed to pay the debt of the plaintiffs, as being, by arrangement with Wood, part payment of the purchase money. Here was a (d) Section 392. AH. II.] Collateral Undertakings. 429 valid assumption of tlie debt of Wood." Judgment was accordingly rendered on the verdict for the plaintiffs. But there was another suit against the-same defendants, in favor of Gold alone, to recover fees due from Wood as solicitor in chancery ; and the case shows that there was evidence, from which the jury could have inferred, that Gold's debt was also included in the bond. But the Court directed judg- ment for the defendants in that suit ; on the ground that an inquiry as to the extent of the promise, showed that " iY was made jointly to Gold and Sill." This clearly refers to the letter ; so that the case is an authority against the doctrine that an action will lie upon a promise to the debtor, unless it proceeded upon the ground that the promise was contained in a sealed instrument. § 406. This case was followed by several others involv- ing the application of the statute, where the creditor, the debtor, and the new promisor were all parties to an agree- ment, whereby the latter undertook with the creditor to pay him the debt, in consideration of a fund placed in his hands by the debtor ;(e) and the first case where the Su- preme Court had occasion to determine the effect of a promise to the debtor, contained in a contract to which the creditor was not a party, was Barlcer v. Buckling 2 Denio, 45, A. D. 1846. There the action was to recover money due to the plaintiflE* from Francis B. Bucklin ; and the report states that the declaration averred "tliat the defendant, in consideration of a pak of horses de- livered to him by Francis, and of forbearance by the plaint- iff to prosecute Francis for the debt, at tlie defendant's request, had promised the plaintiff to pay liim tlie value of the horses towards the debt which Francis owed the plaintiff." On the trial the plaintiff proved an indebt- edness of Francis to the amount of $372.17, and that the demand had been placed in the hands of an attorney for (e) Olmstead v. Greenly, 18 Johnson, 12 ; Farley v. Cleveland, 4 Cowen, 432, and 9 Cowen, 639; Jennings v. Webster, 7 Cowen, 256; Elhvood v. Monk, 5 Wendell, 235 ; ia chapter xv, article iii. 430 Collateral Undertakings. [Ch. xii. collection ; that Francis, being pressed for payment, de- livered to the defendant a pair of horses, upon his agree- ment to pay upon the demand of the plaintiff the sum of $160, which was agreed upon as their value ; and that the defendant thereupon wrote to the attorney a letter con- taining this expression : " I have taken my brother' s team, and will be accountable to you for the same, if you will be so good as not to trouble him." This letter was sent by the defendant to the attorney by the hands of Francis, who informed him of the arrangement ; and he there- upon agreed to give Francis time, and did so ; but this was not communicated to the defendant. § 407. The defendant moved for a nonsuit, on the ground, among others, that the letter contained only a proposition, which was not binding until it was accepted, and the judge directed a nonsuit accordingly. The plaintiff moved for a new trial. The opinion of the court, delivered by Jewett, J., first considered the question whether the plaintiff, under a proper count, could sustain an action to enforce the defendant' s promise to pay the price of the horses, which he purchased. The authorities were cited and commented upon at length, and the learned judge came to the conclusion, that the weight of authority was in favor of the proposition, that the person to be benefited by a promise to another could sustain an action upon it, although he was a stranger to the consideration. The opinion then examined the question whether the statute of frauds would prevent a recovery ; upon which point the learned judge concluded, that the doctrine that a new and independent consideration would take out of the statute, a promise to the creditor to pay another' s debt, was unsound. That principle he thought was applicable only to promises made to the debtor ; those were not within the statute ; and in the case at bar, the defendant' s prom- ise was obligatory upon him, it being merely to pay his own debt to a particular person, designated by his own creditor. But because the plaintiff had counted in his declaration upon a promise made to himself, and not Art. II.] Collateral Undertakings. 431 upon one made to Francis for his benefit, the motion to set aside the nonsuit was denied ; the learned judge remark- ing : "The contract set out in each of the special counts is widely variant from the one proved." § 408. Of the next case, Blunt v. Boyd, 3 Barbour, 209, A. D. 1848, also in the Supreme Court, it will be sufficient to say that the defendant was a debtor to one Rowley ; that he and Rowley settled their accounts, and deducted from the sum found to be due from him to Rowley, the amount of a debt due from Rowley to the plaintiff, the defendant promising to pay that amount to the plaintiff, and giving Rowley his note for the balance ; and that when an agent of the plaintiff subsequently called upon the defendant, in relation to the payment of the plaintiff's demand "for lumber sold to Mr. Rowley," the defendant said that he would settle it, if the plaintiff would deduct $9, for unfinished work of Rowley. It was held by a majority of the court, that as the defendant's promise to the plaintiff's agent related to the plaintiff's demand against Rowley, it was clearly within the statute of frauds ; and that the plaintiff could not recover upon the contract between Rowley and the defendant, for want of privity as well as for want of consideration. The court regarded the promise as being without consideration, because the trans- action did not amount to a discharge of the defendant' s debt to Rowley ; and thought that where the objection for want of privity had been overruled in this class of cases, the defendant had actually received money or property as the consideration of his promise. • § 409. The case of Earle v. Crane, 6 Duer, 564, decided in the New York Superior Court in 1857, fully affirms the principle of BarTier v. BiiclcUn, and involves also the question whether the original parties could modify the agreement without the participation of the beneficiary. There the plaintiff's complaint stated that on the first of September, 1852, he was a creditor of Nathan Meyer, and that Meyer on that day agreed with the defendants to sell 432 COLLATEEAL UNDERTAKINGS. [Cll. XII. them his stock of goods, at prices thereafter to be agreed upon, which they were to pay as follows : by paying the plaintiff $561.63 of his debt ; by deducting $1,263.67 in dis- charge of a debt due to the defendants by Meyer, and by accounting for the remainder to Meyer ; that on the 9th of October, 1852, the goods were delivered in pursuance of this contract, at prices agreed upon, amounting to $2,800, leaving a balance of $1,000 due to Meyer ; and that Meyer's claim for that balance had been assigned to the plaintiff. The complaint asked for a judgment for the amount of the two sums of $581.63 and $1,000, with interest. On the trial it appeared that on the 9th of October, 1862, Meyer executed an absolute bill of sale of the goods to the defend- ants, purporting to be in discharge of his indebtedness to them. The plaintiff' s counsel asked the witnesses several questions, tending to prove a previous oral agreement, in the terms set forth in the complaint, and a delivery of the goods by Meyer and an acceptance thereof by the defend- ants, under such an agreement. Those questions were excluded, and the complaint was dismissed. § 410. Upon exceptions to the rulings, a new trial was granted, Bosworth, J., who delivered the opinion of the court, remarking, "Proof of such an agreement, as is stated in the complaint, and of full execution of it on the part of Meyer, standing alone, would entitle the plaintiff to recover the $531.63. The plaintiff could sue on such a promise in his own name, although not a party to the agreement by being present and participating in the mak- ing of it ; and such an agreement is not affected by the statute of frauds." The learned judge then proceeded to say that if such an agreement was made, it might be modi- fied, before delivery and acceptance of the goods, by the act of Meyer and the defendants, without the participation of the plaintiff; and in that case the plaintiff could not recover ; but if the goods wereactually delivered by Meyer, and accepted by the defendants, upon the terms stated in the complaint, the subsequent execution of an absolute bill of sale, could not affect the plaintiff's right to recover Art. II.] Collateral Unbertakings. 433 the amount to be paid to him, by the terms of the original agreement. § 411. The case of The State Bank at New Brunswick V. 3fettler, 2 Bosworth, 392, decided in 1858, in the same court, is one of those in which, it is believed, the test of the application of the statute is made to depend upon too narrow a rule.(/) Stripped of much extraneous matter, the facts were that the defendants had promised the drawer of a bill of exchange upon them, which had been discounted by the plaintiffs but had been protested for non-acceptance, and was not yet payable, that they would pay it to the plaintiffs ; in consideration that the drawer would permit certain grain, then in transitu, to go forward to them for sale on commission ; assign to them his canal barges and other personal property; and confess a judg- ment so as to bind his real estate. It had been the usual course of business, between the drawer and the defendants, that he should consign grain to them, and draw upon them against the proceeds ; and it is to be inferred from some of the remarks of the court, that the object of the transac- tion was to secure the defendants for advances or accept- ances previously made, as well as to provide for payment of the plaintiff's bill. A judgment for the defendants rendered upon a referee's report was affirmed on appeal. The opinion of the court (Bosworth, J.,) turns upon the following extract : " To take the case out of the statute of frauds, the verbal promise of a third person, made to a debtor of the plaintiffs, to pay to the latter a debt which the promisee owes them, must find its consideration in a purchase of property from the promisee ; so that the amount which is promised to be paid, is to be paid in dis- charge of the proper debt of the promisor : or the transac- tion and promise must be such, that making the promised payment to the plaintiffs, as creditors of the promisee, will operate, incidentally, as a satisfaction of tlie debt of the latter, and, primarily, as payment of the debt of the (/) See ante, § 393. 55 434 COLLATEEAL UnDEETAKINGS. [Cll. XII. promisor." , . . " When the promise places the prom- isor in the position of a surety for the debt of his promisee, the case falls clearly within the statute, and the agreement is void." § 412. In 1859, the Court of Appeals had occasion defi- nitely to settle the rule in New York, with respect to the common law right of the beneficiary to maintain an action upon a contract between others ; and incidentally with respect to the application of the statute. In Laiorence v. Fox, 20 New York, 268, it appeared that one Holly loaned to the defendant the sum of $300, on his promise to pay it the next day to the plaintiff, in discharge of a debt due him by Holly, of the same amount, which was then paya- ble. The plaintiff recovered in the court below, not- withstanding the defendant's objections, that the agree- ment with Holly was void for want of consideration, and that there was no privity between the plaintiff and the defendant. Upon appeal this judgment was affirmed by a vote of six judges against two. The leading opinion was delivered by Gray, J., who placed his decision chiefly upon the ground, that in consequence of the defendant's duty to pay the debt, the law implied a promise to that effect from the defendant to the plaintiff; but some of the majority thought that Holly was to be regarded as the agent of the defendant. A brief abstract of this opinion will be found in the note, which also contains a reference to numerous other cases in the same state, upon this most perplexing question, (p') (g) After disposing of an objection to the testimony, and of the question of consideration, the learned judge proceeded to consider the objection of want of privity, citing and commenting at length upon the cases in England, New York, and Massachusetts. In the course of this part of the opinion, he referred to Seaman v. Whitney, 24 Wendell, 260, as containing an inti- mation from the court, notwithstanding that the plaintifif was not allowed to recover upon the peculiar facts of ihe case, that an undertaking to pay the creditor may be implied, from an arrangement to that effect between the defendant and the debtor; and to The Delaware and Hudson Canal Com- pany V. Westchester County Bank, 4 Denio, 97 ; and a remark of the court Art. II.] Collateral Undertakings. 436. § 413. In Maryland, the earlier cases were somewhat inconclusive ; {?i) but the rule is now established with in Brewer v. Dyer, 7 Gushing, 337, (see note to §420,) as sustaii)ing llie same doctrine of an implied promise. But, he continued, it was urged, on the part of tiie defendant, that because the defendant was not in any sense, a trustee of Holly's property fqr the benefit of the plaintiff, the law will not imply a promise. This argument the learned judge answered by Faying, that in the cases where there was such a trust, the duty of the trustee to pay according to the terras of the trust, implies a promise to do so; and that in this case the defendant, upon ample consideration received from Holly, promised Holly to pay his debt to the plaintiff; this made it his duty to do so, and as well implied a promise to that effect, as if he had been made a trustee of property to be converted into cash with which to pay. The prin- ciple that the person for whose benefit a contrr-ct was made, may sue for ita breach, "has been," he continued, "applied to trust cases, not because it was exclusively applicable to those cases, but because it was a principle of law, and as such, applicable to those cases." He then said that Holly could not discharge the promise, because it was made for the plaintiff's benefit, and in accordance with legal presumption, accepted by him, until his dissent was shown. The cases, he concluded, establish the validity of a parol prom- ise. Three of the judges concurred fully in this opinion, and two concurred in the result, on the ground "that the promise was to be regarded as made to the plaintiff through the medium of his agent, whose action he could ratify, when it came to his knowledge, though taken without his being privy thereto." The two remaining judges dissented from the result; Comstock, J., delivering an elaborate opinion in support of the proposition, that the plaintiff could not maintain Uie action, because there was no privity of con- tract between him and the defendant. This case has been cited with appro- bation, and the general principles established by the decision have been fol- lowed in Burr v. Beers, 24 New York, 178 (A. D. 1861), where the Court of Appeals affirmed a judgment in a personal action in favor of a mortgagee, against a grantee of the mortgaged premises, whose deed contained a recital that he had assumed to pay the mortgage; in Becker v. Torrance, 31 New York, G31 (A. D. 18G4), where it was held, that a plaintiff in an execution might maintain an action against a receiver of the judgment debtor's prop- erty, whose title to the goods of the d'"btor was subordinate to the lien of the execution, upon his verbal promise to the officer to sell the goods, and apply the proceeds to the discharge of the execution ; and in Dingeldein v. The Third Avenue Railroad Company, 37 New York, 575 (A. D. 1SG8), ■where a plaintiff was allowed to recover against the assignee of personal property named in an instrument, which specified that it was taken, subject to the payment of all money, which the assignors were bound to pay, on (/i) See Owings v. Owings, 1 Harris and Gill, 484 (A. D. 1827). 436 COLLATEEAL UnDEETAKINGS. [Ch. XII. respect to the common law question, and probably also that arising under the statute of frauds, by the recent case of Small v. Schaefer, 24 Maryland, 143 (A. D. 1865). The facts of this case, as far as they are material to the account of claims of a certain description, the plaintiflfs' being one of that description. But in Kelly v. Roberts, 40 New .York, 432 (June, 1869), an important distinction was taken. This was an action in favor of a sheriff, to recover the amount due by the defendant to Everett and Jones, against ■whom the plaintiff held an attachment, the action being brought in pursu- ance of a provision of the New York code of procedure, authorizing a sheriff holding an attachment to collect debts due to the defendant therein. It appeared upon the trial, that by a written agreement, under seal, between the defendant in this action and Everett and Jones, the latter transferred to the former a quantity of goods, and the former agreed to pay the latter therefor thirty per centum of the actual cost ; an inventory to be forthwith taken specifying the cost of each article, and to be annexed to the agreement when completed. It was also verbally agreed between them, (but the testimony did not show whether this verbal agreement was made at the same time with the contract; or afterwards, when the inventory was made), that part of the consideration money was to be paid, by the defendant paying to cer- tain persons designated, two notes particularly described, thereafter to mature, which were made by Everett and Jones, and held by the persons so named ; but neither the defendant nor Everett and Jones had communicated this provision to such persons, nor did it appear that the latter had in any man- ner assented thereto. The attachment was issued and served about the time when the first note matured, but before it was paid. The plaintiff had a judgment, which the Court of Appeals affirmed. James, J., delivering the prevailing opinion, took the distinction between this case, and Lawrence v. Fox and kindred case's, that here the transaction was consummated, before any direction was given to pay the notes, so that the defendant had become a debtor of Everett arrd Jones ; the agreement to pay the notes was there- fore made without any new consideration ; and never having been commu- nicated to the holders of the notes, or assented to by them, it was revocable at the pleasure of Everett and Jones, until it was acted upon by the defend- ant. He added, that apparently the verbal agreement was made after the written assignment and covenant by the defendants to pay Everett and Jones; but that the precise time was immaterial; because, if it was made before, or at the same time when the covenant was entered into, it would be merged in the latter : and supposing it to have been made afterwards, there was no delivery of money or property to the defendant for the benefit of another, or the creation of any trust or agency for another: it was simply an executory contract without consideration; in effect, a license; so that as matter of law, the debt was still due to Everett and Jones, and liable to the Art. II.] Collateral Undertakings. 487 present discussion, were that one McGinn, a broker, being in default to the plaintiflf and to the defendant, (two of his customers), the defendant in consideration of his giving him an order on a bank for five state bonds, payable to attachment. In the result of this opinion, four of the other judges concurred ; one of them, however, putting his decision upon the ground, that the fair inference was, that the verbal agreement was made at the same time with the covenant, and was therefore merged into it ; and two of the judges were for reversal. The cases of Therasson v. McSpedon, 2 Hilton, 1, in the New Tork Common Pleas, A. D. 1858; Seaman v. Hasbrouck, 35 Barbour, 151, A. D. 1861, in the Supreme Court; and Huber v. Ely, 45 Barbour, 169, in the same court, A. D. 1865, also hold, that a promise to pay a debt, made to a debtor, upon a consideration proceeding from him, is not within the statute of frauds, and may be enforced by an action in favor of the creditor. In each of them, the consideration of the promise was the purchase of property from the debtor; and the promise to him is stated to constitute the founda- tion of the creditor's action. In Huber v. Ely, the reason assigned for the decision upon the application of the statute, was that "it is the promise of one deriving a benefit by means of the undertaking, and having funds placed in his hands for the payment of the indebtedness, which he promises, in consideration thereof, to discharge ; " in the others, the decision was put upon the ground, that the promise Avas only to pay the promisor's own debt in a particular way. However, in Seaman v. Hasbrouck, the court added that the purchase money was a fund for the benefit of the creditors; and that the promise might be regarded as made to them through the debtor as their agent. But in Connor v. Williams, 2 Robertson, 40, decided in the New York Superior Court, A. D. 1864, Robertson, C. J., showed very clearly that the doctrine of an agency in the debtor for the creditor, brings the case directly within the statute of frauds; and he thought that the action could be consistently sustained only on the idea of a general duty to pay the debt, upon which the law implied a promise. Before the decision in Lawrence v. Fox, the rule in New York was rendered uncertain by contradictory decis- ions. See besides the cases cited in the text, Schemerhorn v. Vanderhey- den, 1 Johnson, 139; Cumberland v. Codrington, 3 Johnson's Chancery, 229, on p. 254, per Kent. Chancellor; Shear v. Mallory, 13 Johnson, 496; Safford V. Stevens, 2 Wendell, 158; Sailly r. Cleveland, 10 Wendell, 156; Seaman v. Whitney, 24 Wendell, 260; Berly v. Taylor, 5 Ilil), 577; Dela- ware and Hudson Canal Company v. Westchester County Bank. 4 Denio, 97 ; Bigelow v. Davis, 16 Barbour, 561. In the case in the 4th of Denio, which is mainly relied upon as sustaining the doctrine of an implied prom- ise, there was a special demurrer to a declaration in assumpsit, alleging that certain debtors of the plaintiffs, placed a bill of exchange in the defendants hands, who undertook to collect it, and to pay the amount to the plaintiffs 438 Collateral Undertakings. [Ch. xii. bearer, (three of wliicli had been purchased with the defendant' s money, and on his order), there deposited as security for any overdraft of McGinn, verbally agreed with him, that he would pay the amount of an overdraft already paid and charged against McGinn by the bank, and also McGinn' s dishonored check held by the plaintiff. Three points were made by the defence, namely, that there was no privity of contract, that there was no considera- tion for the contract, and that the contract was void by the statute of frauds. The Court of Appeals affirmed a judgment for the plaintiff. With respect to the first point it was held, upon a review of the cases on either side, that the prevailing doctrine in this country was, that the person to be benefited by a promise could maintain an action upon it, and that it was to be deemed to be made to him if adopted by him. The objection that the promise was void under the statute of frauds was overruled, on the ground that the leading object of the promisor was to benefit himself. But it was clearly sufficient to say that the promise was made to the debtor. § 414. In Indiana the ruling in the New York cases is supposed to have been followed in Decker v. Shaffer, 3 Indiana, 187, A. D. 1851. The action was commenced in a justice's court against the defendant as administrator of when collected; and that it had been collected, but that the defendants, upon special request, had refused to pay the money. It was specified as a cause of demurrer, that the declaration did not aver any promise to the plaintiffs. The court overruled the demurrer, Jewett, J., saying, that a contract might be set "out in pleading according to its words or.its legal effect; and here " the ground of the action is a promise made to another for the benefit of the plaintiffs, and not on a promise to the plaintiffs;" consequently the declaration stated it according to the fact. It is to be inferred from the learned judge's remarks, that he regarded a declaration for money had and received as stating the transaction according to its legal effect. Bronson, J., said that if the question was new, his opinion would be, that the pleader should have stated the promise as having been made to tiie plaintiffs; but upon the authority of the report of Dutton v. Poole, T. Ilaymond, 202, he agreed that it was right to state it as having been made to the debtors. Art. II.] Collateral Undertakings. 439 one Shookman, "to recover a debt claimed to have been due from Shookman" to the plaintiff. It went to the Cir- cuit Court by appeal ; and the proof was that the plaintiff sold a mare to one Cuppy, and took his note for the pur- chase money ; and that Shookman afterwards bought the mare from Cuppy, on a promise to pay to the plaintiff the note held by him. In the Circuit Court the plaintiff recovered, and the judgment was reversed on error to the Supreme Court. Some of the remarks in the opinion, if read without reference to the rest of the case, would lead to the inference that the court intended to hold, that the promise of Shookman to Cuppy was within the statute of frauds. But probably the decision turned upon the fact, that the plaintiff declared upon a promise from Shookman to himself; and the key note to the decision is to be found in these remarks, at the beginning of the opinion: "The judgment cannot be upheld. The plaintiff below did not make out his case. He proved no indebtedness from Shookman to him."(t) § 415. In Illinois the same rule prevails. Of the cases where the application of the statute came in question, it was held in Eddy v. Roberts^ 17 Illinois, 605, A. D. 1856, that upon the merits, the plaintiffs would be entitled to recover upon the evidence, which proved a verbal promise of the defendant, made to one Williams, in considera- tion of a sale of property by him, to pay a debt due by Williams to the plaintiffs. But because the plaintiffs had (t) It seems to have been once held in Indiana, that a stranger to the consideiation could not sue for breach of a contract. Farlow v. Kemp, 7 Blackford, 544 (1845); Bird v. Lanius, 7 Indiana, G15 (185G). But later cases hold that the person to be benefited may maintain the action. Day v. Patter- son, 18 Indiana, 114 (18G2) ; Lamb v. Donovan, 19 Indiana, 40 (18G2) ; Ray- mond V. Pritchard, 24 Indiana, 318 (18G5). One case assigns the merger of the systems of law and equity as the reason why the course of the decisions was changed, an equitable rule having suspended the legal. Beals v. Beals, 20 Indiana, 1G3 (18G3). The ruling in the New York case of Barker v. Bucklin, is also approved in Nelson v. Hardy, 7 Indiana, 364, A. D. 1856, cited in a subsequent chapter. 440 Collateral Undertakings. [Ch. xii. declared, not upon the defendant's promise to Williams, but upon a similar promise subsequently made to them, upon a new consideration moving from them, which the court held to be within the statute ; a judgment for the plaintiffs was reversed, with leave to amend the declara- tion. It was however suggested by the court, that the plaintiffs should allege in declaring that the special con- tract was made to them ; but, as we have already shown, this is not only contrary to the ruling in New York, but inconsistent with the principles, upon which, according to the modern cases, the action depends, (y) § 416. In Alabama the earlier decisions were to the effect, that the person for whose benefit a contract was made could not maintain the action at common law, although, where he was a creditor of the other party, the promise to his debtor was not within the statute ; but that a new promise to the creditor, by the person who had agreed to pay the debt, would remove all objections to the recovery, and the action must be founded upon that promise. (^) But in Mason v. Hall, 30 Alabama, 699, A. D. 1857, the rule was laid down in substantial harmony with Barker v. BucTclin, and kindred cases. The com- plaint was for the hire of a negro man ; and the proof was that the plaintiff had hired the negro to the defendant's son for one year, at a specified price ; and that very soon afterwards, the son hired the negro to the defendant, upon an agreement that he would pay to the plaintiff the price agreed upon, deducting five dollars, which the son agreed to pay. The plaintiff was nonsuited, and on a motion .to set aside the nonsuit, the court held that the promise was (/) In Prather v. Vineyard, 4 Gilman, 40 (1847), and Brown v. Strait, 19 Illinois, 88 (1857), the general principle with respect to the application of the statute is affirmed, in harmony with Eddy v. Roberts; and the common law rule is laid down the same way in Bristow v. Lane, 21 Illinois, 194 (1859). {k) Hitchcock v. Lukens, 8 Porter, 333 (A. D. 1838); McKenzie v. Jack- son, 4 Alabama, 230 (A. D. 1842); Lee v. Fontaine, 10 Alabama, 755 (A. D. 1846). Art. II.] Collateral Undertakings. 441 not within the statute of frauds ; that where a parol prom- ise is made to one for the benefit of another, the latter may maintain an action upon it, although the promisee might also sue ; but that in this case there was a fatal vari- ance between the complaint and the proof, because the com- ;plaint relied upon a hiring by the plaintiff to the defend- ant, instead of the defendant's promise to his son.(^) § 417. The foregoing abstracts of cases present a great diversity of opinion, touching the principles, upon which the statute of frauds is considered inapplicable, and the action is sustained at common law ; as well as the ques- tions incidentally arising out of the common law rule.(77i) It remains only to notice the peculiar ruling of the courts of Missouri. It was said in Rohhins v. Ayres^ 10 Mis- souri, 638, A. D. 1847 that upon a simple contract between two persons, that one will pay a debt due by the other, the creditor can maintain an action, and the case is not within the statute of frauds. But in that case the plaintiff was not allowed to recover ; partly because the contract between his debtor and the defendant was under seal; and partly because it provided for the payment (?) And see Carperon v. Clarke, 11 Alabama, 259, A. D. 1847. The com- mon law rule had been previously laid down, substantially in accordance with the decision in Mason v. Hall. See Huckabee v. May, 14 Alabama, 263; Hoyt v. Murphy, 18 Alabama, 316. (m) The following additional cases are in general accord with those pre- viously cited, upon the common law question, or that arising under the statute of frauds. New Jkrset, Berry v. Doremus, 1 Vroom, 399 (A. D. 1863). Kentockt, Smith v. Lewis, 3 B. Monroe, 229 (1842); Allen v. Thomas, 3 Metcalfe, 198 (1860). South Carolina, Brown v. O'Brien, 1 Kichardson, 268 (1845); Mann v. Mann, 2 Richard.son, 123 (1845); Thomp- son V. Gordon, 3 Strobhart, 196 (1848). Wisconsin, Kimball v. Noyes, 17 Wisconsin, 095 (1864). Minnesota, Sanders v. Cla.son, 13 Minnesota, 379 (1848). Nevada, Alcalda v. Morales, 3 Nevada, 132 (1867). Georgia, Ford V. Finney, 35 Georgia, 258 (18G6). Texas, Wallace v. Freeman, 25 Te.rap, Supplement, 91 (1860). The common law rule seems to have been laid down in the same way in California, Kreutz v. Livingston, 15 California, 344 (1860) ; and in Delaware, Farmers' Bank v. Brown, 1 Harrington, 330 (1834.) 56 442 COLLATEKAL UnDEKTAKINGS. [Cll. XII. of the sum of $600 to the plaintiff and sundry other creditors of the other party, without mentioning the amount of the debt due to each respectively, or even the number or names of the beneficiaries ; but describing them as the hands employed upon a certain boat, the sale of which formed the consideration of the promise. After the contract was executed, but before the boat was taken away, " the instrument was read to the hands, and they accepted its terms." But the court said that the covenant merged all simple contracts, "and a simple promise to pay that sum afterwards would be inoperative." But in sub- sequent cases, the courts of Missouri have apparently adopted a rule which practically denies the existence of any common law right on the part of the creditor, to maintain an action upon a contract to pay the debt, made between the debtor and a stranger. It would seem to follow, as the result of the most recent decisions in that state, that where the consideration proceeded from the debtor and the promise was made to him, it will be regarded as having been made exclusively for his benefit and protection, and as a matter with which the creditor has no concern. The ruling upon the application of the statute of frauds is consequently of no importance, as respects this kind of action. (?i) (n) There was a dictum in Bank of Missouri v. Benoist, 10 Missouri, 519, A. D. 1847, to the effect that the common law permitted a person to enforce a contract between others, made for his benefit ; but it was not neces- sary to the decision. But in Manny v. Frasier, 27 Missouri, 419, A. D. 1858, the defendant's intestate had purchased the interest of one Bell in the firm of Bell and Sticknell, and on coming into the firm had agreed with them to pay certain debts of the firm ; among others, notes held by the plaintiffs. A judgment for the plaintiffs was reversed upon appeal; the court saying that the case did not fall within the common law rule recognized in Robbins v. Ayres, and Bank of Missouri v. Benoist, and that there was no privity of contract between the plaintiffs and the intestate. The recog- nized rule was illustrated by a promise of A to pay B for the benefit of C. And the principle is more fully explained in Page v. Becker, 31 Missouri, 466 (A. D. 1862). There it was held that neither a mortgagee nor his assignee could recover, upon a promise of the defendant to the mortgagor, to pay the amount of a mortgage given to secure certain notes for the purchase money Art. III.] Collateral Undertakings. 443 ARTICLE III. American cases holding that the statute applies to the action. § 418. The State of Massachusetts is generally regarded as one of those, whose courts hold that the statute of frauds applies, where a creditor sues upon a promise made to his debtor, whereby the promisor undertakes to pay the debt ; and such appears to be the leaning of the courts in that State, although a" careful examination of the adju- dicated cases will show that the question is not yet con- clusively settled. The case from which the contrary impression is derived is Curtis v. Brown, 59 Massachu- setts (5 Gushing), 488, decided A. D. 1850. The report says that, "the alleged cause of action was a verbal prom- ise by the defendant to pay the plaintiff, the amount of a bill originally due him from one Augustus A. Coffin;" from which statement it appears that the plaintiff, as in Barker v. BucJclin,{a) relied, not upon the contract be- tween his debtor and the defendant, but upon a promise to himself. At the trial, it appeared that Coffin had entered into a contract with the defendants, to erect certain houses for them ; and before the stipulated period, (as extended by a subsequent agreement,) had expired, a ver- bal agreement was made between him and the defendants ; whereby he released them from the contract, and trans- ferred to them the building materials on the premises, upon their verbally undertaking to pay all the outstand- ing bills for work upon the buildings ; among others one of the mortgaged premises ; the equity of redemption having been conveyed to the defendant, upon his verbal agreement to pay the notes and the mortgage. It was said that the defendant's agreement "was exclusively for the benefit of his grantors, and was a matter entirely between the parties to tiiat deed." The opinion concludes: "There is evidence that Becker recognized his lia- bility to pay the notes, both before and after they had been assigned by Hampton to the plaintiff; but the plaintiff does not go upon the hypothesis of a promise by Becker to him directly. No such case is made by the petition; no express promise is averred therein; and if there had been, it would have been without consideration." (a) See ante, § 406. 444 Collateral Ujstdertakin-gs. [Ch. xii. due to the plaintiff, whicli was particularly mentioned and assented to by the defendants. The defendants thereupon requested Coffin, to inform the plaintiff and the oth-er cred- itors of the arrangement ; to request them to make out their bills to the defendants ; and to say to them that they (the defendants) would pay the bills ; which was done by Coffin, and the plaintiff s bill made out accordingly. Coffin also made a verbal agreement with the plaintiff and the other creditors, '' to look to the (^efendants for their pay ; " and the defendants in fact paid several of the bills. The judge ruled at the trial that the defendants' promise was v-oid by the statute of frauds, and the jury under his in- structions, found a verdict for the defendants. § 419. A motion for a new trial upon exceptions was denied by the Supreme Court, Shaw, C. J., delivering the opinion. He assumed that under the circumstances of the case the promise of the defendants, communicated at their request to the plaintiff by Coffin, was equivalent to a dii'ect promise to the plaintiff ; and he then proceeded to examine the question whether the promise was within the statute of frauds, evidently referring, throughout the whole of the opinion, to the promise made through Coffin to the plaintiff directly. He refuted the idea that the relinquish- ment of a lien, benefit, or advantage possessed by the plaintiff, would take out of the statute a promise to pay the debt of another ; unless the promisor acquired what- ever was reliquished by the promisee. He added that the extinguishment of the original debt would also suffice to take the promise out of the statute. But here, he said, the plaintiff did not release Coffin, or relinquish any lien or benefit, and the consideration for the defendants' prom- ise moved from Coffin. The exceptions were therefore over- ruled. § 420. The very recent case of Furbish v. Goodnow, 98 Massachusetts, 296, A. D. 2867, cited at length in another section, (&) is open to a similar criticism. The action {h) See §§ 563, 564. Art. III.] Collateral Undertakings. 445 was upon an agreement, to which the plaintiff, liis debtor, and the defendant were parties, the consideration liaving proceeded from the debtor ; and the whole reasoning of the court is based upon the idea, that the contract upon which the action was brought was made with the plaintiff. It was said that the recent decisions in New York, Maine and Vermont had relaxed the application of the statute too far ; and that, as the authorities were conflict- ing, it was the duty of the Massachusetts courts to follow the precedents in their own State. But in the Massachu- setts cases, which were regarded as controlling, the plaintiff sued upon a promise to himself ; and the court expressly distinguished Alger v. Scoville, 1 Gray, 391, (c) from the others, on the ground that there the promise was to pay a debt of the promisee, the consideration of which was a transfer of property from him to the promisor. The effect of the statute of frauds, upon an action brought by the creditor named in such a promise, does not therefore appear to have been conclusively determined in that State. (^) (c) See ante, § 376. (d) Before the case of Mellen v. Whipple, 67 Massachusetts (1 Gray), 317, A. D. 1851, it was supposed that the courts of Massachusetts had gone at least as far as those of New York, in affirming the common law right of the beneficiary to enforce a contract between others. The result of the cases was summed up in Brewer v. Dyer, 61 Massachusetts (7 Gushing), 337, A. D. 1851, where Bigelow, J., said that the principle had been "long established and clearly recognized " in that state " that where one person, for a valuable consideration, engages with another, by simple contract, to do some act for the benefit of a third, the latter, who would enjoy the benefit of the act, may maintain an action for the breach of such engagement," citing Felton V. Dickinson, 10 Massachusetts, 287; Hall v. Marston, 17 id., 575 ; Arnold v. Lyman, ib., 400, and Carnegie v. Morrison, 43 id. (2 Metcalf), 381. He added, "it does not rest on the ground of any actual or supposed relationship between the parties," " nor upon the reason that the defendant by entering into such an agreement has impliedly made himself the agent of the plaintiff;" ''but on the broader and more satisfactory basis, that the law, operating upon the act of the parties, creates the duty, estab- lishes the privity, and implies the promise and obligation upon which tho action is founded." But in Mellen v. Whipple, 67 Massachusetts, '317, tho court held, on demurrer to a declaration setting forth the facts specially, that 446 Collateral Undertakings. [Ch. xii. § 421. In Connecticut it has been very distinctly ruled that the statute applies. In Clapp and others v. Lawton and Wright, 31 Connecticut, 95, A. D. 1862, the declara- tion contained sundry special counts, on a promise of the defendants to pay a debt due to the plaintiffs from Faulk- ner and Wright, and also a common count. On the trial it appeared that the plaintiffs were creditors of the firm of Faulkner & Wright, who sold out all their firm the plaintiff, as the holder of a negotiable note secured by a mortgage upon real estate, and assignee of the mortgage, could not recover against the grantee of the mortgagor, who had conveyed the equity of redemption to the defendant, by a deed containing a stipulation that the defendant should assume and cancel the note and the moi tgage. Metcalf, J., in delivering the opinion said that the general rule was that a stranger to the consideration could not sue upon a contract; and that the only exceptions to the rule, which hrd been recognized in Massachusetts, were where the promisee had either put money or property into the hands of the promisor as a fund to pay his debt; or was nearly related to the beneficiary; or where the defendant had entered under a lessee of real property, upon a promise to pay the rent to the landlord, and had subsequently occupied the premises, and paid part of the rent. It was further held that if tlie averment in the declara- tion, that the defendant promised the plaintiff to pay the note, was to be taken as referring to an express promise, such a promise would be void for want of consideration. But we find it difficult to reconcile the more recent case of Perry v. Swasey, 66 Massachusetts (12 Gushing), 36, A. D. 1853, with this distinction. There the defendant had agreed with the maker of a note with whom he was boarding, to take up and cancel the note, for which he was to pay nothing for board, till his bill equalled the sum due upon the note; after boarding some time, his bill was adjusted and receipted in full, the amount of the note being deducted and the balance paid by him in money; and at the same time he gave to the maker of the note a written agreement to pay the note, and to hold the maker harmless. Upon these facts, (together with a promise to the holder,) the court " inclined to the opinion," that an action for money had and received would lie in favor of the holder of the note; but it was distinctly held that an action would lie upon the defendant's promise to the maker ; and that it raised an implied promise to the plaintiff. See also Hicock v. McKay, 78 Massachusetts (12 Gray), 218, A. D. 1858, where the same rule is to be imphed from the opin- ion; although the court thought, that in the absence of evidence to show that the contract was made for the benefit of the third person, the promisee might maintain an action, upon an agreement to credit a third person a certain sum on account, for a consideration proceeding from the plaintiff. Art. III.] Collateral Undertakings. 447 property to the defendants Lawton and Wright, (the same Wright being a member of both firms,) upon the consider- ation, in part, that the latter would pay the debts of Faulk- ner & Wright, including specially the debt due to the plaintiffs. It appeared also that the property transferred to the defendants, was more than sufficient to pay all the debts. The defendants objected to the admission of the testimony tending to prove these facts, on two grounds ; namely, that the verbal promise was void within the stat- ute of frauds, and that the plaintiffs could not sue upon it ; but the objections were overruled. There was no evidence of an express assent by the plaintiffs to this arrangement, or that it was communicated to them. The plaintiffs recovered a judgment, which was reversed upon a motion for a new trial. The opinion, by Button, J., argued both the questions at length, and concluded that both objections were well taken. "The agreement," he said, "was void, so far at least as the plaintiffs are concerned, by the statute of frauds." It was, he thought, against the policy of the statute to sustain the action ; the danger, which it was intended to guard against, being " that cred- itors will endeavor by false parol testimony to save debts, which they will otherwise lose by the failure of the original debtor to pay." The learned judge said that this case was precisely the case which the legislature had in view ; it being evident that the plaintiffs were endeavoring to hold Lawton and Wright, because they doubted the responsibility of Faulkner and Wright. § 422. The learned judge then proceeded to consider the arguments which had been urged in support of doctrines, which would permit a recovery upon this contract. In some of the cases, he said, a fear had been expressed that if the plaintiff was not allowed to recover, the statute would be made an instrument of fraud. But irrespective of the fact, that it was inconsistent to draw inferences from a case which the law would not permit to be proved, he thought that the danger of fraud had been overrated ; for a defendant who denied the validity of his agreement on 448 Collateral Undertakings. [Cli. xii. this ground could not be permitted to retain the consider- ation. The learned judge continued : "Courts have also frequently been misled by not adverting to the distinction between an attempt to hold a person as surety for another, and merely compelling him to pay a sum of money which may happen to be the debt of another. If A eells a house to B for $100, it is clearly immaterial to B whether he is to pay the money to A or to one of A' s creditors. As a con- tract between A and B, there is no more danger that the fraud mentioned in the statute will be perpetrated than in any other contract. But the moment you allow the creditor oF A to have an interest in this contract, and to have the right, either expressly or by implication, to sue upon it, as the plaintiffs claim to have in this case, the agreement is brought directly within both the letter and spirit of the statute." Some of the cases, said the learned judge, turn upon the question, whether the de- fendant received a full consideration; but this cannot affect the application of the statute. Others "seem to have been allowed on the ground that it appeared that some new and, distinct consideration passed from the plaintiff to the defendant ; " but these are mere extensions of a doctrine, to be found in the English lien cases, where the substance of the transaction was a sale by the plaintiff to the defendant. The learned judge concluded that branch of the opinion by saying that there was a tendency in recent cases " to adopt the true rule and to restore the statute to its original purpose," citing particularly Curtis V. Brown and State Bank v. Mettler.{e) (e) For an abstract of the last mentioned case see section 411. Upon the other objection the opinion is equally decisive against the plaintiffs; holding that they could not recover, because the promise was not made to the plaint- iffs, or intended for their benefit, but for the benefit of the parties to it; nor was it founded upon a consideration furnished by the plaintiffs; nor did it appear that at the time they knew any thing of it. The case of Treat v. Stanton, 14- Connecticut, 445 (A. D. 1841), was cited as decisive against the plaintiffs upon this point. And it was held, that they could not recover upon the common count, because there were other persons interested, and an accounting was necessary ; so that the only remedy was in equity. Art. III.] Collateral Undertakings. 449 § 423. In Pennsylvania, the recent case of Shoemaker V. King^ 40 Pennsylvania, 107, A. D. 1861, is in exact accord with the case just cited, upon substantially the same facts. There a special verdict was found, to the effect that the plaintiff was a creditor of the firm of Harper and Reese, and they sold out all their firm prop- erty to the defendant, he agreeing with them to pay their debts, and the property being sufficient to pay the plaint- iff and all the other creditors of the firm. Soon afterwards Harper informed the plaintiff of the defendant's promise ; but there was no proof that any communication passed between the plaintiff and the defendant, except as implied from bringing this suit, from which the jury found "that he agreed to accept said promise." Upon this verdict the court below rendered a judgment for the plaintiff, which the Supreme Court reversed on error, and ordered judg- ment for the defendant. Lowrie, C. J., delivered the opinion in the following terms: "The decided weight of authority and of reason declares, that though such a con- tract as the present is valid between the immediate parties to it, it is void as a contract in favor of the creditors of one of them ; unless they, as part of the arrangement, give up their original claims, and accept the new contract in their stead. Without this it is void, even when expressly made to those creditors, and of course it cannot be impli^^d as made to them. While the old debt remains, the new contract cannot be a substituted, but only a collateral one ; a promise to pay another' s debt; and it is forbidden by the statute as a cause of action." " Yet we must not be understood as questioning that numerous class of cases, where a debtor puts money or other means in the hands of another, to be delivered to a particular creditor of his, and the creditor has been held to be entitled to sue. Some of this class of cases no doubt crowd hard upon the class to which the present one belongs. Yet they present merely a mode in which the debtor pays his own debt. That was only in part and incidentally a purpose of this arrangement. AVe may need, somt^ day, to distinguish these classes more accurately, and we had better not 57 450 Collateral Undertakings. [Cli. xii. attempt it, until some case arises that demands such a distinction." (/) § 424. The courts of North Carolina appear to incline against allowing the creditor to maintain the action; although in the principal case the question was not fairly presented, as the result would have probably been the same in New York, upon the allegations of the declaration. In Styron v. Bell, 8 Jones, 222, A. D. 1860, the executor of one Pettijohn had sold at auction to the defendant, a schooner belonging to the estate, at a price much below its value, one of the conditions of the sale being that the purchaser should pay all the debts due by Pettijohn, on the schooner' s account ; and the plaintiff, to whom Petti- john owed a debt for lighterage, brought this action to recover the same. It did not appear that the plaintiff was present at the sale ; or that his debt was specifically mentioned ; or that the j)laintifF and defendant had any communication on the subject after the sale. The defend- ant' s counsel submitted that the evidence did not sustain the declaration, which alleged that the promise was made to the plaintiff, and that the statute of frauds required the promise to be in writing ; but the plaintiff had a ver- dict, and the judgment thereon was reversed on appeal. In the opinion of the Supreme Court, delivered by Manly, J.,* it was assumed that the question to be decided was whether there had been any valid substitution of one (/) But the Supreme Court of Pennsylvania has now definitively settled the rule, that where the promise was made to the creditor, founded upon a fund placed in the hands of the promisor by the debtor, and constituting part of an agreement to which the three were parties, the promise is not within the statute, and the promisee may recover for its breach. See cases cited in chapter fifteenth, article third. And in Maule v. Bucknell, 50 Pennsylvania, 39, A. D. 1865, Strong, J., intimated a doubt whether Shoemaker v. King was correctly decided. The question, respecting the common law right of the beneficiary to recover upon a contract to which he was not a party, seems to have been settled in Pennsylvania in the affirma- tive. Beers v. Robinson, 9 Pennsylvania, 229 (1848); Vincent v. Robinson, 18 id., 96 (1851). Art. III.] Collateral Undertakings. 461 debtor for another. It was held that no such substitution had been accomplished here, because the plaintiff's original debtor had not been discharged ; tliis action not being evidence of such a discharge, but only of his willing- ness to look to the defendant, as a collateral source from which the money might be obtained. It was further said that the cases, where a promise to one has been allowed to enure to the benefit of another, turn upon the idea of principal and agent. The opinion concluded by saying that the statute of frauds "would be an obstacle to the recovery in other points of view ; but we think it unneces- sary to enter upon that." § 425. In Tennessee it was held in Campbell y. Flndley^ 3 Humphreys, 330, A. D. 1842, that the defendant's prom- ise to the debtor, to pay to the plaintiff the debt due by the promisee, made in consideration of the sale of personal property by the debtor, was within the statute of frauds ; the court putting the decision on that ground, and, declin- ing to consider the question, whether there was sufficient privity on the part of the plaintiff to entitle him to sue. But the case is avowedly at war with the whole doctrine that a promise to the debtor is not within the statute ; as we conceive the other cases, holding that the statute applies to such an action, are in principle and practical effect, {g) § 426. And in Wisconsin the Supreme Court decided, or at least intimated very strongly, in EviericJc v. Sanders, 1 Wisconsin, 77, A. D. 1853, that a creditor could not recover under the same circumstances ; and for that reason, with others, held that a subsequent promise to him was within the statute of frauds. The case will be cited more at length hereafter, in connection with another principle Involved therein. (7i) (gr) There is a dictum in Brice v. King, 1 Head, 152 (A. D. 1858), favoring the broad rule, that at common law the person to be benefited by a contract may sue for its breach. (A) Chapter fifteenth, article second. CHAPTER THIRTEENTH. THE SAME SUBJECT CONTINUED — THE KULE WITH EESPECT TO CONTRACTS OF INDEMNITY, AGAINST LIABILITIES THEREAFTER TO BE INCURRED BY THE PROMISEE. § 427. It is frequently said, in general terms, that one of the questions arising under the statute of frauds, which are yet unsettled by the authorities, is whether contracts of indemnity are within its provisions ; but the promises involved in most of the cases considered in the eleventh chapter, were contracts of indemnity, in the broadest sense of the term. They differ from those which are now to be examined in nothing, except that the question there pre- sented arose upon a promise to assume a liability already resting upon the promisee, which for that reason required a new and distinct consideration, in order to be valid at common law. In those which will form the subject of this chapter, the promise was to indemnify the promisee against a liability thereafter to be incurred by him ; and it conse- quently required no consideration to sustain it at common law, beyond the incurring of the liability, pursuant to the request of the promisor. They are divided into two classes, namely, those where the liability, against which the promisee was indemnified, was to be incurred by him without the intervention of any third person, who could be said to be primarily liable ; and those where it was to be incurred by him, at the request of the promisor, but as security for the fulfilmeUt of a third person' s engagement to a fourth person. The "authorities seem to agree that in the first class the promise is not within the statute ; but we shall find that with respect to the second, there is great diversity of opinion. Art. I.] Collateral U^"DERTAKINGS. 453 ARTICLE I. Where the promise vu to indemmfy the promisee against a liability to be Incorred by him alone without the intervention of any third person, § 428. With respect to this kind of indemnity, there is little difficulty in ascertaining and applying the correct rule. Promises of this character come directly within the terms of the rule, sustaining verbal engagements made to the debtor himself; there being no question, such as arises in those belonging to the other class, whether the exist- ence of a primary liability of another, for the payment of the same debt or the fulfilment of the same duty, will not render the engagement collateral. And accordingly we find that the few decisions, which cast a doubt upon the validity of siich contracts, are contained in the overruled cases, which deny the existence of the fifth rule ; .or were evidently made through inadvertence, (a) § 429. In Howes v. Martin, 1 Espinasse, 162, tried at nisi prius, A. D. 1794, such an engagement was held not to be within the statute, although the court failed to assign the reason therefor which is now regarded as the correct one. There the declaration was for money laid out and expended to the defendant' s use, with the common counts ; and at the trial it appeared that the plaintiff had accejoted a certain bill for the accommodation of the defendant ; and an action having been brought against her upon the acceptance, she informed the defendant of the fact, and at his request defended the action, but was defeated ; and this action was brought to recover the amount of the verdict against her, and the costs. The defendant's coun- sel objected that the action could not be maintained, as there was no note in writing ; but Lord Kenyon overruled (a) One of the reasons assigned by the court for the decision in "Wells v. Mann, 52 Barbour (N. T.), 263, A. D. 18G7, was that a promise by the defendant to the plaiiitiOf to indemnify him njrainst nn action to be com- menced by another person, was witiiin the statute; but this was said inci- dentally, and, it is believed, inadvertently. 454 COLLATEKAL UNDERTAKINGS. [Cll. XIII. the objection, and held that the case was not within the statute, because the plaintiff had no consideration for the acceptance, and the defence to the action was on the defendant's account and for his benefit; that as he was interested, and directed the defence to be made, whereby he might have been benefited, the money must be con- sidered as having been laid out by the plaintifi' to his use and upon his account. § 430. But in Winckworth v. Mills, 2 Espinasse, 484, A. D. 1796, the question was squarely presented, and decided erroneously, according to the modern author- ities. There one Sharp had made a promissory note to the order of Taylor and Son, payable at their house, which had been indorsed by Taylor and Son to the defendant, and by him to another person, who had indorsed it to the plaintiff. When it became due, the plaintiff' s clerk called at the house of Taylor and Son for payment, but by mis- take left the note behind, and on his returning, and demanding it, they denied having it, and it was lost ; thereupon the plaintiff immediately informed the defend- ant of the facts, who furnished the plaintiff with a copy of the note, and promised to indemnify him, if he would endeavor to recover the amount of it from Taylor and Son, or the maker. The plaintiff succeeded in collecting one-half of the amount, and now brought an action to recover the expenses, adding a count against the defend- ant as indorser of the note. At the trial, there being no writing showing the promise. Lord Kenyon ruled that the plaintiff could recover only the unpaid part of the note, and a verdict was taken for that amount. The report adds that his Lordship offered to save the point ; but the plaintiff's counsel declined it, and the verdict was "ac- quiesced in." § 431. But in Adams v. Dansey, 6 Bingham, 506, and 4 Moore and Payne, 245, decided A. D. 1830, the Court of Common Pleas anticipated the decision of the King's Bench in Eastwood v. Kenyon, 11 Adolphus and Ellis, Art. I.] Collateral Undertakings. 460 438, by holding that a similar promise was not within the statute, for the reason that it was made to the person who was to incur the liability ; and further that, under the cir- cumstances of the case, the promise was also valid, with respect to a liability which had been previously incurred. There the plaintiff, as the occupant of lands in a certain parish, had been sued by the vicar for tithes ; and the landowners of the parish, relying on a modus, resolved that they would contribute pro rata to the defence of the suit ; but the plaintiff refused to defend, as he had quitted the parish ; whereupon the defendant, who was a land- owner of the parish, orally promised to indemnify him. The plaintiff, relying upon this promise, defended the suit accordingly ; and now brought this action to recover the costs adjudged against him therein, part of which had been incurred before the defendant's promise was made. There was a verdict for. the plaintiff, and the defendant obtained a rule nisi to set aside the verdict, or to reduce the damages to the amount of costs incurred subsequently to the promise, which, after argument, was discharged. §432. Tindal, C. J., said: "Here, as between Adams and Dansey, what promise is there as to the debt, default or miscarriage pf another ? It is a direct promise to repay Adams any money which might be paid by him, for costs in the suit between the vicar and Adams." .As to the costs previously incurred, he said that it was competent for the plaintiff to make any bargain he pleased, as the price of resisting the tithes suit for the defendant's benefit. Gaselee, J., said, "It is a liability to which the plaintiff himself was to be exposed at the request of the defend- ant," and as to the bygone costs the vicar s claim had been resisted at the instance of the defendant, and the plaintiff was then liable for them. Bosanquet, J. , said that the plaintiff " was at liberty to impose such terms as he pleased, either as to the past or the future costs, and the debt, for the discharge of which he stipulated, was his own debt, not that of a third person." 466 Collateral Undeuta kijs^gs. [Cb. xiii, § 433. The same decision was made A. D. 1800, by the New York Supreme Court in Allaire v. Ouland, 2 John- son' s Cases, 52. There the defendant had directed the plaintiff, who was his hired servant, to enter a meadow, which the plaintiff said belonged to him, but which was in fact the property of another, and promised to indemnify him for so doing ; and the plaintiff, having done so, was sued for the trespass, and a judgment recov- ered against him ; whereupon he brought this action upon the defendant' s promise. In the court below a motion for a nonsuit was overruled; and the plaintiff having had a verdict and judgment, a writ of error was brought from the judgment to the Supreme Court, seven errors having been assigned by the defendant, of which the second was that the promise of indemnity should have been in writing, it being for the default of another. The judgment below was affirmed, the second error assigned being disposed of in the prevailing opinion, delivered by Radcliff, J., as fol- lows : " The promise was not to indemnify for the default of another ; but was made to the plaintiff himself, for an act to be done by him as the servant of the defendant below. It was an original undertaking, and not a collat- eral promise." § 434. So in Marcy v. Craioford, 16 Connecticut, 649, A. D. 1844, it appeared at the trial in the court below, that the defendant had entered into a verbal agreement with the plaintiff, that if one S. P. C. should enter upon certain lands, and fish in a certain mill pond, and should be prose- cuted therefor by J. C, who had forbidden such entry and fishing, he (the defendant) would pay the plaintiff one half the amount which J. C. should recover, and one half the expenses of defending the suit ; and the plaintiff had made a corresponding contract with the defendant, in case the latter should in like manner enter and fish. The defendant insisted, with other objections to the recovery, that the promise was within the statute ; but under the ruling of the court, the plaintiff had a verdict and judgment, which was affirmed on error. Hinman, J., delivering the opin- Art. I.] Collateral Undertakings. 457 ion of the court, said, upon this point, that the promise was original. "It could not be," he continued, "for the debt of S. P. C. ; for he owed none. It was not for his default ; but was rather a promise of indemnity, to a certain extent, for doing a particular act, like the promise of indemnity to an officer taking property, which it may be doubted whether the creditor can hold." § 435. So in Feck v. F. W. Tliompson and C. Thomp- son, 15 Vermont, 637, A. D. 1843, the defendant F. W. Thompson had given the plaintiff a verbal order on one Campbell, to pay the plaintiff $88, upon a settlement of a debt which he owed to the plaintiff; but Campbell refused to pay the money without a written order, unless the plaintiff would give his individual receipt for the money, to be accounted for to Campbell on demand ; which the plaintiff gave accordingly ; subsequently Campbell threat- ened to sue the plaintiff on his receipt, and the latter noti- fied the defendant F. W. Thompson of this threat ; and he and his father, the defendant Charles Thompson, both promised the plaintiff, that if he would defend the suit, they would save him harmless from all damages and costs. The plaintiff" thereupon defended the suit, which resulted in a judgment against him ; and he then brought this action on the defendants' promise. It was objected that the promise was void against Charles Tliompson ; but the plaintiff had a verdict, and the judgment thereon was affirmed. The court held that the promise was not within the statute, on the ground that the agreement did not immediately relate to any debt which F. W. Thompson owed to the plaintiff ; but to a disputed claim against the plaintiff asserted by Campbell, who was a stranger to the consideration and to the agreement ; both of which origin- ated entirely between the present parties, § 436. The same rule was followed, with but little variety •as to the facts, in Goodspeed v. F idler, 46 Maine, 141, A. D. 1858 ; Flemm v. WJiUmore, 23 Missouri, 430, A. D. 1856, and Dorwin v. Smith, 35 Vermont, 69, A. D. 1862. 58 458 Collateral Undertakin-qs. [Ch. xiii. In Stark v. Raney, 18 California, 622, A. D. 1861, it was held that a verbal promise, by the plaintiff in an execu- tion, to indemnify a sheriff for seizing property claimed by another, was not within the statute ; and in Tarr v. NortJiey, 17 Maine, 113, A. D. 1840, a similar promise by a stranger was sustained, although the plaintiff in the execution also joined in the request to the officer ; it appearing that the latter was not satisfied with the plaint- iff 's ability to indemnify him, and refused to levy upon the property without the defendant's promise of in- demnity. § 437. But a promise of indemnity cannot be made the medium of saving from the operation of the statute, an engagement of the promisor to respond for an existing lia- bility of a third person to the promisee ; as where the promisee has a demand against a third person, and the promisor engages to pay the same, as distinguished from the expenses of the litigation ; in case the promisee shall fail in an attempt to recover the amount from a fourth person. This was held, and very properly, in Tur- ner V. Hiihhell, 2 Day (Connecticut), 457, decided A. D. 1807. There the declaration alleged, in substance, that the defendant's son had received on board a vessel at Newbern, of which he was commander, certain merchan- dise of the plaintiff to be transported to New York, and that he had sold and converted it to his own use ; that on the plaintiff proposing to institute a suit against the son, the defendant requested him to forbear doing so, and to sue one Selby therefor, who, as the defendant alleged, was equally concerned in the conversion of the goods, and had received the proceeds ; and in consideration that he would do so, promised that he would pay the damages so sus- tained by the plaintiff, in case he should fail in the suit against Selby, or be unable to collect a judgmejit against him ; and that the plaintiff accordingly sued Selby, but was defeated. At the trial the plaintiff offered to prove a verbal promise as laid in the declaration, which was ruled out, as being within the statute of frauds j and a Art. II.] Collateral Undertakings. 459 verdict having been rendered for the defendant, the plaintiff brought error on the judgment. In the Supreme Court of Errors the judgment was unanimously affirmed, no opinion having been delivered. ARTICLE 11. Where the promise was to indemnify the promisee against a liability to be incurred by him, at the request of the promisor only) but as security for the fulfilment of a third person's engagement to a fourth. § 438. Where one person becomes a surety for another, at the latter' s request, and for his benefit, the request necessarily implies a promise of indemnity ; and if another person unites with the first in the request, and makes an express promise to indemnify the surety, his promise must necessarily be within the statute, as being collateral to the implied promise of the principal. Of course the case is still stronger, if the principal has also made an express promise. But it frequently happens that he who is primarily bound in an undertaking, for his fulfilment whereof another person has also become liable, was not a party to the transaction wherein the latter was induced to assume the liability ; but that such consent was given solely upon the faith of an express promise of a stranger to the undertaking, that he would indemnify the surety. Whether a verbal promise of the indemnitor is, in such a case, within the statute, is a question upon which the authorities are very confused and discordant. On the one hand it is argued, that as it is the duty of every prin- cipal to protect his surety against loss, the promisor's contract is by its terms to answer for the default or mis- carriage of another. And again it is said that inasmuch as the law always implies an undertaking, on the part of every principal, to indemnify his surety, the engagement of another to indemnify him also is necessarily concurrent with, and collateral to an engagement of the person primarily bound upon the undertaking ; which the law implies, if no express engagement to that effect has been made. 460 Collateral Undertakings. [Ch. xiii. § 439. On the other hand it is insisted, that in the absence of any request on the part of the third person to the promisee, that the latter would enter into the undertaking for his benefit, he is to be regarded as simply assenting to the transaction, not as entering into any engagement with respect thereto ; so that in case the promisee shall be there- after called upon to make good his undertaking, the third person's liability to him does not grow out of any implied promise, made at the time when the principal contract was entered into ; but out of the actual payment by him of the damages which he has become liable to pay. Such payment, it is conceded, raises an implied assumpsit, upon which the surety is entitled to recover ; but it is contended that the principal' s liability to an action flows from a fact, existing subsequent in time to the engagement of the promisor ; so that such engagement is not within the statute, upon the principle that a contingency arising after the promise was made, will not suffice to draw it within the statute, if it was not so at the time when it was entered into, (a) With respect to the suggestion that the engagement is to respond for the miscarriage or default of the third person, it is further said that the default, against which the promisee is indemnified, is not a default in a duty to him, but to the fourth person ; and therefore the promise is good without writing, within the rule which excludes from the operation of the statute, promises not made to the person entitled to enforce the liability assumed by the promisor. § 440. This contradiction in the cases upon this import' ant question, had its origin in England, where the courts have vacillated between the two lines of argument, thereby causing a corresponding vacillation in the decisions in the United States ; as will be apparent by a comparison of dates between the English and American cases. In Thomas v. Cook^ 8 Barnewall and Cresswell, 728, decided (a) Section 152. Art, II.] Collateral Undertakings. 461 A. D. 1828, (^) the Court of King's Bench sustained, as not being within the statute, a promise made by one of two persons about to become sureties for a third, that he would indemnify his fellow surety against loss. There the first three counts of the declaration, wliich were in substance the same, stated that one Cook, since deceased, had been in partnership with one Morris ; and upon dis- solving the firm it was agreed between them, that Cook should indemnify Morris against the debts of the firm, by a bond executed by himself and two other persons ; and in consideration that the plaintiff, at the defendant's request, would execute such a bond with the defendant and Cook, the defendant undertook to indemnify him against so doing ; concluding with averments of a breach, damages, etc. The fourth count of the declaration stated, that in consideration that the defendant, and Cook, with the plaintiff as Cook' s surety, would together draw a bill of exchange upon certain other persons, and indorse and deliver it to Morris, to be negotiated for his own use, the defendant likewise undertook to indemnify him ; averring also a breach and damages. The declaration also con- tained the general counts. At the trial the plaintiff proved the execution of the bond and of the bill at the defendant' s request, and a verbal promise of indemnity by the defend- ant ; and also various payments by the plaintiff on account of the debts and the bill of exchange, the amount of wliich was reduced by moneys received from the estate of Cook to 300^, / and the defendant objecting that the promise was within the statute, and that he was liable only for con- tribution as a co-surety, the plaintiff had a verdict for 'SOOl. with leave to the defendant to move to reduce it to 150Z. § 441. A rule nisi was accordingly obtained, which after argument was discharged, Bayley, J., saying: "Here the (h) S. C, 3 Manninf;^ .ind Ryland, 444. This report states tlint Littledale, J., concurred in the decision ; but tlie report in 8 B.irnewail and Crcsswell states that he was absent. Lord Denman, in the next case, assumed that this judgment was pronounced by two judges only. 462 Collateral Undertakings. [Ch. xiii. bond was given to Morris as the creditor ; but the promise in question was not made to him. A promise to him would have been to answer for the default of the debtor. But it being necessary for W. Cook, since deceased, to find sureties, the defendant applied to the plaintifi" to join him In the bond and bill of exchange, and undertook to save him harmless. A promise to indemnify does not, as it appears to me, fall within either the words or the policy of the statute of frauds ; and if so, there was sufficient evidence to entitle the plaintiff to a verdict for 300Z." Parke, J., said : "This was not a promise to answer for the debt, default or miscarriage of another person, but an original contract between these parties, that the plaintiff should be indemnified against the bond. If the plaintiff, at the request of the defendant, had paid money to a third person, a promise to repay it need not have been in writing, and this case is in substance the same. The rule for ceducing the verdict ought therefore to be discharged." § 442. But in 1839 the same court, in Green v. Cresswelly 10 Adolphus and Ellis, 453, (c) made a decision which was certainly intended to overrule the case of Thomas v. CooJc^ and has generally been regarded as having had that effect. There the declaration stated that John Reay had sued Joseph Hadley by capias, on which Hadley had been arrested ; and in consideration that the plaintiff, at the request of the defendant, would become bail for Hadley upon the capias, the defendant promised to indemnify him ; but Hadley did not put in special bail, whereby, etc. At the trial the plaintiff had a verdict ; but, as the pleadings showed that the promise was verbal, a rule nisi to arrest the judgment was obtained, which the court, after argument, made absolute. Lord Denman, C. J., who delivered the opinion of the court, said: "The promise in effect is, ' If you will become bail for Hadley, and Hadley, by not paying or appearing, forfeits his bail bond, I will save you harmless from all the consequences of your (c) S. C, 2 Perry and Davison, 430, and 4 Jurist. 169. Art. II.] Collateral Undertakings. 463 becoming bail. If Hadley fails to do what is right towards you, I will do it instead of him.' If there had been no decis- ions on the subject, it would appear impossible to make a reasonable doubt that this is answering for the default of another." § 443. His Lordship then referred to Thomas v. Coolc, and added: "But the reasoning in this case does not appear to us satisfactory in support of the doctrine there laid down ; which, taken in its full extent, would repeal the statute. For every promise to become answerable for the debt or default' of another may be shaped as an indem- nity ; but, even in that shape, we cannot see why it may not be within the words of the statute. Within the mis- chief of the statute it most certainly falls." "A distinction," continued his Lordship, "was also hinted at, from the circumstance of Hadley' s debt being due to a third person, and the default therefor incurred towards him, not towards the bail. But here again is the surmise of an intention in the legislature which none of its language bears out ; and besides, may it not be said that the arrested debtor, who obtains his freedom by being bailed, under- takes to his bail to keep them harmless, by paying tlie debt or surrendering? There does not appear any objec- tions to the test laid down in the note to 1 Williams's Saunders, 211 c ; and it is decisive in favor of the ob- jection. The original party remained liable, and tlio defendant incurred no liability except from his promise." § 444. In Reader v. King7iam,{d) and in Fitzgerald v. Dressier ^{e) as well as in the two cases which will be next cited, to complete the English decisions upon this point, the soundness of the decision in Oreen v. Cressioell is much questioned ; and it must be regarded, in the present state of the cases, as of very doubtful authority in Eng- land. But in the United States, it has had the effect of unsettling entirely the law upon this question. ((f) Ante, §§ 367, 368. (e) Post, §§ 590, 591. 464 Collateral Undertakings. [Ch, xiii. § 445. In a recent case in the Exchequer, Batson v. King, 4 Hurlstone and Norman, 739, A. D. 1859, (/) the defendant and one Dalton, desiring, (as was found by the jury,) to raise money for their joint benefit, applied to the plaintiff to draw a bill upon Dalton, to be accepted by him and indorsed by the defendant ; and the plaintiff did so, upon the defendant's agreement that he should not be called upon to pay ; but when the bill became due the plaintiff was compelled to pay it; whereupon he brought this action for money paid, and had a verdict for the whole amount. Upon an application for a rule to reduce the verdict by one-half, on the ground that the promise was within the statute. Pollock, C. B., said: "If a man says to another, 'If you will, at my request, put your name to a bill of exchange, I will save you harm- less,' that is not within the statute. It is not a responsi- bility for a debt of another. It amounts to a contract by one, that if the other will put himself in a certain situa- tion, the first will indemnify him against the consequences. In Green v. Cressioell, Lord Denman pointed out a dis- tinction between that case, and one where the defendant is a co-surety, (p') I do not think that the case itself was rightly decided." And Martin, B., immediately added: "If the argument for the defendant were well founded it would apply to all cases of joint suretyship." § 446. But a rule nisi was nevertheless granted ; and counsel having been heard in support of it, the rule was discharged. The court held that although as between the holder and the parties to the bill, the acceptor was prima- rily liable, yet as between themselves, the real nature of the transaction might be shown ; and it appeared here that in reality Dalton and the defendant were principals, so that the point decided in Green v. Cresswell did not (/) S. C, 28 Law Journal, .New Series, Exchequer, 327. ( and is reported in 10 Jurist, ISTew Series, 200. (z) There the judgment of the court below was reversed, unani- mously. Pollock, C. B., delivering the opinion, and resting the decision upon a distinction between bail in a civil and in a criminal case. He said that in the latter case there is no contract on the part of the person bailed, to indemnify the person who bailed him against his non- appearance. " There is in this case," he continued, "no debt, and with respect to the person who gives bail, there is hardly a duty ; and it may well be, that a promise to indemnify the bail in a criminal matter should be con- sidered purely as an indemnity, and not as the case of a promise to answer for the default or debt of another. It has been laid down in many cases that a mere promise of indemnity is not within the statute of frauds. On the other hand, where the promise is to answer for the default of another, it is within the statute. No doubt some cases might be put, where the promise to answer for the default or debt of another, would also involve a promise of what might be called very properly and legally an indemnity. Where that is the case, (as it is not here,) in all probability it might come within the statute of frauds. We are not called upon to overrule Green v. Cresswell, nor are we called upon to say that we entirely concur in it ; but we take this distinction, that in the present case the bail was given for the appearance of the criminal, and not bail for the purpose of answering a debt or default in a civil case." In the Jurist report it is merely stated that the other judges concurred ; but the other reports include also an opinion of Williams, J. , In which he said that he did not " think it at all necessary to say whether that case is good law or not ; " but, "whether or no in a case where the plaintiff becomes bail for a stranger in a civil suit, there is a duty, as between the defendant in the action and the surety, that he will render or pay the debt, so as to recon- cile the case of Oreen v. Cresswell with the ordinary rule, (i) Also 32 Law Journal, N. S., (Q. B.) 381; 11 Weekly Reporter, 953 j 8 Law Times, N. S., 765. Art. II.] Collateral Undertakings. 467 that the statute applies only to promises made to a person for whom another is answerable," he thought that there was no debt or duty due from the party in a criminal suit.(,/) ^ 449. In New York the question arose as early as 1813 in HarrUon v. Saiotel, 10 Johnson, 242. There it ap- peared that Sawtel, the plaintiff in the court below, was bail to the sheriff in a suit against one Foot ; and that at (y) The question whether a contract on the part of the accused to indem- nify his bail in a criminal case will be implied, has not, to our knowledge, been raised in this country. In Jones v. Orcliard, 16 Common Bench Reports, 614, 1 Jurist, N. S., 936, aiid24 Law Journal, N.S., C. P., 229, decided in 1855, the defendant had been indicted in the Central Ciiminal Court for a conspiracy, and the indictment had been removed to the court of Queen's Bench; where the plaintiff, at the defendant's request, entered into a recog- nizance with the defendant for his appearance, etc. The defendant was con- victed in his absence, and the recognizance estreated for nonpayment of the prosecutor's costs ; the bail being expressly made liable for such costs by statute, although nothing was said about them in the recognizance. This action was brought upon the implied contract of indemnit}'^, and after verdict, it was held that the action could be maintained. Jarvis, C. J., delivering the opin- ion of the court, intimated very strongly that the law would not imply a contract, on the part of the principal, to indemnify the bail against the con- sequences of the recognizance becoming estreated for the nonappearance of the principal ; because an express contract to that effect would be contrary to public policy ; inasmuch as it would be in effect giving the public the security of one person only instead of two. But as in this case the recog- nizance was estreated only for nonpayment of costs, the law would imply a promise of indemnity to that extent. The rule, of which the court apparently approved in this case,. and which was laid down positively in Cripps v. Hart- noil, would bear very hardly upon an innocent person accused of crime, who, although possessed of means, was a stranger in the country where he was arrested, or for some other reason had no friends who were both willing and qualified to become bail ; and the idea that public policy requires it-s estab- lishment appears to us very fanciful. In the absence cf direct authority in its support, we risk little in saying that it will not be adopted in this country. See Holmes v. Knights, 10 New Hampshire, 175, and Kingsley v. Balcom, 4 Barbour,131, cited post, in each of which the question arose upon an indem- nity to bail in a criminal proceeding, and no suggestion was made that the rule was different from what it would be in a civil case. Of course we do not refer to a case, where the bail had been indemnified for the purpose of procuring their assent to the prisoner's escape. 468 COLLATEKAL UnDEETAKHSTGS. [Cll. XIII. tlie request of Harrison, "who held himself bound to indemnify Foot in that action" (but how, or for what rea- son the report does not state), Sawtel became special bail, and Harrison promised to indemnify him. A judg- ment for the plaintiff was affirmed in the Supreme Court ; the following being all of the opinion material to the ques- tion. ' ' Per curiam. Tliis was not a promise to pay the debt, or answer for the default of another person. It was an original promise between the parties to it, that one of them would indemnify the other, if he would become special bail for a third person, whom the defendant was bound to protect and save harmless in the suit. It was done at the request and for the benefit of the defendant, as it saved him from becoming bail himself, or procuring some other person to become bail. The case had nothing to do with the statute of frauds ; and there was a consid- eration for the promise, the advantage resulting to the defendant from the plaintiff ' s becoming bail. The defend- ant being answerable for the party sued, the becoming bail for the party, at the request of the defendant, was as beneficial as if the plaintiff had become bail for the defend- ant himself. "(A:) § 450. But a ruling unquestionably in point was made by the New York Supreme Court, in Chapin v. Merrill, 4 WendeU, 657, A. D. 1830. There the plaintiff, at the request of the defendant and upon his promise to indem- nify him, had joined one Ransom in an agreement under seal, to guaranty the payment of goods to be supplied by Hickok and Hart, a mercantile firm, to Ransom's son. Upon the trial of the action, the plaintiff had a verdict Qc) It seems to have been assumed in most of the subsequent cases, that the defendant's liability to Foot was the distinguishing feature, upon which the court thought that the promise was not within the statute. But, as we read this opinion, the stress seems to be laid upon that fact, principally, if not entirely, to show that there was a sufficient consideration for the promise. Upon this question there was room for considerable doubt, as the plaintiflf was already bail to the sheriff, (and so bound to put in special bail,) at the time when the defendant's promise was made. Art. II.] Collateral Undertakings. 469 under the judge's charge, which the defendant moved to set aside. The motion was denied, Marcy, J., saying upon this point: "This is ch^arly an original undertaking; it was not made with the party buying or selling the goods. The goods sold by Hickok & Hart to Ransom were not the consideration for the promise." He held also that the consideration was the harm to the plaintiff, and that it was sufficient to sustain the promise, although tlie defendant received no benefit from the transaction. The case of Thomas v. CooJc, although decided two years pre- viously, is not cited ; and, what is more remarkable, there is no allusion iuQ the opinion to Harrison v. Sawtel. § 451. This case was doubted by Cowen, J., in Carnille V. Crane, 5 Hill, 484,(?) which did not, however, call for any expression of opinion upon the point ; but in 1848 it was overruled by the present Supreme Court of New York in Ktngsley v. Balcome, 4 Barbour, 131. The decis- ion rested chiefly upon the authority of Green v. Cress- well, which, as was mentioned in commenting upon that case, has since been very much shaken in England ; and in truth it is now settled there, that the decision does not cover the precise point adjudged in Kingsley v. Bal come, {m) In the latter case it appeared that the plaintiff had entered into a recognizance for the appearance of one McMillen, to answer to a charge of perjury, at the request of the defendant and upon his promise of indemnity ; but whether McMillen also joined in the request is not stated. McMillen having failed to appear, the plaintiff" had been compelled to pay the full penalty of the recognizance. To a declaration setting forth these facts, the defendant pleaded that the promise was not in writing, and the plaintiff demurred to the plea. § 452. Sill, J., delivered the opinion of the court, over- ruling the demurrer. After citing the statute, he said that (/) Cited ante, §§ 209, 210. (m) Cripps v. Hartnoll, ante, §§ 447, 448. 470 Collateral Undertakings. [Ch. xiii. "to the plain common sense of every mind, the promise of the defendant would be deemed a promise to answer for the default of McMillen, and to indemnify the plaintiff for his miscarriage ; ' ' but he added that it was necessary to look at the decisions, for the meaning of this otherwise plain provision of the statute. After mentioning and commenting upon Harrison v. 8awtel, and such Massa- chusetts cases as had been decided up to that time, all of which he either distinguished from the case at bar, or con- demned as unsound, the learned judge recapitulated the facts of Chajnn v. Merrill, and contended that it was erroneously decided ; because when the younger Ransom availed himself of the arrangement, which had been made by Merrill with Chapin for his benefit, and used the credit of Chapin, ' ' he adopted and sanctioned what Merrill had done for him, and created the relation of principal and surety between himself and Chapin," so that the law im- plied a promise on his part to indemnify Chapin. It was no answer, the learned judge thought, to say that Cha- pin' s covenant was to another mercantile firm ; for Ransom junior had assumed two distinct obligations ; one to the vendor of the goods, and another to Chapin. Merrill' s promise was not collateral to the first, but it was clearly so to the second. "The case," the learned judge said, " stands unsupported by any decision in our courts. It has not been relied upon or cited as authority for any subsequent adjudication, or received the sanction of any of our courts or judges." (?i) The opinion then referred to Green v. Cresswell, the facts in which, the learned judge thought, "are precisely like those in the case before us, exicept that the plaintiff was bail in a civil case instead of a criminal one." And he adopted that case as authority for his conclusion that the plea was good. § 453. The case of Barry v. Ransom, 12 New York (2 Kernan), 462, decided in 1855, takes a distinction, which {n) If this remark was intended to include courts in other States, it was erroneous, as the subsequent pages will show. ^rt. II. J Collateral Undertakings. 471 reconciles the conflicting decisions in one species of cases, presenting this perplexing question. In brief, the ques- tion before the Court of Appeals was, whether the admin- istratrix of Felix O'Neil, a surety in a tax collector's bond, who had paid the amount of a defalcation of the collector, was entitled to compel contribution from one McGloin, who had also become a surety in the bond, but at the request of O'Neil, and upon the latter' s promise to indemnify him. In the court below, a referee reported that McGrloin was not bound to contribute any thing. The report was confirmed and a decree made, by which the estate of O'Neil was ultimately left to bear the whole of the liability arising upon the bond. The administratrix of O'Neil appealed to the Court of Appeals, where the judgment of the court below was afiirmed. Denio, J., delivering the opinion of the court, upon the question whether the undertaking should have been in writing to satisfy the statute of frauds, said that if the case was to be considered, irrespective of the circumstance that O'Neil was also a surety in the bond, there were adjudications on both sides of the question. § 454. Citing the diff'erent adjudications upon the point up to that time, the learned judge added, that those where the promisor was himself bound for the third person' s default, are uniform, in holding that the contract is not affected by the statute. Such was the case of Thomas v. Cook, which is overruled by the subsequent case of Green V. Cresswell, unless the distinction to which he had adverted is material ; but in the latter case the promisor was not a party to the instrument. This difference between the cases was suggested by counsel, upon the argument of Green v. Cresswell, and apparently made a favorable impression upon one of the judges ; but in the opinion the court proceeded upon a disapproval of the ruling in Thomas v. Cook. In the case at bar, the Icai-ned Judge added, 0' Neil's engagement to answer for the default of the collector was in writing, and he was under no greater obligation to respond to the corporation therefor, in con- 472 Collateral Undertakings. [Cli. xiii. sequence of his promise to McGloin, than if lie had not made the latter. Lord Denman's objection to holding the promise good in Green v. Cresswell, was that the statute might be evaded. "This reason," said the learned judge, " certainly does not apply where the indemnitor is other- wise bound in writing, for the party whose default is to be provided against. I am of opinion that where a person is about to become bound by writing to answer for the default of a third party, and he procures another to be bound with him in the same obligation, by promising to indemnify him, that this is an original promise and not within this branch of the statute of frauds." § 455. In the course of his opinion in MaMory v. Gillett, 21 New York, 412, Comstock, J., classed this species of promises among those which were without the statute, (o) but the remark was obiter, and in the subsequent case of Baker v. Dillmann, 12 Abbott's Practice Reports, 313, and 21 Howard's Practice Reports, 444 (A. D. 1861), the New York Supreme Court refused to recognize this die • tum, and again followed the rule laid down in Kmgsley V. Balcome. The plaintiff sued as assignee of one Schurig, to recover a sum paid by Schurig, upon his guaranty given to Sarah Case, to secure the payment of rent reserved in a lease from her to the Brooklyn Turn Verein, an unincorporated association, of which he and the defend- ants were members. It was proved that after Schurig had ceased to be a member of the association, and before the rent for which he was subsequently sued had become payable, the defendants signed "a declaration," which the court regarded as a contract to indemnify him, not expressing the consideration. Emott, J., delivering the opinion of the court, held that Chapin v. Merrill was overruled by Kingsley v. Balcome; and he referred to Green v. Cresswell as an authority to show that a promise to indemnify, in such a case as this, was within the statute. He added that he thought that upon principle the result (o) See ante, § 64. Art. II.] Collateral Undertakings. 473 would be the same. Judpjment upon the exceptions taken at the trial, was accordingly ordered for the defendant ; but the learned judge; also assigned, as a reason for liis decision, that there was no consideration in fact for the contract ; and he intimated that if the plaintiff had any remedy, it was by an action for contribution. Under these decisions all that can be said is, that the rule in New York awaits a settlement by the court of last resort ; except in cases where the promisor and promisee wc^e parties to the instrument, which formed the subject of the promise. § 456. In Perley v. Spring^ 12 Massachusetts, 297, de- cided in 181/5, and again in ChaphiY. Laphaniy 87 Massa- chusetts (20 Pickering), 467, decided in 1838, both of which are cited previously upon other points, (;:>) a promise to indemnify the plaintiff, for becoming surety for a third person to a fourth person was held not to be within the statute ; but in each case other reasons are principally relied upon for the decision. And although in Blake v. Cole, 39 Massachusetts (22 Pickering), 97, A. D. 1839, the point was presented directly for adjudication, and the court distinctly determined it in favor of the plaintiff ; the authority of the case upon this point has been sometimes doubted ; partly because so much stress was laid in the opinion upon the objection that the promise was not to be fullilled within a year ; and partly on account of the peculiar reason assigned by the court for the ruling upon this clause of the statute. The plaintiff's intestate and the defendant had become sureties for one Hatch, the son' of the plaintiff's intestate, on a probate bond given by him as administrator of a deceased person ; and the plaintiff, having been compelled to pay a sum for Hatch's default, sued for contribution. The defence was that the defendant executed the bond, at the request of the plaint- iff' s intestate, and upon the latter' s promise to indemnify him. It appeared at the trial that the defendant had been applied to by Hatch junior to execute the bond, and liad (i?) ALt*s^§171, 264. 60 474 Collateral Undertakings. [Cli. xiii. refused to do so ; whereupon the intestate had said, " Well, if you will not do it for him, do it for me ; I will hold you harmless ; ' ' and the defendant had then answered that he would sign it. A verdict for the defendant having been taken, subject to the opinion of the court, judgment was ordered for the defendant ; on the ground, as far as this point was involved, that the intestate' s relation to the defendant, was rather that of a principal than a co-surety ; and that a surety may take himself by contract out of the liabilty to contribute. (§') § 457. But in 1857 all doubts upon this point were con- clusively set at rest, as far as the Massachusetts courts are concerned, by the decision of the Supreme Court of that state in the case of Aldrich v. Ames, 75 Massachusetts (9 Gray), 76. There the case is stated to have been in sub- stance, "that the plaintiff at the request of the defendant, and for a valuable consideration, became bail for John A. Crehore, upon which the defendant promised the plaintiff to indemnify and save him harmless," and the defence was that the promise, not having been in writing, was within the statute of frauds. Shaw, C- J., said: "The court are of opinion that this ground is wholly untenable. This is a promise by the defendant to another to pay his debt ; or, in other words, to save him from the performance of an obligation which might result in a debt. But it is a promise to the debtor to pay his debt, and thereby to relieve him from the payment of it himself, which is not within the statute of frauds. The theory of the statute of frauds is this, that when a third party prom- ises the creditor to pay him a debt due to him from a person named, the effect of such a promise is to become a surety or guarantor only, and shall be manifested by written evidence. The promise in such case is to the creditor, not to the debtor. For instance, if A, a debtor, owes a debt to B, and C promises B, the creditor, to pay it, that is a promise to the creditor to pay the debt of A. But in the (2) See also Taylor v. Savage, 12 Massachusetts, 98, to the same effect. Art. II.] Collateral Undertakings. 476 same case, should C, on good consideration, promise A, tlie debtor, to pay the debt to B, and indtMunify A from the payment ; altliough one of the results is to pay the debt to B, yet it is not a promise to the creditor to pay the debt of another, but a promise to tlie debtor to pay his debt. This rule appears to us to be well settled as the true construction of the statute, well contirmed by author- ities." So the plaintilF had judgment. § 458. The Supreme Court of Maine held, in SmitJt v. Sayward^ 5 Greenleaf, 504 (A. D. 1829), that the defend- ants' promise to indemnify the plaintiff for signing, at their request, a note as surety for one Daniel Smith, was not within the statute ; Daniel Smith not having requested the plaintiff to become his surety, and the note having been given for a purchase of an interest in lands, made by Daniel, as the agent and for the benefit of tlu3 defendants, although the purchase was in Daniel's own name, his agency being secret. But in this case, as in Harrison v. Sawtel, (which was chiefly relied upon as the authority for the ruling of the court), the opinion dwelt so much upon the benefit to be derived by the defendants from the transaction, as to render somewhat obscure the real ground of the decision. The opinion concluded by say- ing that " the promise raised upon that consideration was not, as contended by the defendants' counsel, to pay the debt or answer for the default of another ; but it was to indemnify and save the plaintiff harmless for performing a beneficial service for them, and at their request ; to save him harmless in case he should be compelled, as he has been, to pay their debt contracted by their agent." The case is therefore of but little authority upon either side of the question. § 459. In the other States, the ruling lapon this quc^stion has generally depended upon the time when it was first presented for adjudication ; the earlier cases following Thomas v. Cook, and Chapiri v. Merrill ; and the more recent cases following Ghreen v. Cresswell, and Kingsley 476 COLLATEEAL UNDERTAKINGS. [Cll. XIII. V. Balcome, wliicli are regarded as having overruled their predecessors. § 460. The ablest argument upon principle in support of the doctrine that the promise is not within the statute, which has been made in any case, either in England or America, is to be found in Chief Justice Parker's opinion in Holmes v. Knights, 10 New Hampshire, 175, A. D. 1839. There the case was submitted to the court upon a statement of facts, from which it appeared that one Webster was ordered to recognize, with two sureties, for his appearance in a criminal court to answer the charge of passing counterfeit money ; and the plaintiff entered into such recognizance with Webster and one other person, upon the defendant's oral application and promise to indemnify him ; that Webster did not appear, whereby the recognizance became forfeited and the plaintiff had been compelled to pay, etc. After argument the plaintiff had judgment. Parker, C. J., in delivering the opinion of the court, after laying down the general rule applicable to collateral undertakings, said, that the questions to be examined in this case are, whether Webster was liable to indemnify the plaintiff, and whether the defendant's undertaking was collateral to that liability. He then pro- ceeded : ' ' When one requests another to become surety for him and he does so upon that request, the law raises an implied promise to indemnify. But the case does not find that Webster requested the plaintiff to recognize for him, or that the plaintiff acted upon any such request. From the nature of the case, Webster must have assented that the plaintiff should become his surety ; but mere assent, without any request or promise, and where there was a request by a third party, and an express prom- ise by him to indemnify, is not sufficient to raise an implied promise. A declaration in favor of the plaintiff against Webster must have alleged, that he became surety at his request, and on the request the promise to indem- nify may be implied. But this case only finds that the defendant applied, and that he promised. If we may Art. II.] Collateral Undertakings. 477 infer that Webster assented, we cannot infer any request by him. Of course we cannot find, nor could a jury on such evidence, any credit given to Webster, or any origi- nal liability on his part, to which the defendant's engage- ment was collateral. "(^) §461. " For aught that appears to the contrary," con- tinued the learned Cliief Justice, "if Webster made any request, the plaintiff refused." "AVebster in that case could not be held liable on the request he made, for that would not have been acted on, but reject(?d. Ilie whole credit would have been given to tlie defendant. We do not mean to be understood, however, that the promise of the defendant would be within the statute, had the case stated that Webster also requested the plaintiff to become surety for him. It is apparent that the plaintiff did not assume the liability upon the request of Webster, if one was made ; but upon the request of the defendant, and upon his promise to indemnify ; and there are authorities showing that a promise to indemnify in such case is not within the statute ;" citing and commenting upon Thomas V. Cook and Chapin v. Merrill. "The promise of the defendant is not to answer for the default of AVebster, in not appearing according to the terms of the recognizance. That was the undertaking of the plaintiff in the recogni- zance itself. Nor is it to answer for the default of Webster, in not indemnifying the plaintiff. It has no reference to any duty on the part of Webster to indemnify tlu^ plaint- iff, in case he should make default. That duty the def«^nd- ant took upon liimself." The learned Chief Justice concluded his opinion, by saying that under the circuih- stances, if Webster was also liable on an ini])li('d ])romis«', that liability might be held to be an original iiuh'pcndent liability. "If either was to be deemed collateral, the lia- bility of Webster in such case would seem in point of fact to be collateral to that of the defendant." (r) See the same distinction between a request and an assent very neatly taken, and the same consequences deduced therefrom, in Pearce v. Blagrave ante, § 163. 478 COLLATEEAL UnDEETAKINGS. [Cll. XIII. § 462. The question was decided in the same way by the Supreme Court of Georgia in Jones v. The Adminis- trators of Shorter, 1 Kelly, 294, A. D. 1846. There the plaintiff filed a bill for specific performance of a verbal agreement by the defendants' intestate, to execute a bond of indemnity, and for the payment by the defendants of any amount, which might be recovered against the plaintiff and the defendants, in an action pending upon an admin- istrator' s bond, wherein the plaintiff and the defendants' intestate were sureties for the due performance of his trust by the administrator ; alleging that the bond was executed by the plaintiff upon the agreement of the defendants' intestate, to indemnify the plaintiff against any loss in consequence of his so doing ; and that after the bond was so executed, he promised to draw up and execute to the plaintiff a written indemnity accordingly. The bill was afterwards amended, by alleging that the plaintiff had paid sundry sums of money upon judgments and other demands, growing out of the administrator' s default. The court dismissed the bill, holding, on the authority of Thomas v. Cooli and Chapin v, Merrill, that there was an adequate remedy at law by an action upon the verbal promise. This was an action, it will be noticed, between two of tlie sureties. § 463. And m Mills v. Brown, 11 Iowa, 314, A. D. 1860, the defendant interposed, by way of set off, a demand against the plaintiff, arising upon a promise to indemnify him for signing as surety a note with a third person ; and it was held, upon the same authorities and the more recent cases which followed them, that the promise was not within the statute. It would appear from the report, that the note showed upon its face that the defendant had executed it as surety for the third person. § 464. A similar rule was laid down by the court below in Doane v. Newman, 10 Missouri, 69, A. D. 1846, but the point was not argued upon the appeal, and the case went off upon another point. Ai-t. ir.] Collateral Undertakings. 479 § 465. In Kentucky a similar rule has been established by a series of cases commencing with Dunn v. West, 5 B. Monroe, 376, A. D. 1845. There the defendant inter- posed as a set off, a demand against the plaintiff, arising out of his having been compelled to pay certain notes, which he had signed with the son of the plaintiff and for his benefit, at the request of the plaintiff, and upon the latter' s promise, "that he should not pay any thing by it ; that he, the plaintiff, would pay the debt himself if his son did not ; and that if he (West) had any thing to pay on the notes, he would pay him back the same." The plaintiff having objected that the promise was within the statute, the jury found that the notes were executed upon the sole credit of the plaintiff. The Court of Appeals affirmed a judgment allowing the set off, Mar- shall, J., remarking, in his opinion, that it was a doubt- ful question whether the defendant could recover at all from the son ; but even if it was clear that he could recover, the action would necessarily be founded upon an assumpsit raised by a subsequent fact, to wit, the payment of the notes ; which would not prove that there was any contract express or implied between them, at the time when the notes were signed ; much less that there was any debt for which the plaintiff became bound. He added, with reference to the conditional character of the promise, that the plaintiff did not promise to pay West if his son did not pay him ; but to pay him if in consequence of his son's failure to pay the original debt to another, West should have to pay that debt. § 466. This decision was followed in Lucas v. Chamber- lain, 8 B. Monroe, 276 (A. D. 1847), where the court sustained, as not being within the statute, a promise by the defendant to indemnify the plaintiffs for executing, as sureties, an injunction bond with J. and J. St<'phens, to stay execution upon a judgment recovered ngainst them. In fact an execution upon tli<^ judgment stayed by the injunction had been levied on the property of the defend- ant, he having been surety for J. and J. Stephens in tlin 480 Collateral Undertakings. [Cli. xiii. original suit ; and the court laid stress upon that circum- stance in the opinion ; but nevertheless, it was distinctly said tliat the rule would have been the same, if the defend- ant had been an entire stranger to the debt. So in Jones V. Letcher, 13 B. Monroe, 363 (A. D. 1852), it was held that one who had requested another, to become jointly bound with him as surety upon a third person' s bond as executor, and had verbally promised to indemnify him for so doing, was liable upon the promise, although the objection was taken that the statute prevented a recovery. § 467. To these citations in support of the validity of the verbal promise, should perhaps be added the recent case of Reed v. Holcomh, 31 Connecticut, 360 (A. D, 1863), although its peculiar circumstances, and the reasons upon which the court proceeded, materially affect its value as an authority upon this question. There the defendant procured the plaintiff to indorse the note of a third person, for the defendant' s benefit, and in order to enable him to raise the money upon it, promising to indemnify the plaintiff for so doing ; and the defendant subsequently indorsed it himself and raised the money upon it. The court held that the promise was not within the statute, on the ground that the leading object of the defendant was to accomplish a purpose of his own. The case of Green V. Cresswell was distinguished from this case on that ground, the court saying that there the object of giving the bail bond was merely to liberate the debtor, (s) § 468. On the other hand it appears to be settled in Ohio, by recent decisions, that a promise to indemnify the promisee for becoming surety for a third person is within the statute. Thus in Easter v. White, 12 Ohio, New Series, 219, A. D. 1861, the plaintiff sued upon a verbal (.s) See the case cited again in chapter seventeenth, article second. But upon the principle of the decisions in BatsoR v. King, ante, § 445, and in Barry v. Ransom, ante, § 453, the defendant was clearly liable, witliout resorting to the reason which was assigned by the court for its judgment. Art. II. J Collateral Undertakings. 481 promise of the defendant to indemnify him for becoming surety, at the defendant' s request, for one McDonald, in an undertaking in replevin ; and the Supreme Court affirmed a judgment for the defendant, on the ground that the promise was within the statute. The opinion, delivered by Sutliff, J., first considered the question upon authority, regarding the law as entirely settled in England by the decision in Green v. Oresswell, and in New York by that in Klngsley v. Balcome, each overruling a former case holding the other way. The opinion then proceeded to discuss the question upon principle ; and concluded that if the authorities left it in doubt, the rule should be settled in the same way. In answer to the argument that McDonald was not liable when the promise of indemnity was made, the learned judge said, that it makes no dif- ference whether A, a principal, has already made a pur- chase from B and incurred a debt, for which C asks D to become the surety of A, and promises to indemnify him therefor; or w^hether A's purchase can only be obtained upon his obtaining such surety, and the debt is contracted and the surety becomes liable, after such a promise of indemnity. "In either case," he proceeded, "the lia- bility assumed by the surety is only to the effect, that the principal shall discharge his own duty, or pay his own debt ; and the principal is bound in law to prevent the liability attaching to the surety ; and if the surety should be compelled to pay the debt or suffer any loss, as his surety, then the principal is in law bound fully to indem- nify or remunerate him for the same." And in this opin- ion the other judges concurred. But the argument, that the liability of the third person arises out of a subsequent payment by the promisee, was either disregarded or mis- understood. § 469. In Kelsey v. Hihhs, 13 Ohio, New Series, 340, A. D. 1862, a bill of exchange, payable to the order of one Hale, but not indorsed, was handed by the defendant to the plaintiff, with a request to indorse it for liim, which the plaintiff did ; and the bill was subsequently indorsed 61 482 Collateral Undertakings. [Cli. xiii. by Hale and negotiated ; but for whose benefit the report does not state. The name of the defendant was not on the bill, and there was nothing else to show that he was liable to the holders for its payment. The plaintiff was com- pelled to pay the amount of the bill to the holders, and brought this action on a contract, alleged to arise from the circumstances stated, to recover the amount so paid. The defendant relied on the statute of frauds as a defence. And it was held, that the circumstances showed no con- sideration suflBcient to create a distinct and independent contract, which would not be affected by the statute ; but only a promise to indemnify against the default of a third person, which, not being in writing, created no legal obligation. But apart from the question whether an express promise to indemnify is within the statute, this was apparently a case where the promise was only implied ; whereas the statute' of Ohio, like the English statute, relates only to special promises ; a feature which the court seems to have entirely overlooked. § 470. In Alabama it was also said, in Brown v, Adams, 1 Stewart, 51, A. D. 1827, that the defendant's promise of indemnity against any liability to be incurred by the plaintiff, by reason of his executing a bond as security for the due performance of his duty by a public officer, was within the statute ; but no authorities were cited, nor was any reason for the decision given, except that it was " clearly a promise to answer for the default or miscar- riage of a third person.'- The decision is not of much weight, as it was pronounced before the general recogni- tion of the doctrine, that a promise not made to the person entitled to enforce the liability is not within the statute ; and besides, the remark was only a dictum. § 471. In North Carolina a verbal promise to indemnify one for becoming surety for another, is regarded as being within the statute, according to a ruling in Draughan v. Bunting, 9 Iredell, 10, A. D. 1848. The substance of this case appears to have been, that the defendants' testator Art. II.] Collateral Undertakings. 483 promised to indemnify the plaintiff for indorsinp^ a note for one Underwood, the plaintiff having previously refused to do so, "unless he could be indemnified, which he, Underwood, promised should be done;" and accordingly the promise was given by the testator, in consideration of property transferred by Underwood to him ; after which the plaintiff indorsed the note. The court said that the promise was void by the statute of frauds, because Under- wood was under a legal liability to indemnify the plaintiff; however a judgment for the defendant was reversed, because the court thought he was liable, by reason of the property placed in his hands by Underwood. § 472. The case of Brush v. Carpenter, 6 Indiana, 78, A. D. 1854, was in some respects similar to the one last cited ; but here the debtor had indemnified the defendant by a transfer of property, made after the plaintiff had suffered damages. The report says that the plaintiff "became replevin bail for one Anderson," upon the request of the defendant, and his verbal promise to indemnify him against loss, etc. ; without disclosing whether Anderson also requested the defendant to become his surety, or merely assented to his doing so. The court, without discussing the question, held that it was ' ' well settled by the latest authorities" that the promise was within the statute, citing Kingsley v. Balcome and Green v. Cresswell. But a judgment for the plaintiff was affirmed, for reasons growing out of the transfer of property to the defendant by Anderson. ^ 473. We will conclude these citations "with a case, which turned upon the point, that although it appeared that the plaintiff was a surety for somebody, it did not appear that there was either a third or a fourth person concerned, out of whose relations to the plaintiff the ques- tion could arise. In Beaman v. Russell, 20 Vermont, 206, A. D. 1848, the action was upon an agreement in \\Titing, whereby the defendant agreed with the plaintiff's intestate, "to indemnify him for signing two notes with J. B., A. R., 484 COLLATEEAL UNDERTAKINGS, [Cll. XIII. and A. B., for four liundred dollars each," etc. (describing the notes) ; and upon the trial the plaintiff, having proved the notes, bearing the signatures of the three persons named in the agreement, and also of the plaintiff' s intestate, was defeated ; partly on the ground that the agreement did not sufficiently express the consideration. But the Supreme Court granted a new trial, for the reason, (as far as the objection arising out of the statute was involved,) that it was of no consequence whether the writing was or was not sufficient ; because there was no evidence that the plaintiff' s intestate was surety for any person except the defendant himself ; and, for aught that appeared, all the makers of the note might have signed it for the accommo- dation of the defendant, and on his promise of indemnity, as the plaintiff's intestate did. The point, whether the promise would have been within the statute, had it appeared that the plaintiff' s intestate was in fact a surety for the other signers, was therefore left undecided ; but the court cited with approbation the cases in England, New York, Massachusetts and New Hampshire, in which such a promise was sustained. § 474. As the result of the conflict of authority upon this question, nothing can be regarded as definitely settled ; except, perhaps, that where the promisor and the prom- isee are about to unite in an instrument as sureties for the third person, the promise to indemnify is not within the statute. With respect to the weight of argument, the side to which the balance preponderates is even more difficult to discover. If the question was merely whether the general policy of the statute embraces such cases, probably few lawyers would hesitate to answer it in the affirmative. And it is by no means clear that the fifth rule excludes such cases from the language of the statute. But it is more important to have the question definitely settled, than to have it settled in strict accordance with the weight of argument ; and the preponderance of authority in favor of the doctrine that such promises are not within the statute, is quite apparent. Art. II.] Collateral Undertakings 485 § 475. It is believed that the ruling just referred to, in the case of joint sureties, involves an affirmance (;f tlie general doctrine ; and that it cannot be restricted within the bounds implied by the rule, that several sureties u])on the same instrument may regulate by contract their liability to contribution. For if it will suffice to defend an action for contribution, in favor of the verbal promisor against the promisee ; we fail to see upon what piinciple it will not also suffice, to maintain an action in favor of the promisee against the promisor, to recover the whole amount of damages, which the plaintiff has sustained through a breach of the verbal promise. And no sub- stantial reason is perceived, w^hy the right to maintain such an action should depend merely on the fact, that the plaintiff and the defendant had united in the execution of the same instrument. § 476. And it seems to us, that the courts have entirely overlooked another argument, which apparently carries much, weight, upon the same side of the question. It is, that in most of the cases where the question has arisen, the defendant would have been liable upon an implied promise to indemnify the plaintiff, if he had made no express promise. It seems, therefore, unreasonable, inas- much as a fair question arises upon the terms of the statute, to hold that it requires the safeguard of a writing, in order to prove an express promise ; when upon the same facts, an implied promise would arise, which is clearly not embraced within its terms. Again, it is difficult to see upon what grounds, a substantial distinction in principle can be taken, between a promise to indemnify one against a liability, to be thereafter incurred by him, for which a third person is already primarily liable ; and a promise to indemnify him against a liability theretofore incurred by him, for which a third person is likewise primarily liable. In either case, the promise is in one sense to answer for the default or miscarriage of another ; and of the two descriptions of promises, the second appears to leave room for less doubt than the first, upon the question 486 COLLATEEAL UNDERTAKINGS. [Ch. XIII. whether the third person' s liability existed at the time of the promise. But it seems to be conceded, that in the second case the statute does not apply.(^) § 477. We have, however, given at such length the arguments of the distinguished jurists who have discussed this question, that any further comments on our part appear to be unnecessary. We will only add that the application of the principles upon which the discussion has thus far proceeded, seems to depend in a great measure upon a question, which it leaves enveloped in great obscurity. This relates to the precise point of time when the implied assumpsit arises, in cases where the surety enters into the undertaking, without any request on the part of the principal, {u) (t) Westfall V. Parsons, 16 Barbour, 645; Myers v. Morse, 15 Johnsou, 425; Alger v. Scoville, 67 Massachusetts (1 Gray), 391; Soule v. Albee, 31 Vermont, 142; Mersereau v. Lewis, 25 Wendell, 243, cited in chapter eleventh, article second. (w) There is very little upon this subject in the text books; and the few opinions, w^hich the elementary writers have ventured to give, are quite aa much at variance as the decisions of the courts. Thus in the notes to the sixth American edition of Smith's Leading Cases, Volume I, pages 477 and 478, after several cases have been cited, where it was held that the promise was not within the statute, the note proceeds: "But little reflection is requisite, however, to show, that however widely the obligation imposed by an engage- ment of this nature may differ from that assumed by the principal or surety towards the creditor, it is in all material respects identical with that which subsists between the principal and the surety; and this is sufiBcient to bring it within the statute, which applies whenever the promise in question is expressly or impliedly conditioned for the fulfilment of the collateral obliga- tion of a third person, and will cease to be binding if the latter is performed." And again, after citing several cases where the promise was held to be within the statute, the annotators add: "Amidst this diversity of decision it may be difficult to discover the true principle, but the result of the authorities, as a whole, seems to be as follows : A promise to indemnify a surety for becoming responsible for the principal, by a stranger to the debt is prima facie within the statute, because the principal is bound by an implied obligation to do that which the promisor agrees to do expressly, and the promise is there- fore really to answer for the default of the principal. When, however, the promisor is directly or indirectly answerable for the debt, independently of Art. II.] Collateral Undertakings. 487 § 478. This closes the examination of those cases which are taken out of the statute, because their distinctive features fail to satisfy some particular word or plirase of the sentence, "special promise to answer for the debt, default or miscarriages of another." They constitute the second of the three general divisions, into which we have ranged the cases for the purpose of classification, in pur- suance of the plan heretofore marked out.(?)) We shall now proceed to the examination of the third general division, consisting of cases which are taken out of the statute, although apparently within its letter, because they are not regarded as being within its spirit. the promise, any engagement which he may make that it shall be paid, will be regarded as contracted for himself, and not for the debt or default of another, in the sense in which these terms are used in the statute." On the other hand in the fifth edition of Parsons on Contracts, Volume 3, page 22, note, we find the following: "It has been made a question, whether a promise by A to indemnify B for guarantying a debt due from C to D, is within the statute. It is clear, upon the authorities already cited, that such a promise is not within the statute, as being a promise to answer for the debt of C. For that purpose it must have been made to D, to whom the debt was due. The question would seem to depend upon the time when the promise of C, the person for whom the guaranty is given, arises. And this again will depend upon the particular circuumstances of the case. If these are such, as to authorize the inference that C made an actual promise to- indemnify his guarantor, at the time when the undertaking of A was given, or prior thereto, the reasonable presumption is that the promise of A was intended to be collateral. If, on the other hand, there is nothing in the ease from which an actual promise by C can be inferred, and he can only be made liable on a promise raised by operation of law, from B's having been compelled to pay money on his account, it would seem to be clear that the promise of A must be original. For the promise of C arises upon a sub- sequent and independent fact, after the promise of A has become a complete and valid contract." (v) Ante, § 70. THIRD GENERAL DIVISION. CASES WHICH ARE NOT WITHIN THIS CLAUSE OF THE STATUTE, ALTHOUGH ALL THE TERMS OF THE STATUTORY DESCRIP- TION OF THE PROMISES TO WHICH IT APPLIES, ARE LITER- ALLY SATISFIED, BECAUSE THEY ARE NOT WITHIN ITS SPIRIT AND INTENT. g 479. We have yet to consider, in order to complete the examination of this part of the statute, those cases wherein the promisor undertook to discharge to the prom- isee a pre-existing liability of a third person ; which con- tinued in full force and effect, after the making of the promise. This is the most exact definition which can be framed, of a promise literally within the language of this clause ; and the whole scope of the discussion will neces- sarily be confined to an inquiry respecting the circum- stances, under which the statutory requirement that such promises shall be in writing, will be regarded as inappli- cable ; because the case is not within the spirit and intent of the enactment, however closely it may conform to its letter, § 480. There are very many cases, where it was decided that the particular promise before the court was taken out of the statute for this reason ; and attempts have been frequently made, to define with precision the rules which govern the application of the principle. But the result has not been very satisfactory. It is readily conceded, that all those cases which, being within the letter, are properly held to be without the spirit of the statute, have this characteristic in common, that the substance of the transaction differed from its form ; the essence of the promise having been that the promisor undertook to an- swer for his own conduct, or for his own debt. But this Collateral Undertakings, 489 form of expression admits of such latitude of application, that it is scarcely any thing more than a paraplirase of the language of the act. When we attempt to reduce it to rules, framed in terms sufficiently definite to be practically useful, we are met at almost every step, by decisions which are in conflict, not only with respect to the terms of the rules whicli should govern, but frequently upon the question whether a particular state of facts is within or without a general principle admitted to be sound. § 481. But we will make the effort to extract from these discordant elements, such princijoles as appear to be best supported by sound reasoning and the weight of authority; following the plan, adopted in other parts of this work, of giving the cases in opposition to, as well as those in support of the principle, which appears to contain the correct gov- erning rule. By this means, the reader himself will be able to rectify any errors into which we may happen to fall ; a contingency which may be of more frequent occurrence than we have ventured to hope ; because the circumstances preclude us, in most instances, from resorting to any recog- nized standard, by which to test the correctness of our own conclusions. We will commence with the first class of this general division, the definition of which, as it was given in framing our classification, (a) is slightly expanded in the title of the following chapter. (a) See section 71. 62 CHAPTER FOURTEENTH. CASES WHERE, AT THE TIME OF THE PROMISE, THE PROM- ISOR WAS ALREADY LIABLE FOR THE DEBT OR DUTY ASSUMED BY HIM, OR A SIMILAR ONE, IN SOME OTHER FORM, OR TO SOME PERSON OTHER THAN THE PROMISEE ; OR WHERE HE HAD PREVIOUSLY BEEN LIABLE THERE- FOR, AND HAD BEEN ONLY TECHNICALLY DISCHARGED. § 482. The distinguishing feature, wliicli connects in one class the diversified cases embraced in this chapter, is that the promise was not the assumption of a new liability. It related to a liability previously existing, or alleged to exist, against the promisor, which had never been in fact satisfied ; but against the enforcement of which, in favor of the promisee, he was entitled to interpose some obstacle. At the same time, there was a third person, who would be discharged by the fulfilment of the promise, upon whom the same liability rested, or was assumed to rest ; for which reason, the question arose whether the promise, being general in its terms, was not an undertaking to answer for his debt, default or miscarriage. The ground upon which tJiese cases are taken out of the statute, is that the practical effect of the promise, was merely to remove the obstacle to the enforcement of the promisor's own pre-existing liability. They are governed by the sixth of our general rules, which is as follows : RULE SIXTH. A promise is •without the statute, if its effect was merely to remove some impediment to the euforcement, by the promisee, of a liability already resting upon the promisor, in the same or some other form j although its fulfilment will necessarily result in the [discharge of the precedent liability of a third person to the promisee. § 483. The impediment removed by the promise may have been a doubt, existing in law or in fact, respecting Art. I.] Collateral Undertakings. 491 the liability of the promisor for the demand assumed by him ; or it may have been a legal obstacle to the enforce- ment, by action, of some previous liability, which was of undoubted obligation. In the latter case, the impediment may have been formal ; as where the promisee was equi- tably the owner of a demand against the promisor, but having derived his title from another person, in whose favor it had originally accrued, he could not have main- tained an action at common law, but for the promise ; or it may have been a substantial bar to any action, as where, in consequence of some act or omission of the creditor, the promisor was legally discharged from a previous liability, without any actual satisfaction of the same. Instances where each of these kinds of impediments was removed by the promise, will be given in the course of the different subdivision of this chapter. AKTICLE I. Where the promise contained an admission of liability on the part of the promisor as a primary debtor | but another person was in fact liable, either exclusively or with him, for the same debt or duty, § 484. It is now well settled, that where the only objec- tion to an action upon a verbal promise, is that another was already liable, jointly or severally, with the promisor, for the demand assumed by him, the agreement is not within the statute. Still the letter of the enactment covers such a promise ; and at one time a doubt existed whether the case was not within its provisions. Thus in Stephens v. Squire^ 5 Modern, 205, and Comberbach, 362, A. D. 1696, which has already been cited upon another point(a) an action sounding in tort, had been brought against the defendant and two others ; and the defendant, in consid- eration that the plaintiff would not further prosecute tliat action, promised to pay him 10/. and costs of suit. In an action upon this promise, the plaintiff having recovered a (a) Ante, § 130, note. 492 Collateral Undertakings. [Cli. xiv. verdict, the defendant moved for a new trial, on the ground that the promis ■ ' ' was made in behalf of another and not in writing." " But the court were of opinion, that this cannot be said to be a promise for another person, but for his own debt, and therefore not within the statute." § 485. A few other cases directly involving, or to be most satisfactorily explained upon the same principle, are cited in the note ;(5) but in these days it is so well understood that it is unnecessary to discuss it at any length. A question of greater difficulty arises, where the promise has been made in consequence of a claim of liability against the promisor ; but he . alleges, in defence of an action founded upon it, that he was not liable for the original demand ; and that some other person, whose dis- charge will result from the fulfilment of the promise was in fact liable ; so that the promise was in reality, only an undertaking to respond for the latter' s debt. The rule is however settled, that such an allegation shall not be inter- posed, for the purpose of avoiding a verbal promise, which admits the existence of an original liability on the part of the promisor. It may be said that the existence of such a liability is one of the implied, if not the express stip- ulations of the contract, which is accordingly protected by the consideration. Generally the promisor will be estopped from denying his original liability ; but the rule extends to cases which fall short of raising a technical estoppel, (c) (b) Files V. Mcleod, 14 Alabama, 611 (1848) ; Aiken v. Duren, 2 Nottand McCord (South Carolina), 370 (1820) ; Douglass v. Jones, 3 E. D. Smith (New York), 551 (1854) ; and see Lord Ellenborough's remarks in Castling v. Aubert, 2 East, 325, post, § 581. (c) However, in Hollingsworth v. Martin, 23 Alabama, 591, A. D. 1853_ the defendant had admitted his liability for a debt due to the plaintiff, and had verbally promised to pay it, upon a condition, which the plaintiff insisted that he had complied with. But it appearing that it was in fact the debt of another, it was held that the defendant was not liable. The court put its opinion upon the ground that the condition had not been complied with, as well as that the statute applied. Art. I.] Collateral Undertakings. 493 § 486. Tliis principle is forcibly illustrated and applied in a recent determination of Vice Chancellor Kindersly, in the case of Orrell v. Coppock, 26 Law Journal, N. S., Chancery, 269 ; and 2 Jurist, N. S., 1244, A. D. 1857. There it appeared that Ralph Orrell died leaving a will, whereby he appointed liis son Alfred Orrell and four other persons trustees and executors ; but Alfred Orrell wishing to pur- chase a factory, constituting a part of the property, which he could not safely and conveniently do if he was executor and trustee, renounced probate of his father's will, and disclaimed. The remaining trustees proved the will, and proceeded to carry on the testator's business, which was managed by Alfred Orrell. Afterwards complaints of breaches of trust by the trustees, were made by or in behalf of Mrs. Brooks, Alfred Orrell' s sister, and one of the cestuis que trust ; and she and her husband insisted that Alfred Orrell had managed the estate as one of the trustees, and not as agent of the others ; and that he was therefore personally liable. Alfred Orrell denied all participation in, or knowledge of, the matters in dispute ; but after some correspondence, a friendly suit was commenced in equity ; which was settled by the solicitor for Alfred Orrell writing a letter, in behalf of his client, to the solicitor for Mr. and Mrs. Brooks, agreeing to give Mr. and Mrs. Brooks his promissory note for 3,000?., payable in three years, with interest, "in consideration of and in satisfaction of the alleged losses, Mr. and Mrs. John Brooks have sustained from the acts of the trustees." About a year afterwards Alfred Orrell died, without having given the note ; and this action was commenced to settle his estate. The master allowed the claim of Mr. and Mrs. Brooks for the 3000Z., and his decision was affirmed by the Vice Chancellor. It was insisted that the letter, for want of expression of the consideration, and by reason of its having been signed by Alfred' s solicitor, was not sufficient to take the case out of the statute of frauds ; but in answer to that objection the Vice Chancellor said: "Tliat statute does not apply to the case where a party, giving the guaranty, is him- self liable to the demand, which he is purporting to 494 COLLATEEAL UnDERTAKHSTGS. [Ch. XIV. guaranty; it must be exclusively the debt, default or miscar- riage of the other, to bring it within the statute ; and there- fore it appears to me, that in this case, when Mr. Alfred Orrell was incurring this obligation, it was not merely to satisfy the debt of another, but the debt, which it was in- sisted, rightfully or wrongfully, that he was liable for ; and it is clear from the arrangement that none of the losses, except that of Winterbotham, were individual ; but that all were liable for those losses, and therefore Alfred Orrell was not only to be himself discharged, but all the others." § 487. The same principle was applied to a promise made in settlement of a claim that the promisor' s prop- erty was liable, in FisJi v. Thomas, 71 Massachusetts (5 G-ray), 45, A. D. 1855. There the plaintiff had furnished materials for building a ship, which had been charged by them to the builder ; and they being about to libel the vessel, to enforce a lien against her, to which they insisted they were entitled under the State law, the defendant, who was one of the owners, and the agent for the others, in consideration of their forbearing to do so, orally promised the plaintiffs, that if a libel upon a similar claim, then pending in the Admiralty, should be sustained, he would pay the debt ; and in consideration of this promise the plaintiffs refrained till their alleged lien was lost. The Admiralty claim having been sustained, an action was brought upon the promise, and the cause was tried in the Supreme Court and reserved for the opinion of the whole court. As one reason why the defendant's promise was within the statute of frauds, his counsel insisted that the State law gave the plaintiffs no lien, inasmuch as the materials were furnished on the buHder' s credit ; but the court held that the statute did not apply, because this was a promise to pay a debt, for which the defendant' s prop- erty was responsible, and which was therefore his debt, sub modo ; and that he was estopped from denying that the plaintiffs had a lien, as that was the very subject of controversy, which the parties had agreed should abide the judgment of the court in the other cause. Art. I.] Collateral Undertakings. 495 5 488. A remarkable case in Iowa, depending upon the &ame principle, is reported under the title of Tarhell v. Stevens^ 7 Iowa, 163, A. D. 1858. There the question arose upon demurrer to a petition, alleging in substance that the defendants represented themselves to be owners of, and personally liable as stockholders in a certain bank, for the payment of its circulating notes ; that they adver- tised such a representation in a public newspaper, and made it verbally, whereby they gave credit and currency to the notes ; that the plaintiff was a holder of certain of such notes ; and that he had become so by accepting them as money from other persons, in reliance upon such representation. It appears, from what is said in the opin- ion of the court, that the defendants' representation also included an express promise to redeem the notes. The principal ground of the demurrer was that the petition showed, that the defendants' promise was not in writing. The court gave judgment for the plaintiff upon the demurrer, remarking that the statute of frauds did not apply, because the defendants' liability was not for the debt of another, but upon an original and independent ground ; that is, that by their representations they gave credit, character and currency to the notes ; and caused them to be received by the plaintiff and others in business transactions. The opinion then added: "They were bankers in the county, and in the first place represented themselves to be liable for these bills as stockholders. They may have been taken as sole stockholders in the bank, and owners of it. In the second place they adver- tised that they would redeem the notes at their counter, in said county, which they refused to do.according to tlie decla- ration. Thus by their representations of liability, and their proposing to redeem at their counter, they gave credit and currency to the bank bills, and caused them to be actepted as paper money of value." The principle of this case is very correct, if the objection of the want of any definite promisee, ought not to have been fatal to maintaining any action whatever upon the alleged promise. That objection was also overruled by the court, on the ground that 496 Collateral Undertakings. [Cli. xiv. tli(3 defendants must be considered as undertaking to every individual who saw tlieir advertisement, or heard their representations, {d) § 489. And in Hoover v. Morris, 3 Ohio, 56, A. D. 1827, the decision was controlled by a similar principle, although it was presented in the form of a presumption, instead of an estoppel. There the question was whether an offset, interposed by the defendant in the court below, had been properly allowed. In order to sustain it the defendant had offered in evidence a paper signed by the plaintiff, in these words, " I agree that Dr. Morris's" (the defendant' s) " account against Samuel Miller, amounting to about $26, shall be offset and applied on my claims against Dr. Morris now in suit, and that I will pay the same." The plaintiff insisted that the offset was not admissible, on the ground that the writing did not express the consideration, and moved for a new trial, because it had been admitted in the court below ; but the motion was denied, the court saying: "It" (the memorandum) "is nothing more than an admission that a stipulated sum of money is due from the plaintiff to the defendant, for which the latter shall have credit. It is not an undertaking to pay the debt of Miller, but an acknowledgment of a pre-existing liability to pay it." "In this view of the case, which we deem th» correct one, it is not touched by the statute of frauds." ARTICLE II. Where the effect of the promiae was to alter the form of a previously existing liability! § 490. It is obvious that the question, whether an altera- tion of a previously existing contract to respond for another, is within or without the statute, generally depends upon the nature and extent of the alteration. If the con- i {d) This case might, perhaps, have been put upon the ground that there was a representation of a fact, as well as a promise ; and so that it was within the principle of the cases cited in chapter iv, article ii. And see Phillipps V. Bateman, 16 East, 356. Art. II.] Collateral Undertakings. 407 tract was executory, and a now one has been made, vary- ing from the old contract in any essential features, a question at once arises, which will be examined in a sub- sequent part of this work, whether when an agreement falls within the statute of frauds, any material alteration of its terms must be evidenced by a writing. It will be shown in the proper place, that the courts are not entirely of accord upon this question. But conceding that the statute ap- plies where the alteration is material, it would evidently be a forced construction of its provisions, to hold that every variation of a liability assumed by a contract, no matter how slight it may be, must be regarded as a new contract, and invested with the same formalities as the original agreement. It is quite difficult, however, to draw the dividing line ; and the principle must be applied with great caution. But where the contract has been so far executed, that the promisor's liability thereunder has assumed the form of an indebtedness, there seems to be no reason why the statute should apply to any agreement which the parties may see fit to make, not having the effect to increase the liability to respond for another, which the promisor has already incurred. § 491. A striking instance of the application of the prin- ciple now under examination, may be found in Macrory V. Scott, 5 Exchequer, 907, (a) decided in 1850. The action was debt on a judgment ; and the defendant pleaded in substance that the judgment was recovered, witli the defend- ant's assent, as surety for Scott Brothers, to secure the payment of moneys due from Scott Brothers to the plaint- iff, and to be advanced by the plaintiff to them ; and that all of the moneys so due and advanced, for which the judgment was to be security, had been paid. To which the plaintiff replied in substance, that after the recovery of the judgment an agreement was made between the plaintiff, and Scott Brothers, that for the sake of winding up the unsettled transactions between the plaintiff and (a) S. C, 20 Law Journal, N. S., Exchequer, 90. 63 498 Collateral Undertakings. [Cli. xiv Scott Brothers, they should execute to each other ix4eases ; that the plaintiff should advance to a certain banking- company 800Z., guarantied by him on behalf of Scott Brothers, and to them directly 200^. ; and that the defend- ant assented to this, and agreed that the judgment should stand as security for the 1,000Z. At the trial the plaintiff proved an agreement in writing by the defendant, assenting to another agreement between the plaintiff and Scott Brothers, which was to the effect set forth in the replica- tion ; but it was insisted that the agreement signed by the defendant did not sufficiently express the consideration. § 492. The plaintiff had a verdict, and a rule nisi was obtained to enter a nonsuit or for a new trial, on the ground that the case was within the statute, and also on a question of variance ; and after argument the rule was discharged. Upon the point arising under the statute, three of the barons agreed that the memorandum was sufficient ; but Parke, B., also held that the statute did not apply, and Martin, B. , put his decision entirely upon that ground. The former said : " It is not directly a promise to pay the debt of another, but an agreement stating that property already pledged for one debt shall remain pledged for another. Although the ultimate effect is that the debt may be paid, yet the immediate object is merely to appropriate the fund in a different manner. It therefore falls within the principle of the decision in Castling y. Aubert.iV) It is not necessary however to decide that point, though I feel no doubt upon it." Martin, B., also said: "To my mind this is clearly not a case within the statute of frauds. It is not undertaking to answer for the debt, default or miscarriage of another, but an agreement that a certain existing obligation shall continue." " So that even if it had been a parol contract it would have been perfectly good, as the statute of frauds does not apply, "(c) Q}) Post, § 580. (c) The peculiarity of thi? case, upon which the remarks of Lord Wensley- cLile ami Baron Martin were doubtless founded, was that the agreement was merely a defeasance or conditional satisfaction of the judgment. For the Art. II.] Collateral Undertakings. 499 § 493. The case of Rexford v. Brunell, 1 New York Legal Observer, 396, decided in the New York Common Pleas in the year 1843, is referable to the same principle. There the question was whether a setoff interposed by the defendant, in an action upon a bill of exchange could be allowed. The setoif arose upon the following facts : The plaintiff was a surety for one Ensworth, for tlie payment of the rent of a hotel, leased to him by one Swan ; one month after the lease had been made, Ensworth assigned it by deed to the defendant ; and by a memorandum at the foot of the assignment, he agreed to pay the propor- tionate part of the quarter's rent for the month. The defendant also agreed to indemnify the plaintiff against his suretyship. A dispute arose, at the time of the execution of the papers, respecting the payment of the month' s rent mentioned in the memorandum ; and the plaintiff said that it " would be all right, as he would pay it himself; " but the defendant was subsequently compelled to pay it to Swan. The majority of the court held that under the circumstances, the defendant's indemnity must be con- strued as applying only to the rent thereafter to accrue ; that with respect to the month' s rent, the only question was whether the plaintiff's promise was within the statute of frauds ; and that the promise was not within the stat- ute, on the ground that the j)laintiff was already liable to pay the rent to the landlord, and hence he was not under- taking to pay the debt of another, but only his own debt. § 494. So in Spann v. Baltzell, 1 Florida (Branch), 301, A. D. 1847, the indorser of a promissory note, before the maturity of the note, made an agreement with the h.older, whereby the former promised to pay the note at maturity, punctually and without fail, out of his own funds, and the same reason these remarks are not inconsistent with the doctrine, that the statute will not permit a verbal alteration to be made of a contract, which it requires to be in writing. But the case is sui generis; and it is difficult to extract any principle from it, extending much beyond the same state of facts. 500 Collateral Undertakings. [Ch. xiv. latter promised to receive payment in the circulating notes of a certain bank, which were then depreciated. It was held that the agreement was made upon sufficient consid- eration, and was not within the statute of frauds. How- ever, the decision was not distinctly placed by the court, as we think it should have been, on the ground that this was a substituted agreement ; the defendant being already liable upon the contract in another form. § 495. To this class of cases may also be referred Blount V. Hawkins^ 19 ^f^labama, 100, A. D. 1851. There the defendant had become surety in a "replevy bond," given by one Lunsford, in order to retain property upon which the plaintiff had levied an attachment against Lunsford ; and afterwards, in consideration of the discontinuance of the attachment suit, he agreed with the plaintiff that he would pay the debt. In an action upon that promise, the Supreme Court held that the statute did not apply, and affirmed a judgment for the plaintiff rendered upon a verdict. The general doctrine upon which the opinion of the court was founded, namely, that a promise is not within the statute, when it was founded upon a considera- tion beneficial to the promisor and injurious to the prom- isee, is no longer regarded as law ; but the particular application made of it will perhaps bring the case within this principle, inasmuch as the dismissal of the attach- ment suit discharged the defendant from his liability, as surety upon the forthcoming bond. § 496. It is hardly necessary to say that a promise will not be taken out of the statute by this principle, unless the former liability rested directly upon the promisor. For instance the fact that he was a member of a corpora- tion, which was liable for the original debt, will not suffice to sustain his verbal undertaking to respond. (^) (d) Trustees of Free Schools, etc.. v. Flint, 54 Massachusetts (13 Meicalf), 530 ; ante, § 55. And see also Wyinan v. Gray, 7 Harris and Julinson (Md.), 409, and Rogers v. Waters, 2 Gill and Johnson (Md.), G4, which ;ire quit'j in point, althr-um the creditor, without doing some violence to the facts. Here the plaintiff had the fund in hand, but according to the suggestion < of Bayley, J., and Holroyd, J., that fact sufficed to show that there was no debt. (»^ The principal error of the report in 4 Bingham is that it omits all refer- 576 COLLATEEAL UnDEETAKINGS. [Cll. XVI. § 585. In Thomas v. Williams, 10 Barnewall and Cress- well, 664, A. D. 1830, there was a special count in the declaration, founded upon the defendant's promise, upon which the verdict was rendered. At the trial it was shown that the defendant was an auctioneer, and had been employed to sell the goods of the plaintiff's tenant ; and the plaintiff, on the day of the sale, ' ' went on the premises with a bailiff and a notice of distress" for an unpaid balance of rent due the preceding Lady day ; and in con- sideration that he would forbear from distraining, the defendant promised to pay him the said balance of rent, and also another instalment of rent to become due, under the same lease, at Michaelmas following. The plaintiff did not distrain and the sale proceeded. The plaintiff had a verdict for a sum formed of the balance of the rent due at Lady day, and the rent to become due at Michaelmas ; and a rule nisi was obtained to set it aside on the ground that the promise was within the statute. The rule was made absolute, the court holding that the promise was within the statute, because it included the rent yet to accrue ; and being entire, and void as to that, it was void in toto. But the opinion of the court, delivered by Lord Tenterden, C. J., contains an instructive criticism upon some of the preceding cases. (,/ ) ence to the fact that the debt was payable out of the proceeds, upon which we conceive that the case turned. It is true that the very brief report of the facts proved, contained in 12 Moore, does not in terms state that the promise was express to pay out of the proceeds; but the declaration so stated, and had it not been so proved, or to be inferred by the jury, it is clear that there would have. been a variance. And the manner in which Best, C. J., states the points of Castling v. Aubert indicates very strongly that such was the promise. (y) His Lordship said: "Several cases were quoted at the bar, in support of the plaintiff's claim ; but there is no case in which the promise of pay- ment has gone beyond the amount of the right vested in the party to whom the promise was made, or beyond the assumed value of the fund out of which the payment was to be made." Referring to Edwards v. Kelly and Castling v. Aubert, he said that in each of them the plaintiff actually gave up to the defendant property in his possession, and the promise was founded upon a new consideration distinct from the original debt. And in Williams Art. I.] CoLLATEKAL Undkhtakings. 677 § 586. In the nisi prius case of WaUier v. Taf/lor, 6 Carrino-toii niid Payne, 7o2 (A. T>. 1834), one Cuiidcll, a publican, liad died, and the phiiutift", an undertake!-, liad been employed by the widow to conduct the funeral ; and she had placed in his hands the beer and spirit licenses of the deceased, as security for the payment of his bill. The defendant and his partner were creditors of the estate, and the defendant, wishing to administer on tlie effects of the deceased, offered the widow 301. to allow him to do so. She consented, but in addition stipulated that he should pay the plaintiff's bill ; and the defendant gave orders to make an inventory and value the stock ; but the lett(n-s of administration were granted to the defendant's partner. The defendant after the grant of letters, (and after a threat of proceedings against the plaintiff had been mad*,^ by the administrator), applied to the plaintiff to deliver up the licenses to him ; and the plaintiff did so on his promising to pay the bill, which was delivered at the same time to the defendant, made out against the administrator. The plaintiff having brought this action upon the defendant's promise, it was objected at the trial that it was within the statute, but Tindal, C. J., said: "But it is a new contract V. Leper there was a power of distress and an intention to enforce it, and the judges must have considered that power as equivalent to an actual dis- tress. After intimating a doubt respecting the correctness of that decision, he said that at all events it did not go beyond the rent then actually due, and he added: "But this reasoning will not apply to the accruing and future rent. The plaintiff could not have distrained for that rent. The defendant, by paying all that was due at Lady day, might have proceeded to sell the goods. If that sum were paid or secured, the plaintiff sustained no loss or detriment by the sale of the goods. So that the promise to pay the accruing rent exceeded the consideration, and cannot be sustained on the ground on which the cases referred to are to be sustained ; but is nothing more than a promise to pay money that would become due from a third person, and is within the words of the statute, and the mischief intended to be remedied thereby.*' This case seems to be entirely at war with the theory, that those where the property delivered to the defendant was not in the actual possess- ion of the plaintiff, can be sustained on the ground of a purchase. P'or in that aspect it would be immaterial what price the defendant agreed to pay therefor. 73 678 Collateral CJndeetakings. [Ch. xvl under a new state of circumstances. It is not ' I will pay if the debtor cannot ; ' but it is ' in consideration of that which is an advantage to me, I will pay you this money.' There is a whole class of cases, in which the matter is excepted from the statute, on account of a consideration arising immediately between the parties. It is a new con- tract ; it has nothing to do with the statute of frauds at all." Afterwards in summing up to the jury, he said that the plaintiff had a claim on Mrs. Cundell for the expenses of the funeral, and the administrator was also liable for them ; but it was for the jury to say whether the defend- ant made the promise ; and the plaintiff had a verdict. (A:) § 587. In Clancy v. Piggott, 4 JSTevile and Manning, 496, A. D. 1835, (Z) the declaration stated that one Moore was indebted to the plaintiff in the sum of five pounds ; that the plaintiff had in his possession goods of Moore, of the value of twenty pounds, as security for the payment of his debt, and having a lien thereon ; and in consideration that the plaintiff, at the defendant' s request, would give up the possession of the goods to Moore, and abandon his lien thereon, the defendant promised to pay him the five pounds. To which the defendant pleaded that the sup- posed promise was contained in a writing set forth in the (h) In Selwyn's Nisi Prius, thirteenth EngUsh edition, page 775, the author cites the remark contained in the note to Forth v. Stanton, 1 Wil- liams's Saunders, 211, that in Houlditch v. Milne, 3 Espinasse, 86, (§ 579), the credit must have been exclusively given to the defendant; but he says that this explanation will not apply to Walker v. Taylor, and that it would seem that both of those cases are overruled by Gull v. Lindsay, 4 Exchequer 45 (§ 589). And in Chitty on Contracts, eighth English edition, 478, it is said that Walker v. Taylor cannot be supported within the rule in W^illiams's Saunders. The chief justice's remark affords considerable support to the doctrine, that where the leading object of the promisor is to subserve his own interest, the promise is not within the statute; but upon the facts of the case, it was simply the surrender of a lien (although perhaps untenable) to the representative of the owner. (0 S. C, 2 Adolphus and Ellis, 473, and 1 Harrison and Wollaston, 20. The former report contains a serious error, in stating the amount of the debt as 50?., while agreeing with the others that the fund amounted to only 20?. Art. I.] Collateral Undertakings. 579 plea, and which was iu the i'olh)wiiig words: " Sir, I hereby agree to see you paid witliin three montl.s from date hereof, the amount of 5Z. due to you on account of Mr. George Moore, junior." On demurrer to this plea, the court unanimously gave judgment for the defendant, because the writing did not express the consideration, and the plaintiff by his demurrer had admitted that it con- tained the real contract between the parties, the case being one to which the statute applied. (7/i) § 588. In Tomllnson v. Gell, G Adolphus and Ellis, 664, A. D. 1837, (?i) the declaration stated iu substance that the defendant and tlie plaintiff, the latter acting with the con- sent of one Buxton, had settled a suit in equity, which had theretofore been pending in favor of Buxton against the defendant, in wliich the plaintiff had been solicitor for Buxton, and wherein certain costs and charges had be- come due to him as such ; that the terms of such settle- ment were that the suit should be discontinued, and that the defendant should pay to the j^laintiff his costs ; and that in consideration thereof the defendant promised the (m) None of the judges made special reference to the previous lien cases (although counsel cited and discussed them,) except Littledale, J., who said: " It is clear to me even upon the declaration in this case, that this was a promise to pay the debt of another person, notwithstanding all that is said about the lien on the goods; but upon the construction of tlie statute of frauds, it has been held that if there be a nev/ consideration moving from the plaintiff to the defendant, though it is a promise to pay the debt of another person, it need not be in writing. Upon the face of this declaration there is a new consideration, which prima facie would appear to make a promise in writing unnecessary. But the defendant, in the beginning of his plea, avers that the promise mentioned in the declaration is a special promise to answer for the debt and default of another person, which is no more than what is stated in the declaration itself; and then it goes on to state that there was no agreement," etc. Although these remarks are obscure, and doubtless badly reported, they sufiicicntly indicate that the grt^und of the distinction between this case and the others was that the property was delivered back to the debtor. (n) S. C, 1 Nevile and Perry, 588, and Wiilniore, WoUaston and Davi- son, 229. 580 COLLATEEAL UNDERTAKINGS. [Cll. XVI. pliiintiff to pay the costs. The defendant pleaded that there was no writing, etc., and the phiintiff demurred to the plea. Judgment was given for the defendant upon the demurrer, on the ground that the phiintiff' s client was primarily his debtor, and the plaintiff had not discharged him. But Patteson, J., after concui'ring with the other judges, in their ruling that this wag a promise to pay the debt of another, added: "It is said, however, that a new consideration arose from the discontinuance of the suit. I do not think it is a new one. The cases on that point have been where something has been given up by the plaintiff and acquired by the party making the promise ; as the security of goods for a debt."(o) § 589. The next case of the series is Oull v. Lindsay^ 4 Exchequer, 45, A. D. 1849, (^) which is frequently cited as having some bearing upon the proposition, that the promise is out of the statute, where the leading object of the promisor was to subserve his own interest. But although the declaration was perhaps adapted to present that question, the case seems to have been disposed of on the ground of a variance between the declaration and the proof ; and its effect upon the present subject of inquiry is consequently quite obscure ; although some of the observations of Pollock, C. B., militate against the exist- ence of such a rule of law.(2') (o) The report in 1 Nevile and Perry omits from this remark the import- ant words, "and acquired by the party making the promise;" but in Will- more, Wollaston & Davison the expression is even stronger than that quoted in the text, viz. : " Where the plaintiff, having acquired something more than the original claim," "as a lien by distraining goods in the hands of the defendant, has given up that advantage to the defendant." See Prentice v. Wilkinson, 5 Abbott's Practice Reports, N. S., 49, cited ante, § 137. (p) S. C, 18 Law Journal, N. S., Exch., 354. {(]) The first count of the declaration stated, in substance, that the plaintiff was a ship broker, and had been employed by the owners of a certain ship to procure a charter party, upon terms that he should collect the fieight and thereout retain his commissions ; that he procured such a charter party, and the ship arrived in London pursuant thereto; that before her arrival, one of the original owners had sold out his interest in the ship to another person; Alt. I.] Collateral IJNDEiiTAKiNCis. 581 § 590. The most recent of tliese cases is Fitzgerald v. Dressier, 7 Common Bencli Eeports, New Series, 374, that the plaintiff was about to collect the freijjht so as to satisfy his com- mission; that the defendants had been employed as the brokers of one of the original owners, and of the person who had purchased an interest as aforesaid, the two interests represented by them amounting to 60-64ths of the whole, that by obtaining possession of the ship they would receive their commissions for rechartering her; that they were otherwise interested in obtaining possession and control of her; and that in consideration thereof, and that the plaintiff would relinquish his right to collect the freight, the defendants promised to pay him his commission. There were the usual averments of performance by the plaintiff, and of a breach on the part of the defendanL'?. To this was subjoined the common counts. At the trial the plaintiff proved substantially the facts set forth in the declaration, to the time of the arrival of the ship. It further appeared that after her arrival, the defendants' principals had directed a stop to be put upon the cargo, for the freight payable under the charter party; as the charterers claimed to hold a bottomry bond on the ship for advances, etc., and to retain the freight due from them on account thereof; and also that the captain refused to deliver up the ship's certificate till his accounts should be settled ; thereupon the plaintiff, the defendants, the captain, and the charterers entered into a written agree- ment; the substance of which was, as far as the plaintiff's claim was con- cerned, that none of the parties to the agreement should put any stop on the freight, and that the defendants would pay the plaintiff his commission. The defendants objected that there was a variance between the declaration and the agreement, and that the latter was incompetent within the statute of frauds, because it did not disclose any consideration moving from the plaintiff. The plaintiff had a verdict, with leave to the defendants to move to set it aside and enter a verdict for the defendants or a nonsuit, the court to have the same power of amendment as the judge at nisi prius. A rule nisi was obtained accordingly, which after argument was made absoluto, Pollock, C. B., delivering the opinion. He said that the consideration stated in the written agreement was essentially different from that alleged in the declaration. " It is not," said he, " an agreement by the defendant to pay, in consideration of the plaintiff abandoning his rights, arising from several matters stated by way of inducement; but it is an agreement in considera- tion of his agreeing not to put, or cause to be put, a stop on the freight It is not in consideration of his not asserting any lien upon the freight, with- out regard to the question whether he was or was not entitled to such lien." The learned Chief Baron added that the inducement was material as the declaration was framed; but immaterial as to the contract established. This was a contract to pay the debt cf another within the statute of frauds; for, although the defendants agreed to pay the plaintifl, the debt still remained due to him from the former owners. " It was therefore necessary that the 582 Collateral Undertakings. [Cli. xvi. decided in tlie Common Pleas A. D. 1859. (;*) There the evidence given at the trial, on the part of the plaintiffs, tended to prove the following facts. The plaintiffs, who were the importers of a cargo of linseed which was yet to arrive, sold the linseed, through their brokers, to Haakman and Co. at a certain price per quarter, payable fourteen days after landing ; subsequently, and before the arrival of the linseed, Haakman and Co., through the same brokers, sold it to one Schenck at an increased price, payable at the same time ; and after the linseed had arrived, but before it had been landed, Schenck, through the same brokers, sold it to the defendant at a further advance, payable at fourteen days from the day of sale. Five days after the last sale, the defendant, through his clerk, applied to the brokers for a delivery order for the seed ; and they having referred the clerk to the plaintiffs, a conversation took place between the plaintiffs' clerk and the defendant' s clerk, the substance of which was, that if the plaintiffs would give the defendant the delivery order, the defendant would pay them for the seed. An order was accordingly given to deliver the seed to the brokers, and it was taken by the defendant' s clerk to the brokers, who, on being informed by him that he had promised the plaintiffs, in behalf of the defendant, to pay for the seed, indorsed the order so as to make the seed deliverable to the defendant ; and upon the order the defendant received the seed. The next day he sent to the brokers a check for 900Z. on account of his purchase. The seed having been afterwards landed and measured, it was discovered that the amount payable to the plaintiffs by the terms of their contract with Haakman and Co. was 971Z. 155. Qd., and this action was brought to recover the difference of 111. 155. Qd. At the trial the plaintiffs had a verdict ; and the consideration should appear in writing, signed by the defendants; and the consideration, we have already stated, is a very different consideration from that declared on." There could be no amendment, he continued, because it was not a variance ; the amendment would require striking out the induce- ment, and introducing new matter creating a totally different consideration. (r) S. C, 29 Law Journal, N. S., C. P., 113; 5 Jurist, N. S., 598. Art. I ] Collateral Undertakings. 683 defendant obtained a rule nisi to set aside the verdict and enter a nonsuit, on the ground that the contract slioiild have been in writing ; and on two other grounds, one of whicli was that the evidence did not show that the defend- ant authorized his clerk to make the contract. § 591. Upon the last mentioned ground the rule was made absolute by a majority vote ; but all the judges agreed that the contract was not within the statute. Cockburn, C. J., upon that point said that the rule is correctly laid down in the notes to Forth v. Stanton^ 1 Williams's Saunders, page 211e, that "the question whether each particular case comes within this clause of the statute or not, depends, not on the consideration of the promise, but on the fact of the original party remain- ing liable, coupled with the absence of any liability on the part of the defendant or Ms property except such as arises from his express promise." His Lordship added that the proposition must be considered as embracing the qualification at the end of this passage ; that it is "truly stated there, as the result of the authorities, that if there be something more than a mere undertaking to pay the debt of another, as where the property, in con- sideration of the giving up of which the party enters into the undertaking, is in point of fact his own, or is property in which he has some interest, the case is not within the provision of the statute; which was intended to apply to the case of an undertaking to answer for the debt, default, or miscarriage of another, where the person making the promise has himself no interest in the property which is the subject of the undertaking." In this case, he added, the seed was the property of the defendant, subject to the plaintiffs' lien for the price, the giving up of this lien being the consideration for the promise ; consequently the case clearly comes within the qualification in the note to Williams's Saunders. Williams, J., said that the defend- ant was at the time of the promise the owner of the linseed, subject to the plaintiff's' lien for the contract price, and the effect of the promise was neither more nor less than to get 584 Collateral Undioktakinos. [Cli. xvi. rid of the incumbrance ; or, in other words, to buy off tlie plaintiffs' lien, and for tliat reason the case was not within the statute. He added that Williams v. Leper proceeded upon the ground, that the promise was to pay a debt to which the defendant' s property was subject, and not simply a promise to answer for tlie debt or default of another. That this was in accordance with Castling v. Auhert and Anstey v. Marden, which, as the note referred to by the Chief Justice stated, proceeded upon the ground that the transaction was in effect a purchase of an interest in the property, and not a mere promise to pay the debt of another. And in these opinions Crowder, J., and Willes, J., concurred. (5) (s) In the Law Journal report it is said that a case was settled for an appeal from this decision to the Court of Exchequer Chamber, but the appeal was abandoned. The head note to the report in the Jurist states the decision upon the application of the statute thus: "In such case, the time for B's payment to A of the price agreed on not having arrived, when C applied for the delivery order, his promise to pay for the goods, if A would take oft his lien, would not have been a promisQ to pay for the debt, default, or mis- carriage of another." But none of the judges made any allusion to the fact that the debt from Haakman and Co. to the plaintifis, was not payable when the defendant applied for the order; on the contrary the decision was expressly put upon a ground, equally appHcable to a case where the debt was presently payable. As a part of this series of cases are sometimes also cited Love's case, 1 Salkeld, 28, A. D. 1706, Anstey v. Harden, 4 Bosanquet and Puller, 124, and Stephens v. Pell, 2 Crompton and Meeson, 710, A. D. 1834. Love's case holds that a sheriS" may recover upon a promise of a stranger to the judgment, that he would pay the amount due on a fieri facias, in consideration that the sheriff would restore goods which he had levied on ; but nothing was said in the case relative to the effect of the statute. Anstey v. Harden has been heretofore fully cited. (See ante, § 118.) Stephens v. Pell is merely to the effect that where the defendant, an assignee in bankruptcy, promised the plaintiff to pay him a sum due from the bank- rupt for rent in arrear, "out of the sale of the produce of the effects," in consideration of his withdrawing a distress upon the goods; and the goods in fact sold for more than the amount of the rent in arrear; the plaintiff, upon the execution of a writ of inquiry, cannot be required to prove that there was a surplus to meet his demand, after satisfying certain executions which were prior to the distress. The case turned upon the true construction of the defendant's promise ; which, for aught that appears, was in writing. Art. II.] Collateral Undertakings. 586 ARTICLE 11. Ameriogn oases wherein the role is established, and its application illnstrated. § 502. The order wliich we liavi^ adopted, for tlie discus- sion of tlie perjjlexiiig cxuestioiis connected with the sub- ject now under examination, defers till the next chapter the consideration of most of the legal tlieories, based upon the earlier decisions of the foregoing series. Chief among these is the doctrine adopted by Chief Justice Kent, in Leonard v. Vredenburgh, 8 Johnson, 23, as the definition of his third class of cases; namely, "when the promise to pay the debt of another arises out of some new and original consideration of benefit or harm, moving between the newly contracting parties. " ('"'^) Such cases, he said, are not within the statute of frauds. The application of this doctrine to the principles now under examination is so direct, that a glance at its consequences upon this class of cases is also necessary in this place. § 693. It seems to be quite evident, although a very able jurist has forcibly defended the contrary conclusion, (/>) that this doctrine practically makes the application of the statute depend, in this class of cases, upon the nature or character of the consideration. Whether the discharge of the lien would operate to relieve the property of the promisor, or of the original debtor, is immaterial under a . rule, which merely requires the consideration to be new and original ; to move between the newly contracting parties ; and to consist of benefit to the one, or harm to the other. It must of course be new, or it could not satisfy the common law ; it must be original, that is to say, something more than forbearance to the debtor ; but in either event, the request of the promisor is ample to satisfy the requirement, that it should move between the new parties ; and if it w^as of no benefit to him, it was at least a damage to the promisee. (a) See ante, § 63. Q}) Comstock, C. J., in Mallory v. Gillett, post, § 597 and note. 74 /586 COLLATEKAL U:NDERTAKINGS. [Cll. XVI § 594. Accordingly the doctrine that the surrender, either to the new promisor or to the original debtor, of any lien available for the security of the promisee, suf- fices to take out of the statute a promise to pay another's debt, became generally prevalent in the United States ; and was understood, until comparatively recently, to be a settled principle of American jurisprudence. But it is now admitted by the best authorities, that the true rule requires that in all such cases the promisor must have been interested in the property, upon which the lien at- tached, so that he acquired whatever was surrendered by the promisee ; and that wherever the lien was surrendered to the original debtor, the promise cannot be taken out of the statute for any reason depending upon the existence of a lien. This doctrine must, we think, be regarded as a distinct declaration that Chief Justice Kent's third proposition is not law. The American authorities have not, however, quite adopted the comprehensive reason for this conclusion which aj)pears to prevail in England ; although we think the tendency of the more recent decis- ions is in that direction. § 595. It is unnecessary to examine the cases, where a verbal promise to pay another's debt has been sustained, under the old rule, by reason of the surrender of a lien upon the debtor' s property. Some of them have already been cited in the preceding pages, the circumstances per- mitting them to be ranged under some other principle which is yet recognized as controlling. In many of the others, the facts were such, that the decision can be sus- tained within the rule as it is now understood ; but as these profess to depend upon the obsolete rule it would be a needless consumption of time and space to examine them in detail. However, some of them will be incidentally referred to in the notes. § 596. The modern doctrine upon this subject derives its origin from Nelson v. Boynton, 44 Massachusetts (3 Metcalf ), 396, decided A. D. 1841. There the plaintiff had Art. II.] Collateral Undertakings. 587 commenct^d a suit against the father of tlie defendant, upon two notes made by the latter, and had issued an attachment in that suit, and levied the same upon the father's real estate; wh(^reupon, in consideration that the plaintiff would discontinue that suit, the defendant orally- promised to pay the notes ; and this action was brought upon that promise. In the court below, the jury were instructed that the promise was not within the statute, and the plaintiff had a verdict, which was set aside by the Supreme Court and a new trial granted, Shaw, C. J., delivering the opinion of the court, after pointing out the general object of the statute, and the general rules for its construction, said that it has been argued that this case was within Williams v. Leper, and its kindred cases, in which the creditor had a lien upon })roperty, which was discharged at the request and for the benefit of the party promising. He cited and commented upon several of those cases, and added: "The rule to be derived from the decisions seems to be this : that cases are not considered as coming within the statute, when the party promising has for his object a benefit which he did not before enjoy, accruing immediately to himself; but where the object of the promise is to obtain the release of the person or property of the debtor, or other forbear- ance or benefit to him, it is within the statute.'" Apply- ing that rule to the present case, he said that although the effect of the discontinuance of the action w^as to dis- charge the attachment, yet that was incidental only ; and the leading object and purj)ose were the relief and benefit of the father, and not of the defendant. ' ' It does not appear," he remarked, "that the son had any interest in the estate released, or object or piirpose of his owm to subserve." It was therefore the ordinary case of a son becoming surety for his father's debt, in consideration of forbearance ; and therefore, not being in writing, it was within the statute, (c) (c) The principle that the surrender by the promisee of a lien upon prop- erty, or othel security for the payment of the debt, will take the promise 588 COLLATEIIAL UNDERTAKINGS. [Cll. XVI. § 597. But tlie question received sucli a tliorougli dis- cussion, and the rule now recognized was so ably sustained, upon principle and authority, in Mallory v. Oillett, 21 New York, 412, (cZ) decided in the Court of Appeals of that State, A. D, 1860, that it may be regarded as having been set at rest by that decision. There the plaintiff, at the request of one Haines, had taken upon his dry dock a canal boat, and put upon it repairs to the value of $125 ; and having a lien upon it for the repairs, he refused to deliver it to Haines or any other person, till that amount should be paid ; whereupon the defendant, in considera tion of the delivery of the boat to Haines, verbally prom- ised the plaintiff to pay the amount due for repairs. The boat was thereupon delivered to Haines, and the defend- ant paid the plaintiff $50, and refused to pay tlie residue ; whereupon this action was brought to recover upon the promise. The defendant succeeded in the court below, upon his objection that the promise was within the statute of frauds ; and the plaintiff appealed to the Court of Appeals, where the judgment of the Supreme Court was affirmed by a vote of five judges against three. The opinion of the majority, delivered by Comstock, C. J., from which quotations have been frequentlj'^ made in previous portions of this volume, covers upwards of twenty pages of the printed report ; and notwithstanding that it is fairly open to criticism, upon some of the col- lateral points discussed by him, we exaggerate nothing in saying that upon the whole, it surpasses in clearness and precision of language, force of reasoning, and discriminat- ing criticism of previous adjudications, any judical determination ever delivered upon this branch of the statute of frauds. The most meagre outline of the argu- ment is all that our limits permit us to give in the sub- out of the statute, only when the defendant acquired what was surrendered, was also clearly stated in Curtis v. Brown, 59 Massachusetts (5 Gushing,) 488, A. D. 1850; Dexter v. Blanchard, 93 Massachusetts (11 Allen), 365, A. D. 1865; and Burr v. Wilcox, 95 Mat?eachusetts (13 Allen), 2G9, A. D. 1866. (d) Affirming S. C, 23 Barbour, 610. Art. II.] Collateral L'ndertakings. 689 joined note.(e) It will appear tluTcfroiii that the decision, as in Nelson v. B<>i/)it<>n, was put distinctly upon the ground that the defendant liad no personal interest or (e) After demonstrating very clearly, upon principle, that the question under the statute can never arise, unless there is a new and sufficient con- sideration, because, without such a consideration, a promise to pay the pre- cedent debt of another will be void at common law; that the question under the statute is always whether there was a debtor and a surety, not when the debt was created, or what was the consideration of the collateral promise ; that the validity of a verbal promise under the statute does not depend upon the comparative merits of the different kinds of consideration upon which it may be founded, all considerations being in that respect on an equal footing; and therefore that if the release of a security to the debtor takes out of the statute a stranger's promise to pay the debt, the same result must inevitablv follow with respect to any promise, the subject of which is a third person's antecedent debt; the learned Chief Justice proceeded to examine critically the classification in Leonard v. Vredenburgh (ante, § 63), which he thought was strictly correct, although it had been misapprehended. Regarding, he said, the connecting remarks of Chief Justice Kent, it will appear that the present case belongs to the second class, and not to the third; because although both of them are promises to pay a third person's antecedent debt, the second expressly includes cases where the undertaking is subsequent to the creation of the debt, and founded upon a further or new consideration ; and if this case be put within the third class, there will be no second class left. The distinction between the second and the third class is not in the nature of the consideration, but in respect to the persons between whom it moves; in the former it moves to the debtor, and may consist of any thing of benefit to him or harm to the creditor, in which the new promisor has no concern; in the latter, however, it moves to the new promisor; "and that also," he added, ''as in all other cases of contract, may consist of benefit to him, or harm to the party with whom he is dealing." The language of Ravage, C. J., in Farley v. Cleveland (ante, § 553), is more exact than that of Chief Justice Kent, in requiring the consideration to move to the promisor; and more comprehensive, because it includes cases where the consideration moves from the original debtor, as for instance, where the latter places a fund in the hands of the promisor, in consideration of his promise to pay the debt. But the difference is not one of principle, whether the promise was made to the debtor or to the creditor; because in the former case it moves from the creditor through the debtor to the promisor. The learned Chief Justice then proceeded to analyze the previous New York cases in detail, arguing with great ingenuity, although, we think, not always successfully, that in all of them where a verbal promise had been sustained the con- sideration moved to the promisor, and was a matter in which he had a per- 590 Collateral Undertakhstgs. [Ch. xvi. concern in the property, the release of which formed the consideration of the promise. On the other hand, Bacon, J., speaking for the minority of the court, delivered an opinion nearly as elaborate, in favor of the reversal of the judgment ; sustaining with great ingenuity the proposition advanced by him, that the cases in New York and Eng- land establish the rule, that a promise is not within the statute, "where the creditor, in consideration of the promise, surrenders some pledge, or relinquishes some lien actually held by him and capable of enforcement, and by means of which the original debt was rendered secure," irrespective of the question to whose benefit the surrender enured. The principles established by this case were reaffirmed by the same court in Becker v. Torrance^ 31 New York, 631, A. D. 1864 ; Pfeiffer v. Adler, 37 New York, 164, A. D. 1867 ; and Brown v. Weher, 38 New York, 187, A. D. 1868 ; all of which are cited elsewhere more at length. sonal interest or concern ; and in all those where it was held that a verbal promise was not valid, the consideration moved exclusively to the debtor. The cases cited and commented on by him, which are relevant to the pre- sent inquiry, have been cited, with one exception, in the preceding pages, in connection with other rules. Those where the verbal promise was said to have been sustained, because the consideration was beneficial to the prom- isor, are Skelton v. Brewster, 8 Johnson, 293; Gold v. Phillips, 10 John- son, 412; Myers v. Morse, 15 Johnson, 425; Olmstead v. Greenly, 18 Johnson, 12 ; Farley v. Cleveland, 4 Cowen, 432 ; Chapin v. Merrill, 4 Wen- dell, 657 ; Gardiner v. Hopkins, 5 Wendell, 23 ; Ellwood v. Monk, id. 235 ; King V. Despard, id. 277 ; and Meech v. Smith, 7 Wendell, 315. The prin- ciple was the same, the learned Chief Justice said, where a note or other evidence of indebtedness of a third person, held by the promisor, was trans- ferred by him to the promisee, with a guaranty of payment, as in the cases which are cited in article i of chapter xviii. Slingerland v. Morse, 7 John- son, 463 ; Mercein v. Andrus, 10 Wendell, 461 ; Simpson v. Patten, 4 Johnson, 422 ; and Jackson v. Rayner, 12 Johnson, 291, ware also cited and commented on; we have given the substance of most of his remarks upon those cases in the notes thereto, where they were previously cited; but although some of the dicta point to a different conclusion, none of them, he contended, decides any thing hostile to this principle. One case he excepted from these remarks; namely. Fay v. Bell, Hill and Denio, 251; there the defendant's verbal promise to pay the debt, in consideration of the surrender Art. II.] Collateral Undertakings. 591 § 598. The case of Nelson v. Boynton was ref(?rred to with approbation in two Kentucky cases, Jones v. Walker , 13 B. Monroe, 356, A. D. 1852, and Lieher v. Levy, 3 Metcalfe, 292, A. D. 18G0, in each of wliich a verbal prom- ise of the defendant to pay a debt due to the plaintilf by a third person, was held to be void ; the consideration, in the former case, being that the plaintiff would not issue an attachment to collect it ; and in the latter, (where the prom- ise was to pay fifty cents on the dollar,) that the plaintiff would release a levy, under an attachment, upon goods of the debtor sufficient in value to pay the debt, and discon- tinue the attachment proceedings. § 599. The same principles were also approved in CorJc- ins V. Collins, 16 Michigan, 478, A. D. 1868. There the action was brought on a verbal promise to pay for board furnished and money loaned by the plaintiff to one Sykes ; to the debtor of property on which the plaintiff had a Hen was sustained ; but the case was erroneously decided. Yan Slyck v. Pulver, id. 47 ; Smith V. Ives, 15 Wendell, 182; Packer v. Willson, id. 343; and Watson v. Ran- dall, 20 Wendell, 201, are examples of cases where the consideration moved to the debtor and the promise was therefore held to be within the statute. Barker v. Bucklin, 2 Denio, 45, and Kingsley v. Balcome, 4 Barbour, 131, contain definitions which bring the promise in question within the statute. Nelson v. Boynton, 44 Massachusetts (3 Metcalf ), 396, and the series of English cases cited in the foregoing article, were also examined in detail and commented upon; and with respect to those where tlie verbal prom- ise was sustained, the learned Chief Justice said : " In each of them the creditor relinquished some lien or advantage incident to his debt; but in each of them whatsoever he relinquished was acquired by the defendant, either as a matter of personal interest and concern to himself, or to other parties whom he represented; and on that consideration he promised to pay. In none of them was any such doctrine asserted, as the plaintiff contends for in this case. In all of them the engagement was deemed original, either because the primary debt was gone, or because the consid- eration moved to the promisor; and in some of them the decision was put on both these grounds." And after examining and discussing Read v. Nash, 1 Wilson, 305; Goodman v. Chase, 1 Barnewall and Alderson,207; and Fish v. Hutchinson, 2 Wilson ; 94. the learned Chief Justice concluded with the observations, including his classification, which have been copied at length, ante. § 64. 592 Collateral Undertakings. [Cli. xvi and the consideration of tlie promise was tlie release of certain trunks belonging to Sykes, upon which the plaint- iff claimed, (and in the opinion it was assumed,) that he had a lien for the payment of the debt. At the trial the judge directed a verdict for the defendant ; and the judgment thereon was affirmed by the Supreme Court, on the ground that the property was released for the benelit of Sykes. The rule is thus stated by Campbell, J., delivering the opinion of the court : "When, by the release of property from a lien, the party promising to pay the debt is enabled to apply it to his own benefit, so that the release enures to his own advantage ; it is quite easy to see that a promise to pay the debt, in order to obtain the release, may be properly regarded as made on his own behalf, and not on behalf of the original debtor ; and any possible advantage to the latter is merely incidental, and is not the thing bargained for. That promise is therefore, in no proper sense, a promise to answer for any thing but the promisor' s own responsibility, and need not be in writing." "But where the entire transaction, both promise and considera- tion, is intended and operates exclusively for the advant- age and on behalf of the debtor whose debt is guarantied, there seems to be no plausible ground for holding that the promise is any thing but collateral ; and if such a promise can in any case be valid without a writing, it must be valid in all. There is no tangible middle ground. Among valuable considerations, there are no degrees of validity. They are all good or bad ; but one valid one is as high in rank as another." § 600. It was held in the very recent case of Landis v. Moyer, 69 Pennsylvania, 95, A. D. 1868, that the rule is satisfied if the lien or charge upon the defendant' s prop- erty was only inchoate, provided it could have been made perfect ; and at the same time the court assigned a reason for the decision, corresponding very closely with the Eng- lish doctrine in this class of cases. This action was brought to recover the value of a quantity of lumber, used in constructing a house for the defendant. It appeared Art. II.] Collateral Undertakings. 693 at the trial tliat tli(^ defendant, his brotlier, and another person, Imd severally entered into contmcts with one "Wcrtz ; wliereby AVr-rtz was to erc^ct a housay the debt of a third person has been taken out of the statute, upon the authority of the cases of this series, the true gi-ound of tlie decision was that tlie leading object of the ])romisor was to benefit himself, and the debtor's discharge resulted only incidentally from the fulfilment of the promise. 8ecoiul1t/. That wlienever such a promise was sustained, the decision proceeded upon the ground that it Avas to be ful tilled, out of a fund, proceeding either from the creditor or from the debtor. Thirdly. That some of the decisions, sustaining consideration of such relinquishment, is an original promise." And appar- ently Mr. Theobald, in his Treatise on Principal and Surety, pi. 58, agree3 with this statement of the rule. In Mr. Fell's work on Guaranty and Suretyship, p. 16, the principle of these oases is stated to the same effect, as follows: " A party may make himself liable to the same demand to which another person is already subject, without a note in writing, in many cases; provided there is a new and adequate consideration arising between him and the original creditor." Then after citing Williams v. Leper, Castling v. Aubert, and Love s case, to show what is a new and adequate consideration, it is added, on p. 18: "In these three cases the plaintiff, creditor, had pos- session of the property of the debtor, and a lien upon it, which he was induced to give up by the promise of the defendant." The other cases do not appear to have been cited. And in Leigh's Nisi Prius, 1031, the result of the cases is thus summed up : " Although the deci.<5ions on this subject can scarcely be deemed conflicting, yet it is difficult to lay down any rule with which all the authorities cat: be reconciled. The inference, however, from the preceding decisions is, that though the debt of a third party be the sub- ject matter of a promise, yet if the promise be founded on a new and dis- tinct consideration co-extensive therewith, and moving, not to the third party, but to the person who makes the promise ; or if the third party be not liable to be sued on the debt, when the promi.<*c is made it is not within the statute." Mr. Addison in his Treati."*e on Contracts, 104, is even more inexact. He says : " If the plaintiff, for example, has a lien upon the goods and chattels of his debtor in his possession, or if he holds securities for the payment of his debt, and is induced either to give up his lien upon the goods 76 602 Collateral Undertakings. [Ch. xvii. the verbal promise, rested upon the first ground, and some upon the second ; so that both of these propositions ex- or to part with his securities, upon the faith of a promise, made by the de- fendant, to pay the amount of the plaintiff's claim thereon ; the promise so made is not within the mischief intended to be provided against by the stat- ute of frauds, although the amount promised to be paid, as the consideration or inducement, for the abandonment of the lien or the surrender of the secur- ities, may be the subsisting debt of a third party, due to the plaintiff; and the performance of the promise may have the effect of discharging that debt." Although this proposition at one time received considerable coun- tenance in the American courts, it cannot be sustained on any correct view of the English cases ; but it has been retained in the subsequent editions of Mr. Addison's book, and is to be found again in the sixth, published in 1869, on page 60. But on the preceding page the editor, Mr. Cave, without citing any authorities, lays down a general rule in these words: "Where the de- fendant, in order to get rid of an incumbrance on his own property, or to obtain some direct personal advantage to himself, promises to pay the debt of another, the promise is not within the statute." In the third (English) edition of Chitty on Contracts, p. 511, the cases which had been decided up to that time are cited with the following remarks: " Although the debt of another form the subject matter of the defendant's undertaking, still, if he promised to pay the debt upon some new consideration raised by himself, and the consideration be the creditor's resignation of a charge or lien on goods which afforded him a remedy or fund to enforce payment, the case does not fall within the statute." The word "raised " is evidently a printer's blunder for " received ; " correcting this error, the sentence expresses with tolerable accuracy the rule to be derived from the lien cases. But the blunder is con- tinued in all the later editions, and in the eighth, published in 1868, on page 480, this remark is prefaced with : " It has also been said that," and after citing Williams v. Leper, Bampton v. Paulin, Edwards v. Kellj^, Barrell v. Trussell, Castling v. Aubert, Thomas v. Williams, and Houlditch v. Milne, the editor condemns all those of the series, in which a verbal promise was sustained, in the following sweeping terms: "But, as has already been observed, the real question in such cases would now appear to be, not whether the promise of the guarantor was given on a new consideration, but whether by accept- ing his liability, the party to whom the promise was given has relinquished his claim on the party originally liable. And accordingly it may be ques- tioned, whether any case similar to those above cited, would now be held not to be within the statute; unless it appeared that the promisee, by giving up his lien or charge on the property of the party originally liable, had left himself wholly without a remedy against him.'' And in this edition, Fitz- gerald V. Dressier, Gull v. Lindsay, and other modern ca.^es are cited on page 476, in connection with a quotation from the end of liic note in 1 Williams's Art. I.] Collateral Undertakixgs. G03 press correct rules of law. Fourtltly. That in this series there are two distinct classes of cases, practically if uot Saunders, wliich erroneously omits (he important words, " or liis property." Mr. John William Smith, in his Lectures on the Law of Contracts, pp. 46 and 47, ajjparently agrees with tiie modern editor of Chitty in the opinion that the cases are nolongrer law, for he does not cite or refer to them, but says: "It was at one time thought that a verbal promise, even to answer lor the debts of another, for which that other remained liable, might be available, if founded on an entirely new consideration, conferring a distinct benefit upon the party making such promise. This idea is however confuted by Serjeant Williams in an elaborate note to the case of Forth v. Stanton, which I have already cited ; and the rule there laid down by him, and which ha.s ever since been approved of, is, that the only test and criterion, by which to determine whether the promise needs to be in writing, is the question whether it is or is not a promise to answer for a debt, default or miscar- riage of another, for which that other continues liable. If it be so, it nuist be reduced to writing ; nor can the consideration in any case be of import- ance, except in such cases as Goodman v. Cliase, in which the consideration to the person giving the promise, is something which extinguishes the orig- inal debtor's liability. You will see Serjeant Williams's criterion approved of in Green v. Cresswell, 10 A. &: E., 453, and Tomlinson v. Gell, 6 A. & E., 564." However, the English editor of this work adds a note, in which lie makes the very proper criticism on this passage, that the note to Williams's Saunders requires an absence of liability on the part of the defendant's property, as well as an absence of personal liability, except such as arises from the promise, in order to bring the promise within the statute; and that the cases where the guarantor has an interest in his promise, have given rise to some conflict of opinion, which is solved by that observation. That part of the original note to Forth v. Stanton, 1 Williams's Saunders, 211, which bears upon this question, is as follows : " But where the promise is founded upon some new consideration, sufficient in law to support it, and is not merely for the debt, etc., of another, such an undertaking, though in effect it be to answer for another person, is considered as an original prom- ise, and not wiihin the statute ; as where A promises B to pay him a sum of money, in case he will withdraw his record in an action of a.ssault and battery," citing Read v. Nash (ante, § 130), Stephens v. Squire (ante, § 484), and Williani.s v. Leper (ante, § 577). But in the additional notes of Mr. Justice Patteson and Mr. Justice Williams, in tlic fifth and sixlli editions, several of the leading cases on this subject are ci^ed and commented upon ; and it is said that in Williams v. Leper the true ground of the decision was that the defendant was the owner of the goods; that in Houlditcii v. ^filne (ante, § 579), the circumstances showed that all the credit for the repairs was given to the defendant, and the real owner of the carriages was not 604 Collateral Undertakings. [Ch. xvii. expressly recognized, and only two, wherein the statute does not apply; the one being where the promise was liable ; and that in Castling v. Aubert (ante, § 580), and Anstey v. Harden (ante, § 118), there was a purchase of an interest. The note concludes aa follows: "There is considerable difficulty in the subject, occasioned per- haps by unguarded expressions in the reports of the different cases; but the fair result seems to be, that the question whether each particular case comes within the statute or not, depends, not on the consideration for the promise, but on the fact of the original party remaining liable, coupled with the absence of any liability on the part of the defendant or his property, except such as arises from his expiess promise." This conclusion is now generally recognized in England as containing the correct rule. (See Fitz- gerald V, Dressier, ante, § 590). In the thirteenth English edition (A. D. 1869) of Selwyn's Nisi Prius, edited by Messrs Keane and Smith, volume 2, page 773, the editors lay down with correctness the principle to be deduced from the English lien cases; but it may be questioned whether they give the correct reason therefor. The passage is as follows: '"There is, however, a remarkable class of cases, in which a promise to answer for the debt of another, having been coupled with the purchase by the guarantor of an in- terest of some kind, or the surrender in his favor of a right, such as that of distress, has been held not to be within the statute ; and in these cases it is not essential that the original debt should be extinguished. The principle on which these cases depend, appears to be that the main object of the trans- action has been to effect something entirely distinct i'rom the payment of the debt of the third person ; and that such payment, though a consequence, is not yet the direct object of the transaction." But such is certainly the direct object of the transaction and the only object of the promisee ; althotigh the promisor may also have some other object in view. Then after citing and commenting upon most of the cases collected in the foregoing article, it is said (p. 776) that the decisions relative to the Hability of a del credere factor rest upon the same principle, and the case of Couturier v. Hastie (cited in chapter xviii), is given at length, with the following comment: "From the reasoning in the above judgment, may be deduced the true limits to an opin- ion, which appears at one time to have prevailed, that a contract, if founded on a new consideration, is not within the statute. Now it is plain that a prom- ise to pay the debt of another, founded on the antecedent debt alone, is nudum pactum ; and therefore wherever such contract is to answer for an old debt, there must be a new consideration. It may, perhaps, therefore be safely laid down, that wherever the principal object of the transaction is to secure the debt of another, as in tRe case of an advance to A on the guaranty of B the case will be within the statute; and that the only cases in which tht •nature of the consideration is material, are such as those in the class above mentioned, in which the guaranty is only a secondary matter." In 3 Par- Art. T.] Collateral Undertakings. 605 to be fulfilled out of a fund ; the other wliere the debt was a charge or lien upon the promisor' s property. sons on Contracts, fifth edition, page 24, it is said : " It may indeed be stated as a general rule, that wherever the main purpose and object of the promisor is not to answer for another, but to subserve some purpose of his own, his promise is not within the statute; although it maybe in form a promise to pay the debt of anotlier, and although the performance of it may incidentally have the eflect of extinguishing the liability of another. There are several classes of cases, whicli may perhaps be more satisfactorily explained upon this principle than upon any other. Thus if a creditor has a lien on certain property of his debtor to the amount of his debt, and a third person, who also has an interest in the same piopert}', promises the creditor to pay the debt, in consideration of the creditor's relinquishing his lien, this promise is not within the statute. The performance of the promise, it is true, will have the effect of discharging the original debtor; but there is no reason to suppose that this constituted in any degree the inducement to the promise, or was at all in the contemplation of the promisor." Mr. Story, in the fourth edition of his work on Contracts, § lOlo, h, says: " So where the incidental effect of the promise is to pay the debt of another, yet if the leading object of the special promisor be to subserve some purpose of his own, it is not within the statute." The meaning is evidently that such is the rule, where the incidental effect oi fulfilment of the promise is to pay the debt of another ; for its discharge in consequence of the promise, would bring the case within the fourth rule. (Ante, chapter ix.) Mr. Browne in his Treatise on the Statute of Frauds, second edition, § 212, states the rule as follows: " That whenever the transaction between the parties is such that the primary and distinctive obligation assumed by the defendant is different from that of a guarantor, although as incidental to, and in the course of, the discharge of that obligation, the debt of another is satisfied, the defendant's promise is not within the statute." The authors of the American notes to Smith's Leading Cases, volume 1, page 483, of the sixth edition, say : " Whenever the consideration for a promise to pay a debt, for which another is answerable, moves to the promisor, and is sufficient to satisfy the requisitions of the common law, it Avill not be within the statute, merely because it is in terms for the antecedent or cotemporaneous debt or default of another, or because a third person is answerable for the fulfilment of the obligation assumed by the promisor." Several American cases are then cited, and the note proceeds: "These cases show, and it would seem sufficiently plain on principle, that when the consideration for a promise moves to the promisor, or can justly be viewed as a benefit conferred upon, or service rendered to him, at his instance, he cannot escape from the per- formance of his obligation, on the ground that some one else i« liable for its fulfilment, or that a debt which he has in fact made his own. is also the debt of 606 Collateral Undertakings. [Cli. xvii. § 608. The first of these propositions involves a denial of the principle governing the entire class of cases consid- ered in the fifteenth chapter. In view of the decisions therein cited, where the existence of a fund proceeding from the debtor, in contemplation of which the promise was made, was held to be sufficient to jjrevent the applica tion of the statute, on that ground alone ; although in some of them there was no room for the supposition, that the leading object of the promisor was to benefit himself ; the cases which maintain this proposition must be regarded as of local authority only, and not entitled to recognition, as exponents of a principle generally recognized in Ameri- can jurisprudence. § 609. AYith respect to the second proposition, we remark that it involves an assumption, which cannot be justified upon a fair and reasonable construction of many of the cases ; namely, that whenever there was no fund proceed- ing from the debtor, there was constructively a fund pro- ceeding from the creditor. In those cases where the cred- itor surrendered a lien upon property, in which the promisor had an interest, the advocates of this theory regard the lien as the fund, and its surrender as the process by which the fund was furnished. But this is a very forced inference, and often diametrically opposed to the real facts. For in all the cases where the creditor' s title was hostile to that of the promisor, and the promise was in general terais to pay the debt, it is entirely clear that in fact neither party another person. For as under these circumstances, the promisor contracts for himself, and receives an equivalent for what he agrees to give, the prom- ise is not. in any just sense of the term, a promise to pay the debt of another, although the extinction of another's debt may be one of its consequences." And further on : " But whatever be the sacrifice made or loss incurred by the creditor, it will not give validity to an oral promise by a third person to pay the debt, unless it confers a benefit on the promisor, of sucli a nature that the liability which he incurs can justly be called his, as distinguished from tlie assumption of the antecedent or cotemporaneous obligation of another. Even when the withdrawal or forbearance of a distress or execu- tion, the dissolution of an attachment or the extinguishment of an incura- Art. I.] Collateral Uxdektakings. 607 voluntarily assumed a relation, by which one furnished and the other received any tiling, to be specifically devoted to that purpose. On the contrary the promisor's only motive in assuming the dt^bt was to rid himself of that which iutrr- fered with the enjoyment and power of disposition of his own property ; and th«^ transaction was simply the compro- mise of an antagonistic claim of title. § 610. And while the principle which the English au- thorities now regard as having controlled those cases ; namely, that the property of the promisor was already liable for the debt ; does not in any degree militate against the idea, that the debtor furnished the fund, by his trans- fer to the promisor, it is more than irrelevant to, for it is actually inconsistent with the idea, that the surnmder of the promisee's title was in effect the furnishing of a fund by him, from which to pay the debt. That do(!trine amounts only to this ; that a person may transfer, by an oral promise, to his person and to all liis property, a lia- bility which previously rested upon part of liis property only. But if the lien of the promisee was a fund furnished by him for the payment of the debt, it would seem to fol- low that the pi'omisor was answerable only for its due appropriation ; and if it should appear that the value of the promisee's lien was in fact less than the debt, the ])rom- isor would be liable only for the amount actually received. And in fact this conclusion is distinctly stated, in connec- tion with the idea that the promisee furnished a fund, in brance, on the faith of a promise that the debt shall be paid, has resulted in the loss of the only effectual means of obtaininpf payment from the debtor, the statute will operate as a bar, unless it can be shown that the j)r()perty thus released was the defendant's, or that he derived some benefit from the transaction of which the law can take cognizance." "The numerous dicta which may be found the other way, and to the point that an injury to the promisee will be equally eflTectual with a benefit to the promisor, cannot weif^h apainst the plain meaning of the act, and the numerous decisions, establishiuf,' that where the defendant does not receive or profit by wiiat the plaintiff relinquishes, the consideration, though ample at common law, will not sustain the promise unless reduced to writing." 608 Collateral Undektakings. [Cli. xvii. some of the cases where such an inference was raised by the judges who pat their opinions upon that ground. But no court in England or the United States would tolerate a d«»fence, that the property fell short of the plaintiff' s de- mand, in a case where the promise was made to settle a hostile claim. § 611. We have therefore rejected the first and second of the propositions just mentioned. But it must be under- stood that we do not deny the correctness of the doctrine, that the statute does not apply, where the creditor in fact furnished a fund for the fullilment of the promise. It would be sufficient in any such case, in order to save the verbal promise, to show that it was not to be fulfilled out of the means of the promisor. But we have not found it necessary to place such cases within a distinct class, or to frame a rule adapted to them. For if a tangible fund was really furnished by the promisee, it will very rarely hap- pen that any question can arise touching the application of the statute, of sufficient gravity to require a solemn adjudication ; and where any such question arises, some one of the rules already stated will invariably be sufficient to solve it. In all such cases the attempt to falsify the facts, in order to accommodate a legal theory, is the only real source of perplexity. § 612. If these views are sound, it follows that the third and fourth propositions are to be examined together ; as the correctness of the third depends entirely upon the question, whether it recognizes the true rule to be derived from those cases, where there was no fund proceeding from the debtor. To this question, the fourth proposition re- turns a negative answer. We have adopted this conclu- sion ; not without great hesitation at first ; but ultimately from a very clear conviction of its correctness. We think that a careful consideration of the subject will result in demonstrating, that no rule for the exclusion of cases from the statute, depending upon the leading object of the promisor, can be sustained upon principle, or the weight Art. I.] Collateral Undertakings. 609 of well considered adjudications. If we do not groatly err, the definition embodied in the favorite proposition on that subject, is merely a vague and loose description of certain classes of cases, possessing a common feature ; the existence of which is a mere accident, having nothing to do with the application of the statute. § 613. The proposition which we have thus undertaken to combat, is the successor of the doctrine constituting the definition of the third class of cases, as stated in Leonard V. Vreden'burgh,{h) and now, we think, properly classed among the exploded theories. This doctrine, which holds that the statute does not apply, "when the promise to pay the debt of another arises out of some new and original consideration of benefit or harm, moving between the newly contracting parties," makes the validity of the verbal promise depend, upon the existence of that which merely satisfies the common law definition of a valuable consideration, with the addition of the words "new and original." As the consideration must necessarily be new, whenever the promise is to pay the pre-existing debt of another, the first of these words adds little or nothing in the way of precision or amplification, to the common law requirements of a consideration. The word "orig- inal," although obscure in itself, is explained by reference to a preceding portion of the same opinion. It was doubt- less intended as the equivalent of the expression, "inde- pendent of the debt," which had just previously been used by the learned Chief Justice ; meaning that the considera- tion must be something unconnected with the subsisting indebtedness, and not merely something growing out of it, as would be the case if the consideration consisted merely of forbearance to the debtor. But provided it was, in that sense "original," there seems to be no doubt that if it was any thing done at the request of the promisor, which involved either benefit to him or haiTn to the promisee, the language of the rule was satisfied, (c) {h) See ante, § 63. (c) This conclusion is opposed to that which Comstock, C. J., reached, in 77 610 COLLATEEAL UNDERTAKINGS. [Cll^ XVII. § 614. It remains to be seen, whetlier the doctrine wMch. has taken the place of Chief Justice Kent' s third propo- sition is more defensible than its predecessor. This in- quiry, which will be carefully prosecuted in the next article, will close this long, and, we fear, tedious, although necessary discussion. ARTICLE II. Discussion of the question whether the ahstract proposition can he supported, that a promise to pay the deht of another is not within the statute, whenever the leading ohject of the prom- isor was not to discharge the dehtor, hut to suhserve some interest of his own, distinct from the payment of the deht j and the consideration moved to him. § 615. If the proposition, which has succeeded to the popularity formerly enjoyed by Chief Justice Kent's third definition in Leonard v. VredenburgJi, was to the effect that whenever the leading object of the transaction was not to make the promisor answerable for the debt, default or miscarriage of another, the promise is not within the statute, although the undertaking of the promisor incident- that portion of his opinion in Mallory v. G-illett, 21 New York, 412, where he commented upon this doctrine, with a commendable efifort to reconcile it with the principles now recognized. (See the abstract contained in the note to § 597, ante.) But, be it said with great deference to so high an authority, the concession which he was forced to malce, that harm to the promisee is equally meritorious with benefit to the promisor, for the purpose of calling the rule into operation, completely neutralizes the effect of his ingenious argument. The qualification that it must always move to the promisor amounts to nothing, until some example shall be produced of mere harm to the promisee moving to the promisor, in any other sense than that it was incurred at his request. The proposition of Chief Justice Kent has uniformly been understood, as we construe it in the text, and it cannot be reconciled with the modern rulmgs. In the language of Strong, J., in Maule v. Buck- nell, (post, §§ 621, 622,) "that this proposition is inaccurate, is almost univer- sally admitted, and it practically denies all effect to the statute. It cannot be admitted for a moment, in the terms in which it was expressed." G-rover, J., in his opinion delivered in Brown v. Weber, 38 New York, 187, repu- diated the doctrine in language equally conclusive, if less emphatic. (See § 312, ante.) It was also substantially condemned in Clapp v. Lawton, 31 Connecticut, 95; Eddy v. Roberts, 17 Illinois, 505; Kingsley v. Balcome, 4 Barbour (N. Y.), 131; Barker v. Bucklin, 2 Denio (id.), 45; Kelsey v. Hibbs, 13 Ohio. N. S., 340 ; and Durham v. Arledge, 1 Strobhart (South CaroUna), 5^ Art. II.] Collateral Undektakixgs, 611 ally imposed such a liability upon him, its general correct- ness could not be disputed. (a) In the existing state of society, almost every executory agreement involves, to some extent, a responsibility for the acts of others ; and an analysis of the component parts of many liabilities, constantly assumed in the course of ordinary business transactions, to which no one ever imagined that the statute of frauds has any application, would result in proving that they consist, in a great degree, of responsibili- ties of that character. Every contractor for the erection of a building, the construction of a railroad, or the like ; every common or private carrier; every insurer against loss by fire, or the perils of navigation, assumes an engage- ment, which principally consists of a promise to answei for the defaults or miscaniages of others. But in cases of this character, neither party was primarily seeking to impose upon the promisor a responsibility for a third per- son ; and his assumption thereof was an accidental, or, at most, an incidental consequence, of a common design to accomplish some other purpose. § 616. But the mere statement of the proposition, that the leading object of the promisor was to subserve his own interest, implies, not only that his responsibility for another was, or at least that it may have been, the leading object of the promisee, but also that it was one object of the promisor ; or, in other words, that both parties contem- plated that the engagement of the promisor should be superadded, as an additional security to the promisee, to the liability of the third person, which was meanwhile to continue in full force. If it be said that such cases are without the statute, this is practically tantamount to saying that no case is within the statute, if the considera- tion of the contract moved to the promisor; for no man enters into a contract, with the leading purpose of making himself answerable for another's debt, or of discharging (a) See extract from the 13th edition of Sehvyn's Nisi Priiis, in note to § 606, ante, and remarks of Poland, C. J., in Fullam v. Adams, note to § 620. 612 Collateral Undertakit^gs. [Ch. xvii. the debtor ; his principal object being invariably to secure the consideration. Consequently the most undisguised contracts of guaranty must fall without the statute, provided a distinct consideration was paid for the guaranty ; a doc- trine which will not only include guaranties of the pay- ment of precedent debts, but those where the guaranty was made at the time when the principal contract was entered into ; as, for instance, if A sells goods to B, and at the same time C guaranties the payment of the price by B in consideration of a commission paid to him by A. § 617. We conceive that the extended recognition, which this proposition has obtained, is due to the frequency of cases where it practically coincides with the well settled principle, that the statute does not apply, when the sub- stance of the promise is an engagement to pay the prom- isor' s own debt, or a debt resting upon his property. Thus if the promisor held a fund, which he was bound in some other form, or to some person other than the promisee, to apply towards the payment of the third person' s debt, it amounts to the same thing, whether we say that his prom- ise to pay that debt was substantially a promise to pay his own debt, or that his leading object was to relieve himseK from a liability resting upon him. So when the promisee surrendered a lien upon the promisor' s property in consid- eration of his promise to pay the amount of the lien, in general we may say indifferently that the debt was sub- stantially his own, or that his leading object was to rid his own property of an incumbrance. In these, and other instances which might be named, the two propo- sitions merely express the same idea in different words. There are also some cases without the statute, where both propositions are true in fact, although they relate to different features of the transaction ; but the circumstances are such that it is easy to overlook the true reason why the statute does not apply. Thus where the promisor had once been liable to pay the debt, and had been only techni- cally discharged, a renewal of his engagement is a prom- ise to pay his own debt ; and if it was founded upon a Art. II.] Collateral Undertakings. 613 new consideration beneficial to him, his leading object was to acquii-e the consideration. But in such a case, it is not true that either proposition may be indifferently assigned, as a reason why the statute does not apply ; for if both are sound, there are two distinct reasons for the same conclu- sion. It is obvious, however, that if one is sound and the other unsound, no immediate practical inconvenience will ensue, if the unsound proposition be assigned as the ground of the decision. Hence an error originating in such a case would probably long pass unchallenged. § 618. But we have now to deal with those cases, which depend exclusively upon the proposition under examina- tion ; and to consider the question whether it enunciates a correct general rule, embracing all cases to which its terms fairly apply, and taking them out of the statute, notwith- standing that they would otherwise be within it. This is l)recisely the eff'ect which some writers claim for the doc- trine in question, and even for more indefinite and compre- hensive statements of a doctrine of the same general character. In this position they are supported by several dicta in the reports, and some adjudications. As a lead- ing author says, in the course of a defence of this propo- sition, "the principle is large enough to embrace every instance in which a guaranty is based upon, or given for a valuable consideration, moving directly or indirectly to the guarantor. "(5) It is manifest that if there is any principle of such sweeping application, an element of uncertainty will be present, in most cases where the statute is supposed to be applicable to a promise to pay a third person's pre-existing debt; for there are but few such cases, where a consideration did not move directly or indirectly to the promisor, and where his interest was not subserved thereby. § 619. Still this proposition has been repeated so often, by jurists of such acknowledged reputation, as being (fc) 1 Smith's Leading Cases, sixth American edition, page 492. 614 Collateral Undertakings. [Ch. xvii. unquestionably sound in law, that it requires some courage to attack it ; and perhaps we would not have ventured to do so single handed ; but the task has been undertaken, and we think successfully accomplished, in two recent adjudications, the reasoning in which is very strong to show that it cannot be maintained. Indeed a grave ques- tion may arise whether in one of them, the court has not gone too far in the opposite direction, and by an erroneous explanation of some of the cases, circumscribed too much the field, within which the principle that the promise is good without writing, where the promisor or his property was previously liable for the debt, can reasonably and safely operate. § 620. In the first of these cases, Fullam v. Adams, 37 Vermont, 391, A. D. 1864, the Supreme Court of Vermont distinctly overruled one of the propositions, by which Chief Justice Comstock in Mallory v. Gillett, illustrated his third class of cases, being those "where, although the debt remains, the promise is founded on a new considera- tion which moves to the promisor, "(c) The action was brought by a lawyer, upon a verbal promise made by the defendant, by way of retainer, on the occasion of the defendant' s employment of the plaintifi" as his counsel in an expected litigation, relative to his transactions with his brother John, who had failed in business. The promise of the defendant is stated in the report to have been, that he "would pay the plaintiff" one half of what the said John was owing the plaintiff", amounting to some $300 or $400, and reasonable fees and charges for his services." The plaintiff" had a verdict, and on an exception taken by the defendant to the admission of the evidence, on the ground that the contract was within the statute of frauds, the judgment was reversed and a new trial granted. The opinion, delivered by Poland, C. J., is very voluminous ; it attacks the whole doctrine that a new and distinct con- sideration, moving from the promisee to the promisor, will (c) Ante, § 64. Art. II.] Collateral Undertakings. 61o suffice to take out of the statute a promise to pay the debt of another, whatever may be its nature ; and it asserts that the only cases, where such a promise is not witliin the statute, are those where payment of the debt would dis- charge some duty or obligation resting upon the promisor ; all others being mere guaranties, in whatever form they may be disguised, or whatever specious reasoning may be resorted to, for the purpose of giving the transaction a different appearance, (c?) (d) The learned Chief Justice began with an examination of the question, whether there was a sufficient consideration for the defendant's promise ; upon which point he concluded that the retainer was sufficient, it being customary for members of the bar to charge and receive fees upon a retainer merely. Next the true construction of the agreement was examined, and he concluded that the promise was not, as the plaintiff contended, to pay a certain sum of money, the amount of which was to be fixed by reference to the debt due from John to the plaintiff, and payment of which would not aflfect the liability of John to the plaintiff; but that it was a contract to guaranty, or become responsible for one half of John's debt; so that payment by John of all his debt to the plaintiff would discharge the defendant from liability under the promise; and on the other hand, fulfilment of the promise by the defendant would reduce John's debt to one half of its original amount. The promise, he said, was therefore a promise to pay the debt of another, and consequently directly within the terms of the statute. Nevertheless it is well settled, that a state of facts may exist, which will make such a prom- ise binding without a writing; but the difficulty is to ascertain from the decisions, by what rule the presence of those facts is to be tested. In con- sidering this question, the learned Chief Justice referred to the classifica- tion of the cases by Chief Justice Kent in Leonard v. Vredenburgh and to that made by Chief Justice Comstock in Mallory v. Gillott, remarking that this was precisely one of the illustrations of the latter's third cla.<;s of cases not within the statute. He observed that Mallory v. Gillett holds, and the opinion therein clearly shows the rule to be well established, that where a creditor surrenders to the debtor, a security which he holds for the payment of a debt, upon the promise of a stranger to pay him, the promise is within the statute ; but where the security is surrendered to the promisor, the promise is not within the statute. But he .said that in both cases the debtor continues to be liable, and the surrender of the security was equally a detriment to the creditor, and so an ample consideration for the new prom- ise. The distinction between the two depends, said the learned Chief Justice, upon the same principle, which takes out of the statute promises made by a purchaser of property to pay the price to a creditor of the vendor, and 616 COLLATEEAL UnDEKTAKINGS. [Cll. XVII. § 621. The next case, Maule v. Buclcnell, 50 Pennsyl- vania, 39, A. D. 1865, contains an equally decisive repudiation of the doctrine now under examination. The substance of the first count of the declaration was, that the plaintiff and three others were directors of the Eastern Market Company, and had control of its affairs ; and that the defendants, in consideration of the transfer to them, by promises to pay a debt made to a creditor, by a person who has received from the debtor a fund for that purpose. In both those classes of cases the true reason why the promise is not within the statute, is that the promisor holds a fund of the debtor for the purpose of paying the debt, so that it is his duty to do so; and when he promises the creditor to pay it, he promises in substance to pay his own debt, and not that of another; and although the original debtor still remains liable, his real relation is rather that of a surety for the person who has assumed the duty of payment, than of a principal for whom the latter has become a sureiy. The opinion then proceeded to amplify the proposition that the cases where a creditor holds a security for the payment of the debt, which he surrenders to the promisor upon the latter's undertaking to pay^the debt, stand substantially upon the same prin- ciple as the others just mentioned. The substance of Williams v. Leper and kindred cases is that the party making the promise is liable, because by the arrangement he becomes the holder of a fund, which was appropriated to the payment of the debt, and clothed with a duty or trust in respect thereto, which the law will enforce in favor of the promisee. In these cases the promise was founded upon a new consideration, moving between the newly contracting parties^ and for the benefit of the promisor; but that fact does not prove that all contracts founded upon such a consideration are without the statute ; on the contrary, when the promise is a mere contract of guaranty, it comes within the statute, although a distinct consideration therefor be paid directly to the party making the promise. This the learned Chief Justice illustrated by the principle upon which the cases relat- ing to the contracts of a factor acting under a del credere commission were decided, (see chapter xviii, article ii), which is, he contended, merely that the factor undertakes for his own fidehty; and by references to other cases, where a promise to pay the precedent debt of another, made upon a new consideration moving directly from the promisee to the promisor, was held to be within the statute. The result of this examination is said to be, that whether the promise is within or without the statute, does not depend upon whether the consideration moved wholly between the new parties ; but the test is whether the leading object and purpose of the transaction were to become responsible for the payment of another person's debt. And it is almost impossible, in the learned Chief Justice's opinion, to imagine a Art. II.] Collateral Undertakings. 617 the plaintiff and his associates, of a certain amount of the stock held by them in that company, and tlie resignation by them of their offices as directors thereof, whereby the defendants miglit themselves become directors, promised to pay certain debts of the corporation, and among others a debt due to the plaintiff which he claimed to recover. The second count was framed with a view of recovering case where a promise to pay the debt of another, for which he continues to be liable, made upon a consideration moving wholly from the creditor, and in which the debtor has no concern, can have any other leading purpose and object than to make the promisor a surety or guarantor of the debt. Tlie argu- ment that such a transaction should be treated as a purchase of the considera- tion by the promisor, will not bear investigation; because, if it is sound, then the promisor only pays for what he receives, and after he has fulfilled his prom- ise the creditor may still proceed to collect the debt from the original debtor; and payment by the original debtor will not protect the promisor, against an action by the creditor for payment of the purchase price. For these reasons, as well as because it is not comprehensible, why the parties to an actual sale and purchase should effect their object by means of a contract to pay the debt of another, he said that such a contract is made with the purpose and intent to answer for the debt of another; thatwhat is paid or done, as a consideration, is for that purpose merely; and to call it a purchase and sale, is a simple perversion of those terms. The result is summed up thus: " If the real sub- stanceofthe promise be to performsomeduty or obligation of the party making the promise, it is not within the statute, though in form it is a promise to pay another's debt, and the result of its performance may effect the payment of the debt of another. And we believe it will be found that in all the cases now regarded as sound, where it has been held that a parol promise to pay the debt of another is binding, the promisor held in his hands funds, securities or property of the debtor, devoted to the payment of the debt; and his promise to pay attaches upon his obHgation or duty growing out of the receipt of such fund." If, the learned Chief Justice proceeded, the promise is founded upon the consideration of tlie property sold by the debtor to the promisor, or placed by him in the promisor's hands to pay the debt; or if a creditor, holding a security received from the debtor, surrenders it to the promisor upon his promise to pay the debt ; in either case, if the promise is not fulfilled, the debtor would have a remedy in some form against the prom- isor. But if the exemption from the operation of the statute shall be carried any further, every beneficial purpose of the statute is gone. Hence the rule, as laid down by Ciiief Justice Comstock, that "A, for any compensation agreed upon between him and B, may undertake that C shall pay his debt to B," cannot, in the opinion of the court, be maintained. 78 618 Collateral Undertakings. [Cli. xvii. damages for the depreciation of the plaintiff' s remaining stock, in consequence of the defendants' failure to pay the debts due to other persons. At the trial the plaintiff offered to prove a verbal promise, to the effect stated in the declaration, and sundry other facts tending to show that the affairs of the company were in good condition, at the time of the transfer ; but it had failed in consequence of the defendants' mismanagement and breach of their prom- ise ; and that the object of the transaction was, at least in part, to improve the value of the stock of the company, remaining in the hands of the plaintiff, after the transfer of a portion thereof to the defendants ; and, on the part of the defendants, to obtain the control of the affairs of the company, they being large creditors. But the plaintiff was nonsuited, on the ground that the promise was within the statute of frauds ; and a motion to set aside the nonsuit having been denied, a writ of error was sued out of the Supreme Court, where the judgment below was affirmed. Three objections were made to the recovery, but the Su- preme Court held that the one arising out of the statute of frauds was insuperable, and declined to consider the others. The opinion was delivered by Strong, J. The abstract of the views of the learned judge, contained in the note, is commended to the reader' s attention ; it will be noticed that they generally coincide with the opinions expressed in these pages, with respect to the other classes of cases, governed by the principle that where the promise is substantially to pay the promisor' s own debt, the case is not within the statute. (0) (e) The learned judge began by denying the proposition, that a promise to pay the debt of anotlier can be taken out of the statute, because it rests upon a new consideration, moving from the promisee to the promisor. " The object of the statute," he said, " is protection against fraudulent practices, commonly endeavored to be upheld by perjury ; and to these all suits upon verbal con- tracts to answer for another's debt or default are equally exposed, no matter whence the consideration of the contract proceeded, or to whom it passed." The statute, he continued, makes no reference to the consideration ; it is only the promise which is mentioned. Yet there is a class of cases, where the consideration has been more regarded than the nature of the promise. Art. II.] Collateral Undertakings. 619 § 622. We will now take up those cases which present the most marked contrast to Fullam v. Adams andllaule V. Bicclmell, being those which foi-m the crucial test of the soundness of the supposed legal ]:)rinciple, which the latter condemn so decisively. By this we mean cases which were taken out of the statute, exclusively by the operation These do not depend upon the fact that the consideration moved from the promisee to the promisor; but upon the fact that it was either a transfer of the creditor's claim to the promisor, making the transaction a purchase; or that it was a transfer to the promisor of a fund for tlie payment of the debt, or property or securities charged with its payment, whether they came from the debtor or the promisee. " But," said the learned judge, " except in such cases, and others perhaps of a kindred nature, in which the contract shows an intention of the parties, that the new promisor shall become the principal debtor, and the old debtor become but secondarily liable ; the rule, it is believed, may be safely stated, that, while the old debt remains, the new must be regarded as not an original undertaking, and that it is therefore within the statute. At least this may be stated as a principle generally accurate." "Ami it will be found, after examination, that in nearly all the decisions, in which it has been held that such a promise is not within the statute, there was some liability of the promisor or his property, inde- pendent of his express promise ; or that he had become the actual debtor, so that as between him and the original debtor the superior liability was his. In such cases the consideration for the new promise is regarded as material." After examining the decisions in Pennsylvania, to show that they are in harmony with these views, he added, that among all the authorities cited by the plaintiff in error, there were none inconsistent therewith, except what was said by Kent, C. J., in Leonard v. Vredenbu.'-gh, respecting the third class of cases not within the statute, which is now almost universally admit- ted to be inaccurate. Then, reverting to the facts of the case at bar, he concluded as follows : " The company remained the primary debtor, and had they paid, the defendants would have had nothing to pay, either to the plaint- iff or to the original debtor. The promise of the defendants was therefore in no sense a promise to pay their own debt, or a debt of their property. It was not in relief of any property they owned, or upon which they held a lien. Nor was the consideration for the promise of a nature to take the case out of the statute. It was not a placing in the hands of the defendants, by the debtor or the creditor, funds, securities, or property of the debtor, pledged or devoted to the payment of tlie debts. The transfer of the small number of shares of stock, and the resignation by the plaintiffs of their directorship, were to enable the defendants to become directors, not to place funds in their hands to pay the debts. The averment is, that it was their own money they promised to pay in discharge of the debts, and it is because 620 Collateral Undertakings. [Ch. xvn. of that principle ; the circumstances being such, that with- out its help, they must have been decided otherwise. It may occasion some surprise, and it certainly affords a very strong argument against the existence of any such principle, as a rule of general application, that although it has been asserted as law in scores of cases, extending over certainly a quarter of a century, our researches have enabled us to find but two, and those of quite recent date, which answer this description. (/) And it is believed that neither of these cases can be sustained by any logical course of reasoning ; on the contrary that they are striking illustrations of the inconsistent, not to say dangerous con- sequences, of the rule by which they were governed. § 623. The first of these decisions comes to us from a source no less authoritative than the Supreme Court ot the United States. In Emerson v. Slater, 22 Howard, 28, decided A. D. 1859, it appeared at the trial that the plaint- iff had entered into a written contract with a railroad company, whose road was in process of construction, providing for the building of certain bridges for the com- pany, for a stipulated compensation, payable in specified proportions and at specified periods therein mentioned; under which the plaintiff had commenced the work ; but the railroad company having failed and become insolvent, they did not pay their own money that this action is brought." Compare this case with Alger v. Scoville, 67 Massachusetts (1 Gray), 391, ante, § 376, and post, § 630. The principal difference between the two cases, with respect to the circumstances attending the consideration, is that in the latter it was expressly shown that the transfer gave the defendant the entire control of the corporation; but the distinction is beheved to be immaterial, and the true ground upon which that case can be sustained, is that the promise was not made to the creditor. Whether in Maule v. Bucknell the same principle might not have saved the cause of action under the second count, was not argued or considered. (/) ^® ^^y °"'' °^ view those cases which affirm that the statute does not apply, where a lien upon the debtor's property has been surrendered to him, in consideration of the promise; it being now admitted that they proceeded upon an erroneous principle, and were incorrectly decided, unless the promise could be saved from the statute by some other rule. Art. II.] Collateral Undertakings. 621 he had stopped and refused to proceed furtlier. The defend- ant was a large stockholder in the company, and holder of its bonds ; and he had leased to the company a quantit}'- of" railroad iron to be laid down on the road, under a con- tract, whereby the company was to pay him, for the use of the iron, certain sums monthly, until the full value thereof, as fixed in the contract, with interest, should be paid ; and then the defendant was to sell the iron to the company. In order to secure these payments, the com- pany had assigned to the defendant the proceeds of the railroad, to an amount equal to the value of the iron, which the superintendent was to retain in his hands. § 624. Under these circumstances, the defendant entered into a written agreement with the plaintiff, to the effect that the latter would complete the work provided for in his contract with the company, by a specified time ; for which the defendant would pay him, part in cash and part by his notes, certain fixed sums, at periods specified in the contract ; that the payments should be applied upon the company's indebtedness to the plaintiff ; and that the contract between the parties should not affect the conti-act between the plaintiff and the company, or any action pending between them. In order to indemnify the def(^nd- ant against his contract with the plaintiff, the company also transferred to him certain property, which appeared to include all its property, except its franchise. The plaintiff did not complete the work, within the time specified in the contract between him and the defend- ant ; apd it had been held, when the cause was formerly before the court, ((7) that time was of the essence of the contract ; but upon this trial, he offered to prove a verbal extension by the defendant of the stipulated time for per- fonnance, to a day subsequent to that, when the work was actually performed. This was excluded b}- the judge, on the ground that as the written agreement was a special (g) See Slater v. Emerson, 19 Howard 224, where the substance of the contracts is given at greater length 622 Collateral Undertakings. [Ch. xvii. promise to answer for the debt, default, or miscarriage of another, the substituted agreement, not being in writing, was within the statute. The plaintiff thereupon asked to recover upon the common counts ; but the judge ruled that he was not entitled to do so, and the defendant had a verdict, and judgment thereon. The writ of error was brought to review these rulings upon exceptions, and after argument the judgment was reversed. § 625. Mr. Justice Clifford, delivering the opinion of the court, referred to the question whether the statute permits the subsequent verbal alteration of a written contract, in a case falling within its terms, and said that although the weight of authorities was, in his opinion, against the valid- ity of such an alteration, it was unnecessary to decide the question in the present case ; as the court were of opinion tlia;^ the promise contained in the written agreement was not within the statute ; and hence the common law rule applied, by which a verbal waiver or enlargement of the time of performance was valid. His Honor then laid down the rule, governing this class, as follows : "Whenever the main purpose and object of the promisor is not to answer for another, but to subserve some pecuniary or business purpose of his own, involving either a benefit to himself, or damage to the other contracting party, his promise is not within the statute, although it may be in form a prom- ise to pay the debt of another, and although the perform- ance of it may incidentally have the effect of extinguishing that liability." Applying this principle, the learned judge said that this agreement was an original one } on its face it purported to be between parties for their own bene- fit, and the contract between the plaintiff and the company was apparently referred to, as descriptive of the subject matter of the contract between the parties ; and doubtless also because the company had indemnified the defendant. But, he continued, when the attending circumstances are considered, the presumption is much stronger that it was made for the defendant' s benefit mainly, if not entirelj- The defendant had leased railroad iron to the company, Art. II.] Collateral Undertakings. C23 for the use of the road ; and as security for the payment, he had an assignment of the proceeds ; unless tlie bridges were built, there would be no proceeds ; and as the de- fendant had already an assignment of all the available means of the company, to secure himself for this new lia- bility, the company could not pay for the iron. The learned judge added that damage also resulted to the plaintifl', by his going on with the contract, after the com- pany had failed to pay according to its terms, and by his agreeing to receive payment in a different manner than that provided for in the contract It was not an agreement to pay a subsisting debt, but for work and materials there- after to be furnished. For all these reasons the court con- cluded that the defendant' s promise was original, and that it was unnecessary to decide whether the effect of the in- demnity, given by the company to the defendant, was to take the contract out of the statute, {h) § 626. Without stopping to inquire, whether the decis- ion upon the writ of error might not have been sustained on some other ground ; as that the verbal waiver was good because the defendant and the company had accepted the performance ; or that the indemnity, pre- supposing a promise to the debtor, of which the plaintiff might avail himself, or a fund furnished by the debtor, took the case out of the statute ; we venture to express the opinion, with all due submission to the distinguished tribunal in ques- tion, that this judgment cannot be supported upon the grounds assigned. The rule, which is propounded as con- trolling this class of cases, professes to be taken from the New York cases of Leonard v. Vredenb2irr/7i, and Farley V. Cleveland, and the Massachusetts cases of Nelson v. Boynton and Alger v. Scomlle; all of wliich are cited, Qi) Some of the facts, as stated in this report, may leave the question some- what doubtful whether the plaintiff could have recovered against the company. If so. it is believed that they will be dispelled by a reference to the report in 19 Howard 224, where the provisions of the contracts are given somewhat diflferently, and additional facts are stated. 634 Collateral Undertakings. [Cli. xvii. and the rules which they lay down are given at length in these pages. But it contains the error which caused the abandonment of the rule laid down in the New York cases ; and omits the redeeming feature, which enabled it long to hold its own, and which the Massachusetts cases retain and amplify as indispensable to its operation. (?') If this decision is law it is difficult to see why, if the third person is also debtor to the promisor, any thing which tends to improve his credit or his ability to pay the promisor, will not take a promise to pay his debt out of the statute, whether the promise related to an antecedent debt, or one then newly contracted, {j ) % Q21. The next case which, although more startling in its results, is more defensible in principle, because at least the defendant acquired what the plaintiff gave, is Kutz- Tneyer v. Ennis, 3 Dutcher (New Jersey), 371, A. D. 1859. There the first count of the declaration stated that the defendant had made a written contract with Riley and Goodwin, to construct certain buildings for him at a stipu- (i) The error lies in the supposition that harm to the promisee will affect the question under the statute. It is believed that this proposition always involves a fallacy ; it certainly does so in a case like this, otherwise a promise based upon forbearance or the surrender of a security to the debtor, would be amply within the principle. The redeeming feature, upon which the dis- tinguished judge, whoso strenuously defended this rule in Mallory v. Grillett, wholly based his defence of it, was that it required the consideration to move to the promisor. This the Massachusetts cases amplify, by saying that the benefit to the promisor must be one '^accruing immediately to himself;" but in Emerson v. Slater the opinion entirely omits this vital qualification. And evidently this was not done by accident, or because it was supposed to be included in the phrase that the leading purpose of the promisor was to ben- efit himself; for a careful examination of the case will show that no consider- ation moved fr-om the promisee to the promisor either directly or i7idirecily. The original debtor acquired all that the plaintiff gave ; the consideration there- fore moved to him exclusively ; and the benefit which the defendant expected to derive from the transaction, remote, indirect, and uncertain as it was, would come from the debtor and not from the plaintiff. {j) There is considerable similarity between the facts of this case and those in Mallett v. Bateman, ante, § 212, where the Exchequer Chamber ruled the law precisely the other way. Art. II.] Collateral Undertakings. 625 lated price ; tliat the plaintiff had worked on the build- ings, at the request of the contractors, and upon a written agreement with one of them ; that they having failed to pay the plaintiff, he gave notice in writing to the defendant under the lien law, that a certain amount was "due from the contractors," and requiring the defendant to retain that amount; and thereupon it was averred that he be- came liable to pay the plaintiff under the lien law. The second count was indebitatus assumpsit for work and labor. The defendant had judgment in the court below, upon demurrer to the first count ; the cause was then tried upon a plea of the general issue to the second count ; and the plaintiff having had a verdict and judg- ment, the defendant brought error. It appeared from the bill of exceptions, that the defendant made an express verbal promise to pay for the work, and (either by offers of evidence which were rejected or by express proof,) that the work was done at the request of the contract- ors, and under a written agreement with Eiley ; that Riley and Goodwin had recovered judgment against the defendant for the same work for w^hich this action was brought, and that the defendant had paid the judgment ; that the judgment in their favor was recovered after a trial, upon which the plaintiff testified that ' ' the work was done by the contractors for Kutzmeyer" (the defend- ant) ; and that after the work had been completed, the plaintiff had given the notice and taken the proceedings under the lien law, as set forth in the first count of his declaration. Nevertheless the Supreme Court afiirmed the judgment, stating the principle under examination in language essentially different from that contained in tlie opinion in the former case, and holding, upon their method of stating it, that it took the defendant's promise out of the statute. The court added, (what under the circum- stances would almost seem to be ironical,) that the defend- ant might have retained the amount due to the plaintiff, from the moneys paid to the contractors. The facts of this case show very clearly that both parties understood, that the leading object of the promise was to guaranty the debt 79 626 Collateral Undertakings. [Ch. xvii. of the contractors ; and, as tlie court stated the rule, that circumstance would appear to be of no consequence. {Jc) § 628. Not only do these two cases disagree fundament- ally as to the terms of the rule, by which both profess to be governed ; (and each states it in a form less defensi- ble than that which we have given to it ;) but they are also directly at war with numerous other decisions, in cases where the plaintiff held a subcontract to do part of a work, which the third person had contracted to do for (k) The opinion, delivered by Green, C. J., after saying tliat as the work was done upon the express promise of the defendant to pay for it, it was immaterial whether Riley and Goodwin had recovered judgment for it against the defendant, or had received the price, proceeded to consider the effect of the lien notice, the plaintiff's evidence on the former trial, the special count of the declaration, and the contract between the plaintiff and Riley; all of which, it was said, showed clearly that the plaintiff understood that he originally gave credit to the contractors, and not to the defend- ant. "But," it was added, "the question is not to whom the credit was originally given, but whether Kutzmeyer" (the defendant below) "did not afterwards assume the liability." Then the learned Chief Justice proceeded to consider the exception to the refusal of the judge at the trial, to charge that, as the work was done under the contract between the plaintiff and Riley, any promise by the defendant to pay for the same should have beeu in wiiting; respecting which he said: "The court was right in refusing to charge as requested, though the reason assigned for the decision may not be valid. The real ground on which the decision stands is that the promise is not within the statute of frauds. The rule is that where the promise to pay the debt of another is founded upon a new consideration, and this consideration passed between the parties to the promise, and gives to the promisor a benefit which he did not enjoy before, and would not have possessed but for the promise, then it will be regarded as an original promise, and ihe-refore will be enforced, though not in writing. 1 Parsons on Con., 498. This is the precise position of the parties in this case. The evidence tends to show, and, if the jury believed the plaintiff's witnesses, does show, that though the woik was originally undertaken by Ennis at the instance of the contractors, yet he refused to proceed and the work was stopped, until Kutzuieyer promised payment. The work was not done for a third party, but for Kutzmeyer himself. He was interested in the completion of the work. He received the benefit of it, and he had in it his power to indem- nify himself for the advance to Ennis, by withholding the money from the contractors." Art. II.] Collateral Undertakings. 627 the defendant ; and tlie plaintiff refused to go on with his work, until the defendant promised to pay him. In such cases it has been repeatedly hold that the promise was without the statute, only when it appears that the plaintiff had discharged the third person ; although the per- formance of the work may have enured to the benefit of the defendant. (Z) Those decisions are therefore direct authorities against the ruling in Emerson v. Slater and Kutzmeyer v, Ennis, and against the whole doctrine that a benefit to the promisor will take the promise out of the statute, in whatever form it may be stated. § 629. The next class of cases where the general propo- sition under examination is asserted to be law, consists of those where it was assigned, as a reason for taking out of the statute the promise upon which the question arose ; but either the circumstances did not require the invocation of its aid, because the case properly depended upon some rule having no relation to it ; or else the case came within one of the specific classes governed by well defined rules, forming corollaries of the principle, that where the promise is substantially to pay the debt of promisor it is not within (0 See chapter ix, article iii, and the following cases: Puckett v. Bates, 4 Alabama, 390 ; Ellison v. Jackson, etc., Company, 12 Calirorniii, 542 ; Noyes V. Humphreys, 11 Grattan (Virginin). 636; Warnick v. Gro;-holz, 3 Grant's Cases (Pennsylvania), 234; Andre v. Bodman, 13 Maryland, 241 ; Bresler v. Pendell. 12 Michigan, 224; Sinclair v. Richardson, 12 Vermont, 33; King v. Despard, 5 Wendell (New York), 277. But see Devlin v. Woodgate, 34 Barbour (New York), 252 contra. It is said in 1 Smith's Leading Cases, 6th American edition, 489, that the reason why the principle under examination will not suffice to save a verbal promise, in this class of cases, is " because the benefit, though real, is not, under these circumstances, sufficiently certain to constitute a hgal considei-ation." In a recent case presenting, upon one hypothesis, the question how far this principle will control the application of the third ruje; and, upon another, a question very analogous to tiiat which which .irose in the cases just cited, the court was driven to a very fine spun line of argument, to escape the alternative, of holding the defendant to be liable, on the ground that the leading object of the promisor was to benefit himself, or of overruling altogether the principle. See Clay v. Walton, 9 California, 328; post, § 641. 628 Collateral Undertakings. [Ch. xvii. the statute. As we have already said, whenever this prop- osition means notliing more than that principle, it is open to no objection as a rule of law. § 630. Among the cases of this description, Alger v. Scoville, 67 Massachusetts (1 G-ray), 391, A. D. 1854, is the most conspicuous, (w) There, as we have already said, it was held that a promise to indemnify the plaintiff, against his accommodation indorsements of outstanding notes of a corporation, made in consideration of the transfer of the plaintiff' s stock in the corporation, and a note against it, held by the plaintiff, was not within the statute, because it was not made to the creditor. But the court also added, that if the promise could be regarded as being to answer for the default of the company, it was not within the statute, because "when the leading and obvious object of the promisor was to induce the promisee to forego some lien, interest, benefit, or advantage held by him, and to transfer that interest, or confer that or some equivalent benefit on the promisor,although the effect may be to discharge another person from an obligation, still it is a new, independent and original contract between the parties, and is not within the statute of frauds required to be in writing." It was further said that the substance of the transaction was that the plaintiff placed in the defendant's hands the funds, out of which the notes would, in due course of business, be paid. But the case is now universally regarded as an authority upon the first point decided, which is a well settled principle of law, as we have already seen.(?z-) § 631. The same general observation will apply to Small V. Schaefer, 24 Maryland, 143 ;(o) Mason v. Hall, 30 Ala- bama, 599 ;(^) Spawn v. Baltzell, 1 Florida, 301 \{q) Jepher- son V. Hunt, 84 Massachusetts (2 Allen), 417,(r) and numerous other cases, where this proposition was assigned (?n) Cited also ante, § 376. (n) Chapter xi. The case is so treated in Furbish v Groodnow, 98 Massa- chusetts, 206. (o) Ante, § 413. {q) Ante, § 494. (p) Ante, § 416, (r) Ante, § 136. Art. II.] Collateral Undertakings. 629 quite unnecessarily as one of the grounds of the decision, the statute being clearly inapplicable under some other well settled principle. § 632. Cases of the other kind, namely, where this proposition was assigned, in general tenns, as the ground for taking the promise out of the statute, but in reality the facts called for the application of some specific princi- ple, derived from the general rule that a promise to pay the promisor' s own debt is not within the statute, are even of less authority to support this proposition, as a rule of universal application ; because our argument is that it is true in all such instances and no other. Many such cases have been cited in previous pages, under the spe- cific principles to which they respectively belongs Among them Reed v. Holcomb^ 31 Connecticut, 360, decided A. D. 1863,(5) is quite noteworthy, as showing the tendency of this doctrine to swallow up all other principles, by which the application of the statute is regulated, and to introduce vagueness and confusion into this branch of the law. There, as we have seen, the court was required to pass upon the question, whether a promise to indemnify the plaintiff for indorsing a third person's note at the request and for the benefit of the defendant, which the defendant himself subsequently indorsed, was within the statute. But it was held that the statute did not apply, for a reason embodying the proposition now under dis- cussion, in one of its protean forms. § 633. Another case, illustrating the same tendency, which has not yet been cited, is Lemmon v. Box, 20 Texas, 329, A. D. 1857. There the question was whether a plea of set-off could be sustained ; the allegation being that the plaintiff requested the defendant to procure a note from C. and E. Carpenter for a specified sum, and an order upon him to accept the note as cash ; and promised the defend- ant that if he would do so, he would pay the amount ; and (5) Ante, § 467. 630 COLLATEKAL UNDERTAKINGS. [Ch. XVII, that after tlie order and note had been obtained, he repeated his promise. The court held that the amount of the note and order could be properly offset against the plaintiff' s demand, on the ground that the plaintiff's leading object was to subserve some purpose of his own ; and although the transactions or dealings between the plaintiff and the Carpenters were not stated, ' ' the manifest inference ' ' was that he owed the Carpenters money; and "apparently" he thought this the most convenient way in which he could pay his debt; and that, "for aught that appears," there was no original indebtedness on the part of the Carpenters to the defendant ; but ' ' he may have purchased their claim against the plaintiff. " So a judgment for the plaintiff was reversed, because the plea of set-off was ruled out. Upon the facts aissumed by the court to exist, the promise was to pay the promisor's pre-existing debt to a transferee thereof. § 634. It is somewhat remarkable, that the cases of this description, where we should find the greatest dif- ficulty in showing, that although this general proposition was stated as the ground of the decision, the result was really controlled by the application of one of the specific propositions to which we have referred, have arisen in Pennsylvania and Vermont, where the general proposition has since been so emphatically repudiated ; and the same court which decided the doubtful case, has by a subsequent construction of it, avoided the doubts which might otherwise arise, whether it could be accommodated to our theory. § 635. In Arnold v. Stedman, 45 Pennsylvania, 186, decided A. D. 1863, the defendant had agreed to sell certain real estate to one Barrett, for a sum payable in instalments ; and the contract contained a clause by which Barrett agreed to surrender possession of the property, upon the first instalment remaining unpaid. Barrett took pos- session, and before the first instalment became payable, the plaintiff, under a contract with him, built a barn on Art. II.] Collateral Undertakings. 631 the premises. The first instalment not having been paid, the defendant commenced an action of ejectment against Barrett; pending which the plaintiff filed a mechanic's lien against the property, for the amount remaining unpaid upon his contract with Barrett ; and subsequently the defendant, in consideration that the plaintiff would stay his proceedings, promised to pay him his debt, when the property should come back to the defendant, in conse- quence of the ejectment suit. At a still later date the defendant recovered the possession of the property. A judgment for the plaintiff was affirmed by the Supreme Court. It was held that the promise was not within the statute on the ground that it was a new and original con- tract, founded upon a new and fresh consideration between the parties to this suit ; and that the defendant's object was not to answer for the debt of Barrett, but to subserve a purpose of his owm. But the subsequent case of Maule V. BucTinelly 50 Pennyslvania, 39, explains this case as having proceeded upon the ground that the promisor's property was liable for the debt, independently of his promise to pay it. § 636. In Lampson v. Hobart, 28 Vermont, 697, A. D. 1856, and also in Cross v. Richardson^ 30 Vermont, 641, A. D. 1858, it would have been difiicult to say that any specific rule, as distinguished from the general proposition, controlled the result, had not the court itself subsequently surmounted the difficulty. It is unnecessary to recapitu- late these cases in detail ; for in Fiillam v. Adams, 37 Vermont, 391, they were authoritatively explained, as having proceeded upon the ground that the promisee sur- rendered to the promisor a security or lien u])on ])roperty ; notwithstanding that in each of them the ))roa(l proposi- tion under discussion was assigned, in one of its varied forms, as a reason for the decision. And it is not easy to see what security the plaintiff in the first cause had o])tained.(^) (i) Bat it was also intimated that Lampson v. Hobart was erroneously decided ; and with this conclusion we agree. It is in direct conflict with Waldo V. Simonson, 18 Michigan, 345, A. D. 18G9, published while this volume was passing through the press. 632 Collateral Undertakings. [Ch. xvii. § 637. The case of Templetons v. Bascom, 33 Vermont, 132, A. D. lSQO,{u) although quite recent, has provoked considerable discussion, which is put at rest by the sub- sequent authoritative explanation of it. There it appeared that the plaintiffs were creditors of the father of the de- fendant who had died intestate, leaving a considerable estate ; that the defendant was his only child and enti- tled to all the estate after payment of the debts ; that immediately after the death of his father, the defendant entered into possession of the estate ; and afterwards, in consideration that the plaintiffs would not present their claim to the commissioners upon the estate, appointed by the probate court, or take the necessary legal steps to have it chargeable upon the estate, the defendant repeatedly promised to pay them the amount. The first promise was made shortly after the death of the father; subse- quently the defendant was appointed administrator, and the promise was repeated several times after he was so appointed. It further appeared, that the delay in present- ing the claim had caused the plaintiffs to lose their remedy against the estate, as the commissioners had reported, and the report had been confirmed. Here was, at first sight, as far as the application of this clause of the statute was involved, the ordinary case of a consideration resting in forbearance merely ; which had incidentally, and not as a part of the original agreement, caused the loss of the debt. But the Supreme Court affirmed a judgment of the County Court in favor of the plaintiffs. § 638. Kellogg, J., delivering the opinion of the court, said that on the neglect of the defendant to take adminis- tration, the plaintiff's, as creditors, might have done so ; and the expense of such administration, and of proceedings before the commissioners to prove the debt, would have lessened the amount of the estate, which the defendant had a direct interest in preventing. He added : '■'■In mew of the interest wMcli the defendant had in that estate, («) Cited also, and commented upon in note to § 15, ante. Art. 11.] Collateral Undertakings. 633 such forbearance, or the agreement for it on tlie part of the plaintiffs, at the request of the defendant, ought to be regarded as a sufficient consideration for the defendant' s promise to pay the debt." "Tlie consideration of the promise of the defendant was the waiving by the plaintiffs of their remedy against the estate of the defendant's father — a remedy to which they had an undoubtf^d right, — for the benefit of the defendant, and at his request. His promise to pay the debt to the plaintiffs was founded, not on the consideration of the original debt, but on a new consideration distinct from it, moving from the plaintiffs directly to himself, the entire benefit of tohich icas antici- pated or received by him. It is therefore to be regarded, not as collateral to the original debt, but as an original and independent undertaking." In Fullam v, Adams ^ 37 Vermont, 391, the Chief Justice, after saying that in this case all the property was in the defendant's hands ; added that "the plaintiffs not only relinquished his" (their) "right in favor of the defendant to the funds in his hands, to which he" (they) "had the right to look for payment, but his ' ' (their) ' ' omission to proceed against them, operated as a discharge of the debt itself." § 639. The list of cases of this character is by no means exhausted ; but we believe that we have cited those where the general proposition under examination was laid down, under circumstances raising the strongest argument in its favor. § 640. To glance briefly at another description of cases. There are some where, although the consideration moved to the promisor, and the leading object of the transaction was to subserve some purpose of his own, it was held that the promise was within the statute, because the object to be accomplished by the promisor did not appear to be sufficiently beneficial to him, to satisfy the supposed rule. And it has been suggested, that in all the cases where the third person had undertaken the fulfilment of a contract with the defendant, contemplating an improvement of the 80 634 Collateral Undertakings. [Ch. xvii. defendant's property, and had sublet a portion of it to the plaintiff, who refused to proceed with the work, till the defendant agreed to pay him ; the true reason why the defendant's promise is within the statute unless the original contractor has been discharged, is that the benefit to the defendant is not sufSciently certain. (?)) With great deference to the distinguished jurists who have advanced this idea, it appears to be merely an attempt to neutralize the mischievous consequences of the vague- ness of this proposition, by the introduction of another proposition equally vague, tending in the contrary direc- tion. The cases to which we refer, strikingly illustrate our position, that the doctrine that a promise is without the statute, when the leading object is to subserve some purpose of the promisor, cannot be sustained in its broad acceptation ; and the attempt to limit it in this manner, will, it is believed, only increase the confusion. § 641. Thus in Clay v. Walton, 9 California, 328, A. D. 1858, the question was whether the defendant was liable upon a verbal promise, to become responsible for brick sold to one Williams, to enable him to complete a contract with the defendant for the erection of the defendant's house. The plaintiffs had judgment, and an order grant- ing a new trial was affirmed on appeal. On the part of the plaintiffs, several points were taken, and among others, the argument was pressed upon the court, that the leading object of the promisor was to subserve his own interests ; but the court held that the plaintiff was not entitled to recover. Field, J. , upon this point, said : ' ' The correctness of the general rule is unquestionable, but it is difficult to see its application to the present case. There is no evi- dence that the building could not have been erected, and the requisite brick obtained by the contractor, if the defendant had made no promise ; or that brick equally good could not have been obtained elsewhere ; or that it was of any particular benefit to the defendant, that the iv) See note to § 628, ante. Art. II.] Collateral Undertakings. 635 contract with Williams should have been carried out at all ; and even had circumstances of this nature appeared in the case, the question would still have arisen, as to what was the leading object and purpose of the promise. The interest which a promisor has in the performance of a contract by another, or the benefit which he may derive thereby, cannot determine his liability. That liability arises from the character of the promise, and the interest in the principal contract, or the benefit to be gained by its performance, become matters of consideration, only as they may serve to determine that character." § 642. The decision in the recent case of Pfeiffer v. Adler, 37 New York, 164, A. D. 1867, also proceeded on the ground of the lack of sufficient benefit to the promisor to sustain the promise. There the action was upon a ver- bal promise of the defendant, a widow, to pay a debt due from her deceased husband to tlie plaintiffs ; and the con- sideration is stated in the report to have been, that the plaintiffs "promised to sell goods on credit to her, to en- able her to carry on business, and to assist her in settling with other creditors of her husband ; and these promises they fulfilled." It is not stated whether he left a will or assets, and apparently there was no evidence on the latter point. The cause was tried before a referee, who dismissed the complaint. The judgment entered upon his report was affirmed by the Supreme Court, and the plaintiff appealed to the Court of Appeals ; where the judgment was again affirmed. § 643. Porter, J., delivering the prevailing opinion, said: "It does not appear that the husband left any property, or that the widow had any interest to subserve by assuming the payment of his debts. She was under no obligation to the plaintiffs, unless one was created by her unwritten prom- ise to pay what she did not owe. The original demand was not extinguished by the arrangement, and there was no such new consideration as would suffice to take the case out of the statute of frauds. The settlements which 636 Collateral Undertakings. [Ch. xvii. the plaintiffs were to aid her in negotiating were of the debts of another, for which she was not liable, and in which she had no personal concern. She was evidently in good credit, for the appellants were willing to trust her for the amount of her husband' s debt, and for all she was willing to purchase. A verbal promise to sell goods to a respon- sible party, for their full value, and on the usual terms, forms no consideration for an independent engagement to pay the antecedent debt of a third person. (?c) There is nothing in the facts found by the referee, to withdraw the agreement from the operation of the statute of frauds." § 644. So in Osborne v. The Farmers Loan and Trust Company, 16 Wisconsin, 35, A. D. 1862. There the de- fendant had received from a railroad company a deed of surrender of its road, equipment and franchises, in trust to pay off certain debts and incumbrances ; and the complaint alleged that afterwards the defendant undertook to pay a debt of the company due to the plaintiff, (not provided for in the deed,) in consideration that the plaintiff would pro- cure the passage of a resolution by the directors of the com- pany " recommending and instructing the defendant" to make such payment ; which he had procured to be done at much labor and expense. At the trial the plaintiff having proved the terms of the deed of surrender, and that the de- fendant had since received from the revenues of the road, an amount equal to the debt of the company to the plaintiff ; offered to prove the promise by oral testimony, which was excluded on the ground that it was within the statute. The defendant having had a verdict, the judgment thereon was affirmed on appeal. The argument of the plaintiff' s coun- sel was to the effect that the plaintiff insisted that the defendant was liable to pay the debt ; and that his pro- curing the resolution to be passed avoided a law suit ; that the resolution recognized the legality of the defend- ant' s possession of the road ; and that it might, by way {lu) This proposition of the learned judge seems to conflict with the under- Btanding of the court and counsel, in Wheeler v. Collier, Croke Elizabeth, 406. Art. II.] Collateral Undertakings. 637 of estoppel, legalize other payments of tlie same charac- ter theretofore made by the defendant. But the court said: "The respondent was not benefited by the passage of the resolution by the directors, as we can see. It is claimed that it might be benelicial to the respondent because it would be a recognition by the directors of its right to the possession of the road. But the respondent had already acquired this possession by the deed of sur- render. The suggestion that the resolution could possibly benefit the respondent in any manner must be disre- garded." (^) § 645. The case of Reynolds v. Carpenter, 3 Chandler (Wisconsin), 31, A. D. 1850, doubtless proceeded upon a similar ground, although the consideration did not move from the plaintiff but from the debtor. The action was to recover upon a verbal promise of the defendant to pay the board bills of various persons ; and it appeared that the defendant was engaged in the construction of a canal, and in consideration that the debtors would go to work for the defendant, he undertook w^ith the plaintiff to pay the bills in question. The plaintiff having recovered in the court below, the judgment was reversed on appeal ; the court merely say- ing that there could be no doubt that the case was within the statute of frauds, without discussing the question. § 646. It will be noticed that these cases were precisely of that class, where the general principle that the statute does not apply to a promise to pay the promisor s debt, would not operate. The first three effectually dispose of the theory, that harm to the promisee will take the promise out of the statute. But it is difficult to state any ground upon which a court can undertake to gauge the amount of (.r) See aUo Brown v. Barnes, 6 Alabama, G94, A. D. 1844, where it was held tliat a promise by a person who had the custody of the esta'e and management of the affair? of a debtor, that he would pay the debt, in n n- sideration that the |i! liii flf would state the items of his account, swear to their correctness before the mayor of Philadelphia, and procure his offi- cial certificate thereof, was within the statute, because the consideration was not beneficial to the defcudaut. 638 COLLATEEAL UNDERTAKINGS. [Ch. XVII. benefit, which an adult promisor of sound mind will receive from the consideration of a contract entered into by him, when it moves directly from the other party to him, and at his request. He is upon every principle the sole and final judge of that benefit. We therefore regard these cases as practically demonstrating the unsoundness of the sup- posed rule, which requires such violations of approved legal principles to reconcile it with the statute. § 647. To sum up the results of this investigation. The advocates of the supposed rule do not agree upon its terms ; all of them define it in very vague and elastic lan- guage ; most of them in terms, which would include nearly every promise to pay another' s precedent debt upon a new consideration, and introduce confusion into all the prin- ciples by which the application of the statute is regulated. Its best and most defensible definition makes it very nearly tantamount to the familiar and compact rule, sanc- tioned by all the English as well as the American cases ; the eff'ect of which is controlled in this country by well settled and defined principles ; that a promise is not within the statute, where the promisor or his property was liable to pay the debt. Whenever it means any thing more than this, the courts, whatever they may say, in practice refuse to follow it ; the few cases where they have allowed it to work out its legitimate consequences, being indefensible upon principle, and upon the authority of other numerous decisions. Hence we conclude, that the cases which so emphatically condemn it, contain a correct exposition of the law ; that whenever it asserts a sound rule, it is a mere paraphrase of a better defined principle ; and that because it never answers any useful purpose ; sometimes asserts a dangerous fallacy ; and constantly leads to uncertainty and confusion ; it should no longer be permitted to encumber and disfigure our system of jurisprudence. (2/) (y) Before taking leave of this entire class of cases, it is perhaps proper to state why we have not treated, as the enunciation of a distinct principle, the sugj^eslion, contained in several text books and authorities, that some of the early decisions of the Williams and Leper series are to be explained upoa CHAPTER EIGHTEENTH. CASES WHERE A GUARANTY OF THE DEBT OF A THIRD PERSON IS NOT WITHIN THE STATUTE. § 648. The cases embraced within this chapter are all that remain to be examined, in order to complete the dis- cussion of that clause which relates to special promises to answer for the debt, default, or miscarriages of another person. Although it would seem, at first sight, that they were of all others, those most obviously included within the terms of the clause, inasmuch as they are, not prom- ises that the promisor will pay a debt for which another is also liable, but promises that the debtor himself shall pay it; yet there are no other cases, with respect to the exclu- sion of which from the operation of the statute, the courts in this country are now so perfectly of accord. They are very sharply defined, being limited to two kinds of cases ; namely, those where the debt guai*antied was transferred to the promisee by the promisor, at the time of making the guaranty, upon a consideration moving wholly between the parties ; and those where it was thereafter to be con- tracted through the promisor as the factor of the promisee. the theory, that the consideration of the promise was a purcliase. But it is not possible to suppose that this remark was intended to mean that a prom- ise which would be within the statute, if it was founded upon a money consideration, would be taken out of the statute, by tlie fact that the con- sideration was a purchase of property or of an interest in property. Evi- dently the idea intended to be conveyed, was that if a purchaser of property promises, as the consideration of the sale, to pay the debt of another, for which the property is holden, the statute does not apply. This is con.se- quently nothing more than a statement of certain circumstances under which the eighth rule becomes applicable; and the cases where they occur, differ from the others only in the fact that the promisor acquired an interest in tlie property simultaneously with making the promise. This feature was noticed in the 574th section. 640 Collateral Undertakings. [Ch. xviii § 649. Although, for reasons presently to be stated, we regard the cases where the promisor was the factor of the promisee, as capable of a satisfactory explanation, upon the ground that the terms of this clause are not fully satisfied ; nevertheless the adjudications seem to concede that they fall within the letter of the statute, and sustain them, when they were verbal, upon some ground tending to show that its intent does not reach them. Assuming this to be the true ground, both of these descriptions of undertakings are, in substance as well as in form, mere guaranties ; and they are the only contracts of that kind, which are valid without writing, (a) They also possess this salient feature in common, that the guarantee acquires his title to the debt guarantied by some act of the guaran- tor ; and all the reasons assigned for taking either descrip- tion out of the statute (although with respect to factors' undertakings they vary considerably, and are not always quite consistent with each other) relate in some form to that common feature. Here, then, is to be found a con- necting link between the two, proving them to be mere varieties of one class ; and although in the present con- dition of the authorities, we have not felt ourselves justified in classing the two together, they may both be governed by one general rule, the last of this series, namely : RULE NINTH. A gnaranty is not witldn. the statute, if it was made upon a consideration moving wholly between the parties to it, and related to the payment of a debt, or the performance of a duty, by the third person to the promisee, the right to enforce which then first passed, or by the terms of the contract was thereafter to pass to him, from or through the guarantor. AETICLE I. Where the debt or contract guarantied was transferred from the guarantor to the guarantee at the time of making the contract of guaranty, upon a consideration moving wholly between the parties. § 650. The reason usually assigned by the courts of this country, for excluding this description of contract from the (a) In chapter seventh, article third, a species of promise is treated of, which bears considerable resemblance to a guaranty; but it is taken out of the statute expressly upon the ground that it is in reality a direct contract. Art. I.] Collateral Undp:rtakin-gs. G41 operation of the statute, is tliat the guarniity is merely a substitute for tlie promise of the guarantor to pay what- ever the other party is to receive, in exchange for the con- sideration furnished by him. It is therefore said to be a method of paying the guarantor's own debt, adopted for his convenience, and accepted in place of his own dircet obligation. This is very satisfactory, when the considera- tion of the transaction was connected with a precedent debt of the guarantor ; or when, for any other reason, the surrounding circumstances plainly show, that the third person's obligation and the accompanying guaranty were in fact accepted, in lieu of so much money to be paid by the guarantor. But it is open to considerable criticism, when the parties had no other object in view, than a purchase and sale, especially when the security was sold for money and at a considerable discount. And this is the precise state of facts upon which the question frequently arises. § 651. The exclusion of this species of contract from the provisions of the statute, has also been occasionally made to depend upon the elastic proposition, examined at length in the last chapter ; namely, that where the leading object of the promisor was to subserve his own interest, the statute does not apply. But as far as that proposition is identical with the one just mentioned, it is of course open to the same objections ; and if it can be treated as having, in this description of cases, any other signifi- cation, the distinction depends upon the fact, that the object of the guarantor was to acquire the consideration ; and in that aspect tlie distinguishing feature, that the debt or contract guarantied passed from him to the other party, becomes immaterial. So that if this be the true explana- tion of the rule, it would sustain a guaranty of a debt originally contracted by the third pei-son to the guarantee; which is contmry to all sound principle, and to the author- ities cited in the,sixteentli chaptiM*. We must therefore look for some other reason for excluding this kind of guar- anty from the statute. 81 642 COLLATEEAL UnDEETAKINGS. [Cll. XVIII § 652. It has been said that if the security transferred to the promisee was not negotiable, so that he acquired merely a right to receive the proceeds, the case is not within the statute, because the debtor owed nothing to the promisee ; but this reason will not apply where a negoti- able security has been transferred, or where the rule of the common law has been so modified by statute, that the assignee is entitled to enforce the demand by an action in his own name against the debtor. The American cases include within the rule both descriptions of securities, and properly so ; for the character of the security, in respect to its negotiability, is merely accidental ; and the prohibition or permission to maintain an action in the name of the real party in interest, upon an instrument which is not nego- tiable, is a mere rule of procedure. Neither circumstance affords any substantial reason, for a distinction in the ap- plication of the principle. § 653. It is very evident that this class of promises is not within the intent of the statute ; for although the commen- tators differ sometimes in the details of the reasons assigned by them, why the legislature included promises to answer for the debt of another within this section ; they all agree in the general proposition, that the motive for the perpe- tration of fraud and subornation of perjury, in such cases, was to be found in the creditor' s temptation to throw upon a person of substance, the burden of a bad debt. But if a debt due to the defendant himself is sold to the plaintiff, for a consideration passing from the latter to the defend- ant, it is clear that the motive operates in a contrary direc- tion. And in the absence of any express evidence upon the point, the presumption that the purchaser required from the seller a guaranty of payment, although not strong enough to raise a legal inference to that effect, is neverthe- less a natural inference from the known usage in such cases ; unless the relative value of the consideration, or some other attending circumstance, shows that the pur- chaser took the security at his own risk. Indeed this Art. I.] Collateral Undertakings. 643 species of guaranty is only a step beyond that which the law actually implies upon such a transfer, (a) § 654. Perhaps therefore a more satisfactory reason, why a verbal contract of tliis kind is valid, may be found in the fact that it is a mere extension of the terms of the warranty, which the law implies upon the sale of every chose in action or chattel ; and not a contract created ab origine, for the purpose specified in the statute. This reason is comprehensive enough to include all variations in the details of the different cases ; and it is believed that it rests upon a solid foundation of principle, and finds a close analogy in the reason which has most commanded appro- bation, for excluding from the statute a factor' s del credere contract ; as well as in the reasons which have controlled the decision of other kinds of cases arising under this clause, {b) § 655. But the only English decision upon the subject was placed upon the ground that the transfer of an instru- ment, which is not negotiable, does not enable the trans- feree to enforce the payment of any debt or the fulfilment of any duty against the party bound thereby. In Ilar- graves v. Parsons, 13 Meeson and Welsby, 661, A. D. 1844, already cited under another rule,(c) the defendant (a) Without entering at any length into the question, which has been the subject of considerable discussion, what is the extent of the in)pli(.'d contract, arising upon the transfer for a valuable consideration of a cliose in action, by a person who neither becomes a party to it, nor enters into any express warranty with respect thereto ; it would seem to be very clear that it amounts at least to " an implied undertaking that he held it by a right and title, which would enable the purchaser to enforce it against the parties thereto." Per Comstock, J., Delaware Bank v. Jarvis, 20 New York, 229. In some of the States of the Union local usage, and in others statutor}' enactments, have established a rule of law that a guaranty of collection is implied upon the transfer for a valuable consideration of any instrument for the payment of money. (b) See Macrory v. Scott, 5 Exchequer, 907, and 20 Law Journal, N. S., Exch. 90, ante, §§ 491, 492; and other cases cited in chapter fourteenth, article second. (c) S. C, 14 Law Journal, N. S., Exch., 250. See § 366. 644 Collateral Undertakings. [Ch. xviii. and one Parker had made written contracts for the sale by Parker to the defendant of the "put or call" of certain French railway shares, at a certain premium, at any time before the 18th of February, 1844 ; before which time the defendant sold the option to the plaintiff, with a guaranty in writing, which the court construed as a guaranty for the fulfilment of the contract by Parker, The shares hav- ing risen in value, the plaintiff "called" them from the defendant on the 16th of February, at Liverpool ; the de- fendant immediately notified Parker of the "call;" and it was then verbally agreed between the three, that they should be delivered at Paris on the 2d of March ; before which time Parker failed. In an action on the guaranty, the plaintiff had a verdict ; and the defendant, pursuant to leave reserved, moved for a rule to enter a nonsuit, upon the ground, among others, that the verbal promise was within the statute. The rule was refused, Parke, B., saying that the statute only applies where the debt or duty was due to the promisee ; that Parker had not con- tracted with the plaintiff ; and his nonperformance of his contract with the defendant, was no default towards the plaintiff ; consequently the defendant' s undertaking was not a promise to answer for any default or miscarriage of Parker, in any debt or duty towards the plaintiff; but an original promise that a certain thing should be done by a third person. § 656. Of the cases in the United States, specimens pre- senting almost every possible variety in the facts and in the principles upon which the decisions turn, may be found in the State of New York ; where this doctrine is interwoven with a long and very remarkable legal contro- versy. In Smith v. Ives, 15 Wendell, 182, A. D. 1836, and again in Packer v. Willson, id. 343, in the same year, the Supreme Court of that State held that a written guar- anty of payment indorsed upon an overdue promissory note held by the plaintiff, the consideration of which was forbearance to the maker, was within the statute, and was void when it did not express the consideration. But in Art. I.] Collateral Undertakings. Qiii HoiLfjn V. Gray, 19 Wendell, 202, A. D. 1838, the same court held that a similai- guaranty indorsed upon a thiid person' s promissory note, simultaneously with the niak ing of the note, the note and guaranty having both been given as the consideration of property sold by the payee to the maker, was in legal effect a promissory note ; and the guarantor was a joint and several pi'omisor, with th«; person whose name was subscribed on the face of it. The latter decision was the lirst of a long series of cases in that State, involving the question whether the statute applies to a written guaranty indorsed upon or subjoined to the note of a third person ; which was sometimes presented in the indirect form, whether the action could be maintained against the guarantor as the maker or indorser of the note ; and sometimes directly, whether such a guaranty, not ex- pressing the consideration, was void under the statute of frauds. Following out the idea advanced in Hough v. Gray, that such a guaranty was in legal effect a promis- sory note, the courts of New York ultimately found them- selves involved in a labyrinth of contradictions and falla- cies ; from which they were only extricated after the lapse of upwards of twenty years. An outline of this singular controversy, down to the time when it was settled by the recognition of the now prevalent doctrine on this subject, will be found in the foot note, {d ) (c?) The case of Hough v. Gray was followed by that of Luqueer v. Prosser, 1 Hill, 25G, A. D. 1841, in the Supreme Court; reported in the Court of Errors under the title of Prosser v. Luqueer, 4 Hill, 420, A. D. 1842. The action was against Prosser, Edson, and Arnold, upon a note payable to one Parsons or bearer, made by Edson and Arnold, and a guaranty of payment and waiver of notice of nonpayment indorsed thereon, made simultaneously with the note, and signed by Prosser. The note and guaranty had been delivered on the same day to Parsons, as security for the payment of the price of articles, sold by him to the makers, and he had subsequently transferred it to the plaintiffs. A verdict having been rendered in favor of the plaintiffs, the defendant Prosser moved in the Supreme Court for a new trial, which was denied, the court holding that he was liable with the other defendants as a joint and several maker of the note. The judgment thereon was affirmed by the Court of Errors, the opinion having been delivered by Walworth, Chancellor; it held ihut the defendant was liable as an indorser, 646 Collateral Undertakings. [Ch. xviii. § 657. After several conflicting cases upon the legal effect of such a guaranty, and the application of the stat- ute of frauds thereto, the question came before the Couri of Appeals in the year 1849, in Brown v. Curtiss, 2 New York (2 Comstock), 225, on a writ of error to the Supreme Court, to review the decision reported in Curtiss v. Broion, 2 Barbour, 51, A. D. 1847. The evidence at the trial in the court below, showed that the defendant trans- ferred to the plaintiff the note of a third person, payable to the defendant or bearer, and which had not matured, in exchange for the defendant' s own note held by the plaint- the waiver contained in his agreement dispensing with a demand and notice; but the learned chancellor also expressed the opinion that the defendant wag liable as a maker, (a striking illustration of the confusion which surrounded this subject). But in Miller v. Gaston, 2 Hill, 188, A. D. 1842, the Supremo Court, Bronson, J., deUvering the opinion, while conceding that the preced- ing cases established that a guarantor may be treated in all respects as a maker of a note, where he was privy to the consideration, and the guaranty and the note were made simultaneously, took a distinction between those cases and one where the guaranty was made after the note had taken effect. It was held that in the latter case he could not be treated as a maker or indorser, and sued jointly with the other parties by a subsequent holder, under the statute permitting the joinder in one action, of all the parties liable upon the same instrument. It was intimated however- that he might be treated as the maker of a new note, and in that capacity sued separately by any subsequent holder in his own name. As the guaranty satisfied the statute, the only question directly involved in the case was the right to maintain the action against all the parties; and in the next case, Manrow v. Durham, 3 Hill, 584, A. D. 1842, Nelson, C. J., delivering the prevailing opinion in the Supreme Court, stated that they had entertained no doubt in Miller v. Gaston, that the plaintiff, as a subsequent holder, might have main- tained the action against the subsequent guarantor alone, as upon a new note. The substance of the case of Manrow v. Durham will be presently stated, in the order of its decision in the appellate court ; the judgment upon the writ of error having been delayed till seven years after the judgment in the Supreme Court. In the next succeeding case, Johnson v. Gilbert, 4 Hill, 178, A. D. 1843, Bronson, J., delivered the opinion of the Supreme Court, holding that the statute of frauds did not apply to a guaranty written on the back of another's overdue chattel note, given by the maker to the defendant, and transferred by the defendant to the plaintiff, simultaneously with the execution of the guaranty, in consideration of a precedent debt due from the defendant to the plaintiff. He said that it was not an under- Art. I.] Collateral Undertakings. 647 iff, and at the same time lie indorsed and signed a guar- anty thereon, expressing no consideration. Tlie plaintiff having had a verdict, notwithstanding the objecti(jn that the guaranty M-as within the statute, the Supreme Court denied a motion made by the defendant for a new trial, substan- tially on the ground that under the previous authorities the defendant must be regarded as a maker of the note, although the opinion expressed a decided dissatisfaction with them. This decision was affirmed by the Court of Appeals, but upon a different ground ; the opinion having been delivered by Bronson, J., then a member of the court of last resort, taking by the defendant to pay the third person's debt; but that "it was an agreement to pay his own debt in a particular way." And in Hunt v. Brown, 5 Hill, 145, A. D. 1843, where, in consideration of the discharge of a precedent debt due by the maker of a note to the payee, the defendant indorsed upon the note his guaranty of collection, which expressed no con- sideration, (the note and the guaranty having had a simultaneous inception;) Bronson, J., delivering the opinion of the court, held that the guaranty was void under the statute of frauds, because, being a guaranty of collection, and not of payment, the defendant could not be treated as a maker of the note; as the learned judge said that he might have been, within the previous authorities, if he had guarantied the payment of it. In Leggett v. Ray- mond, 6 Hill, 639, A. D. 1844, the court held that a blank guaranty of pay- ment, expressing no consideration, indorsed by the defendant upon a note, payable to him or bearer, after its date and before its maturity, (neither the consideration nor the person to whom it was given appearing in evidence,) might be treated as a blank negotiable indorsement; and the plaintifiF might recover on proof of demand at maturity and notice of nonpayment. Bronson, J., who delivered the opinion, expressed his extreme dissatisfaction with his decision, but he held himself bound by the decision of the Court of Errors in Prosser v. Luqueer, where, he said, that court treated Prosser as an indorser. But in Hall v. Farmer, 5 Denio, 484, A. D. 1848, Beardsley, C. J., delivering the opinion of the Supreme Court, said that " the judicial knot, as it cannot be untied, must be cut; " and accordingly it was held that the defendants' blank guaranty of payment, expressing no consideration, indorsed upon a note payable on demand, simultaneously with the making of the note, the actual consideration having been a precedent debt due to the plaintiff, from the makers of the note, was a guaranty, and not a promissory note; and that it was void under the statute. However in Curtiss v. Brown, 2 Barbour, 51, A. D. 1847, where the defendant, the payee of a negotiable note, indorsed upon the note, before its maturity, a guaranty, expressing no consideration, and delivered it to the plaintifT, in discharge of a previous 648 Collateral Undertakings. [Cli. xviii. who, while a justice of the Supreme Court, had combated with great ability and spirit, the doctrine upon which the decision below proceeded. § 658. His opinion commenced with a vigorous attack upon all the cases which hold that, under any circum- stances, a guarantor of a promissory note can be treated either as a maker or indorser of the note ; insisting that the contract is one of guaranty, and nothing else. ''Those cases," he said, "have never had any ground of principle to stand on, and I trust they will never again be cited as debt owing by him, the present Supreme Court of New York, had pre- viously held, though with great reluctance, that the statute did not apply, because the defendant was a maktr of the note. But although the Court of Appeals affirmed the decision in this case (see Brown v. Curtiss, 2 Com- stock, 225, of which the substance is given in the text), the two prevailing opinions repudiated the ground upon which the Supreme Court placed its decision; and the case marks the first step towards tlie attainment of the reason upon which the application of the statute to this class of cases wag ultimately placed. It was however immediately followed by the failure of the court to agree upon any principle upon which to determine the writ of error from the decision of the Supreme Court in Manrow v. Durham, 3 Hill, 584, already mentioned. The case in the Court of Appeals is reported under the title of Durham v. Manrow, in 2 New York, (2 Comstock), 533. There the plaintiff (Manrow) had sued Durham and Moulthrop in the Common Pleas upon a joint guaranty, expressing no consideration, indorsed upon a third person's note made payable to Durham or bearer. It appeared at the trial that before the maturity of the note Durham purchased a horse from the plaintiff, and gave the note and the guaranty in part payment therefor, Moulthrop having executed the guaranty, at the request of, and as surety for Durham. The plaintiff was nonsuited in the Common Pleas, and upon error the judgment upon the nonsuit was reversed, in the Supreme Court, by a majority vote, the prevailing opinion holding that the guaranty was in legal effect a promissory note. The defendants brought error to the Court of Appeals; where Strong. J., delivered an opinion in favor of the aflBrmanoe of the judgment with respect to Durham, upon substantially the same grounds as those taken by him in his opinion in Brown v. Curtiss cited in the text, holding that although in this case the consideration was the purchase of property, the principle was the same as in the other case ; the guaranty being, in both cases, merely a method of paying the guarantor's debt. With respect to Moulthrop, he said that the two agreed that the maker of the note should pay the debt due primarily from one of themselves to the plaintiff. Art. I.J Collateral Undertakings. 649 authority in this State." He then said that if lh<' statute of frauds was applicable to the agreement before the court, it could not stand, as it was a guaranty expr(»ssing no con- sideration ; and it could not be held to be a promissory note, without confounding all legal distinctions in relation to the nature of contracts. But he held that the statute does not apply to such a case, because "although in form this is a promise to answer for the debt or default of another, in substance it is an engagement to pay the guarantor' s own debt in a particular way." "It would be good with- out any writing." He was followed b}' Strong, J., who The promise of Moulthrop was not especially for the purpose of paying the maker's debt, but that of his co-guarantor; the method being incidental. It was absolute and unconditional, that the purchase money for the horse should be paid for in a particular way; and his responsibility for the maker's debt was also incidental. Both were bound as principals, and there was no reason for separating them in their liability. The statute, he thought, has no application to a joint engagement of two, to pay the original debt of one of them, through a third person. With him three judges concurred. Jewett, C. J., agreed tliat the guarantor of a promissor}' note could not be treated as a maker, whether he came in when the note was made or afterwards ; but be argued, in a long and elaborate opinion, that this guaranty was within the statute of frauds, because it was literally an engagement that the maker should pay the note, not that the defendants would pay the money. He distinguished the case from Brown v. Curliss, on the ground that there the defendant was originally indebted to the plaintiff for borrowed money, which indebtedness the plaintiff agreed to discharge, only upon receiving a note with the defendant's guaranty; and as the guaranty which the defendant gave, was void bv tlie statute of frauds, the action could have been sustained upon the original indebtedness, under the money counts in the declaration. He added, that in any view of this ca.se Moulthrop was a mere surety, and a joint action would not lie against him and Durham. In the result of this opinion two judges concurred; one of them however putting his decision on the ground, that as Moulthrop was not a party to the consideration, the joint action could not be sustained. But a judgment of the New York Court of Appeals is not regarded as settling any principle, unless five judges concur, and the absence of Bronson, J., prevented such a concurrence. The same remark applies to the disposition made by the court at tiie .lame term, of Hall V. Farmer, 2 New York (2 Comstock), 553, on error from 5 Denio, 484. This was the case where the Supreme Court, disregarding its previous decisions, and " cutting the judicial knot," had held that the guaranty was within the statute as already mentioned. In the Court of Appeals, three of 82 650 COLLATEKAL UNDERTAKINGS. [Ch. XVIII. held that the instrument was presumptively a guaranty, but that it might be shown by the attending circumstances to be an original promise ; and that would depend upon the object which the guarantor designed to accomplish. If this object was to pay his own debt, the promise was orig- inal, notwithstanding its form. He concluded : "This is a plain and palpable case of a promise of a guarantor to pay his own debt, through the note of another ; and, what is a material fact to denote the main design of the transaction, the whole credit was given to the guarantor. It is there- fore clearly an original undertaking, and neither within the letter of the statute, nor the mischief which it was designed to prevent." In the result of these opinions, but not in the arguments by which it was sustained, four of the remain- ing judges concurred, and the judgment below was aflSrmed, with two dissenting votes. § 659. But this decision had apparently but little effect upon the settlement of this vexed question. At the De- the four judges who had voted for affirmance in Durham v. Manrow, voted now for reversal; and the fourth united with the three, who had voted for reversal in the preceding case, in voting now for affirmance; placing his decision upon the ground, that as the note was payable on demand, and no credit given, there was no consideration for tlie guaranty. Thus the daylight which had been made to glimmer through all this fog, by the decision in Brown v. Curtiss, was again shut out; and the conflict of opinion continued to prevail in the Supreme Court, then reorganized under the constitution of 1846, so as practically to form several distinct tribunals. In Burt v. Horner, 5 Barbour, 501, decided in the year 1849, (but before Brown v. Curtiss,) one branch of that tribunal, held that a guaranty of collection, indorsed upon a third person's promissory note, was not within the statute of frauds ; and that like other such guaranties, it would be discharged by want of diligence on the part of the guarantee in proceeding against the principal debtor. The consideration of the defendants' guaranty was the sale of goods to them by the plaintiflf, upon an agreement to accept in pay- ment thereof the note in question, with their guaranty of collection ; the same being then in the defendants' hands, and yet to mature. In Tyler «. Stevens, 11 Barbour, 485, A. D. 1851, another branch of the same court held that the statute did not apply to the defendant's guaranty of payment of a third person's note, which was transferred by him to the plaintiflf, before Art. I.J Collateral Undertakings. 651 cember term of the Court of Apjieals in the same year (1849), two cases, involving the application of the statute to this species of guaranty, were disposed of witliout any definite decision of the points of law arising tlierein, in consequence of the inability of a constitutional majority of the judges to agree upon any principle ; although one of the cases had been argued three times. These were Durham v. Jfanroio, 2 New York (2 Comstock), 533, and Hall V. Farmer^ id. 553, abstracts of which will be found in the note to the last section. In one of the opinions de- livered in the former case, Brownv. Curtiss was explained upon a theory which practically denied to it all efficacy as a precedent upon the principal question involved. The case was greatly complicated by the presentation of an- other question, discussed in a previous chapter, arising out of the fact that the defendants had jointly executed the guaranty in question, although one of them was a mere surety for the other. In consequence of these con flicting opinions the deadlock remained unaltered. its mauirity, in consideration of a smaller sum of'mone}'^ paid by the phiintift' to the defendant. The contrary decision was made by another branch in Spicer v. Norton, 13 Barbour, 542, A. D. 1852, which is said to have been affirmed in the Court of Appeals; but the decision upon the affirmance is not to be found in the reports. The guaranty in question, whicli was in effect a guaranty of collection, was indorsed upon a third person's previously sub- sisting note, transferred to the plaintiff by the defendant, as part of the purchase price of a fourth person's note; and no consideration having been expressed therein, the Supreme Court held that it was void under the statute. The prevailing opinion, delivered by Parker, J., attacked the whole doctrine of the opinions delivered in Brown v. Curtiss. Upon substantially the same facts, except that the question arose upon a guaranty of payment, the same court also ruled that the guaranty was within the statute, in Wood V. Wheelock, 25 Barbour, G25, A. D. 1856. The sam.e opinion was again expressed in Sweet v. Bradley, 24 Barbour, 549, A. D. 1857, where the question arose upon a verbal promise made by the defendant, the holder of a note, upon its transfer to the plaintiff in consideration partly of money, and partly of a precedent debt of the defendant, to the effect that the note should be paid at maturity, and that the makers and indorsers were solvent. The court said that the guaranty of payment was within the statute, but the plaintiff was allowed to recover upon the warranty of solvency. 652 Collateral Undertakings. [Cli. xviii. § 660. But the rule in one description of these cases, was soon afterwards settled by the decision of the Court of Ap- peals in Breiosfer v. Silence, 8 New York (4 Selden), 207, A. J). 1853. This was also an action upon a guaranty ex- pressing no consideration, subjoined to a promissory note, and made simultaneously with the note, for the accomoda- tion of the maker ; the consideration, both of the note and of the guaranty, being a sale of property to the maker by the payee, who had transferred the note with the guaranty to the plaintiff. The defendant had judgment in the Su- preme Court, upon a special verdict setting forth the facts ; and that judgment was affirmed on appeal by the Court of Appeals ; where it was held, with only one dissenting vote, that the guaranty was within the statute, on the ground that it was a distinct contract from the note ; and that the cases which hold that such a guaranty is a prom- issory note, or that the guaranty and the note are one in- strument, cannot be sustained. It was also said that the principle of the opinions delivered in Brown v. Curtiss, was correct ; and that if in this case the sale had been made to the defendant, as it was in Brown v. Curtiss, he would have been liable ; but the remark was evidently obiter. § 661. And the main question, which had continued to be debated in the Supreme Court with as much diversity of opinion as before, was at length settled, and this con- troversy brought to a close, by the unanimous decision of the Court of Appeals in Gar dell v. McNiel, 21 IS'ew York, 336, A. D. 1860. There the plaintiff's testator had sold a horse to the defendant, and had received from him, in part payment therefor, the chattel note of one Cornell; which the defendant verbally warranted to be "good and collectable ; ' ' and that the plaintiff' s testator would get the chattel when the note became due. It was one of the terms of the bargain for the sale of the horse that this note was to be received, with the defendant' s guaranty, in part payment therefor. A judgment for the plaintiff for the value of the chattel was affirmed upon appeal. Art. I.] Collateral Undertakings. 653 Comstock, C. J., delivering the opinion of the court, said : *'It is claimed that the guaranty is void by the statute of frauds. In mere form it was certainly a collateral under- taking, because it was a promise that another person should perfonn his obligation. But looking at the substance of the transaction, we see that the defendant paid, in this man- ner, a part of the price of a horse sold to himself. In a sense merely foraial, he agreed to answer for the debt of Cornell. In reality he undertook to pay his own vendor 60 much of the price of the chattel, unless a third person should make the payment for liim, and thereby discharge him." § 662. Tliis decision was followed by the Supreme Court, upon facts not materially different, in Fowler v. Clear- loater, 35 Barbour, 143, A. D. 1861, and Daiiber v. Black- ney, 38 Barbour, 432, A. D. 1862. § 663. It may therefore be considered as settled in New York, upon the authority of these cases, that where the holder of a third person' s promissory note or other con- tract, negotiable or non-negotiable, which had a valid inception as between the maker and the holder, transfers the same to another person, upon a consideration moving to him, his verbal guaranty thereof, made simultaneously with the transfer and as a part of the transaction, is not within the statute of frauds ; and that it makes no differ- ence whether the guaranty is absolute, or subject to any condition or qualification. And similarly that if the guar- anty is in writing, but is insufficient as a note or memoran- dum within the statute, that will not prevent the promisee from recovering, upon proof of the actual consideration. But if the guaranty was made upon a consideration mov- ing to the third person, so that the guarantor came in merely as a surety for him, the guaranty is within the statute. Whether the joint guaranty of the person bene- fited by the consideration, ^^ith another as his surety, (no copartnership or other community of interest existing be- tween them,) would be held to be within or without the 654 Collateral Undertakin^gs. [Ch. xviii. statute as to the biirety, is left in doubt ; the decision in Manrow v. Durham having settled nothing upon that point, and the surety' s liability depending upon the prin- ciples discussed at length in a preceding chapter, with respect to another question, {e) § 664. In other States, the same principles have been established, without a struggle similar to that which at- tended their adoption in New York ; and it is believed that all the American courts, as far as they have spoken, are now entirely harmonious upon this subject. The authori- ties, some of them anterior in date to the New York decis- ions, will be found collected in the note. They include cases where the instrument guarantied was negotiable and not negotiable ; where the guaranty was founded upon a new consideration, then moving to the guarantor ; and where the consideration was a precedent debt of the guar- antor. In some of them the new consideration was money paid for the purchase of the instrument guarantied ; in others it was goods sold ; in others an exchange of the promisee' s own obligation, for that of the third person, with the accompanying guaranty. (/") (fl") See chapter eighth, article first. {f^ Hackleman v. Miller, 4 Blackford (Indiana), 322, A.D. 1837, cited also ante, § 35a; Adcock v. Fleming, 2 Devereux and Battle (North Carolina), 225 (1837) ; Jones v. Palmer, 1 Douglass (Michigan), 379 (1844); Hopkins v. Richardson, 9 G-rattan (Virginia), 485 (1852); Hall u. Rodgers, 7 Humphreys (Tennessee), 536 (1847); Ashford v. Robinson, 8 Iredell (North Carolina), 114(1847); Beatyv. Grim, 18 Indiana, 131 (1862); Rowland v. Rorke, 4 Jones (North Carolina), 337 (1857) ; Thomas v. Dodge, 8 Michigan, 51 (1860) ; Huntington v. Wellington, 12 Michigan, 10 (1863); Malone v. Keener, 44 Pennsylvania State Reports, 107 (1862) ; Thurston v. James, 6 Rhode Island, 103 (1859); Smith v. Finch, 2 Scammon (Illinois), 321 (1840); Dyer V. Gibson, 16 Wisconsin, 557 (1863). The question frequently arises in this class of cases, whether the guarantee is entitled, in an action upon the guaranty, to recover any thing beyond the amount actually advanced to the guarantor, when the instrument transferred was for the payment of money, and the consideration of the guaranty was a sum, less in amount than that payable by the terms of the instrument, forming the subject of the guaranty. It has been held in some of the United States that under those circum- Art. II.] Collateral Undertakings. 655 ARTICLE II. Wliere the debt guarantied was thereafter to be contracted throngh the agency of the promisor, acting as the factor of the promisee, under a del credere commission. § 665. A del credere commission has been defined, as a commission " under wliicli the agent, in consideration of an additional premium, engages to insure to his principal, not only the solvency of the debtor, but the punctual dis- stances the guaranty is usurious; and such, we believe, was generally under- stood to be the rule in England, independently of the series of recent statutes; which, after gradually emasculating the laws against usury, finally swept thera away altogether. And it would seem that in most cases the damages can be reduced to the amount of the actual advance and interest, only for the purpose of taking the contract out of the statute of usury. In several of the United States, the contract may be saved in that manner. The doctrine is well settled in New York that the consideration may be inquired into; and that the guarantee can recover from the guarantor the amount of his advance and interest, but no more. The rule is the same, whether the liability of the guarantor was assumed by indorsing a promissory note or bill of exchange, signing it as surety, or guarantying its payment or collection, either upon its face or by a separate contract. Braman v. Hess, 13 Johnson, 52; Munn v. Commission Company, 15 id., 44; Cram v. Hendricks, 7 Wendell, 569; Mazuzan v. Mead, 21 id., 285; Ingalls v. Lee, 9 Barbour, 647 ; Cobb v. Titus, 13 id., 45, affirmed 10 New York (6 Selden), 198; Burton v. Baker, 31 Barbour, 241. So where a mortgage was assigned, with a covenant for the payment of the mortgage debt, Jones v. Stienbergh, 1 Barbour's Chancery, 250 ; or a covenant cf the assignor, with another as his surety, to pay any deficiency upon foreclosure, Goldsmith v. Brown, 35 Barbour, 484; or a covenant of the assignor, with a separate bond executed by himself and a surety, for the full amount of the debt, Rapelye v. Ander- son, 4 Hill, 472. A like rule seems to prevail in Connecticut, Belden v. Lamb, 17 Connecticut, 441; in Maine, French v. Grindle, 15 Maine, 163; Lane v. Steward, 20 id., 98; in Missouri, Miildrow v. Agnew, 11 Missouri. G16; and in South Carolina, Brock v. Thompson, 1 Bailey, 322. But the authorities agree, tliat the contract can be thus saved from the objection that it was usurious, only when the instrument transferred had a valid inception, in the hands of the transferor. And where the guaranty related to an instru- ment then in the hands of the guarantee, the latter is entitled to recover his full damage?, notwithstanding the consideration may have been comparatively trifling in amount. Cooper v. Page, 24 Maine, 73; Oakley v. Boorman. 21 Wendell, 588 ; and so where, for any other reason, no question arises under the usury statutes. Day v. Elmore, 4 Wisconsin, 190. 656 Collateral Undertakings. [Cli. xviii. cliarge of the debt."(^0 ^^ was said in Grove v. Dubois, 1 Term Reports, 112, approved in Blze v. DicTcason, id., 285, A. D. 1786, that the engagement which a factor, act- ing under such a commission, assumes to his principal, is absolute ; and that he is liable in the first instance, the vendee being liable to the principal only collaterally, and as his surety ; and a similar doctrine is supposed to be found in some other cases decided about the same time. (5) But afterwards the court of King' s Bench held distinctly in Morris v. Cleashy, 4 Maule and Selwyn, 566, A. D. 1816 ; and again in Horriby v. Lacy, 6 Maule and Selwyn, 166, A. D. 1817, that such a factor is merely the guarantor of the payment of the price, when it shall become due ; or in other words that he is not liable to his principal in the first instance, but only in case of the purchaser' s default. And although there is still some confusion on the subject, it is believed that this ruling is now accepted, by the best authorities in both countries, as containing a correct exposi- tion of the nature and extent of the factor' s liability, (c) (a) Dunlap's Paley on Agency, page 41. But this definition would be more exact, if the words "for a valuable consideration" were substituted for " in consideration of an additional premium." In practice, the factor gen- erally charges a specific commission for the guaranty, in addition to the ordinary commission on the sales. But this is not essential to constitute this species of contract ; a factor may do no other than a del credere business, for which he charges only one rate. Nor is it essential that the considera- tion of the contract should be a rate or commission on the sale. (6) Houghton v. Matthews, 3 Bosanquet and Puller, 485, p. 489, A. D. 1803 ; McKenzie v. Scott, 6 Brown's Parliamentary Cases, 280, A. D. 1796. (c) "The most important in a practical view to be here taken notice of, is the contract of guaranty by a factor, arising from the receipt ot what is commonly called a del credere commission, (the nature whereof has been already stated,) by which he in effect becomes liable, in the case of a sale of goods, to pay to his principal the amount of the purchase money, if the buyer fails to pay it, when it becomes due. It has been sometimes suggested that this contract makes the factor the primary debtor to his principal on the sale. But this doctrine is unmaintainable, both upon principle and authority. [2 Kent's Commentaries, pp. G24, 625, 4th edition ; Thompson v. Perkins, 3 Mason, 282 ; Gall v. Comber, 7 Taunton, 558 ; Peele v. Northcote, 7 Taun- ton, 478; Morris v. Cleasby, 4 Maule and Selwyn, 5GG, 574; Paley on Agency by Lloyd, 41, note d; id., Ill, note; Leverick v. Meigs, 1 Cowen, Art. II.] Collateral Undertakings. 657 § 666. A leading author, writing soon after the decision in Morris v. Cleashy, says, referring to that case: "I think it clear that the del credere contract, so explained, is within the statute of frauds, and must be in writing. "(^) But the rule is now settled the other way. Various rea- 645.] The true engagement of the factor in such cases, is merely to pay the debt, if it is not punctually discharged by the buyer. In legal effect he warrants or guaranties the debt; and tlms he stands more in the character of a surety for the debt than as a debtor. Hence it is well established that he is not liable to pay the debt until there has been a default by the buyer. [Morris v. Cleasby, 4 Maule and Selwyn, 574.] " Story on Agency, 5lh edi- tion, § 215. But in Leverick v. Meigs, 1 Cowen (New York), G45, Wood- worth, J., said: "The only difference between a factor acting under a del credere commission, or without one, is as to the sales made. In the former case he is absolutely liable, and may correctly be said to become the debtor of his principal ; but it is not strictly correct to say he is placed in the same situation as if he had become the purchaser himself; for, as we have seen, the principal, notwithstanding this liability, may exercise a control, not allowable between creditor and debtor. When the principal appears, the right of the factor to receive payment ceases. This shows that the effect of the com- mission is not to extinguish the relation between principal and factor, but applies solely to a guaranty that the purchaser shall pay. It is not a con- tingent liability, I admit, so as to require legal measures to be exhausted against the purchaser, before the factor is bound, but an engagement to pay on the day the purchase money becomes due. Although the factor is absolutely liable, he is not bound to pay until the money becomes due from the purchaser. It may therefore be more correctly laid down, that the factor under a commission becomes a debtor to his principal, with the limitations I have stated." The question which the learned judge was considering was whether a del credere factor was liable to guaranty the solvency of the drawer of a bill by which he had made a remittance to his principal, after the receipt of the money. He added : '' It is only on this ground " (that the factor is the real purchaser) " that he can be bound to guaranty the remit- tance. This arises from the general principle, that the debtor is bound to make payment to his creditor, and consequently if he remits in bills which turn out of no avail, it is no payment. It does not di.scharge a precedent debt, unless it be so expressly agreed between the parties. The commission del credere does not make the agent cease to be a factor. He may be con- sidered as a factor who has sold for cash. Beyond the engagement that the purchaser shall pay at the time agreed on, he is bound by no other law than a factor without a del credere commission." For other expositions of the nature of this liability, see the note to the next section, and the comments of the judges contained in various cases cited in the text of this article. (d) Theobald on Principal and Surety, § 81. 83 658 COLLATEKAL UNDERTAKINGS. [Ch. XVIII. sons have been given for this result ; many of which are far from being satisfactory. Thus it has been said, that the agent' s contract is merely that he will exercise an increased diligence, beyond that which the law imposes upon him as a duty ; but as no amount of diligence, not even the entire solvency of ihe purchaser, will exonerate him, if the debt is not in fact paid, it is evident that his contract is not in any sense for his own act, but exclusively for the act of the purchaser. The doctrine that no promise is within the statute, when the leading object of the promisor was to benefit himself, has also been pressed into the ser- vice; but, as the factor's only object is to pocket his reward, this doctrine, if it explains the ruling in this class of cases, goes to the extent of upholding every verbal promise to answer for the debt of another, if a distinct reward was paid to the promisor therefor ; a theory which we have commented upon at length in the preceding chapter. It has also been said that the factor is in legal effect the purchaser of the goods, for which he pays by an engagement that the persons to whom he shall resell the same, shall pay to his vendor ; a doctrine entirely incon- sistent with the relative rights and duties of the prin- cipal and factor before the sale, and of the principal, factor, and purchaser afterwards. An analogy has also been drawn between the surrender of the goods by the owner to the factor upon his promise, and a similar sur- render by the promisee who has a previous lien upon goods, in which the promisor has an interest. But this proves too much ; for there are few cases, where, upon the same theory, a verbal promise to pay the debt of another could not be sustained because the promisee relinquished the consideration ; and besides the authorities do not sustain a verbal promise, that another shall pay, based upon such a surrender. Other reasons have been assigned, amount- ing to but little more than to state in a different form, the proposition that the promise is not within the statute, {e) (e) Many of these theories will be found in the extracts given from opinions in the cases cited in the text. Others are contained in the elementary Looks, from two of which we append extracts. In the sixth American Art. II. J Collateral Undertakings. 659 § 667. But substantially the same reason suggested in the foregoing article, for sustaining a verbal guaranty of the payment of a debt transferred to the guarant(M? by the guarantor, will, it is believed, afford a satisfactory ground for taking also this class of engagements out of the statute ; and it may be deduced from the opinions of the judges in some of the best considered cases. The del credere com- mission creates merely an increased liability, beyond that which the factor assumes by virtue of his employment ; and it is a liability of the same general character, not a contract ab origine, to do that which the statute requires to be manifested by a writing. A general factor impliedly edition of Smith's Leading Cases, volume I, page 489, the annotator (Judge Hare) says that the true explanation of the cases, which hold that the statute does not apply to sales on a del credere commission, may perhaps he found in the doctrine that any promise to pay the debt of another upon a consid- eration, no matter how disproportionate, moving to the promisor, is not within the statute ; but the point cannot be considered as decided. However he afterwards adds (p. 494) : " One of the reasons given for this conclusion is, that as agents are liable for good faith and due diligence in the transaction of the business confided to their care, astipulation by which this liability is defined or even extended, cannot be regarded as a promise for the default of another, in the exclusive sense contemplated by the statute. But it would also appear, that a guaranty or insurance of a debt, for a percentage or commission, would . be valid aside from this ground ; on the general prin- ciple that a party who promises to pay the debt of another for value received, makes the debt his own, and cannot rely on the statute as a defence to an action, brought to compel the fulfilment of the engagement into which he has entered." In 1 American Leading Cases, fourth edition, p. 667, it is said: "The contract created by a del credere commission, is an independ- ent contract between the principal and agent, separate from the sale, and not aSecting the relations between the principal and the buyer, or those between the agent and the buyer. It is an absolute engagement by the factor, private between himself and the principal, and distinct from the sale which he makes, that the debts to which it refers shall be paid at the time they are due; or in other words, that they shall be cash in the principal's account, at the time they are due. Being an original and absolute engage- ment, it is not within the statute of frauds, and need not be in writing; and being an independent contract between the principal and agent, and in its legal effect a direct responsibility for the money due upon the sales, there need be no previous proceedings or recourse by the principal against the buyer, before he can charge the factor." 660 Collateral Undertakings. [Ch. xtitt. undertakes, among other things, to seek out a responsible purchaser, and to collect and remit the proceeds, when the period of credit, limited by his instructions, shall have expired ; and he is answerable for any loss, in conse- quence of his default in any of these particulars. Such a default, in one sense, will render him liable for the debt or default of another ; but no one would pretend that his undertaking would thereby be drawn within the statute of frauds. And the del credere factor assumes precisely the same liability ; to which he superadds an agreement to guaranty the payment of the purchase price. This is merely an increase, in the same general direction, of his common law liability ; as if a private carrier for hire, who is responsible by virtue of his employment for ordinary diligence only, should expressly assume some of the res- ponsibilities of a common carrier, from which he would otherwise be exempt ; as for instance, loss in consequence of defective roadways, or defective vehicles, etc., upon some line of travel. And while the factor' s guaranty, if it stood alone, might be within the statute, neither the whole contract, nor this particular stipulation will be so affected, where the latter is merely an amplification of an undertaking to which the statute has no application. § 668. It may however be doubted whether the statute would apply, irrespective of these suggestions ; for it is by no means clear that the transaction would satisfy the lan- guage of this clause. It does not appear to be a promise to answer for the debt or default of any 'particular person ; for there was no debt in existence at the time the contract is made ; not in the sense of Lord Mansfield' s proposition in Mawhrey v. Cunningham, which he subsequently abandoned, (/) but in the sense that there is no debtor, or person proposing to become a debtor, to whom the term " another person " can apply. Indeed no reason is per- ceived why a distinct class should not be added to those already recognized, where the promise is without the stat- (/) Ante, §§ 144, 145. Art. II.] COLLATEEAL UNDERTAKINGS. 661 ute because those words are not satisfied ; comprising not only del credere contracts, but all promises where the per- son, for whose debt or default the promisor undertakes to answer, is not designated at the time of the contract. If A undertakes to procure competent mechanics to build a house for B, and that it shall be completed by thorn in a certain time, and according to certain specifications, (it being perfectly understood that A is not to do any of the work himself,) in one sense A undertakes for their default or miscarriages ; but probably no one would doubt that the contract was not within this clause of the statute. That the reason is because the persons from whom A undertakes are not then in esse, for the purpose of the contract, will be apparent from the fact that if they had been designated at tlie time, and the undertaking was that they should per- form, probably no one would doubt that it was within the statute. So in the case of a factor' s contract with his prin- cipal. If the buyer was named, doubtless the statute would apply to a del credere contract ; and so if an ordinary factor, having already made a sale for his principal, should guaranty the payment of the price by the purchaser, for a new consideration passing between him and his principal. § 669. But as the authorities do not place the rule upon this ground, it is better, in order to preserve as much uni- formity as possible, in this complicated branch of the law, to adhere to the other reason, which appears to be suflB- cient. The doctrine that the statute does not apply to a del credere contract originated in the United States; although the English courts, as far as they have spoken, have also adopted it. The earliest case is Swan v. NesmitJi, 24 Massachusetts (7 Pickering), 220, decided A. D 1828. There the action was against the fiictors in favor of their principals, to recover upon a verbal del credere agreement ; and at the trial it was held that it was not within the statute, and the plaintiffs had a verdict, A motion for a new trial was denied, Parker, C. J., deliver- ing the opinion of the court. He said that the legal effect of the contract was to make the defendants liable at all 662 COLLATEKAL UNDERTAKINGS. [Cll. XVIII. events for the proceeds of tlie sale, so that, according to some authorities, they may be charged on indebitatus as- sumpsit for goods sold and delivered ; and although this was denied by others, the form of the action was not mate- rial, as they cannot be sued till after the sale, and the expiration of the term of credit. He added, that some of the principles laid down in the earlier cases, touching the liability of factors under such a commission, had been questioned ; "but it seems nowhere to be required that a guaranty of this nature should be in writing, for the lia- bility is admitted to be original ; and although the vendor may in such case forbid payment to the agent, if he is in- solvent, and maintain an action for himself, which in other cases is held to be the distinctive mark of a collateral undertaking, yet in this particular contract such a privi- lege to the vendor is held not to alter the nature of his claim upon the factor." § 670. The same opinion was expressed in the United States Circuit Court for the district of Vermont, in Brad- ley V. Ricliardson, 23 Vermont, 720, A. D. 1851, although no question under the statute was directly involved in the decision. The plaintiffs moved for an injunction, upon a bill filed to stay the collection of certain judgments against a corporation ; alleging that they were creditors and stock- holders of the corporation, and interested in certain property, upon which the judgments were liens. One of the objections to the judgments, on which they relied, was that in the account between the defendants and the cor- poration, the latter had not been credited with the amount of certain sales of goods upon an unexpired credit ; which the defendants had effected, as the factors of the corpora- tion, under a del credere commission. Upon that question Prentiss, J., denying the motion for an injunction, said that it was once a question whether a factor who sold goods on credit, did not become immediately liable to the principal ; yet the question was now settled that his un- dertaking was merely to answer for the solvency of the buyers, or rather to guaranty to the principal the pay- Art. II.] Collateral Undertakings. 663 ment of the debts due to liim from tlie buyers ; and that he was liable only, if the buyers failed to pay the purchase money when it became payable. He added : "Some con- fusion has arisen upon this subject, from the decisions on the question whether the undertaking of a factor is a contract within the statute of frauds, and so must be in writing. The better opinion is that it need not be in writ- ing ; that though a guaranty, it is not a collateral engage- ment, but an original and absolute one, that the prices for which the goods are sold or the debts created by the sales of the goods, shall be paid to the principal, when the credit given on the sales shall have expired." § 671. The question had previously received a thorough examination in the State of New York, in two cases which were ultimately decided in the court of last resort. In WoW V. Ko2?pel, 5 HUl, 458, A. D. 1843, the plaintiff had sued in the New York Common Pleas, to recover the price of certain goods sold by the defendants, as factors under a del credere commission. The agreement was verbal, and the defence was that it was void by the statute of frauds. The plaintiff having recovered judgment in the Common Pleas, the defendants brought error to the Su- preme Court, where the judgment was affirmed. Cowen, J., delivering the opinion of the court, said that the only authority in favor of holding the promise to be within the statute, grows out of the nature of the contract, as held by the King's Bench in Morris v. Cleasbj/, 4 Maule and Selwyn, 566, which defines the liability differently from what the previous cases had done, asserting that the factor is a guarantor of the debts created ; that is to say that they are due to the merchant, and the factor's engagement is secondary and collateral, depending upon the debtor's default. Thereupon some of the English text writers as- sert that the contract is within the statute ; but others assert the contrary opinion, founding it upon the former cases, holding that the factor was the primary debtor, whi(;]i are overruled by that decision. He added that in Stoa7i v. JVesmith, the Supreme Court of Massachusetts, whether 664 COLLATEEAL UNDERTAKINGS. [Ch, XVIII. Or not tliey were aware of the decision in Morris v. Cleashy^ were aware of the rule laid down in that case, and considered the obligation as a guaranty ; but notwith- standing they held that it was not within the statute. § 672. "But," he continued, "a guaranty, though by parol, is not always within the statute. Perhaps, after all, it may not be strictly correct to call the contract of the factor a guaranty, in the ordinary sense of that word. The implied promise of the factor is merely that he will sell to persons in good credit at the time ; and in order to charge him, negligence must be shown. He takes an addi- tional commission, however, and adds to his obligation that he will make no sales unless to persons absolutely solvent ; in legal effect, that he will be liable for the loss which his conduct may bring upon the plaintiff without the onus of proving negligence. The merchant holds the goods, and will not part with them to the factor without this extraordinary stipulation, and a commission is paid to him for entering into it. What is this, after all, but another form of selling the goods % Its consequences are the same in substance. Instead of paying cash, the factor prefers to contract a debt or duty which obliges him to see the money paid. This debt or duty is his own, and arises from an adequate consideration. It is contingent, depend- ing on the event of his failing to secure it through another, some future vendee, to whom the merchant is first to resort. Upon nonpayment by the vendee the debt falls absolutely on the factor." And, he added, whatever may be the form of the principal' s action against the factor, it is brought to recover the factor' s own debt. § 673. Referring then to several cases, in which it had been held that a promise, though in form to pay the debt of another, is not within the statute ; as where the promisor as- signs a third person' s promissory note and guaranties its collection ; or where the promise is made to the debtor him- self ; or where the consideration of the promise is the sur- render of a lien. fund, or security; he concluded: "The Art. II.] Collateral Undertakings. 665 merchant gives up liis goods to be sold and pays a premium. Is not this in truth as much and more than many of those cases require which go on the r(^linquishment of a security ? Suppose a factor agrees by parol to sell for cash, but gives a credit. His promise is virtually that he will pay the amount of the debt he thus makes. Yet who would say his promise is within the statute ? The amount of the argument for the defendant would seem to be, that an agent for making sales, or indeed a collecting agent, can- not, by parol, undertake for extraordinary diligence, be- cause he may thus have the debt of another thrown upon him. But the answer is, that all such contracts have an immediate respect to his own duty or obligation. The debt of another comes incidentally as a measure of damages." § 674. A wi-it of error upon this judgment was brought by the defendants, and the decision of the Court of Errors thereon (A. D. 1845,) is reported in Wolff v. Koppel, 2 Denio, 368. Porter, Senator, delivered the prevailing opinion of the court, contending that the question should be regarded as settled by the current of decisions which prevailed before Morris v. Cleashy ; the rule in which he cliaracterized as a recent innovation, which had never been adopted in this country ; and he thought that the Ameri- can courts ought not to follow the English courts in their departure from the former rule. These contracts, he said, have existed in this country as long as commerce has flourished, and the understanding of the mercantile com- munity has been general and uniform that the factor's agreement "was original and absolute to pay the price of the sale, deducting the commission, at the time the credit expired," although he doubtless expected to receive the fund from the purchaser. Hand, Senator, dissented and delivered an opinion arguing very ably, upon principle as well as upon authority, that the factor's undertak- ing is collateral merely. But a decided majority of the court concurred with Senator Porter, and so the judgment of the Supreme Court was affirmed. 84 666 COLLATEEAL UnDEETAKINGS. [Ch. XVIII. § 675. The question came before the New York Court of Appeals in the year 1856, in Sherwood v. Stone, 14 New York (4 Kernan), 267, the facts being substantially the same as in Wolff v, Koppel, and the decision in that case was followed by the unanimous vote of the court. John- son, J., delivered a short opinion favoring the affirmance of the judgment, upon the principle of stare decisis. Mitch- ell, J., said that at the time when the State constitution adopted the common law, the rule upon this subject was settled by the two cases in the first of Term Reports, and the subsequent English decisions cannot alter the law. He thought that the contrary results were produced by the different views of the contract taken in the two coun- tries ; in England it is understood to be a contract to pay, if the money cannot be collected of the purchaser ; but in the United States it is understood to be a contract to pay at the expiration of the term of credit, whether the pur- chaser be solvent or not ; that is, an original undertaking, without any reference to the debt or liability of another. The principal' s right to sue the purchaser is a quality added by the law, and not the contract of the parties ; and the factor has also a right to sue. The factor' s guaranty also diflfers from a promise to pay the debt of another in another particular, that the principal transfers to him a right to sue for the debt in his own name, accounting only for the net balance of the account ; which shows that to some extent the purchaser's debt is made the property of the factor, and he becomes to that extent the purchaser of it, and so far substitutes his own liability for that of the purchaser. The effect of this is generally to make the factor practically the owner of the debt, and this is invari- ably so if he remains solvent, and on just terms with his principal. § 676. But the apprehension, expressed in all these cases, that the ruling respecting the application of the statute would conflict with that of the English courts, has appar- ently proved unfounded ; and the latter have been able to reconcile the decision in Morris v. Cleashy, with a ruling Art. II.] Collateral Undertakings. 667 that the contract of the factor is not within the statute. At least such would appear to be the case, from the decis- ion of the Court of Exchequer in Couturier v. Hastie, 8 Exchequer, 40, A. D. 1852. {g) There a cargo of corn had been shipped by the plaintiffs at Salonica for London, and sold by the defendants as their factors on a del credere commission ; but in fact at the time of the sale the corn had become so damaged, that it had been condemned at an intermediate port and sold there ; and on this intelli- gence reaching England the purchaser repudiated the sale, and subsequently became bankrupt : whereupon the plaintiffs brought this action against the factors. Several points were made for the defence, and among others, that the defendants' del credere contract was within the statute of frauds, the only written, evidence of it being a letter which did not comply with the requirements of the statute. At the trial the judge ruled tliat the defendants' under- taking was not within the statute ; but that the contract imported that the corn was in existence as such, and capable of delivery, and upon the latter ground the de- fendants had a verdict. This was set aside and a verdict ordered to be entered for the plaintiffs, after argument in term. § 677. Parke, B., assigned the following reasons for holding that the defendants were liable on the del credere contract. "Doubtless if they had, for a percentage, guarantied the debt owing, or performance of the contract by the vendee, being totally unconnected with the sale, they would not be liable without a note in writing signed by them : but being the agents to negotiate the sale, the commission is paid in respect of that employment; a higher reward is paid in consideration of their taking greater care in sales to their customers, and precluding all question whether the loss arose from negligence or not ; and also for assuming a greater share of responsi- bility than ordinary agents, namely, responsibility for the {(j) S. C. 22 Law Journal, N. S., Exchequer, 97. 668 COLLATEKAL UNDERTAKINGS. [Ch. XVIII. solvency and performance of their contracts by their vendees. This is the main object of the reward being given to them ; and though it may terminate in a liability to pay the debt of another, that is not the immediate object for w^hich the consideration is given ; and the case resembles in this respect those of Williams v. Leper and Castling v. Aubert. We entirely adopt the reasoning of an American judge (Mr. Justice Cowen) in a very able judgment on this very point in Wolff v. Koppel, 5 Hill, 468."(^) § 678. In the subsequent case of WickTiam v. Wickham^ 2 Kay and Johnson, 478, decided A. D. 1855, Vice Chancellor Page Wood regarded the decision of the Exchequer in Couturier v. Hastie, upon the effect of the statute of frauds, as not only satisfactory in its reason- ing but binding as authority ; notwithstanding that the decision had then been reversed on the other point in the Exchequer Chamber. In the case tiien before him, the Vice Chancellor came to the conclusion, upon a care- ful examination of the facts, that the contract was a primary engagement on the part of the factors, to make good the payments at the end of every year for the goods supplied by the principals ; but he distinctly said that if the contract was for a del credere agency, he concurred with what was urged by the plaintiffs' counsel, that Couturier v. Hastie established that it would not operate as a guaranty, and would not be a promise to (li) The judgment rendered for the plaintiffs upcn the decision was reversed on error in the Exchequer Chamber, Hastie v. Couturier, 9 Exchequer, 102, A. D. 1853 (S. C, 17 Jurist, 1127; 22 Law Journal, N. S., Exch., 299), and the latter decision was affirmed in the House of Lords, Couturier v. Hastie, 5 House of Lords Cases, 673, A. D. 1856 (S. C, 2 Jurist, N. S., 1241 ; 25 Law Journal, N. S., Exch., 253) ; but in each of the appellate courts the decision was put upon the ground, that the terms of the contract between the defendants and the purchaser imported, that at the time it was entered into, the corn was existing, in a state to be bought, sold, and delivered; and the opinion expressed by the Court of Exchequer, respecting the validity of the defendants' contract with the plaintifis, under the statute of frauds, was not brought in question. Art. II.] Collateral Undertakings. 669 answer for the debt of another, within the fourth section of the statute of frauds. He added: "When I look at the whole of that case, and consider the reasons given by the judges in delivering their judgments, though given very cautiously and guardedly, I cannot but conclude that they considered that an agent, entering into a contract in the nature of a del credere agency, entered in effect into a new substantial agreement with the persons whose agency he undertook ; that the agreement so entered into by him was not a simple guaranty, but a distinct and positive undertaking on his part, on which he would become primarily liable ; otherwise I cannot see how the learned judges could arrive at the conclusion that the undertaking was not within the statute of frauds. Certainly the opin- ion of the American judge, which one of the learned judges referred to with approbation, in delivering his judg- ment in Couturier v. Hastie^ goes to the full extent which I have described. "(i) § 679. The opinion of Lord Wensleydale in Couturier v. Hastie is particularly worthy of attention, because he assigned as a reason for his conclusion, that the princi- pal object of the plaintiffs in giving the reward, which formed the consideration of the promise, was not to create a liability on the part of the defendants to answer for the debt of another. We have already expressed our opinion in support of the proposition, that where the leading object of the transaction was not to create such a liability, the statute does not apply ; and have pointed out the differ- ence between that principle and the doctrine which we have condemned in the preceding chapter. (/) It was then remarked, that the essential point of difference between the two was that the latter suffered both parties to have such a common object ; and the promisee to (t) Couturier v. Hastie is also cited in the eighth edition of Chitty on Contracts, p. 196 (A. D. 1868), as settling the law that a factor's engagement under a del credere agency need not be in writing. (;•) Ante, §§ 615, 616. 670 Collateral Undeetakhstgs. [Ch. xviii. have it for Ms leading object. It will be noticed that this distinguished judge applied precisely this test to the case then before him, where the effect of a guaranty of a debt thereafter to be created was in question ; thereby sanctioning our conclusion, that it is only when totli 'par- ties contemplate something different from the assump- tion of liability for a third person' s debt, default, or mis- carriage, that the contract will not be within the statute. That his Lordship did not intend to lay down any general rule like the proposition, the fallacy of which we have labored to demonstrate, Is apparent from his pointed con- demnation of one of its inevitable consequences, which furnishes the aptest illustration of its mischievous tend- ency ; namely, the exclusion from the operation of the statute of a simple guaranty of another's debt, founded upon a distinct pecuniary consideration, paid by the creditor to the guarantor. PART THIRD. OF AGREEMENTS MADE UPON CONSIDERATION OF MARRIAGE. CHAPTER NINETEENTH. CASES WITHIN THE TIIIKD CLAUSE OF THE FOURTH SEC- TION OF THE STATUTE. ARTICLE I. Object, effeot, and true interpretation of this clanM. § 680. The third clause of the fourth section, which pro- vides that no action shall be brought "to charge any PERSON UPON ANY AGREEMENT MADE UPON CONSIDERATION OF MARRIAGE," unless it shall be manifested by a writing, was probably inserted as one of the amendments, which, as we have seen, were added to the original draft of the bill, during its passage through the two houses of Parlia- ment, (a) This is indicated, not only by the structural peculiarities of the section, which render the words "to charge any person" tautological ; but also by the fact that the agreements to which the second, fourth and fifth clauses relate, are described therein according to their form or sub- ject matter; whereas the third adopts the consideration as the distinguishing feature of those embraced within it. Perhaps also it would not be incorrect to say, that the dan- ger of fraud and perjury in the attempt to establish agree- ments of this character, was not the principal reason why the legislature required them to be committed to writing. We may rather attribute this provision to an apprehen- sion of the evils to result, from permitting every promise relating to property, which may have passed, during courtship, between the future husband and wife, and every expression of intended bounty, which may have fallen from the friends of either, to be made the founda- tion of an action after marriage, even where no fraud was (o) See note to § 3, ante. 85 674 Antenuptial Agreements. [Ch. xix. designed, and no perjury committed. These constitute tlie agreements which the statute was intended to embrace ; and except for its provisions, they are, like other exec- utory agreements, as valid and as capable of enforcement, when they were merely verbal, as when they were in in writing. (&) § 681. With respect to promises looking to a provision for the future husband or wife, made prior to or during the engagement, by the relatives or other friends of either, the policy of the statutory requirement of a writing rests upon very clear and satisfactory grounds. Nothing is easier than a mutual misunderstanding in a transaction of this kind ; where declarations vaguely made, as mere expressions of an idea entertained, but not matured into a resolution, are very apt to be regarded by the person to whom they are addressed, as positive promises. Experi- ence has proved that it is often difficult to ascertain, even when the evidence consists of correspondence, or other informal writings, whether such expressions ever assumed the form of a definite and unconditional undertaking. It is therefore only reasonable, that the law should require the most satisfactory evidence, of which the nature of the case admits, that a binding promise of that character was actually intended to be made ; before compelling the prom- isor to give effect, to what is almost invariably a mere act of bounty on his part. § 682. But there is much greater room for doubt, whether it was wise and just to require promises relating to prop- erty, passing between the future husband and wife, to be manifested by a writing. It is true that, to some extent, (h) Sir Ralph Bovy's case, 1 Ventris, 193, 24 Car. ii; Lavender v. Black- stone, 2 Levinz, 14G, 27 Car. ii ; Sir John Otway's case, cited in Gell v. Ver- meiiiin, Freeman's Chancery Reports, 199. And in the United States, Flowers v. Kent, Biayton (Vernicnt), 238, A. D. 1817, before the Vermonl statute; Dunn v. Tliarp, 4 Iredell's Equity (North Carolinn), 7; Montgomery V. Henderson, ?> Jones's Equity (North Carolina), 1 13 ; Gaclcenbach v. Brouse, 4 Watts and Sergeant (Pennsylvania), 546. Ai-t. I.] Antenuptial Agreements. C75 the same reasons are applicable to this species of promise, by which the policy of the statute with respect to promises by relatives can be successfully defended. And doubtless the existence of a right, on the part of either of the mar- ried couple, to call upon a court of equity to enforce a promise made by the other, under circumstances so unfa- vorable to free and deliberate action as those attending a courtship, would have some tendency to destroy the peace of families, and would occasionally lead to injustice. But, on the other hand, the nature of the matrimonial rights over property, which the common law creates, are such, that in practice the person who has any occasion to exact or receive any promise in relation thereto, is almost inva- riably the one of whom the law should be peculiarly tender, by reason of her inexperience, her comparative helplessness, and her proneness to excessive confidence. And the books contain abundant evidence, that in this class of cases, the statute has generally had the effect to enable those sources of weakness to be successfully prac- ticed upon ; and thus to promote fraud and injustice. But this objection has now been removed, in most of the United States, by acts which place a wife's rights, with respect to property, at least upon a level with those of the husband. § 683. The clause under examination applies only to " any agreement made upon consideration of marriage ;" and it is therefore not applicable to representations^ with respect to which the courts have continued, since the enact- ment of the statute, to administer the law as before, not- withstanding that such representations may have been merely oral. It is quite evident that the enforcement of a representation, made for the purpose of inducing the com- pletion of a marriage, will frequently have the same prac- tical effect as the enforcement of an agreement in considera- tion of the marriage. Hence the exclusion of representa- tions from the operation of this clause of the statute, is apparently open to the same objections which were inter- posed so vigorously, although unsuccessfully, to their G76 Antenuptial Agreements. [Ch. xix. exclusion from the operation of the second clause of the same section, (c) But, in this class of cases, those objections seem to have been overlooked, until quite recently; although Lord Eldon, (who was conspicuously hostile to the estab- lished doctrine in the cases under the second clause), in giving judgment in Ex parte Carr, 3 Vesey and Beames, 108, A. D. 1814, said that the rule laid down in Pasley v. Freeman, 3 Term Reports, 51, (<^) "has some authority" in the rule established in this class of cases. The doctrine that the statute does not apply to representations, seems therefore to have been settled without opposition. § 684. Accordingly we find several cases, where a person who has made an oral representation, knowing it to be false, upon the faith of which a marriage has taken place, has been compelled to make it good by the decree of a court of equity ; and some where redress has been granted at law. Indeed it appears to be well settled, that the prin- ciple goes to the length of permitting the husband or the wife to maintain an action for that purpose, although the plaintiff was a party to the intended deception, whenever it is necessary to do so, in order to prevent injury to the innocent party, or to the issue of the marriage. § 685. Thus, in Neville y. Wilkinson, 1 Brown's Chan- cery Reports, 543, A. D. 1782, it appeared that Mr. Neville, one of the plaintiffs, being about to marry the daughter of the plaintiff Robinson, induced the defendant, who was his agent, to make out a schedule of his debts to show to Mr. Robinson, concealing the fact that he owed the defend- ant and another person a very large sum ; and to represent to Mr. Robinson that the schedule contained all his debts. Thereupon the marriage took place ; Mr. Robinson having previously made provision, by a deposit in the names of the trustees under the marriage settlement, for the payment of all the debts named in the schedule. And upon a bill filed (c) Chapter iv, article ii. (d) Ante, § 102. Art. I.] Antenuptial Agreements. 677 by Neville, Robinson, and the person who was joined with Robinson as a trustee in the marriage settlement. Lord Thurlow granted an injunction to restrain the defendant from proceeding to recover his debt against Mr. Neville, (e) § 686. But this case, and the others of the same general character, seem to depend upon the existence of a fraud- ulent intent on the part of the person making the repre- sentation ; and therefore present no difficulties in the way of reconciling the principles of equity with the provisions of the statute. The perplexity arises where no such ele- ment was present. The rule appears to be now settled, at least in England, that the right to relief does not neces- sarily depend, even upon knowledge of the falsity of the representation, much less upon a fraudulent intent. And as some of the cases have practically almost effaced the distinction between a representation and a contract, for the purpose of administering equitable relief; questions of great difficulty have arisen, where a relative or friend of a person contemplating matrimony, has made an oral state- ment of an intention to make a provision for the engaged couple ; and the marriage has been consummated, in reli- ance upon that statement. The examination of these questions will be deferred to the next chapter, where it can be more conveniently examined, in connection with other questions growing out of the equitable doctrine of performance. (/ ) § 687. It will be noticed that the consideration men- tioned in the statute is marriage ; but from the necessity of the case, the promise which is the subject of an action (f) See also Redman v. Redman, 1 Vernon, 3-48, A. D. 1G85; Gale v. Lindo, id., 475 (1G87) ; Lamlee v. Hanman, 2 "Vernon, 466 (1704); Tiirton V. Benson, 2 Vernon, 764 (1718); Roberts v. Roberts, 3 Peere William?, 66 (1730); Montefiori r. Montefiori, 1 W. Blackstone, 363 (1762); Thompson V. Harrison, 1 Cox's Chancery, 344 (1787); Scott v. Scott, id., 366; Palmer V. Ncavc, 11 Vesey, 165 (1805). (/) See chapter xx, article iii. 678 Antenuptial Agkeements. [Ch. xix. must always have preceded the actual marriage. Gener- ally there were in fact mutual promises between the par- ties ; a promise of marriage on the part of the plaintiff, (or the person from whom he derives his cause of action,) hav- ing accompanied the promise which he seeks to enforce. This happens, not only when the promise, which is the subject of the action, passed between the future husband and wife, but also when it consisted of the agreement of a third person to provide a marriage portion ; inasmuch as the interest, which the person engaging to give the por- tion feels in the accomplishment of the marriage, consti- tutes almost invariably his motive for making such an agreement. For these reasons the true meaning of the stat- utory expression has been sometimes misunderstood, thereby opening the door to errors of considerable magni- tude. It has been said that a promise to marry forms the consideration of what is technically called an antenuptial agreement, and consequently that such an agreement is made in contemplation of marriage, not in consideration of marriage, (p') But while it is undoubtedly true that every antenuptial agreement, so called, is made in con- templation of marriage, the only legitimate conclusion, to which that circumstance leads, is that no such contract is within the statute, unless it was also made in consider- ation of marriage. And it is believed that a careful ex- amination of the subject will show, that where an agreement to do some act, at the time of, or after the marriage, (as to provide a portion,) was made, in consequence of a promise by the other party to marry, the real consideration was the marriage, and not the promise ; although the latter may have been the inducement to the agreement. § 689. This will be apparent, if we take a case where there was no corresponding promise to marry. There the (gr) Per Benning, J., in Durham v. Taylor, 29 Georgia, 166, cited in note to § 720 post ; and see Riley v. Riley, 25 Connecticut, 154, and comments thereon, post §§ 714-716. Art. I.] Antenuptial Agreements. 679 promise to provide a portion is a mere proposal, which takes effect as a contract, only when a consideration, that is the marriage, has been furnished by the other party. (^) It is precisely like a contract between A and B, to the effect that A will pay B a specified sum for building a certain house. Here the actual building of the house is the consideration of A's promise to pay. And it is none the less the true consideration, that B may have under- taken, on his part, to build the house for the money ; or that, in either case, it is also a condition precedent to B's right to maintain an action. Indeed the contrary hy- pothesis would lead to the conclusion, that if property had been placed in the hands of one of the parties, in part per- formance of an antenujDtial agreement, and the match should afterwards be broken off by death, or even by the refusal of either party to complete it, the property could not be recovered back. § 690. With some inconsiderable exceptions, the con- struction of this clause has been in strict accordance with the foregoing principles. In some of the cases to be cited in the following pages, contracts, made in contemplation of marriage, were excluded from the operation of the stat- ute, because they were made upon some consideration other than marriage, or in addition thereto. And on the other hand, we shall cite several cases, where similar con- tracts have been held to be within the statute, because they were not founded upon any such distinct considera- tion, although it is to be inferred that they were accom- panied with promises to marry. This is evidently the result which the statute aimed to accomplish ; and it is difficult to suggest any form of words, which will express (h) It has been held that a promise to provide a marriage portion needs no other acceptance, than the consummation of the marriagi- in pursuance cf its terras. Parker v. Serjeant, Cases tempore Finch, 14G; Moore v. Hart, in note to § 691; Greene v. Cramer, 2 Connor and Lawson, 54; S. C, sub nom. Saunders v. Cramer, 3 Drury and Warren, 87 ; Luders v. Anstey 4 Vesey, 501 ; De Beil v. Thomson and Hammersley v. De Biel, cited post §§ 744-747. 680 Antenuptial Agreements. [Ch. xix. the idea thus intended to be conveyed, so clearly and at the same time so tersely, as those which were actually used. § 691. It would seem to follow, from this analysis of the legal effect of this species of agreement, that if the promise rested only upon the consideration of the future marriage, the person making it may withdraw it at any time before the actual celebration of the marriage, whether it was in writing, or merely verbal, and whether it was or was not accompanied with a promise to marry. And although we are not aware that the point has ever been expressly deci- ded, it has been assumed in several cases that such a with- drawal will protect him against a suit in equity for specific performance, (z). But agreements of this kind are of such a peculiar and exceptional character, that in some cases equity will interfere to compel a specific performance, after (t) It was apparently taken for granted, in the case of De Beil v. Thomson, and Hammersley v. De Biel, post, §§ 744-747, that the father might have withdrawn his proposal at any time before the actual marriage; but, under the construction which the court put upon the memorandum, it may be doubted whether he could have done so, after the Baron and his brother had executed the settlement of 500Z. per annum. In Moore v. Hart, 1 Vernon, 201, A. D. 1G83. the defendant had written to one Mr. Reeve, a relation of the plaintiff, at whose house his daughter was visiting, a letter promising a portion, on the occasion of her marriage with the plaintiff, and more after his death; and the plaintiff married the daughter, in reliance upon that letter. But upon a bill filed for the portion, the defendant in his answer said that Mr. Reeve had answered the letter, to the effect that he was notsatisBed with the amount which the defendant proposed to leave at his death, and would have nothing further to do with tiie match ; whereupon the defend- ant had rencAved a treaty with another gentleman, which had been broken off; and while that treaty was pending, the plaintiff and his daughter inter- married at Mr. Reeve's house, without his consent. It was proved, how- ever, that Mr. Reeve did not communicate to the plaintiff the contents of his last letter; and that after the defendant had received it, he came to town purposely about the match, and said to others, with many imprecations, that he would make his promise good. And the Lord Keeper (North) thereupon made a decree for the plaintiff; though for the defendant it was urged, that this promise in writing, being discharged by a subsequent letter in writing, could not now be renewed by parol disclosures, Art. I.] Antenuptial Agreements. 681 the marriage has taken place ; although before that event the promisor had expressly withdrawn his promise, and no pecuniary injury would have ensued to the promisee if he had refused to complete the marriage. This jurisdic- tion rests, not upon the idea that a general right to with- draw is inconsistent with the legal effect of the transaction, but upon the familiar ground, that the party has been induced, by his reliance upon the promise, to place him- self in such a position that he cannot be restored to his former condition. The peculiarity of the application of the principle, under these circumstances, is that the court regards the wound which his affections will sustain, by breaking off the match, as sufficient to entitle him to insist upon the performance of the agreement. § 692. Thus, in WancJiford v. Fotherly, Freeman's Chancery, 201, A. D. 1694, the plaintiff filed a bill for a portion of 3,000?., to be paid upon his marriage with the defendant' s daughter. It appeared that a letter, offering that portion, was written by a friend of the plaintiff, with the defendant' s assent, and that he afterwards agreed to it. Accordingly there was a treaty with the defendant for such a settlement; "but the treaty depending long, the young couple married." "And," the report proceeds, "although it appeared that Mr. Fotherly, before they went to church, did declare that he would give them nothing, and the statute of frauds and perjuries was insisted upon, yet decreed for the plaintiff, although his wife is since dead, and he married to another. And the Lord Keeper" (Lord Somers) " said, for his countermand when they were ready to go to church, he looked upon it as nothing, after the young people' s affections were engaged." This decree was afterwards afSrmed, upon appeal to the House of Lords, (y) (j) The case is also reported iicder the title of Wankford v. Fotherley, in 2 Vernon, 322, and as Wankford v. Fotherby, in 1 Equity Cases Abridged, 22. But neitlier of these reports mentions the countermand. Tlie bill was filed by the husband, as administrator of his deceased wife. The very short case of Douglas; v. Vincent, 2 Vernon, 202, A. D. 1G90, has been supposed to conflict somewhat with the principle of Wanchford v. Fotherley. The 86 682 Antenuptial Agreements. [Ch. xix. § 693. It must be acknowledged that this principle re- quires considerable delicacy in its application, in order to avoid abuses. But it finds a very close analogy in a simi- lar doctrine, w^liich seems to be vi^ell settled, in cases where a forfeiture of an estate results from the marriage of the beneficiary, without the consent of some other person. It is held, that where such a consent has once been given, and the affections of the young people have been permitted to become enlisted, the consent cannot be withdrawn, unless for some cause which the court shall adjudge to be reason- able. In the language of Lord Northington, "it would otherwise be a most cruel thing to suffer young persons to contract and entertain affection, and then ad libitum with- draw the consent. "(^O report of the case is as follows: "The bill being for l.OOOZ., as promised by Sir Matthias Vincent with his niece, by a letter under his hand, but in the same letter he dissuaded her from marrying the plaintiff", yet was afterwards present at the marriage, and gave her in marriage. In this case the court would not decree the payment of the 1,000?., but left the plaintiff" to bring his action to recover it, as he could at law." It is possible that the last five words were intended to mean, that there was no impediment to his recov- ering the 1,000/. at law; for which reason, it was not proper for him to come into equity. See Chichester v. Cobb, 14 Law Times, N. S., 433. It would seem that, in Douglas v. Vincent, the wife must have died, otherwise she should have been a party. In Madox v. Nowlan, Beatty, 632, decided in the Irish Court of Chancery, in 1824, Lord Manners referred to the case of "Wanchford v. Fotherl}', which had been pressed upon him by counsel, but without expressing any approbation or disapprobation of the principle upon which it proceeded ; for he came to the conclusion that the defendant's promise, which had been withdrawn on the morning of the plaintiff" 's mar- riage, was conditional by its terms, and that the condition had not been performed. Lord Cottenham cited the case approvingly in his judgment in Hammersley v. De Biel, post §§ 744-747. (k) Merry v. Ryves, 1 Eden, 1. See also Lord Strange v. Smith, Ambler, 263 ; Campbell v. Lord Netterville, cited in 2 Vesey, Senior, 534 ; Per Lord Eldon, in Clark v. Parker, 19 Vesey, 12, 13; Per Sir William Grant, in D'Aguilar v. Drinkwater, 2 Vesey and Beames, 225. Art. II.] Antenuptial Agreements. 683 ARTICLE II. Hatnre and extent of the marriage consideration | what persons are !entitled to avail them- selves of it. § 694. Our proposed examination of the questions pre- sented, in the cases which have arisen under this provis- ion of the statute, may be usefully prefaced by a few- remarks upon the nature and extent of the consideration, forming the test of its application ; and a glance at the rules which determine what persons are entitled to rely upon the marriage, as a consideration furnished in their behalf. Such persons are said to be within the scope of the consideration. § 695. The authorities agree in regarding a marriage as fulfilling all the requisites of a valuable consideration ; and consequently that the parties thereto, and all other persons who come within its scope, are entitled to the most ample protection which a court of law or equity wiU give to purchasers for value, (a) Accordingly it has been (a) Lord Coke remarks that " there is no consideration so much respected in the law as the consideration of marriage, in respect of alliance and pos- terity." Coke upon Littleton, 9 i. ; Thomas's edition, volume 1, page 501. Lord Romilly says that "the consideration of marriage is the highest known to the law." Ford v. Stuart, 15 Beavan, 499. Lord St. Leonards also speaks of marriage as " the most valuable of all considerations." Greene v. Cramer, 2 Connor and Lawson, 60; S. C, sub nom. Saunders v. Cramer, 3 Drury and Warren, 87. Sir John Stuart says that "it is the policy of the law to give paramount force to the consideration of marriage." Fraser v. Thompson, 1 Giffard, 62. And see to the same effect, Pcachey on Marriage Settlements, 50, 57 ; Addison on Contracts, 6th edition, 740 ; Per Collier, C. J., Andrews v. Jones, 10 Alabama, 421; De Barante v. Gott, 6 Barbour (N. Y.), 492 ; Marshall v. Morris, 16 Georgia, 368; Per Archer, J., Buchanan v. Deshon, 1 Harris & Gill (Maryland), 292 ; Crane v. Gough, 4 Maryland, 316 ; Magniac v. Thompson, 7 Peters (U. S.), 348 ; Brown v. Carter, 5 Vesey. 862, 879. A nd see Barrow v. Barrow, 2 Dickens, 504. In Sterry v. Arden, 1 Johnson's Chancery, 271, Chancellor Kent, referring to a voluntary conveyance to the female plaint- iff, upon the faith of which the plaintiffs had intermarried, said : " Tiie marriage was a valuable consideration, which fixed the interest in the grantee against all the world; she is regarded from that time as a purchaser, and as much 684 Antenuptial Ageeements. [Ch. xix. held that if a person has been induced to marry the grantee in a voluntary deed, in consequence of the credit which such grantee may have gained by means of the deed, it ceases to be voluntary, and becomes good against a subsequent pur- chaser for value. (5) This rule is strikingly illustrated by an English equity case, where a father gave a voluntary bond to trustees, conditioned for the payment, after his death, of a sum of money for the benefit of his six child- ren, in certain specified proportions. Afterwards two of the sons named in the bond, assigned, in contemplation of marriage, their respective portions of the sum payable by the condition thereof, to other trustees, for the benefit of their intended wives respectively ; and on the faith of those assignments, the marriages were contracted. Many years afterwards, the father died insolvent ; and upon a settlement of his estate, the trustees to whom the bond was given, were admitted as specialty creditors to the amount payable, by the condition of the bond, to the two sons who had married, (c) So, under the statute of the 27th Elizabeth, a grantee in consideration of marriage may impeach, as a purchaser for value, a prior voluntary grant of the same property. (efore their births. Art. III.] Antenuptial Agreements. 689 the statute of frauds docs not prevent an action at law from being maintained, to recover damages f(ir the breacli of a verbal promise to marry tlic ])laintift". This was one of the earliest questions which arose under the aet ; and it was contended, with considerable plausibility, that, where there were mutual promises to marry, inasmuch as each of them formed the consideration of the other, both were agreements "in consideration of marriage." Inde»'d, this doctrine received at lirst the sanction of the courts. In PhU.pot v. Wallet, Freeman, 541, and 3 Levinz, 05, A. I). 1082, the Court of Common Pleas, after two arguments, (a) gave judgment for the defendant, in an action upon a prom- ise to marry, which was found by a special verdi(;t to have been made, without writing, after June 24, 1077. Wynd- ham, J., thought that the verbal promise was good, "be- cause this promise is for the marriage itself, and not made in consideration of marriage for some collateral matter. But," the report proceeds, "the other three judges were against him, that it was within the words, the meaning and mischief of the statute, and as much a catching promise as any other that the act intended to prevent." § 700. Notwithstanding the weight of authority which this case was entitled to command, it seems to have been afterwards silently disregarded, at least in the King's Bench ; for in one of many reports of Harrison v. Caye^ decided in that court A. D. 1098, ((^) where the question was whether a woman is liable to an action for a breach of promise of marriage, it is stated that uj)on the trial, Chief Bart)n Ward ruled that the action could \w main tained without writing ; and counsel said, during the argu ment, that Chief Justice Holt had frequently ruled that the statute intended only agreem<>nts to ])ay man-iage poitioiis, which the latter, (who was then on the bench,) did not deny. (a) The first argument is reported in Sl:inner, 24. {b) 1 Lord Raymond, 38G. Tlie otiier reports of the same case do not mention this point. Lord Ilolt, 456 ; Cartliew, 407; 1 Salkcld, 24 ; 5 Mod- ern, 4] 1 ; 12 Modern, 214. 87 690 Antenuptial Agreements. [Cli. xix. And Pliilpot V. Wallet is regarded as liaving been defini- tively overruled, in the court wliere it was decided, by CorJc V. BaJcer, 1 Strange, 34, A. D. 1716. There the plaintiff brought an action in assumpsit in the Common Pleas, setting forth in her declaration the usual allega- tions, showing a breach of a promise to marry her ; and upon non assumpsit pleaded, she had a verdict. Where- upon the defendant moved, in arrest of judgment, "that this parol promise is not good in law." The motion was denied ; the report giving no statement of the reasoning of the court, but only that, ' ' after argument, it was held that this is not within the statute of frauds and perjuries, which relates only to contracts in consideration of mar- riage," and thatP7^^7jp(9^ v. Wallet has been "contradicted by later resolutions." § 701. Although the declaration in this case did not show that the promise was verbal, the doctrine that an action will lie for breach of a verbal promise of marriage (unless, by its terms, it is not to be performed within the year), has been since generally acquiesced in, and is now definitively settled, (c) And the express exceptions of such promises from the operation of this provision, which are to be found in many of the American re-enactments of the fourth sec- tion, are merely indications of superfluous caution, {d ) § 702. But the ruling attributed to Chief Justice Holt, in Harrison v. Cage, that this clause of the statute is confined to agreements to pay marriage portions, is not (c) Bacon's Abridgment, title "Agreement," ch. 3; per Bland, Chancellor, in Ogden v. Ogden, 1 Bland (Maryland), 287; Clark v. Pendleton, 20 Con- necticut, 495 ; per Lord Hardwicke, Chancellor, in Atkins v. Farr, 2 Cases in Equity Abridged, 248 ; Derby v. Phelps, 2 New Hampshire, 515. (d) The same ruling has been made under, the provisions of article 2308 of the Civil Code of Louisiana (ante, page 46), in Morgan v. Yarborough, 5 Louisiana Annual Reports, 316, A. D. 1850, where Slidell, J., in pronounc- ing judgment, said that verbal promises of marriage were sufficient by the Roman law. He added, that the same rule now prevails in France, although, in some parts of that country, there was formerly a statute requiring them to be in writins:. Art. III.] Antenuptial Agreements. 091 strictly correct. (c) It embraces all agrecMiients between the future husband and wife, or between either of tliem and any other person, the consideration of wliicli was the completion of the contemplated marring*^ ; whereby any riglits will b(3 acquired, or any liabilities eicated, after the marriage, except such as legally How fiom the matrimo- nial relation. § 703. Thus in a New York chancery case, In the matter of^VilloKfjJihy, 11 Paige, 257, A. T). 1844, a petition was presented by the wife of a lunatic, to amend an order of reference directing an inquiry as to the sum proper to be allowed to the wi^fe as the committee of the lunatic's person, for his and her support, so as to include an allowance for the petitioner's daughter by a former husband; on the ground that by a verbal antenuptial agreement, the lunatic liad agreiKl that the daught(U", who was twenty one years of age, should reside in his family and be suppoi'ted by him. The application was denied by the Chancellor, partly upon the ground that the evidence was not suffi- cient to establish the antenuptial agreement ; but also because " the statute is imperative that every agreement, promise, or undertaking, made upon consideration of mar- riage, except mutual promises to marry, shall be void, if not in writing, and subsciibed by the party to be charged therewith." He added : "No claim for the support of the step-daughter can therefore be founded u]ion the supposed agreement stated in the petition ; and the lunatic is not bound to support her in any way." He therefore consid- ered the application as addi-essed to the discretion of the court ; which, he concluded, ought not to be exercised so as to grant the prayer of the; petition, having n^gard to the amount of the property, the claims of other persons, the (e) In Jor^en v. Money, 5 House of Lords Case?, 185, counsel, arguendo, referred to Holt's supposed ruling; whereupon, Lord Chancellor Cranworth Answered (p. 207): "That cannot be true. It cannot be to pay marriage portions: it may be to enter into marriage settlements. 692 Antenuptial Agreements. [Ch. xix. supposed wishes of the lunatic, if he had been in his right mind, and all the other circumstances of the case.(/') § 704. But it is evident that the statute will not avoid an oral agreement, merely because a contemplated marriage constituted the inducement to its execution, provided its obligatory character did not depend upon the subse- quent completion of the marriage. Thus in Jorden v. Money, 5 House of Lords Cases, 185, A. D. 1854, (,^) the plaintiflf founded his title to relief, partly upon an alleged verbal agreement between the plaintiff's father and the female defendant, made in contemplation of the expected marriage of the plaintiff to a young lady not a party to the agreement ; and with a view to aid in the provision to be made for the young couple. The terms of the agree- ment were, substantially, that the defendant would never enforce a bond and warrant of attorney, which she held against the plaintiff; but would and did abandon the debt; and in consideration thereof, the plaintiff's father would desist from his expressed intention to settle upon the plaintiff, as a marriage portion, certain real property, of which he had formerly made a gift to the defendant ; so that the latter should continue in the possession and en- (/) In Hair v. Hair, 10 Richardson's Equity (South Carolina), 163, A. D. 1858, the plaintiff filed a bill against her husband for alimony, alleging, as one ground for relief, that as a precedent condition to the marriage, he had promised that he would never remove the plaintiff from the State, or the vicinity of her relatives and friends, without her consent; that in violation of that agreement, he had attempted to compel her to remove with him to Louisiana ; and on her refusing to do so, he had abandoned her, and removed thither with his slaves, etc. The court below held, that although this agree- ment was not in itself a basis for relief, it might be resorted to as an aggra- vation of the defendant's conduct in other particulars, and granted a decree for alimony. But this was reversed by the Court of Appeals. No refer- ence was made in the appellate court, to the effect of the statute of frauds upon the promise, which was adjudged to be void, as an attempt to interpo- late into the marriage contract a "condition in abridgment of the husband's lawful authority over her person, or his claim to her obedience. (7) S. C, 23 Law Journal, N. S., Chancery, 865; it is cited again upon the other point, post §§ 752-754. Art. III.] Antenuptial Agreements. 093 joyment of the property, without nioh^station. Lord Cranworth, speaking of this agreement, said : "And I may say in passing, that it a])])ears to me tliat tlie allusion which was made in the course of the ai'gument to the stat- ute of frauds in such a case is wholly ina])plicabh' ; it would not apply at all. The contract sought to be enforced against Mrs. Jorden, would \w a contract not to su(^ upon a certain bond, that is not within the statutes of frauds. If there was a valid consideration for that contract, unques- tionably she was bound to perform it." Lord St. Leonards expressly, and Lord Brougham impliedly, assent<'d to this ruling upon the law of the case ; but it was lield by two of their lordships against the oj)inion of the third, that the evidence was not sufficient to prove the making of the agreement. § 705. One of the questions presented in the very com- plicated case of Andrews v. Jones, 10 Alabama, 400, A. D. 1846, was disposed of upon substantially the same principle. There it apjwared that before th»' marriage of the defendant Walker, to the daughter and only child of Mrs. Jones, another defendant, the daughter's share of the personal property of her deceased father had been lost by injudicious, and apparently unauthorized invest- ments, made by her mother, who was her guardian ; and that the latter had no part of the property in her posses- sion, except six slaves, which she continued to retain, although the daughter had reached her majority. The mother had kept no account of the daughter's expensi^s, and it was said that if the losses and expenses should be allowed to her, she would owe her daughter little or nothing. It was thereupon agreed between Mrs. Jones, her daughter, and the defendant Walker, "previous to the marriage of the two latter, and in consideration there- of," that the daughter and her intended liusband would never call the mother to an account; "that the six: slaves should be conveyed to her ; and that she should hold them and the estate of her daughter in absolute right." After the marriage, the defendant Walker made a bill of sale of 694 Antenuptial Agreements. [Ch. xix. the slaves to Mrs. Jones, who had continued to retain the possession. About five years afterwards, the complain- ants recovered a judgment against Walker ; and an execu- tion having been returned unsatisfied, they filed this bill to reach the slaves and other estate of his wife, insisting that they were entitled to an accounting from Mrs. Jones. The court below made a decree dismissing the bill, which was affirmed upon error. Collier, C. J., delivering the opinion of the Supreme Court, said that the statute of frauds could not impair the effect of the transaction be- tween Mrs. Jones, her daughter, and Walker ; because, if it was a contract, it was executed at the time when it was made ; except perhaps as to the six slaves, and as to them it was subsequently executed. And he also said that in- asmuch as the mother-in-law was not in actual possession of any of her daughter's property, except the slaves, it was immaterial whether the legal proposition insisted on by the plaintiffs, that the possession of a guardian is in law the possession of the ward, even after the latter has attained majority, was sound or otherwise ; because the daughter and her intended husband relinquished the entii'e estate to Mrs. Jones. This disclaimer of title and interest, if it did not operate as a release, prevented her possession of any part of the estate from being transferred by con- struction of law to the daughter, or after the marriage to Walker. Consequently the wife' s equitable interest had never been reduced to possession by the husband ; and in this case her equity was superior to that of the plaintiffs. § 706. It seems also that the mere fact that an agreement was to be fulfilled, upon the happening of the marriage of one of the parties, wUl not bring it within the statute, if it was founded upon a distinct consideration unconnected therewith. Although made in contemplation of marriage, such an agreement is not one made upon consideration of marriage. Thus in Peter v. Compton, Skinner, 353, and Lord Holt, 326, A. D. 1693, (^) the question was whether (/O S. C, Comberbach. 463. Art. III.] Antenuptial Agreements. 696 an action would lie upon a verbal undertakinf?, which is stated to have been "an agreement in which the defendant promised, for one guinea, to give the ])hiiiitiff so many at th«> day of his marriage ;'' and it was held that it was not within the Statute. However the brief reports of the case indicate that the only ])oint taken and discussed, was whether the promise was witliin the lifth (clause of tins section, "for," the reports say, "the marriage did not happen within a year." § 707. For obvious reasons, most of the litigation which has arisen upon agreements made in consideration of mar- riage, has been of an equitable character ; and hence the application of the statute to such agieements has been settled almost exclusively by the determination of courts of equity. It will be most convenient to consider many of the cases, in connection with the principles reguhiting the administration of relief in that great branch of equity jurisprudence, the specific performance of contracts ; the questions arising under the statute having been generally presented, either by a suit brought for the specific per- formance of some verbal agreement, which was apparently within its terms ; or by an answ«^r interposed to a bill for equitable relief, wherein the defendant insisted upon the right to such a performance, as a defence to the plaintiflf' s claim. The next chapter will be exclusively devoted to that subject, and the reader will find there many cases illustrating the description of agreements, which the lan- guage of the statute embraces. The cases which follow, although most of them involve questions of that desci'ip- tion, chiefiy turned upon the form and charactei- of the agreement ; the principal point at issue being whether these were such, as to render the statute applicable in the first instance. (2) Cases where the agrecmcnl v>as /oumled upon Home distinct consideration, in addition to that of marriage, § 708. Questions of considerable nicety sometimes arise, when a party founds his title to equitable relief, upon an Antenuptial Agreements. [Cli. xtx. antenuptial agreement, the consideration of wliicli was not only the future marriage, but also some distinct act in addition thereto, which has been performed by him, or by the person from whom he derives his right of action. It is quite clear that if the additional consider- ation was of such a character, that its performance would entitle the party to the relief which he seeks, if the mar- riage consideration had not been made a part of the contract, the statute will interpose no obstacle to his ob- taining a decree. In such a case, the right to relief results from the fact, that the statute does not make agreements in consideration of marriage illegal, but only prevents their enforcement ; (/) hence the party is at liberty, for the purpose of taldng the case out of the statute, to pass over that part of the consideration which consisted of the mar- riage, and rely upon the performance of the additional consideration. But it often happens that the distinct con- sideration was so intimately connected with, and depend- ant upon the marriage consideration, that the two are incapable of any separation which will enable the former to stand without the aid of the latter. The principle which governs such cases is quite obscure, and has never been clearly defined in the books. Indeed we doubt whether the cases admit of any distinction between the two considera- tions ; for those which appear to have been well decided rested upon a distinct act of performance of the entire agreement, which applied quite as pointedly to the mar- riage consideration, as to the supposed additional consid- eration ; and it is well settled that such performance will take the case out of the statute, without reference to the question whether there were two separate considerations. § 709. The doctrine, that a distinct act of performance will take an antenuptial agreement out of the statute, was recognized, but without specifying the characteristic feat- (f) The principle is the same if there was no distinct consideration for the antenuptial agreement, but such a consideration was furnished after the mar- riage. Sugden on Vendors, 14th edition, p. 718. Art. III.] Antenuptial Agreements. 697 iires of the act wliicli will suffice for that puiiJOHe, in a dictum of Lord Macclesfield, given in one of the reports of Lady Montacute v. 3faxwcU, the leadinu; case under this provision of tlie statutt; ;(,/) but it was more clearly expounded in another case of almost equal celebrity, but of comparatively ret'ent date, llamniersley v. Dc Bitl^ 12 Clark and Finnelly, 4.5, A. D. 184.5.(/t) A summary of each of these cases will be given in the following chapti'r ; where, however, Ilammersley v. De Bicl is cited, rather in connection with certain observations of tlu? judge's, which were not strictly necessary to the decision, than so as fully to show the grounds of the judgment upon the merits. Indeed it must be acknowledged that the latter under- taking would be one of some difficulty ; inasmuch as the English courts and elementary writers have not yet ceased to dispute, touching w^hat was really decided in that now noted case. But it is generally conceded, that the judg- ment established one proposition directly in point upon the present subject of inquiry ; namely, that the execution of the instrument by the plaintiff' s father and uncle, by which a jointure of 500Z. per annum was secured to the intended wife upon the family estate in Mecklenburg, was a distinct act of performance of the proposals contained in the memorandum, in addition to the marriage ; wliicli entitled the plaintiff to insist upon performance of so much of the proposals, as the t^^stator had not jierfoniied during his life time. This ap^iears to be the result of the opinions delivered, conceding that the proposals contained in the memorandum constituted a contract within the meaning of this clause of the statute ; and without regard to the q\iestion, whether there was a sufficient signature to the memorandum, either directly or through the medium of the testator's subsequent letter, to satisfy the require- ments of the subsequent poriion of the fourth section. And it will be noticed, not only that this settlement was of no effect, without the subsequent completion of the (y) Precedents in Chancery, 526. Tlie remark referred to is copied in the note to § 722, post. Qi) See post, §§ 744-747. 88 698 Antenuptial Ageeements. [Cli. xix. marriage ; but tliat tlie annuity was not to commence till after the termination of the marriage, and only in case the intended wife survived her husband, a contingency which did not in fact occur. § 710. In Satterthwaite v. Emley, 3 Green's Chancery (New Jersey), 489, A. D. 1845, Chancellor Haines expressed the opinion that a distinct act of performance by the wife, after the marriage, on the faith of the antenuptial verbal promise, would enable her to sustain, as a purchaser, the husband' s performance of the same agreement in her favor, even against his creditors ; provided she could establish the antenuptial promise by sufficient evidence. The bill was filed by the trustee of the wife against the husband and his judgment creditors. It alleged that the husband and wife made an antenuptial agreement, to convey the wife' s real and personal property, upon certain trusts for her benefit ; that after the marriage, they conveyed the real estate to the husband' s son by a former marriage, who immediately reconveyed it to his father ; this being a tem- porary arrangement, pending the selection of a trustee, made in consequence of the husband' s representations to his wife, that he would otherwise derive no benefit from her property in case of her death ; and that afterwards they united in a deed of trust to the complainant, in con- formity with the antenuptial agreement and reciting the same ; but that meanwhile the lien of the judgment at- tached, &c. The Chancellor decreed that the trust deed should stand, as against the husband and all claiming under him, but not against the creditors ; dismissing the bill as to the latter, on the ground that the evidence, (which consisted of the recitals in the deed and the husband's postnuptial declarations), were not sufficient to establish the antenuptial agreement as against them. But he said that if the evidence had been sufficient, he would have inclined to give validity to the settlement, because "such settlement could not be considered voluntary, but upon a good and valuable consideration, to wit, the marriage, and the conveyance of all the wife's estate.' Art. iii.l Antenuptial Agkeements. 699 § 711. And in Dygcrt v. Remerschnider^ 32 New York, 629, A. D. 1865, the New York Court of Appeals marked out very clearly and satisfactorily, the distinction between a verbal agreement in consideration of marriage only, and one where there was an additional consideration, ])erform- ance of which would of itself entitle the party to relief, and which was connect<'d with the marriage only because its performance depended upon the accomplishment of the latter. This was an action brought against George Remerschnider and his wife Catharine, by a judgment creditor of George, to set aside a conveyance of real estate, made by him to his wife, through an intermediate grantee. It appeared that in 1854, George and Catharine intermar- ried ; having previously made an oral agreement, by tlie terms of which the parties were to intermarry, and Catha- rine was to pay the debts which George then owed, and' he was to convey to her the premises in question. Tlie amount of his debts was about equal to the value of the property ; and after the marriage, she paid them in full ; first applying thereto certain moneys which she owned at the time of her marriage, and after\j'ards, from time to time, other moneys, which she earned by working at her trade, with the assent of her husband. (/^) The latter fre- quently promised to convey the property to her ; but neg- lected to do so till 1861, after the commencement of the action, in which the plaintiff recovered his judgment. The debt to the plaintift' was contracted in 1860 ; and, as it is to be inferred from a statement in one of the opinions, after Catharine had paid all her husband' s debts, existing at the time of the marriage. TIk^ com])laint was dismissed at special term ; and the plaintiff appealed to the g) (p) The opinion was delivered by Ellsworth, J., who first stated that if the widow's claim could be upheld, upon either legal or equitable principles, the appeal could not be sustained under the statute regulating the proceed- ings ; that the parties, being aware that the notes would be extinguished by the marriage, undertook to guard against that result by the promise of the deceased, that if the claimant would forbear to insist up^n payment before marriage, the notes should not be extinguished; but should remain good and collectible out of his estate, and survive to the petitioner like any other of her choses in action which he should forbear to collect during the cover- ture; and that they should continue to be her separate estate. This interpre- tation of the language, said the learned judge, is not free from all question ; but it appears to be only just and reasonable, when it is considered that the parties intended that the notes should remain in force after the marriage, which could be done only by a new promise, founded upon foibearance. It appears, he continued, that Riley undertook that these notes should not fall into his estate, but should remain and survive to the petitioner, like any other choses in action which he should forbear to collect during the coverture; and that they should continue to be her separate estate. If this is the true construction, it could be enforced at law, for it was a promise to be performed after the cov- erture had ceased. The learned judge then proceeded: "As to the objection derived from the statute of frauds and perjuries, we think there is no ground for it. The antenuptial promise was made in consideration of forbearance, and not in consideration of marriage, though it was made in contemplation of marriage; which is not inconsistent with the claim of the appellant's counsel, that, a promise in consideration of marriage must be in writing. Marriage was not the meritorious cause of Riley's promise ; the marriage obligation was already perfect; and the promise in question was made upon the assumption that it was so, and for the exact purpose of saving the notes from the effect of the marriage, when the marriage contract should be exe- cuted. No advancement or benefit was to accrue to either party in the event of the marriage, any more than if it did not take place ; and hence it is not possible to consider marriage as the consideration of the promise. It was the debt ; the forbearance of it ; and this forbearance having been extended upon the request of Riley, and continued until his death, there is no reason why his estate should not be liable." The learned judge said that this was all which it was necessary to decide, in order to dispose of' the case; but he proceeded to consider some other points. He thought that the claim might also be sustained on the ground, that in equity the transaction was in efiect the same, as if the husband had promised that the note of a stranger, owned by her at the time of the marriage, should be kept as her separate property, and survive to her ; and in that aspect of it, these notes were her separate estate, which he held as her trustee ; or the transaction might be regarded as a postnuptial gift, to which no one but creditors could object. Art. III.] Antenuptial Agkeements. 705 § 715. The court appears to have assumed, in this case, that because Riley had already promised to marry the peti- tioner, the agreement could not have been made in consider- ation of marriage ; which is equivalent to saying that an antenuptial contract is one made in consideration of a prom- ise of marriage ; a projDosition of which we have endeavored to show the fallacy, in the foregoing pages. And upon the point that there was any thing distinct from tlie marriage, either as a consideration or as an act of performance, the case is unsatisfactory, and, we think, of dangerous ten- dency. It is quite clear that tli(? ugieement for forbearance was, in legal effect, only a promise, on the part of the woman, to leave her antematrimonial rights in abeyance, awaiting the accomplishment of the marriage ; and that she never parted with her right to enforce the notes, as a con sideration for the promise on the part of the husband ; theu- extinguishment having resulted, not fi-om the forbear- ance, but from the subsequent marriage. There was, there- fore, no legal consideration for her promise to forbear, or for her actual forbearance ; and nothing beyond the mar- riage furnished by either party, except a voluntary for- bearance on one side, and a void promise on the other. Upon the hypothesis, which the court adopted, it would seem clear, that if the match had been broken off by the petitioner, she could not have collected the notes ; for if the agreement bound her, a plea of the agreement and semper paratus would have afforded a perfect defence to an action in her favor. § 716. Again, in order to entitle a party to a decree for the performa^ice of an agreem(3nt within the statute, he must have done some specific act, in pursuance of the contract. Mere acquiescence in the previously existing condition of the subject matter of the alleged agreement will not suffice ; because it does not necessarily imply that any new agreement had been made. (5') This princi- (5) Thus where a tenant alleges that he made a verbal contract with his landlord for a new term, or for the purchase of the property, his merely remaining in possession is not an act of performance on his part; nor is the 89 706 Antenuptial Agreements. [Ch. xix. pie was completely disregarded by the ruling adopted in Riley v. Riley ^ and its soundness is manifested by the consequences to which that ruling will lead. For if a verbal request on one side, and a verbal assent on the other, followed by no visible act, is to set the statute aside, it is quite clear that but little will be left of the provision that agreements in consideration of marriage must be in writing. Thus a woman's forbearance, at the request of her intended husband, to put her property in the hands of trustees, would sustain his verbal promise that she should enjoy and dispose of it after marriage, as a feme sole. The list of such cases might be almost indelinitely extended, (r) § 717. The case of FincTi v. Fincli, 10 Ohio, New Series, 501, A. D. 1860, is a direct ruling against the doctrine of Riley v. Riley. There, the widow of Ira Finch, deceased, filed a petition for admeasurement of dower against his devisees ; to which they interposed an answer, setting forth three defences, the second being a verbal agree- ment between the petitioner and the deceased, in con- templation of their marriage, to the effect that she should retain and absolutely control the property which she owned, consisting of personal property and a dower estate in the lands of a former husband, and that upon her decease her property should all go to her children by her former husband ; and on the other hand, that if she survived him, she would relinquish all title and interest to his estate, real and personal, to his legatees and de- visees, and would make no claim thereon. It was further alleged that the agreement had been executed, by the reten- tion, enjoyment, and disposition of her property by the petitioner, during the marriage. A motion having been made in the court below, to strike this answer from the landlord's acquioscence in his continued possession an act of performance on the part of the latter. Sugden on Vendors, 14th edition, chapter iv, sec. vii, p. 152; 1 Story's Equity Jurisprudence, 8th edition, §§ 762, 763; Browne on Frauds, § 477; and numerous cases cited by each author. (r) Several of the cases cited in the next chapter are directly in point against this ruling, particularly Caton v. Caton, post §§ 756-758. Art. III.] Antenuptial Agreements. 707 files, on the ground tlint the agreements therein set forth were within the statute; of frauds, the case was reserved for the decision of the Supreme Court, where it was deter- mined that the answer was insufficient in all its branches. Upon tlie question wliethor the second defence was suffi- cient, Brinkerhoff, C. J., said: "The antenuptial agree- ment, set forth in the second defence alleged in the answer, was clearly an agreement ' upon consideration of mar- riage.' It is true, marriage was not the sole consideration for the agreement, on the part of the intended wife, that she would not demand dower, in case she survived her intended husband ; his agreement not to exercise the rights, in respect to her property, which the marriage would confer, constituted an additional consideration for the agreement on her part ; but tlie agreement was entire ; the intended marriage entered into and formed part of the entire consideration on both sides ; and without it the agreement never would have been made."(5) § 718. It is difficult, and perhaps impossible, to lay down any rule, which will furnish a correct test for every case of this description. But it would seem clear upon principle, that when a party insists upon the right to take a case out of the statute, on thfe ground that there was a distinct consideration for the verbal promise, in addition to the marriage, the additional consideration must have been of such a character, that it gave the other party to the contract, or some person within the scope of the consideration, some legally enforceable right, which he would not otherwise have enjoyed. If it answers this description, the principle is the same, whether the right was to be enjoyed before the marriage, during its exist- ence, or only after its termination ; or even, in the latter event, only in case the person for whose benefit it was created, should survive till the marriage was terminated. (^) (s) The question whether there had been such a performance of tlie ante- nuptial agreement, as would take it out of the statute also arose in this case; which is cited ajjain, in that connection in the following chapter. (/) See Houghton v. Houghton, 14 Indiana, 505, and another citation of Finch V. Finch, post ^§ 737, 738. CHAPTER TWENTIETH. PECULIAE EFFECT, UPON" THE AGREEMENTS WHICH FALL WITHIN THIS PROVISIOlSr, OF THE EQUITABLE DOCTRINES, WHEREBY RELIEF IS GRANTED TO A PARTY, WHO HAS PERFORMED HIS PART OF A VERBAL AGREEMENT. § 719. In a subsequent part of this work, we shall bestow considerable attention upon the effect, at law and in equity, of partial or complete performance of verbal agreements, falling within the terms of the statute of frauds. In gen- eral, the relief granted by the courts, in such cases, is regulated by the same principles, under whatever clause the question is presented ; but in cases arising upon agree- ments made in consideration of marriage, the application of some of these principles becomes exceptional, and leads to results, directly contrary to those which are attained, in cases arising under the other clauses. For while the statute describes the other verbal promises which it embraces, according to their form or subject matter ; whereby room is left for equity to lay hold of the perform- ance by the party seeking relief, upon the faith of the promise, as a circumstance taking the case without the supposed intent of the legislature ; this clause is so framed that the statute is set in motion, by the very fact, upon which the equity jurisdiction rests. And unless the stat- ute applies to every such case, it applies to none ; for, with respect to questions arising upon the sufficiency of the performance, all the cases are equally meritorious. The consideration is of a character so peculiar, (being, as we have already seen, the highest known to the law, and from its nature rendering a restoration to the status quo impossible), that it always satisfies the conditions affixed to the equitable right to relief. Hence arise sundry per- plexing questions, peculiar to this species of contract. Art. I.] Antenuptial Agreements. 709 ARTICLE I. Whether marriage itself is snoh a performance, as to call into operation the equitable mle. § 720. There is some authority for the proposition, that when a marriage has been contracted upon the faith of a verbal promise, equity will not suffer the statute to be interposed to defeat an action by the promisee for specific performance, (a) But, as we have already remarked, the language of the statute is such, that this proposition is equivalent to denying that courts of equity are subject to its provisions. And the scattered dicta to be found in the books, in support of such a doctrine, cannot prevail in opposition to the express language of the act, and the steady current of decisions, which has long run in the con- trary du-ection. § 721. The ruling of Lord Chancellor Macclesfield, in the earliest case of all, has never been successfully ques- tioned upon principle, or overruled by authority. We (a) Mr. Justice Story,in Jenkins v. Eldridge, 3 Story, 181, speaking of the principle tliat equity would^not relieve in such cases, where there was no actual fraud, said : '• I douht the whole foundation of the doctrine, as not distinguishable from other cases, which courts of equity are accustomed to extract from the grasp of the statute of frauds." But the remark was entirely obiter. There is no expression of such an opinion, in the earlier editions of his Equity Jurisprudence, but we find in the eighth edition (§ 987, a), a comment, added by Judge Redfiold, upon Warden v. Jones, cited post §731, substantially to the same effect. And a similar opinion was expressed, but also obiter, by Chancellor Dargan, in Hatcher v. Robertson, 4 Strobhart's Equity (South Carolina), 182, A. D. 1850, and by Chancellor Wardlaw, in Hair v. Hair, 10 Richardson's Equity (South Carolina), 1G5, A. D. 1858. To the same effect were the remarks of Benning, J., in Durham v. Taylor, 29 Georgia, 166, A. D. 1859; where he argued that, if a marriage is necessary, in order to bring a case within the statute, antenuptial agreements must be excluded from it; because the consideration of such an agreement is a prom- ise to marry; that the marriage is the performance of the promise, which formed the consideration, and not the consideration itself; and that such performance, upon every principle of equity, entitles the other party to relief, in consequence of the impossibility of restoring him to the status quo. Tiiis doctrine is commented upon, ante, §§ 687-689. 710 Antenuptial Agreements. [Cli. xx refer to Lady Montacute v. Maxwell. 1 Peere Williams, 618, decided in the year 1720. There the plaintiff brought ■ a bill against her husband, setting forth that before the marriage, he promised that she should enjoy all her estate to her separate use ; that he had agreed to execute writ ings accordingly, and had instructed counsel to draw them ; but when they were about to be married, the writ- ings not being perfected, he " desired this might not delay the match, in regard to his friends being there, it might shame him ; but engaged that upon his honor she should have the same advantage of the agreement, as if it were in WTiting, drawn in form by counsel, and executed;" whereupon the marriage took place ; and afterwards, being reminded of his promise, he wrote a letter to her, expressing that he was always willing that she should enjoy her own fortune as if she was sole, and that it should be at her command. To this the defendant pleaded the statute, and averred that he never signed any promise or agreement before marriage, that she should enjoy her estate separately. § 722. After argument the Lord Chancellor allowed the plea. He said: "In cases of fraud, equity should relieve, even against the words of the statute ; as if one agreement in writing should be p'roposed and drawn, and another fraudulently and secretly brought in, and executed in lieu of the former ; in this or such like cases of fraud, equity would relieve ; but where there is no fraud, only relying upon the honor, word, or promise of the defend- ant, the statute making these promises void, equity will not interfere ; nor were the instructions given to counsel for preparing the writings material, since after they were drawn and engrossed, the parties might refuse to execute them ; and as to the letter it consists only of general ex- pressions, as 'that the estate should be at the plaintiff's command, or at her service.' Indeed, " continued his Lord- ship, "had it recited or mentioned the former agreement, and promised the performance thereof, it had been ma- terial : but as this case is circumstanced, allow the plea ; Art. I.] Antenuptial Agreements. 711 also tliis plea was in bar of a discovery as to all matters, wliicli, if discovered and admitted, might be barred by the statute, so far may the statute be pleaded in l)ar of such discovery." (&) (b) The plaintiff afterwards amended her bill, further charging that the defendant, in order to induce her to marry him, without a settlement, and to secure the performance of his promise to execute it afterwards, promised to take the sacrament on it, and did take the sacrament accordingly ; and that he wrote a letter after tlie marriage, wherein he promised to make such settlement, and that he was ready to sign the writings according to her de- sire. The defendant answered, that he tool^ the sacrament, only in compli- ance with the custom of his (the Roman) church, to take the sacrament on marriage ; and as to the letter, he did not remember the particulars ; but it he had written any thing concerning his readiness to sign any writings, it related to some proposals he had made of settHng 1,500/. on her, which he soon afterwards did. He then again pleaded the statute. The Lord Chancel- lor thought the case very much altered by the new circumstances ; that at first it stood purely upon the parol promise, upon which there was no color to relieve the plaintiff; but that such a parol promise, was a sufiBcient consider- ation to support a postnuptial settlement, or to establish a postnuptial promise in writing; and upon a consideration of the facts, he thought that there was great evidence of a promise in writing after marriage ; wherefore the plea was ordered to stand for an answer. 1 Strange, 236. The case is also briefly reported in 1 Equity Cases Abridged, 19, and Precedents in Chancery, 526; but it is impossible to determine with cer- tainty whether either report relates to the case made by the original, or by the amended bill. In the former it is intimated, that the defendant pri- vately countermanded the instructions for drawing the settlement, and that the plaintiff was drawn in to many him, " by persuasions and assurances of such settlement." The latter represents Lord Macclesfield's judgment to have been : " Where the parties come to an agreement, but the same is never reduced into writing, nor any proposal made for that purpose, so that they rely wholly upon their parol agreement, that unless this be executed in imrt, neither party can compel the other to a specific performance, for that the statute of frauds is directly in their way ; but if there were any agreement for re- ducing the same into writing, and that is prevented by the fraud and prac- tice of the other party, that this court will in such case give relief; as where instructions are given, and preparations made for the drawing of a marriage settlement, and before the completing of it, the woman is drawn by the assurances and promises of the man to perform it, and after to marry him." Mr. Roberts, it appears to us, strangely misquotes and misunderstands the last sentence of this remark, Roberta on Frauds, 198; followed in Erowne on Frauds, § 444. 712 Antenuptial Agreements. [Cli. xx. § 723. The doctrine that where the aggrieved party has relied upon the promise only, the court can afford no relief, has been re-asserted and sanctioned by numerous subsequent decisions in England and in the United States. It rests, by common consent, upon the express language of the statute, and the impossibility of otherwise giving any practical effect to the clause in question. As Lord Cotten- ham remarked in Lassence v. Tierney^ 1 Macnaghten and Gordon, 671, 572: "A parol contract, followed only by marriage, is not to be carried into effect, marriage being no part performance of the contract. If it were, there would be an end of the statute, which says that a contract in consideration of marriage shall not be binding unless it be in writing ; but if marriage be part performance, every parol contract followed by marriage would be binding, "(c) § 724. And although soon after the passage of the stat- ute it was suggested by Lord North, in two cases arising under another clause of this section, that a distinction was admissible, between a case where the party relied merely upon a promise to do a certain act, and one where it was agreed that a writing should be executed, binding him to do the act,((^) this idea is now abandoned ; and it is con- ceded that in the absence of any trick or fraud, no such distinction can be sustained, under whatever part of the statute the question arises, (e) Where it was agreed that (c) See also Atherley on Marriage Settlements, 90; Reeve's Domestic Relations, 3d edition, 215; Per Sir John Romilly in Warden v. Jones, 23 Beavan, 492 ; Per Lord Thurlow, in Redding v. Wilkeg, 3 Brown's Chan- cery, 400; Per Brinkerhoff, C. J., in Finch v. Finch, 10 Ohio, New Series, 506; Per Lord Thurlow in Dundas v. Dutens, 1 Vesey, 199. {d) Hollis V. Whiteing, 1 Vernon, 151, A. D. 1682 ; Leak v. Morrice, 2 Cases in Chancery, 135, in the same year. (e) Beames's Pleas in Equity, 181, 182 ; Per Lord Thurlow, in Whitchurch V. Bevis, 2 Brown's Chancery, 564, 565 ; Warden v. Jones, 2 De Gex and Jones, 76, cited more fully post, § 731; Wood v. Midgley, 5 De Gex, Mac- naghten and Gordon, 41 ; Spurgeon v. Collier, 1 Eden, 55, post, § 730; Hackney v. Hackney, 8 Humphreys (Tennessee), 452, cited in the next sec- tion; Lassence v. Tierney, 1 Macnaghten and Gordon, 551, post, § 748. Ai't. I.] Antenuptial Agreements. 71 ;s a writing should be executed, but its execution was pre- vented by an accident ; and the pai-ty, knowing that it had not been executed, nevertlieless married, an action cannot be sustained to enforce the parol agreement. (/) As for instance where a parent or other relative promised to give a portion with an intend(^d wife, and directed that the necessary "WTitings should be prepared ; but before they were executed, he died, and the marriage subsequently took place. In such a case, the party is without remedy, even though the agreement contemplated a settlement by him, which he executed after the death of the other party, but before the marriage, {g) % 725. There is an American case, which is almost a counterpart of that which came before Lord Macclesfield ; we refer to Hackney v. Hackney^ 8 Humphreys (Tennes- see), 452, A. D. 1847. There a wife filed a bill against her husband, for the specific performance of an antenuptial promise to settle upon her certain slaves, of which she was the owner at the time of her marriage ; charging that he had no intention of performing the agreement when he made it, and intended a fraud upon her. It appeared that the complainant had urged the defendant, before the mar- riage took place, to execute a settlement of her property upon her ; but he had refused to do so, on the ground "that such a course was in violation of all his preconceived opin- ions, concerning the anticipated relation of husband and (/) Spiirgeon v. Collier, 1 Eden, 55, post, § 730 ; Warden v. Jones, 2 De Gex and Jones, 76, post, § 731. In Wanchford v. Fotherly, Freeman's Cliancery, 201, A! D. 1694, it is said that Lord Somcrs cited the case of "Masquill, etc., where writings were prepared and agreed, but being blotted, were ordered to be writ fair, and were so ; but before they were sealed the party died ; and this court charged the executor with the portion agreed to be paid." But this is probably an incorrect statement of the case of Cookes V. Mascall, post, § 727. {g) Bawdes v. Amhurst, Precedents in Chancery, 402, A. D. 1715; Lady Thynne v. Lord Glengall, 2 House of Lords Cases, 131 ; S. C, 12 Jurist, 805, A. D. 1848. But the case might be different, if the future husband had exe- cuted the se^,tlement before the death of the other party. Hammersley v. De Biel, post, §§ 744-747. 90 714 Antenuptial Agkeements. [Oh. xx. wife ; tliat it was calculated to impair the independence of the husband, and to subject them both to the strictures and animadversions of others." But he also repeatedly- promised her, that she should control her property, un- affected by his marital rights ; and that after the marriage was consummated, he would execute such a settlement. The Supreme Court affirmed a decree of the chancellor, dismissing the bill. Turley, J., delivering the opinion, said that he was satisfied that the defendant never had intention.to fulfil the promise, and had practiced a "gross and inexcusable fraud " upon the complainant ; but it was not a fi-aud which took the case out of the statute. He refused to make any settlement before marriage, and she had relied upon Ms promise to make it after marriage. She therefore knew that there was no valid antenuptial con- tract, and though the court would gladly relieve her from the consequence of her "ridiculous and imprudent confi- dence," it was impossible to do so without impairing the statute. § 726. The distinction suggested in Montacute v. Max- well, that the court will relieve, notwithstanding the statute, whenever there has been any actual fraud, had already been taken in several previous cases ; and with respect to that question, there is nothing peculiar to this class of agreements, except that perhaps the courts are inclined to extend the doctrine somewhat further, where the fraud has resulted in the party' s being drawn into a marriage, than in other cases. § 727. The case of CooTces v. Mascall, 2 Yernon, 200, A. D. 1690, is supposed to have proceeded on this ground. (A) After the terms of a treaty of marriage be- tween Cookes and Mascall's daughter, had been agreed upon, to the effect that Cookes' s father and Mascall would (/i) Atherly on Marriage Settlements, 87 ; Peachey on Marriage Settle- ments, 83 ; Browne on the Statute of Frauds, § 443. Mr. Roberts seems to be unable to account for the decision. Roberts on Frauds, 194. The case is also reported, more raeagerly, in 1 Equity Cases Abridged, 22. Art. I ] Antenuptial Agreements. 71 o each make a settlement of certain property, the two fathers and one Baker, an attorney, had a meeting in order to complete the agreement. Baker, liaving dis- coursed with the two fathers, proceeded to di-aw the agreement for the settlement ; but before it was ready, they disagreed ; and jVIascall swore tliat he refused to proceed any further, assigning his reasons for the refusal. "But," the report adds, " Cookes put up what Baker had wrote into liis pocket, and so they parted, and had no further meeting or treaty ; but old Cookes swore, that after the articles were drawn, they were read over and agreed to ; and that Mascall promised to meet at another time to execute." After this, young Cookes was permit- ted to go to Mascair s house, and two months afterwards married the daughter, Mascall being privy to the mar- riage, setting them forward in the morning, and entertain- ing them upon their return. The action was brought by the younger Cookes and his wife, against the two fathers ; and, the report says, the elder Cookes having offered in his answer to perform the agreement on his part, the court "thought fit to decree" that Mascall should per- form, according to the writing drawn by Baker, (i) § 728. So in Mallett v. Halfpenny^ 1 Equity Cases Abridged, 20, A. D. 1699, (y) the defendant had given to (i) Bui in 2 Vernon, 34, there is a report of the hearing, upon a bill filed two years earlier, which was apparently brought by the husband alone against his father-in-law only. There it is said, that the plaintiff relied upon a letter written to him by the defendant; and that his counsel contended that the agreement prefiared by Baker, was the game in effect as the letter, but drawn more formally; on the other hand, the defendant's counsel insisted that they were essentially different, and that the evidence showed that the parties never came to any definite agreement upon the contents of the letter. The report says, that the "court inclined to dismiss the bill; but at the instance of the plaintiff's counsel, gave him a twelvemonth's time to try it at law, whether there was an agreement so fixt." In the notes to the second edition of Vernon, it is said that these are two reports of the same case ; but whether this is true or not, it is probable that tlie letter influenced the final decision of the controversy. {j) S. C. differently reported, 2 Vernon, 373 ; but in Bawdes v. Amhurst Precedents in Chancery, 402, Lord Cowper stated the case, as in the text, from his own memory. 716 Antenuptial Agheements. [Cli. xx. the plaintiff a writing, promising a portion with his daughter, and afterwards, designing to elude the force thereof, he "ordered his daughter to put on a good humor and get the plaintiff to deliver up that writing, and then to marry him," which she did; and "the plaintiff was relieved by the Master of the Rolls on the point of fraud, which was proved. "(/J:) ARTICLE II. Whether a verbal antenuptial promise will support a postnuptial settlement in accordance therewith, or a postnuptial written agreement to make such a settlement! § 729. It seems to be now generally conceded, in England and in the United States, as a consequence of the rule that marriage alone is not such, a performance, as will entitle the complainant to a specific execution of a verbal agree- ment, made in consideration thereof, that such an agree- ment will not suffice to protect a postnuptial conveyance of property against the attacks of creditors ; and a fortiori that a recital in the conveyance of the existence of such a verbal agreement is immaterial. There are some authori- ties in the English reports to the contrary ; but they must be regarded as having been overruled in that country by more recent well considered cases, (a) In Batter shee v {k) These cases are referred to, and the general principle Avhich they establish is recognized, in 1 Story's Equity Jurisprudence, 8th ed., § 768; Atherly on Marriage Settlements, 86-88; Peachey on Marriage Settlements, 81, 82. Also in Browne on the Statute of Frauds, §§ 441-445 a, where several analogous ..ases are cited, arising upon agreements for the purchase of land. (a) Lord Chancellor Macclesfield, according to the report in 1 Strange, 237, of Montacute v. Maxwell, said that it had been " frequently determined" that an antenuptial verbal promise would support a settlement after marriage. According to the report in 2 Cox's Chancery, 235, of- Dundas v. Dutens. decided in 1790, Lord Thurlow's judgment proceeded upon that very ground. He is represented as having said that "he could not conceive that a settle- ment made after marriage, in pursuance of an agreement before marriage, though only parol, could ever be reckoned a fraudulent settlement," and that " he was therefore clearly of opinion that the settlement" (in the case at bar) " was in itself valid." Accordingly he dismissed with costs a bill ir favor Art. II.] A"NTENUPTIAL AGREEMENTS. 717 Farrincjton, 1 Swanston, 106, A. D. 1818, (&) Sir Thomas Plumer, Master of the Rolls, expressed liis dissatisfaction with those early authorities. The only point decided by him was, that future creditors could not impeach a voluntary settlement; but, in pronouncing judgment, he said "that against all persons claiming under the settlor, the recital is conclusive ; but it would be difficult to main- tain that a recital, in a postnuptial settlement, of ante- nuptial articles, of the existence of which there is no dis- tinct proof, would be binding on creditors. Such a doc- . trine would give to every trader a power of excluding his creditors, by a recital in a deed to which they are not parties." § 730. The same opinion had been previously expressed by Lord Northington, with respect to conveyances of real estate, (although apparently without the knowledge of the Master of the Rolls), in Spurgeon^. Collier, 1 Eden, 55, (c) A. D. 1758. There an absolute conveyance of an estate had been made to the defendant Collier, who executed to the grantor a defeasance of even date, on the payment of cer- tain moneys ; the grantor subsequently conveyed the prop- erty to his son ; but Collier prevailed upon the latter to give up to him the defeasance. The grantor and his son having died, the heirs of the son brought this bill to redeem. The defendants Alston and wife insisted that the estate of creditors, to set aside a postnuptial settlement, reciting that it was made in pursuance of an antenuptial parol agreement. In 1 Vesey, 19G, the same case is reported quite differently ; but there it is also stated that he expressed an opinion to the same effect, although the decision is represented to have been chiefly placed upon another ground. But in Shaw v. Jakeman, 4 East, 201, A. D. 1803, before Mr. Cox's volume was published. Lord Ellen- borough stated that the point liad been decided in Dundas r. Dutens. On the other hand, in Randall v. Morgan, 12 Vesey, 67, A. D. 1805, Sir Wil- liam Grant, Master of the Rolls, classed this remark of Lord Thurlow, with other obiter dicta (see page 74) ; but he found it unnecessary to express any opinion upon the point, as he thought that, in the case before him, a verbal promise before marriage had not been sufficiently proved. {h) S. C, Wilson's Chancery, 88. (c) This volume was not published until 1818. 718 Antenuptial Agreements. [Cli. xx. had been settled several years previously by Collier, upon their marriage ; and consequently that they were pur- chasers for value ; and Alston said in his answer that he had no notice of the defeasance, till two years after the mar- riage. Tlie proof was that Collier had conveyed the prop- erty to them about a month after they were married, by deed reciting the marriage as the consideration ; and they endeavored to show a parol agreement before marriage to settle it, and that the marriage had taken place before actual settlement, because the writings could not be finished in season. Lord IS'orthington decreed a redemption against all the defendants, saying that the parol agreement was not proved ; but that, if it had been proved, the case would not be altered ; that it was admitted that since the statute, although the promise was made, Alston could have no remedy ; that the settlement was therefore voluntary, because it could not be compelled. And he added : "But, if such a parol agreement were to be allowed to give effect to a subsequent settlement, it would be the most dangerous breach of the statute, and a violent blow to credit ; for any man, on the marriage of a relation, might make such prom- ise, of which an execution never could be compelled against the promisor; and the moment his circumstances failed, he would execute a settlement pursuant to his promise, and defraud all his creditors." Although the plaintiff in this case did not seek relief as a creditor, the decision is justly regarded as settling the rule, that all postnuptial conveyances of real estate, in consideration only of an ante nuptial agreement, are voluntary. § 731. And whatever doubt may have remained, whether the same ruling would apply to conveyances and transfers of personalty, has apparently been dispelled by Lord Cran worth's judgment, in Warden v. Jones, 2 De Gex and Jones, 76, A. D. 1857, {d), affirming the decree of the Mas- ter of the Rolls, (Sir John Romilly), as leported in 23 Beavan, 487. (e) There it appeared that on the 16tli day (d) S. C, 27 Law Journal, N. S., Chancery, 190; and 4 Jurist, N. S., 269. (e) Also in 26 Law Journal, N. S., Chancery, 427; and 3 Jurist, N. S., 456. Art. II.] Antenuptial Agreements. 719 of June, 1855, the defendant Barnett, being considerably indebted to the plaintiff and others, married a Miss Jones, who was the registered proprietor of certain railway shares; that on the 6th of July, 1855, a deed of settlement was made, (not reciting any antenuptial agreement), whereby the shares were to be sold, and 5001. of the proceeds set- tled upon Mrs. Barnett and her issue ; and that the same day the shares were sold, and the 5001. invested upon the trusts of the settlement ; Barnett having applied to his own use the residue of the proceeds, after discharging an incuin- brance upon the shares. This bill was filed to set aside the settlement, as fraudulent against creditors, and to reach the 5001. The defences interposed by the wife were, first, that the case was taken out of the statute of frauds by a parol antenuptial promise to settle the property ; sec- ondly, that she had been drawn in to be married without a settlement, by her husband' s fraudulent conduct ; with other defences, which are not material here. The evi- dence tended to show that before the marriage, Barnett had made several promises to her and to her father, that all her property should be settled upon her ; that the father' s consent to the marriage was given only upon con- dition that it should be so settled ; that Barnett induced her to marry him, without the knowledge of her father or her famil}^, upon a promise to make a settlement ; that a few days before they were married, they went to the office of a solicitor, to have a settlement prepared, but he could not get it ready in time for the wedding ; and that Barnett said that the marriage would make no difference, and the settlement would be equally good if made afterwards. § 732. The Master of the Rolls made a decree for the plaintiff ;(/) and an appeal from this decree was dismissed ■ (/) After saying that but for the express words of the statute, equity would sustain the settlement, on the ground that the marriage was a per- formance of the verbal agreement, his Honor examined several of the cases in detail; concluding that Dundas v. Dutens was overruled by later decisions, and expressing the opinion that the cases where a representation was held to be binding, (a question fully examined in article iii of this chapter), pro- 720 Antenuptial Agreements. [Cli. xx. by the Chancellor. His Lordship said that the argument that the settlement conld not be fraudulent, because there was a moral obligation to perform it, was conclusively answered by Lord Northington' s remarks in Spurgeon v. Collier ; and that there was no proof that what was said to the wife, respecting the validity of a postnuptial settle- ment, was said fraudulently. He added that where there had been part performance by something more than a mar- riage, as in Hammer sley v. De Biel,{g) equity would relieve, but not otherwise ; apparently ignoring a distinc- tion taken by Sir John Romilly in the court below, that in the cases where that question arose, the promise was not made between husband and wife. Next he referred to the fact, that here there was no recital in the settlement of an antenuptial agreement ; but he said that if the dis- tinction taken thereupon, by Lord Thurlow, in Dundas v. Dutens, is correct, the whole policy of the statute is de- feated. ' ' It cannot be enough, ' ' said his Lordship, ' ' merely to say in writing, that there was a previous parol agree" ceeded on the ground, not only that there was some distinct act of perform- ance in addition to the marriage, but also that the transaction was between a third person and the husband; and, for the latter reason, they were not applicable where it was between husband and wife. And he summed up his conclusions upon this part of the case as follows: "I therefore hold, that where a man enters into a parol a£?reement with his intended wife, and noth- ing follows but the marriage, the marriage cannot be treated as part per- formance of the parol contract ; and that the carrying into effect the parol contract after the marriage, by a deed, amounts to no more than a voluntary settlement." Then, after saying that the fraud charged upon the husband consisted merely in misstating the law, as to which the wife, having em- ployed a solicitor, "must be held to have known the contrary, or, if not, to have trusted entirely to her husband's honor," as in Montacute v. Maxwell; he referred to the argument, which had been pressed upon him, that if a suit had been instituted by the wife against the husband, and he had not pleaded the statute of frauds, a decree would have been made. He declined to con- sider what would have been the effect of such a decree upon creditors, as the question did not arise, saying that the husband was no doubt bound by the arrangement ; but whether the creditors were boi:nd, was an entirely different question : and. after disposing of the other objections, and express- ing his regret at his inability to relieve the wife, he granted a decree. ig) Post, §§ 744-747. Art. II.] Antenuptial Agreements. 721 ment. It must be proved tliat there was such an agree- ment ; and to let in such proof, is precisely what the statute meant to forbid." These remarks, his lordsliip continued, were made lest it might be thought that this case was decided, merely on the ground that it was distinguishable from Dwidas v. Dutens. "I incline to think," he pro- ceeded, "that even if this settlement had contained a statement, that it was made in pursuance of a previous ante- nuptial parol agreement, I should still have considered it, as I now consider it, void against creditors. "(^) § 733. The same general doctrine, that a verbal ante- nuptial contract will not sustain a postnuptial settlement, as against creditors, was again asserted to be law by Sir John Romilly, in Goldicutt v. Townsend, 28 Beavan, 445, A. D. 1860, which is, we believe, the latest English case upon the point. Tliere his Honor held that a bond for 6,000Z., given after the marriage, by the husband's father, for the benefit of his son, in pursuance of a promise to that effect, made before the marriage, could not be allowed as a claim against his estate, after his decease, to the prejudice of creditors for value ; although it would be good against the surplus, after paying such creditors. But the case is not a very important authority upon this question, as the view, which the court took of the other questions, would have led to the same result, even if the law upon this point had been adjudged otherwise. § 734. The American authorities uphold with entire una- nimity, the general doctrine of these cases ; although in most of the United States, the English rule, as to the right of a creditor to attack a voluntary conveyance, has been restricted by legislative modifications of the statute of the 13th Elizabeth, or a different construction of its provisions. (h) Although the reasoning in this case, upon the points mentioned in the text, appears to be unanswerable ; it is not so clear that the defence, that the wife had an equity to a settlement, independent of the antenuptial parol agreement, was property overruled. 91 723 Antenuptial Agreements. [Ch. xx. In Reade v. Livingston, 3 Johnson' s Clianceiy (New York), 481, A. D. 1818, Chancellor Kent, after a full and able dis- cussion of the question upon principle and authority, held that a settlement after marriage, in pursuance of an ante- nuptial verbal agreement, is not valid against an antecedent creditor of the grantor. In that case there was no recital in the conveyance of the previous agreement, and the evi- dence that it was ever made was very loose and unsatis- factory ; but the Chancellor expressed a decided opinion that if the facts had been otherwise, the decision must have been the same. The doctrine, asserted by him, that a voluntary conveyance is necessarily void as against exist- ing creditors, is no longer law in New York ;(/) but the principle that a conveyance of that character cannot be supported, as against creditors who are entitled to impeach it, by proof of an antenuptial verbal agreement, even though such an agreement may be recited in the convey- ance, has been recognized by numerous American authori- ties, and may now be considered as settled in our juris- prudence, (y) § 735. It would seem to follow, from the course of rea- soning and authority upon the question just discussed, that a postnuptial settlement, made in pursuance of an antenuptial verbal agreement, and without any additional consideration, is also voluntary, as between the parties and their privies. It has been said, however, that a set- (i) Jackson v. Post, 15 Wendell, 588 ; Babcock v. Eckler, 24 New York, 623 ; Dygert v. Remerschnider, 32 New York, 629, ante § 711. (y) Andrews v. Jones, 10 Alabama, 400 ; Izard v. Izard, Bailey's Equity (South Carolina), 228; Borst v. Corey, 16 Barbour (New York), 136; Wood V. Savage, 2 Douglass (Michigan), 316; Satterthwaite v. Emley, 3 Green's Chancery (New Jersey), 489 ; Smith v. Greer, 3 Humphreys (Tennessee), 118 ; Saunders v. Ferrill, 1 Iredell (North Carolina), 97 ; Bayard v. Hoffman, 4 Johnson's Chancery (New York), 450 ; Blow v. Maynard, 2 Leigh (Virginia), 29; Jones v. Henry, 3 Littell (Kentucky), 427; Albert v. Winn, 5 Maryland, 66; Kinnard v. Daniel, 13 B. Monroe (Kentucky), 496; Dygert v. Remer- schnider, 32 New York, 629 ; Davidson v. Graves, Riley's Chancery (South Carolina), 219. Art. II.] Antenuptial Agreements. 723 tiement, made for the benefit of the wife or children of the settlor, may be sustained as founded upon a valuable con- sideration, on the ground that it is the duty of every man thus to provide for his family. (/i) But this doctrine has since been overruled ; and it would seem, upon principle, that such a settlement can derive no additional force from the fact that it was made in pursuance of an antenuptial verbal agreement. There are, however, some dicta to the (k) Lord St. Leonards says upon this question : "A settlement after mar- riage upon a wife or children, without any previous agreement, is upon good although not valuable consideration. It is a performance of a moral obliga- tion. The mere agreement by parol, before marriage, to make such, a set- tlement, does not place the case higher. The settlement is still only a performance of a moral obligation, for the parol pro.Tnise is rendered unavail- able by the statute of frauds. In each case the consideration is a good one, but it is a duty of imperfect obligation on the party to make the settlement. The past consideration of marriage vs^ill not support the settlement, and the previous parol promise is not binding ; therefore the settlement is merely voluntary." Sugden on Powers, eighth edition, p. G49. Lord St. Leonards, while chancellor of Ireland, decided that a written promise by a father to his son-in-law, to secure an annuity to the daughter of the promisor and wife of the promisee, would be specifically enforced, upon a bill filed by the husband and wife ; on the ground that although the consideration was not valuable, it was meritorious, and that equity would interfere in cases where the consideration was of that character. Ellis v. Nimmo, Lloyd and Goold, temp. Sugden, 333, A. D. 1835; where the former authorities are cited and discussed at length. But is said that his successor affirmed the decree upon other grounds. And Lord Chancellor Cottenham, although in deciding Dil- lon V. Coppin, 4 Mylne and Craig, G49, A. D. 1837, where the point arose, he made no express mention of Ellis v. Nimmo, explicitly disapproved of the latter in Jefierys v. Jefiferys, Craig and Phillips, 138, A. D. 1841, and refused to make a decree under similar circumstances. Vice Chancellor Shadwell also disapproved of the doctrine of Ellis v. Nimmo, in Holloway v. Heading- ton, 8 Simons, 324, A. D. 1837. And in Moore v. Crofton, 3 Jones and LaTouche, 438, A. D. 184G, Lord St. Leonards said, that although he thought Ellis V. Nimmo was decided upon sound principles of equity, he was aware that the opinion of the profession was otherwise; and he added (page 443) : " I consider that decision to be overruled by the current of opinion and au- thority, and I have no desire to support it again^!t the general opinion." These observations are quoted substSntially to the same effect, although his Lordship's concession is not made quite so graceful, in S. C, 9 Irish Equity Reports, 347, 348. 724 Antenuptial Agreements. [Ch. xx. contrary, and it has even been said that a recital in the conveyance of such an agreement is conclusive evidence of its existence, as against the settlor and those claiming under him.(Z) In what manner, or for what purpose, the recital is thus conclusive, the cases do not very clearly point out. Perhaps it may be regarded as the written memorandum, which the statute requires ; the sufficiency of which will be the subject of discussion hereafter. § 736. We suppose that the case of ArgeTibrigM v. Campbell, 3 Hening and Munford (Virginia), 144, A. D. 1808, must have proceeded upon the ground that the set- tlor was concluded by such a recital, if indeed the decision can be supported. There the plaintiffs founded their title to relief upon a verbal promise, made by a father to his daughter' s intended husband, to the effect that if he mar- ried the daughter, he would leave her his land by his will. The case is exceedingly voluminous, and the testimony was very conflicting ; but the facts upon which the major- ity of the court proceeded, in determining this question, appear to have been briefly as follows. The father had made his will, before the engagement, whereby he had de- vised his land to this daughter (Rebecca), subject to the payment of 50^. to another daughter (Hannah). After the engagement was formed, he expressed his satisfaction with the intended marriage to the daughter' s suitor, and prom- ised the latter, that if it took place, "he should have the plantation he then lived on, provided he complied with the terms of the will ; and then repeated the contents thereof." The marriage took place ; and afterwards, the father mani- festing a design to alter his will, he was, after considerable solicitation, persuaded to sign an instrument in writing, in the form of a penal bond ; the condition of which recited the marriage ; that he had agreed to give the land to his son-in-law, and his heirs forever, after his own decease ; (7) Battersbee v. Farrington, 1 Swaiston, 106, ante §729; Satterthwaite V. Emley, 3 Green's Chancery (New Jersey), 489 ; Blow v. Maynard, 2 Leigh (Virginia), 29. Art.. II.] Antenuptial Agreements. 725 and the better to comply with that promise, had made his will, in which he had bequeathed the land to his son-in- law, and his heirs ; and had promised that it should be his last will, as far as it related to said lands ; whereupon it was provided that the obligation should be void, in case the father should not alter that will, with respect to the land in question, or convey the land to any person before his decease, (w) Afterwards the defendant Argenbright, with full notice of the facts, purchased the land from the father. A bill was thereupon filed by the son-in-law and his wife, against Argenbright and the wife' s father ; and the latter having died, pending the action, a decree was made in the court below, which was modified .by the Court of Appeals, so as to requii'e the defendant Argenbright to convey the land to the wife, and account for the rents and profits since the father' s death ; and to requii-e the husband to pay Hannah 50^., with interest from the same time ; and in that form it was affirmed by a majority vote. The prevailing opinions substantially concurred, in holding that the pre- vious verbal promise was a sufficient consideration, to up- hold the writing as an agreement ; that the latter was intended to conform to the antenuptial promise, the variance between the two resulting from ignorance of the law or of the contents of the will, by the draftsman ; and that it might be corrected by the \vill, to which it referred, as "forming the standard by both parties." § 737. But a voluntary postnuptial settlement, like every other executed agreement, is valid between the par- ties and those claiming under them as volunteers. This principle was applied in a remarkable manner, in the case of HougMon v. IlougJiton, 14 Indiana, 605, A. D. 1860. There an action was brought by a widow, against the (m) Owing to the manner in which the instrument was executed, there was much doubt whether it was in legal effect a bond; one of the judges composing the majority said that the question was immaterial, and the com- plainant* were entitled to relief, whether it should be treated as a bond or an agreement; the other judge apparently, though not explicitly, concurred with him on this question. • 72^ Antenuptial Ageeements. [Ch. xx. administrator of lier husband, to recover a sum of money allowed to the widow, by the statute of descents, etc., before any distribution. The defence was that the plaintiff and the intestate made a verbal antenuptial agreement, to the effect that the intestate would pay her, during coverture, one third of the net profits of his land to her separate use, and claim no right to the control of her property, during coverture or afterwards ; but it should all go to her chil- dren by a former marriage, if not otherwise disposed of by her ; and she relinquished all claim to any portion of his property, after his death, and agreed that it should all go to his cbildren by a former marriage, if not otherwise disposed of by him. The husband performed as much of this agreement as he was to perform during the coverture ; but the court below held that it was invalid, and rendered judgment for the plaintiff ; which was reversed on appeal. The reason assigned by the appellate court for its decision, was that inasmuch as the property, to which the plaintiff relinquished her right, was in the husband' s possession, and after his death in his administrator's possession, no act was required to be done by her, in further execution of the agreement on her part ; so that it was fully executed by both parties. Several cases were then cited, where verbal postnuptial agreements have been sustained, and the opinion proceeded: "The foregoing cases show that the contract might have been valid, even if it had been made during coverture. It was affirmed and executed during that relation." § 738. This case appears to be directly contradicted by Mnch V. Mnch, 10 Ohio, New Series, 501, A. D. 1860, which has been already cited in connection with another point made by the defendants in support of their answer, (n) There the defendants also insisted that the agreement was taken out of the statute, because it had been partly per- formed. The acts of performance relied upon after the marriage, were the actual use and enjoyment by the wife (n) See ante, § 717, where the facts are fully stated. Art. II.] Antenuptial Agreements. 727 of her property with the husband's assent, and particu- larly that she was permitted by him to give her personal property and the rents of her lands to her cliildren by a former marriage. Upon this point, BrinkerhofF, C. J., said, that at the time of the marriage, the agreement was binding upon neither party ; and that when the marriage was completed, tiie husband became the owner of her per- sonal property, and of the proceeds of her real estate. Consequently any gifts which he may have permitted her to make were his gifts ; that the parties could not occupy antagonistic relations with respect to the subject of the agreement, because no legal obligations rested upon him ; and what he permitted her to do was a matter of mere grace and favor. "Had he seen proper," continued the learned Chief Justice, "to make these gifts to her children without her consent and against her remonstrances, would they 'have constituted a part performance? This, we sup- pose, would not be claimed ; and yet in legal effect, they would have been the same as they were when made by her with his consent. In either case they were his gifts." The court also repudiated the distinction, taken in Crane v. Gough^{o) between an action and a defence, founded upon an agreement within the statute. § 739. There is a very close similarity between this ques- tion, as it was presented in these two cases, and that arising in some of the cases, where the allegation was tliat there was a distinct consideration for the agreement, in addition to the marriage \{p) and it is even more difficult in this de- scription of cases, than in the other, to determine what is the true rule. In each the difficulty springs out of the equivocal character of the acts of performance relied upon. But here the question relates to the effect of such acts upon a verbal agreement plainly within the terms of the statute ; and the doubt grows out of the fact that the con- duct of married persons towards each other, in matters (o) Ante, § 712. (p) See chapter xix, article iU, 728 Antenuptial Agreements. [Ch. xx. of property, is not to be tested by the rules, which determine the effect of similar acts, between persons who occupy no such relations to each other. The facts proved in Houghton v. Houghton and in Finch v. Finch would be sufficient to establish the agreement and its subsequent performance, if they had transpired between strangers ; but passing between husband and wife, they are quite con- sistent with the theory, that the husband merely adopted a particular method of supplying the wife with money for her personal use. Still it is but reasonable to conclude, that a long continued and uniform course of conduct, on the part of the husband, either by acquiescence or by affirmative action, inconsistent with his marital rights, is an act of performance of some agreement on his part. But the extent and character of the agreement, which such acts indicate, and their effect upon the question whether it was antenuptial or postnuptial, must perhaps be left to depend upon the circumstances of each particular case. § 740. But it is evident that if the acts of performance, upon whioh the party relies, are of such a character, as to indicate clearly that their continuance was dependent entirely upon the pleasure of the person performing them, they cannot be made available as evidence of any definite and binding agreement. The most familiar and obvious illustration of this proposition, is where one party relies upon a will made by the other. There are some nice dis- tinctions in the cases, as to the effect of a contract to be per- formed by making or not making a will, or not altering a will already made ; but it is sufficient for our present pur- pose to say, that while a contract to leave a particular sum of money, or certain specified property, by will, may be specifically enforced \{q) it is well settled that the execution {q) Hammersley v. De Biel, 12 Clark & Finnelly, 45, post § 744 ; Loffus v. Maw, 3 Griffard, 592. A contract to " recognize " a son in a will, " in common with the rest of my family," is too vague to be enforced. Kay v. Crook, 3 Smalc & Giffard, 407 ; 3 Jurist, N. S., 104. So where a testator had already made a will, bequeathing 12,500Z. to his daughter ; and in her marriage pro- Art. II.] Antenuptial Agreements. 729 of a will cannot be relied upon as evidence that such a con- tract was made between the parties, or as an act of perform- ance wliicli will take a verbal antenuptial agreement to that effect out of the statute. This was one of the points deter- mined in Caton v. Caton^ Law Reports, 1 Chanceiy Appeals, 137, a summary of which will be given in the fol- lowing article, (r) § 741. A similar rule was laid down, in Potts v. Merrit^ 14 B. Monroe (Kentucky), 406, A. D. 1854. This was a bill brought by a wife against her husband, and a per son to whom he had either sold or given certain slaves, the property of the wife before marriage. The com- plainant founded her title to relief upon a verbal antenup- tial agreement between her and her husband, by which she was to retain the title to her slaves, and have the control and power of disposition of them, notwithstanding the mar- riage. It appeared that after the marriage, the husband executed an instrument in writing, "purporting to be a conditional ratification, or rather adoption of a will, which had been previously signed and acknowledged by the com- plainant," bequeathing the slaves to her brother ; but that posals he stated that he would give her 2,000Z. as a portion, and in addition, that "she is and shall be noticed in my will, but to what further amount I cannot precisely say," it was held that there was no binding contract beyond the 2,000Z. Moorhouse v. Coivin, 18 Beavan, 341; 21 Law Journal, N. S,, Chancery, 177 ; S. C. on Appeal, 21 Law Journal, N. S., Chancery, 782. But a marriage contract to give, by will or otherwise, to a niece, "so much in money or in valuable efifects," as the party should, by his will, give or bequeath to his next of kin, or any other person, will be specifically enforced, although it is in the form of a bond with a penalty. Logan v. Wienholt, 1 Clark and Finnelly, 611. And a contract to leave a daughter "her share of whatever property I may die possessed of," will entitle her to a decree for an equal share of the testator's personal property, after deducting the widow's one third, and debts and expenses. Laver v. Fielder, 32 Beavan, 1 ; 32 Law Journal, N. S., Ch., 365; 9 Jurist, N. S., 190; 11 Weekly Reporter, 245; 7 Law Times, N. S., 602. See also Barkworth v. Young, 26 Law Journal, N. S., Chancery, 153; 4 Drewry, 1 ; and Loxley v. Heath, 27 Beavan, 523 ; S. C. on appeal, 1 De Gex, Fisher and Jones, 489. (r) See §§ 756-758. 92 730 Antenuptial Agreements. [Ch. xx. afterwards lie had transferred them to the defendant Merrit for a merely nominal consideration, and had executed an express revocation of the former instrument. The Court of Appeals, affirming a decree of the Circuit Court, held that the antenuptial verbal agreement was not saved from the operation of the statute, by the subsequent instrument executed by the husband; even if the latter could be regarded as an admission that the bequest was made in pursuance of the agreement ; and that the instrument was in fact merely a will, revocable at the pleasure of the husband. AETICLE III. Whether, in the ahsence of fraud, eqiiity takes any distinction, for the purpose of enforcing specific performance, hetween an antenuptial verbal agreement, and an antenuptial verbal representation of an intention. § 742. We should leave this discussion in a very imper feet and unsatisfactory state, if we were to close it without bestowing some attention upon a question, which seems to have attained all its prominence in the English equity courts, within the last twenty five years ; and yet has already become, to use the language of an eminent judge, "one of the most difficult and important, and the most perplexed by authority, of any of the heads of equity, {a) We approach it with much hesitation, not only in conse- quence of its perplexing character, and the conflict of opinion between the greatest equity lawyers, to which it has given rise ; but also because the cases where it has been discussed, are so voluminous, and the distinctions between them are so nice, as to render the task of conden- sation within reasonable limits, without running into obscurity, exceedingly delicate and arduous. § 743. The doctrine to be examined appears to proceed from the conflict, which has already been mentioned, be- (a) Sir John Stuart in Williams v. Williams, 37 Law Journal, N. S., Chan- cery, 854, post §§ 759, 760. Art. III.] Antenuptial Agkeements. 731 tween the express terms of this provision of the statrate of frauds, and the familiar equitable rulfes, whereby relief is granted, under certain circumstances, to a person who has performed a verbal agreement within the statute. The courts have been reluctantly compelled to hold, that although a marriage, contracted upon the faith of a verbal promise, amply fulfils every condition upon which depends the interference of equity in other cases, yet the positive lan- guage of this provision requires them to deny any relief, wherever it applies ; notwithstanding the circumstances of extreme hardship, which generally j^resent themselves when the question arises. But it is quite clear, both upon principle and authority, that the statute is confined to agreements^ and that it has no application to rejyresenta- tions.ip) And thereupon this question arises: whether, when one party in addition to promising, or in place of promising to do some act for the benefit of another, in consideration of the latter' s marriage, represents that it is his intention to do the act, in case the marriage shall be contracted, the latter, having contracted the marriage upon the faith thereof, is entitled to maintain an equitable action, for the purpose of enforcing the fulfilment of the representation. § 744. The perplexities, which now surround this sub- ject, may be traced to the remarks of certain judges, rather than to the efiect of the determination, in the lead- ing case of Hammer sley v. De Biel, decided by the House of Lords in the year 1845, and reported in 12 Clark and Finnelly, 45 ; also known as De Bell v. Thomson, under which title the decision of the Master of the Rolls is reported in 3 Beavan, 469, A. D. 1841. This was an action brought by an infant against the executors of John Poulett Thomson, his grandfather, to obtain payment out of the assets of 10,000Z., to which he insisted he was entitled, under the' provisions of a njemorandum entered into between his father, (the Baron de Biel,) and two of the sons of Mr. (6) See ante, §§ 683-686. 732 Antenuptial Agreements. [Ch. xx. Thomson, acting in the latter' s name, in his behalf, and by his authority, in contemplation of the marriage of the Baron with Mr. Thomson' s daughter. Several points were taken in the cause, but it is believed that the following is a statement of all that is material upon this ques- tion. The memorandum, (which was not subscribed by any one,) besides mentioning certain provisions which Mr. Thomson proposed to make immediately for his daughter and the issue of the marriage, recited that the Baron de Biel was to obtain the means of settling on her a jointure of 500Z. per annum during her life, in case she should sur- vive him, secured upon his estate in Mecklenburg ; and that Mr. Thomson "intends to leave a further sum of 10,000^. in his will to Miss Thomson, to be settled on her and her children, the disposition of which, supposing she has no children, will be prescribed by the will of her father." Baron de Biel accordingly secured to JMiss Thomson a yearly jointure of 6001. out of his estate, his brother joining in the instrument, as required by the local law ; and shortly afterwards the marriage took place, without any further settlement being made ; but after the marriage, a settlement was prepared and executed, whereby Mr. Thomson made the provisions mentioned in the mem- morandum, except the one relating to the 10,000^., which he was to leave by his will ; and that provision was not mentioned in the settlement. The Baroness died during the year following the marriage, leaving the plaintiff her only child ; and about eleven years afterwards, Mr. Thom- son died ; and his will made no provision for the 10,000?. § 745. Three defences were interposed by the executors ; one of which was that the memorandum was a mere propo- sition, not an agreement, and another that it was void by the statute of frauds, because it was not signed. Upon the lat- ter point the Master of the Rolls (Lord Langdale,) said that inasmuch as it appeared that after the marriage Mr. Thom- son wrote a letter to Baron de Biel, referring to the memo- randum, as stating the terms of the engagement made by him before the marriage, this letter was either a sufficient Art. III.] Antenuptial Agreements. 733 note of tlie agreement signed by the party to be charged, or a sufficient recognition of the use of his name in the memorandum; "and, so thinking," continued his Lord- ship, "it does not appear to me to be necessary to deter- mine whether the use of the name in the memorandum, be, of itself, a sufficient signature of Mr. Thomson by his agents ; or whether the provision of the jointure by Baron de Beil takes the case out of the statute ; or whether, inde- pendently of the statute, this court, for the prevention of fraud, would compel the defendants to realize the expec- tations on the faith of which the marriage was contracted." His Lordship then said that by the execution of the settle- ment and the solemnization of the marriage by the Baron de Beil, the proposals and intentions, which were previ- ously subject to revision, became an agreement which Mr. Thomson was bound to perform ; and he accordingly made a decree for the payment of the 10,000/^. and interest. § 746. An appeal having been taken from this decision to the Lord Chancellor, (Lord Cottenham,) it was affirmed, and the appeal dismissed. Lord Cottenham' s opinion is given in a note to 12 Clark and Finnelly, 61. Upon the question whether there was any binding agreement between the plaintiff's father and Mr. Thomson, he said tliat if it was necessary to find a contract, such as usually accom- panies transactions of importance, "there may not be found in the memorandum, or in the other evidence in the cause, proof of any such contract;" but that no formal contract was required. "A representation," he contin- ued, "made by one party for the purpose of influencing the conduct of the other party, and acted on by him, will, in general, be sufficient to entitle him to the assistance of this court for the purpose of realizing such representation." And after citing several authorities, his Lordship conclud- ed this branch of the case, by saying that he was of opinion "that the expressions used in tlie proposed arrangement, acted on as they were, became obligatory on the party on whose behalf the proposition was made." Upon the ques- tion whether the defence could be sustained under tha 734 Antenuptial Ageeements. [Ch. xx. statute of frauds, he thought that the writing of Mr. Thom- son' s name several times in the body of the memorandum was a sufficient signing : but that independently of this, the letter was sufficient for the reason given by the Master of the Rolls. And his Lordship also added : ' ' This case does not rest solely upon that ground ; for though it has been decided that a marriage is not per se a part performance of a parol agreement, so as to take the case out of the statute, there was, in the dealing between these parties, an important act by the intended husband in execution of the proposed arrangement. He was informed by it that the arrangement proposed would be sufficient for him to act upon, and that he should forward, as early as possible, a joint engagement for himself and his brother, settling 5001. a year on the intended wife, which was done." § 747. An appeal from Lord Cottenham' s decree was taken to the House of Lords, where it was affirmed ; but the question under the statute of frauds did not arise, the counsel for the appellant having withdrawn the point, in consequence of his " seeing a strong inclination of opinion against him." The speeches delivered in the House of Lords consequently turned chiefly upon the question, whether the memorandum was binding upon Mr. Thom- son, upon principles independent of the statute ; and of these, the determination of the court, respecting the nature of the liability which it created, is alone important here. The then Chancellor, (Lord Lyndhurst,) after arguing that the provision in question was not to be optional with Mr. Thomson, stated the rule to be "thart: if a party holds out inducements to another, to celebrate a marriage, and holds them out deliberately and plainly, and the other party consents, and celebrates the marriage in consequence of them; if he had good reason to expect that it was intended that he should have the benefit of the proposal which was so held out, a court of equity will take care that he is not disappointed, and will give effect to the proposal." Lord Brougham reviewed the evidence at some length, and con- cluded that the memorandum was in truth an agreement, Art. III.] ■ Antenuptial Agreements. 735 and one of a very formal nature ; but he said that he agreed with and adopted all the arguments of the judges below. Lord Campbell expressed his concurrence with the opin- ions of Lord Lyndliurst and Lord Brougham ; but ai'ter saying that the objection arising under the statute of frauds was clearly untenable, in consequence of the letter of Mr. Tliomson, he added that he fully agreed with Lord Cotten- ham in his doctrine, (quoting the latter' s language,) as to the effect in equity of a representation made to iniluence another party, and acted on by him ; and that unless that was the rule the most monstrous frauds would be com- mitted. "Some fraudulent father," said his Lordship, "might hold out to the suitor of his daughter, that he meant to make a settlement upon his daughter and her issue. The marriage .would take place in the belief that that settlement would be made ; and then, after the mar- riage, he might say, ' This was only an intimation of my intention at the time ; I have changed my mind, and I will not give her a shilling.' That would be most unjust ; and to prevent such frauds, this doctrine has been laid down, and I think has been most properly laid down, and ought to be acted upon." But his Lordship also said that here was more than a representation, for the memorandum was a formal instrument ; that the Baron de Biel had done all that which they expected him to do, that is, to settle the 5001. a year upon his wife, if she survived him ; and that a very useful and necessary rule would be infringed upon, unless the House should "hold in this case that the contract was binding, "(c) (c) It will be noticed that the Master of the Rolls rested his judgment in this cause, entirely upon the idea that there was a contract between the Baron and his father-in-law; and that if the memorandum was in any respect deficient in satisfying the requirements of the statute of frauds, all such deficiencies were supplied by the subsequent letter. Regarding it as a contract, it would seem clear that the marriage alone would have sufficed to entitle the plaintiff to relief, had there been no mention in the memoran- dum of the jointure ; and the effect of the settlement of the 500/. per annum was (not to control the application of the statute, but) merely to fulfil a condition precedent, in addition to the marriage, created by the peculiar 736 Antenuptial Agreements. [Ch. xx. § 748. But if the principles laid down in Ham- nersley v. De Biel tend to weaken the authority of the cases, holding that marriage alone will not entitle a party to the specific performance of a promise, the result is not attained with- out repeated disclaimers of such an effect, by the judges who determined it, and by other eminent equity judges. In Lassence v. Tierney, 1 Macnaghten and Gordon, 551, A. D. 1849, (^) Lord Cottenham again disavowed any intention to infringe upon the rule previously established. This case presented, with other questions, one arising out of an antenuptial parol agreement between husband and wife, to the effect that the husband should invest 3,000Z., part of the wife' s property, in the purchase of a govern- ment annuity for his life, and for his own benefit ; that she provisions of the instrument. Had the two appellate courts simply con- curred in the views of Lord Langdale upon this question, the case would have been an authority under the statute of frauds, only with respect to the sufficiency of the writing; but Lord Cottenham distinctly intimated that here was no contract; and he based his judgment upon the effect in equity of a representation, treating a representation of an intention to do an act, as having the same effect in equity as a representation of an existing fact, designed to influence the conduct of another, and upon the faith of which the latter has acted. If such was indeed the chai'Kcter of the transaction, and if his Lordship correctly stated the equitable rule applicable to such a representation, it appears to be quite unimportant whether there was or was not any writing ; for, as we have already often remarked, the statute speaks only of an agreement, not of a representation. And the statute of frauds being out of the way, the same consequence must follow from Lord Cotten- ham's ruling upon the effect of a representation, which follows from that of the Master of the Rolls, upon the effect of a contract; namely, that unless the representation was by its terms conditional upon the performance of some act, in addition to the marriage, the completion of the marriage would, of itself, entitle the person to whom it was made, to call upon the court to decree a specific performance. The same observations apply to the reasoning of Lord Lyndhurst; to Lord Brougham's general approval of Lord Cotten- ham's ruling ; and, particularly, to that part of Lord Campbell's argument, which treats the memorandum as a representation. Indeed, it would appear from the latter's illustration that he fully accepted the consequences of his reasoning; although Lord Cottenham and Lord Lyndhurst took great pains to disclaim them. id) S. C, 2 Hall and Twells, 115; 14 Jurist, 182. Art. III.] Antenuptial Ageeements. 737 should be entitled to hold and enjoy all the residue of her property to her separate use ; and that, if necessary, a proper settlement should be executed by tliem respect- ively. The wife had filed a bill setting forth this agree- ment, and that it had been executed by investing the 3,000Z., and praying that her rights might be declared ; and afterwards an indenture had been made between her hus- band, herself, and a trustee, purporting to be a settlement in accordance with the terms of that agreement ; but it had never been acknowledged by the wife as required by the statute of 3d and 4th William IV. The wife having died, the husband filed this, bill of revivor and supplement against her heir at law, praying that the antenuptial verbal agree- ment might be enforced, and for that purpose, that the defective acknowledgment of the deed of settlement might be supplied ; and that her will in his favor, executed in pursuance of a power given to her in the settlement, might be established, as a valid execution of the power. § 749. The Vice Chancellor dismissed the bill, and upon appeal his decision was afiirmed by the Chancellor. His Lordship thought that the evidence of the agreement was not sufficient to charge the heir; but upon the merits no case had been made against him. The alleged contract was entirely for the benefit of the wife ; nothing had been given up by the husband; he was to take the 3,000^. which he did take, and contracted that the wife should enjoy the rest of her property. After some further com- ments upon the facts, his Lordship proceeded to say that if the wife had been living nothing could have been asserted against her, because "there is nothing against her but a parol contract before marriage, and nothing but marriage following, which will not support the contract ; and such a contract cannot be carried into effect under the statute of frauds." And he added that he took care in Hammer sley V. De Biel to guard, against any conclusion to the contrary, by saying that it was distinguishable, because in that case, the husband having contracted, before marriage, to dc something, and having done it, there was part performance 93 738 Antenuptial Agreements. [Ch. xx. of the contract, relating to property to which he was enti- tled ; and the question turned upon whether the persons who assumed to contract for the wife' s father, were author- ized so to do. His Lordship also mentioned two other reasons for dismissing the bill in the case before him ; and he said that either of the three was sufficient to dispose of it, as between the devisee and the heir. § 760. Another eminent equity judge expressed the same opinion, in Surcome v. Pinniger, 22 Law Journal, JSTew Series, Chancery, 419, A. D. 1853. (e) There the question was, whether Mr. Chartres, the son-in-law of Mr. Aylwyn, an intestate, or the administrator of Mr. Aylwyn, was entitled to certain moneys which had been paid into court, as the price of certain leasehold property, which a corpo- ration had taken under an act of Parliament. The mate- rial facts were, that after Mr. Chartres had proposed marriage to the daughter of Mr. Aylwyn, the latter informed him that it was his intention to give the property in ques- tion, of which he held the leasehold title, to them on their marriage ; and, after their marriage, he gave up possession to Mr. Chartres, delivered to him the lease and other docu- ments, and directed the tenants to pay their rents to him ; and Mr. Chartres went to reside in the house, expended a considerable sum of money in repairs, and received the rents for such parts of it as he did not occupy. The Vice Chancellor directed the money to be paid to Mr. Chartres ; and this order was affirmed by the Lords Justices. Lord Justice Knight Bruce, after reciting the facts, merely added that it had been often decided, that under such circum- stances, a parol agreement will be taken out of the statute of frauds ; but Lord Justice Turner referred to Hammers- ley V. De Biel and Lassence v. Tierney, saying that there was no conflict between them, and here there had been part performance of the parol agreement, by delivery of posses- sion to Mr. Chartres, and a considerable expenditure by him upon the property : it was not therefore a case where (e) S. C, 3 De Gex, Macnaghten and Gordon, 571 ; and 17 Jurist, 196, Art. III.] Antenuptial Agreements. 739 the parol contract had been merely followed up by mar- riage ; and this was the ground upon which the two cases mentioned were distinguishable from each other. § 751. But, in Maunselly. WJiite, 4 House of Lords Cases, 1039, A. D. 1854, (/) their Lordships, apparently pressed by the conclusions, which, notwithstanding the disclaimers already mentioned, counsel drew from some of the reason- ing in Hammer sley v. De Biel, distinctly asserted that, in that case, the decision proceeded upon the ground that the memorandum was a contract. Here it was held, affirming the decree of Sir Edward Sugden, as Chancellor of Ireland, that a letter to an intended husband, written by his uncle, in answer to an application of the guardians of the intended wife for a settlement ; in which the micle stated that he had made his will, leaving to the nephew certain estates therein mentioned ; was not, under all the circumstances, a repre- sentation, or an agreement, which entitled the nephew, after the uncle' s death, to maintain a suit in equity, to have the estates conveyed to the uses of the marriage. It appeared that the guardians did not consider the letter as satisfac- tory ; and that in answer to a communication from them to that effect, the uncle had written again to the nephew, in such terms as to imply quite clearly, that although he had no expectation of altering his will, yet he intended to reserve the power of disposition of the property ; and the marriage took place after the receipt of the second letter. The decision might well have been placed upon the mean- ing of the letters only ; but the doctrine of Hammer sley v. De Biel was discussed at considerable length in the two speeches delivered, with the result just mentioned. It is however quite difficult to reconcile what fell from Lord St. Leonards, in this case, with some of his remarks in the case immediately succeeding \i.{g) (/) S. C, in the court below, 7 Irish Equity Reports, 413 ; and 1 Jones and La Touche, 539, A. D. 1844. {(j) Lord Cranworth, who had succeeded Lord Cottenham as chancellor after discussing the facts, for the purpose of showing th^ the uncle never intended to fetter himself absolutely, and that the other parties had no right 740 Antenuptial Agreements. [Ch. xx. § 752. This was Jorden v. Money ^ 5 House of Lords Cases, 185, A. D. 1854. (7i) The bill was filed by WiUiam to assume otherwise, said: "In Hammersley v. De Biel, it was successfully insisted tliat there was a contract to leave a sum of money ; " but here the counsel for the appellant had treated the rule of law affecting representations, as being distinct from the rule of law which affects contracts, although he said that a representation acted upon was binding as a contract. But his Lordship said that, if the party had made no contract, there was nothing that he was bound to fulfil. If the representation was of an existing fact, equity will bind him, treating it as a contract, when it was made with a A'iew to induce others to act upon it, and they had done so. " There is,'' said his lord- ship, " no middle term, no tertium quid, between a representation so made, to be effective for such a purpose, and being effective for it, and a cori tract; they are identical. That which leads to the representation being made and acted on determines its nature, gives it the character of a contract, or leaves it a mere representation." And his Lordship added that he did not regard the word " representation " as very happily employed in the speech of Lord'Cot- tenham. delivered in Hammersley v. De Biel ; that the only distinction which he understood was that some words, which do not amount to a con- tract in one transaction, may possibly be held to do so in another; and that in Hammersley v. De Biel the circumstances gave the words the character of a contract. Lord St. Leonards, whose judgment was then under review, spoke substantially to the same effect. He said that "a representation, which is made as an inducement for another to act upon it, and is followed by his acting upon it, will, especially in such a case as marriage, be deemed to be a contract;" and that in Hammersley v. De Biel there was not merely a representation of what was probable to occur; but on one part a proposal, accompanied with a condition required of the other party; and that the proposal was accepted, the condition complied with, and there were therefore all the requisites of a binding contract. "If," con- tinued his Lordship, "a man makes a proposal in that manner, and it is accepted, and is followed by a marriage, though the affair may have begun by being a proposal, it has ended by becoming a contract that was binding on all the parties concerned." But in this case, his Lordship said that there was a simple representation by the uncle ; and no doubt it was a true state- ment of what he had done and what he intended. Doubtless also the par- ties acted upon it, but not as an engagement, which could not be revoked ; only as a " statement made by a relation, whose affection, if it remained what it then was, would give the nephew the property, in accordance with that statement." His Lordship then said that upon the theory of the appellant, the uncle biecame a mere tenant for life, without the powers of a tenant for life over his own estate; and that all the circumstances showed that he never (h) S. C, 23 Law Journal, N. S., Chancery, 865. Art. III.] Antenuptial Agreements. 741 Money against Mr. and Mrs. Jorden and other parties, praying that a debt of 1,200^., secured by a bond and a warrant of attorney given by the plaintiff to Charles Mar- nell, upon which a judgment had been entered up, might be declared to have been abandoned, and satisfaction entered up, etc. The material facts upon which this ques- tion arose were as follows. (?') Mrs. Jorden, who married quite late in life, was a" sister of Charles Marnell, and she and her brothers were from youth on very intimate terms with the plaintiflf's father, George Money, from whom they had received many substantial benefits. This intimacy after- ward extended itself to the plaintiflf, who was much Miss Marnell' s junior, and whom she treated with great affection. In 1841, the plaintiff, then a very young man, became in- debted to Charles Marnell in this sum of 1,200Z., under cir- cumstances quite discreditable to the latter ; and in 1843, Charles MarneU died, having by his will left all his prop- erty to Mrs. Jorden, then Louisa Marnell. She was ac- quainted with all the circumstances under which the bond and warrant of attorney were given, and had frequently ex- pressed her strong disapprobation of her brother s conduct in that matter ; and after the latter' s death, she often de- clared to the plaintiff and others, that she had abandoned and never intended to enforce the debt against the plaintiff. This statement was repeated by her in various forms, and always in very emphatic language. § 753. In 1844, the plaintiff became engaged to be mar- ried to Miss Poore ; and he informed her and her mother, Lady Poore, of the circumstances under which he con- tracted the debt of 1,200Z., and of Miss Marnell' s declara- tions with respect thereto. It was considered necessary by both families, with a view to the solemnization of the mar- intended to place himself in that position, nor did the parties understand that he had done so. Lord St. Leonards had previously criticised the decision in Hammersley v. De Biel, much to the same effect, in his treatise on the Law of Property, etc., pages 53 to 56. (i) Another question which arose in this cause has been stated, ante, § 704. 742 Antenuptial Agkeements. [Ch. xx. riage, and the execution of a proper settlement thereon, that the plaintiff should be secured against any future demand for the payment of the 1,200?.; and, with that view, various conversations took place between Miss Mar- nell and the father and mother of the plaintiff. In these conversations, the intended marriage was referred to, and she reiterated her assurances, in various forms, that she would never use the papers against the plaintiff, and he should never be called upon to pay any thing upon the debt. In answer to applications to surrender the bond and warrant of attorney, she said that she must be trusted ; that she wanted to keep the papers to use them against one Hooper, (who was also liable for the 1,200Z., but probably not jointly) ; that she had made her will, leaving every thing to the plaintiff ; and when she died, he might burn them. Upon the faith of these statements, communicated to Lady Poore, the latter settled upon the plaintiff the first life interest in her daughter' s property, and the marriage took place in August 1845. Two or three years afterwards Miss Marnell married Mr. Jorden ; and in 1849 the plaintiff was called upon to pay the debt ; whereupon this bill was filed.(y) § 754. The Master of the Rolls, (Sir John Romilly, ) granted a perpetual injunction. (^) From this decree the defend- ants appealed; and the Lords Justices being divided in (/) There was a preliminary motion in the cause, from the report of which some additional facts may be collected. 20 Law Journal, N. S., Chancery, 174; 13 Beavan, 229. (k) Money v. Jorden, 21 Law Journal, N. S., Chancery, 531 ; 15 Beavan, 372, A. D. 1852. Sir John Romilly placed his decision in the Rolls Court, upon the ground that Miss Marnell's declarations that she would never enforce the bond, were made. for the purpose of being communicated to the plaintiff, and to Lady Poore, and the other friends of Miss Poore, previously to the marriage; that they were so communicated; and that the marriage took place and the settlement was made upon the faith thereof This, he thought, was sufficient to entitle the plaintiff to relief, upon the principles whereby persons are required in equity to make good their representations; and he therefore forobore from expressing any opinion as to the other points in the case. Art. III.] Antenuptial Agkeements. 743 opinion, (Sir J. L. Knight Bruce for affirmance, and Lord Cranworth for reversal), the decree was affirmed, (l) An appeal was again taken by the defendants to tlie House of Lords, wliere Lord Cranworth, who had been made chan- cellor since the decision in the court below, united with Lord Brougham, in reversing the decision, against the opinion of Lord St. Leonards. The speech of Lord Cran- worth, upon the question now under examination, was to the effect, that in order to raise an equity upon the ground of representations, there must have been misrepresenta- tions of existing facts, and not mere representations of intentions ; and that regarding the plaintiff's right to relief, as founded upon the fact that he had contracted his marriage upon the faith of Miss Marneir s representations, they were merely representations of intentions, and could not be treated as creating a contract, for want of such a writing as the statute of frauds requires. (m) In this con- (l) Money v. Jorden, 2 De Gex, Macnaghten and Gordon, 318; and 21 Law Journal, N. S., Chancery, 893, A. D. 1852. (m) The following is that portion of Lord Cranworth's argument, in which he discussed the question arising under the statute of frauds. "I think that that doctrine " (that a person is bound to make good a representation, made to influence another's conduct, and upon which the latter has acted,) " does not apply to a case where the representation is not a representation of a fact, but a statement of something which the party intends or does not intend to do. In the former case it is a contract, in the latter it is not. What is here contended for, is this; that Mrs. Jorden, then Miss Marnell, over and over again represented that she abandoned the debt. Clothe that in any words you please, it means no more than this, that she would never enforce the debt; she does not mean in saying that she had abandoned it, to say that she had executed a release of the debt, so as to preclude her legal right to sue. All that she could mean was that she positively promised that she never would enforce it. My opinion is that if all the evidence had come up to the mark, which, for reasons I shall presently state, I do not think it did ; that if, upon the very eve of the marriage, she had said, ' William Money, I never will enforce the bond against you,' that wo'ild not bring it within tliese cases. It might be, if all statutable requisites, so far as there are statutable requisite.s, had been complied with, that it would have been a very good contract, whereby she might have bound herself not to enforce the payment. That, however, is not the way in which it is put here; in short, it could not have been, because it must have been a contract reduced into 744 Antenuptial Agkeements. [Ch. xx. elusion, Lord Brougham substantially concurred, notwith- standing his former approval of the whole of Lord Cotten- ham' s reasoning in Hammer sley v. De Biel. But upon this branch of the case. Lord St. Leonards argued at length, upon principle and authority, that Mrs. Jorden was bound by her representations of her intentions, upon the faith of which the marriage was contracted. He said : "I think it is utterly immaterial whether it is a misrepre- sentation of a fact, as it actually existed, or a misrep- resentation of an intention to do or to abstain from doing an act, which would lead to the damage of the party, whom you thereby induced to deal in marriage, or in pur- chase, or in any thing of that sort, upon the faith of that representation." And he concluded his argument by say- ing : "Having promised that she would not enforce it, she is in my opinion bound by that promise. The statute of frauds does not extend to this case." § 755. Apparently the decision of the House of Lords in this case has not been regarded by the profession in Eng- land, as entirely conclusive upon the effect of a represen- tation of an intention ; for we continue to find the reasoning of the majority in Hammer sley v. De Biel repeated in the arguments of counsel, the judgments of the courts, writing and signed; but that is not the way in which this case is put; it is put entirely upon the ground of representation. Now, my lords, I think that the not adhering to this statement, call it contract or call it representation, is no more a fraud than it would be not adhering to her engagement, if she had said: 'Mr. William Money, you may marry; do not be in fear, you will not be in want; I promise to settle 10,000?. Consols upon you.' If she does not perform that promise, she is guilty of a breach of a contract, in respect of which she may be sued, if it is put into a valid form, but not otherwise ; so if she had said, as she did, to William Money, ' I mean to give you every thing I am worth in the world, I promise to do so,' her not doing so is no fraud, in the sense in which these cases speak of fraud ; it is no misrepresentation of a fact, which the party is afterwards held bound to make good as true. It seems to me that the distinction is founded upon perfectly good sense; and that in truth in the case of what is some- thinsr future, there is no reason for the application of the rule, because the parties have only to say, ' Enter into a contract,' and then all difficulty is removed." Art. III.] Antenuptial Agreements. 745 and the elementary treatises. Indeed it has been intim- ated tliat in Jorden v. Money ^ the weight of autliority was with the distinguished judges who were overruled, not- withstanding their superior number, and at least equal reputation, {n) But the ruling in that case was followed by (n) Mr. Peachey in his Treatise on Marriage Settlements, page 74, remarks of this case : " It however detracts somewhat from the intrinsic value of this, the decision of the Supreme Court of Appeal of the three kingdoms, that it is disapproved of by three equity judges of eminence. Lord St Leonards, the Lord Justice Knight Bruce, and Sir John Romilly." And in delivering his opinion in Pulsford v. Richards,- 17 Beavan, 94, A. D. 1853, Sir John Romilly reiterated his conviction of the correctness of hia conclusions in Jorden v. Money. But in the subsequent case of Goldicutt v. Townsend, 28 Beavan, 445, A. D. 1860 (§ 733, ante), after saying that he should follow the decision of the House of Lords in Jorden v. Money, if the case before him had called for the application of the principle there estab- lished, he referred to Hammersley v. De Biel as follows: "All which that and similar cases establish is this; that if, in consideration of a promise made by the father of one of the parties to the marriage contract, the other party to it does an act previously to the marriage, which is binding on him, the court holds that to be a good consideration, and that the promise may be enforced." See also his observations in Boldr. Hutchinson, 20 Beavan, 250, A. D. 1855, (S. C, 1 Jurist, N. S., 365; 24 Law Journal, N. S., Chancery, 285,) affirmed by the chancellor on another ground, 5 De Gex, Macnaghten and Gordon, 558 ; 2 Jurist, N. S., 97; and 25 Law Journal, Chancery, N. S., 598. But in Prole v. Soady, 2 Giflard, 1, A.D. 1859, (S. C.,29 Law Journal, N.S., Chancery, 721, 5 Jurist, N. S., 1382,) Vice Chancellor Sir John Stuart de- clared unequivocally his approval of the reasoning of Lord Cottenham in Hammersley v. De Biel, upon the effect of a representation of an intention. It was a bill by the children of a marriage, whose mother had died, against the devisees and personal representatives of their maternal grandfather, to enforce a representation, respecting the settlement of certain property upon the plaintiff's mother, alleged to have been made by the grandfather to the plaintiff's father, on the faith of which the marriage was contracted. As we understand the Vice Chancellor, he concluded, upon the evidence, that the representation was to the effect that the property had actually been settled; but he said several times in his opinion, that the representation of an intention to settle would have entitled the plaintiffs to relief. Referring to Hammer- sley V. De Biel, he remarked that in that case the representation was merely the expression of an intention to leave the sum of lO.OOOZ. by a revocable in- strument; but inasmuch as the expression was an inducement to the con- tract, the executors were compelled to fulfil that which was expressed as a mere intention. He added : " This doctrine, which gives all the force of a 94 746 Antenuptial Ageeements. [Cli. xx. Lord Cranwortli, and apparently also by the House of Lords, in the next case when the question was presented. § 756. This was Caton v. Caton, first heard before Vice Chancellor Sir John Stuart, A. D. 1865 ; whose judgment in favor of the plaintiff is reported in 34 Law Journal, New binding contract, to the mere expression of an intention to do something by an instrument revocable in its nature, is too firmly estabhshed to be shaken." Again in Loflfus v. Maw, 3 Giffard, 592, A. D. 1862 (S. C, 6 Law Times, N. S., 346; 32 Law Journal, N. S., Chancery, 49; 8 Jurist, N. S., 607; 10 Weekly Reporter, 513,) where the plaintiff was induced to reside with her uncle, the defendant's testator, as his housekeeper, upon his verbal representation that he would leave her certain property by his will; and he prepared and executed a will accordingly, but subsequently revoked it ; Vice Chancellor Stuart, on pronouncing a decree for the plaintiff, said that although the decision in Jorden v. Money was no doubt binding, it could not be con- sidered as a reversal of Hammersley v. De Biel ; and the proposition attributed to Lord Cranworth, that a statement or representation of what a person intends to do is not sufficient, seems to be irreconcilable with the. decision in the latter case, and with the law as laid down by all judges of the highest authority. He also alluded to the fact that Hammersley v. De Biel is not referred to in the remarks of any of the law lords in Jorden v. Money. In Walford v. Gray, 11 Jurist, N. S., 106, A. D. 1865, (S. C, 11 Law Times, N. S., 620; 13 Weekly Reporter, 335 ;) the same Vice Chancellor again followed Ham- mersley V. De Biel, but under circumstances where no question arose as to the effect of a verbal representation. There, upon a treaty of marriage, the father of the intended wife assured the intended husband, that he and his wife "do not propose to exercise," certain powers of appointment reserved to them by their own marriage settlement, in default of the exercise of which, the intended wife and her issue would be entitled, upon the decease of both her parents, to one third of the property settled. The wife having died, leaving the plaintiff the only issue of the marriage, the Vice Chancellor held that this was a "representation " which entitled the plaintiff, after the death of his grandfather and grandmother, to maintain an action to recover the one third of the settled property, which had been otherwise disposed of by their appointment. But here there was a letter from the grandfather's solicitor, which sufficiently proved the assurance ; and principally on that ground, treating the transaction throughout as an "agreement," the Chan- cellor (Lord Westbury) affirmed the Vice Chancellor's decree, 11 Jurist, •N. S., 473; 13 Weekly Reporter, 761; 12 Law Times, N. S., 437. The judgments of the same Vice Chancellor in Caton v. Caton and Williams v. Williams are mentioned in the following pages. Art. III.] Antenuptial Agreements. 747 Series, Chancery, 564. (o) On appeal this decree was reversed by the Lord Chancellor, Law Reports, 1 Chancery Appeals, 137, and 35 Law Journal, New Series, Chancery, 292, A. D. 1806. (j9) And the latter decree was aflBrmed ujjon an ap- peal to the House of Lords, Law Reports, 2 House of Lord,s, 127, A. D. 1867. {q) There it appeared that in the year 1852, the Reverend R. B. Caton, a clergyman nearly eighty years of age, and the plaintiff, a widow of sixty, entered into a treaty of marriage ; and it was arranged between them that a settlement should be made upon the intended marriage, according to a paper written out but not signed by Mr. Caton. (r) The substance of this paper was that the plaintiff's fortune should be settled upon herself; but Mr. Caton should have the income of it during his life, except 80Z. per annum for pin money ; that after Mr. Caton' s death, she should have a certain house belonging to him for her life, and all his furniture, plate, etc., absolutely. The draft of a settlement was prepared, according to the paper ; but some alterations were sug- gested by Mr. Caton for the purpose of avoiding the expense of executing it, which were assented to by the plaintiff; and' a new draft was prepared. Mr. Caton then represented to her that the engrossment of the settlement would occasion great expense, which he proposed to save (o) Also 13 Weekly Reporter, 801; 12 Law Times, N. S., 532; and, (as part of the report of the case before the Chancellor), in 12 Jurist, N. S., 171, and Law Reports, 1 Chancery Appeals, 137. {p) Also 12 Jurist, N. S., 171; 14 Weekly Reporter, 2G7; and 14 Law Times, N. S., 34. {q) Also 36 Law Journal, New Series, Chancery, 86; and 16 Weekly Reporter, 1. (/•) Many of the reports of the case in the courts below state that this memorandum was signed by Mr. Caton, either with his full name or his initials ; and some say that it was also signed by Mrs. Caton. But all these statements are manifestly erroneous. The report in Law Report's, 2 House of Lords, 127, expressly says that it was not signed by either ; and the deci- sion of the Lords proceeded principally upon the ground, that although Mr. Caton's name and initials, written by him, appeared several limes in the body of the memorandum, they were nowhere used in such a manner as to authen- ticate or gover-a the whole instrument. 748 Antenuptial Agkeements. [Ch. xx. altogetlier, and, as she alleged, he promised, if she would forego its execution, "that he would most strictly and faithfully carry out the terms of the marriage contract agreed upon, and would leave to her by his will the whole of her then and after acquired property," etc., according to the provisions of the proposed settlement. She consented, and the marriage accordingly took place in 1853. Before the ceremony, Mr. Caton produced a wUl, which appeared to be in conformity with his promises ; and he executed it in the vestry, immediately after the ceremony had been performed. After the marriage, he took possession of his wife' s property ; and allowed her the 80Z. per annum. In January, 1864, he died, and it was then found that in May, 1863, he had executed another will, without the plaintiff's knowledge, revoking all prior wills, and making such dis- position of his estate, that she had only the income for her life, of a portion of the personal property belonging to her at the time of her marriage ; and the remainder, together with the principal of that part, to the income of which she was entitled by the will, was left to the defendants, his sons by a former marriage, who were also made his gen- eral devisees and legatees. Mrs. Caton thereupon filed this bill to enforce the agreement ; and the defendants having denied the agreement, and pleaded the statute of frauds, the cause came on for hearing before Vice Chan- cellor Stuart, who made a decree in her favor, {s) § 757. The defendants appealed from the Vice Chancel- lor' s decree to the Chancellor, (Lord Cranworth), who re- (s) His Honor said that the memorandum was not the agreement which the plaintiff asked to have performed, but the reUef sought was substan- tially the same as the specific performance of that agreement; the only dif- erence between the two being the machinery and mode by which the plaintiff's fortune was to be secured to her. And upon the question, relating to the application of the statute of frauds, he thought that the decisions, holding that part performance of a verbal contract for the sale of land would take it out of the statute, were applicable to this case. That here there was evidence in writing ; a will was executed; this was more than part perform- ance, it was performance ; and all that was necessary was that the will should remain unaltered. Art. III.] Antenuptial Agreements. 749 versed it. In delivering his judgment, he said that (courts of equity were as much bound by the statute of frauds as courts of law, "unless there be equitable grounds for tak- ing a case out of the operation of the statute ;' ' that this was not denied by the plaintiff ; but her counsel insisted that there were equitable grounds for relief, notwitlistand- ing the statute ; and this was the ground upon which the Vice Chancellor proceeded. "That marriage itself," con- tinued his Lordship, "is no part performance within the rule of equity, is certain. Marriage is necessary in order to bring a case within the statute ; and to hold that it also takes a case without the statute, would be a palpable absurdity. ' ' And his Lordship thought that the additional ground upon wMch the Vice Chancellor rested his judg- ment ; namely, that a will had been prepared previously to the marriage, and executed afterwards, in conformity with the verbal agreement, did not bring the case within the equitable rule respecting part performance. For that rule requires that one of the parties should have been induced or allowed by the other, to alter his position, upon the faith of the contract ; so that it would be a fraud in the other party to set up its legal invalidity. But here the prepara- tion and execution of the will caused no alteration in the plaintiff' s position ; and no consequence can be attributed to acts of part performance by the party sought to be charged. The circumstances relied upon might afford strong evidence of the existence of the parol contract insisted on, if that was a matter into which the court was at liberty to inquire ; but it could not have the effect to give legal validity to a contract otherwise invalid. And the nature of the alleged agreement was such, as hardly to admit of part performance, even by the party to be charged ; for, as a will is always revocable, a contract to make a bequest, even when a will has been prepared and executed accordingly, is a contract of a negative nature, a contract not to vary it. And his Lordship thought that there could be no part performance of a con- tract of that character. 750 Antenuptial Agreements. [Ch. xx. § 758. Upon the argument of the appeal from this decree to the House of Lords, the plaintiff' s counsel abandoned the point that there had been such part performance of the verbal agreement, as would take it out of the statute ; and they insisted that, although the execution of a settlement had been abandoned by consent, the original agreement had never been abandoned, and they had a right to rely upon that. This agreement, it was argued, was evidenced by the memorandum, which was sufficiently signed to sat- isfy the statute. And the outline of the argument in the Law Reports indicates that they also suggested that she was entitled to relief, in consequence of having married in reliance upon the defendant' s representation ; within the reasoning of Lord Cottenham, in Hammer sley v. De Biel. But, apparently, this point was not much pressed ; and the court disregarded it altogether. In the speeches delivered by the law lords, the discussion was confined to the other points ; and, with the exception of a general approval of the judgment of the Chancellor by Lord Chelmsford, (his successor), and by Lord Westbury, and a remark of Lord Cranworth, to the effect that nothing had occurred to change the opinion expressed by him in the court below, they contain no reference to the question now under exam- ination. § 759. But Vice Chancellor Sir John Stuart, in the latest case of this series, Williams v. Williams, 37 Law Journal, ISTew Series, Chancery 854, A. D. 1868, (^) again went back to Lord Cottenham' s doctrine respecting a representation. This was an appeal from the decision of the judge of a county court, made upon the accounting of the executors of the will of one Evan Williams. Richard Williams, one of the executors, and a son of the testator, claimed to retain 150Z., part of a sum of 200?., as the balance of his marriage portion. It appeared that the testator previously to and in consideration of the marriage of Richard, had verbally promised him the portion of 200Z., and had also verbally (<) S. C, 18 Law Times, N. S., 785. Art. III.] Antenuptial Agreements. 761 communicated that promise to the father of the intended wife; who "thereupon and in consideration thereof, and before the marriage, verbally promised to and agreed with the testator ' ' to give his daughter a like marriage portion of 2001.] that the father-in-law of Richard had since the marriage paid the 2001., and the testator had also paid 501.', but had died, leaving the remainder unpaid. The judge of the county court decided that the executor was entitled to retain the 1501., basing his decision on the exist- ence of an agreement between the testator and the father- in-law, and the part performance of that agreement by each party thereto. § 760. This decision was affirmed by the Vice Chancel- lor. He said that the true doctrine in this class of cases was laid down by Lord Cottenham and by the House of Lords through Lord Brougham and Lord Campbell, in Hammer sley v. De Biel, to the effect that "a rep- resentation made by one party for the purpose of influenc- ing the conduct of the other, and acted on by him, will in general be sufficient to entitle him to the assistance of this court for the purpose of realizing such representation." That in Jorden v. Money this principle was not adhered to, and in Gaton v. Caton it was violated : the last men- tioned decision having been, his Honor thought, made "in consequence of the extraordinary and peculiar circum- stances of the case itself, and in obedience to the view entertained by Lord Cranworth with respect to it." That view, his Honor thought, was in opposition to the princi- ples established in Hammer sley v. Be Biel ; but that case has since been followed by other cases in this court. (2^) He must therefore consider the authority of it as estab- lished on impregnable grounds. Then, after saying that the evidence must be very clear, and commenting upon a case formerly decided by him upon grounds inapplicable (w) These cases are not cited, and wo are at a loss to know whether his Honor referred to his own decisions, cited in the note to § 755, or to some other cases which have escaped our notice. 752 Antenuptial Agkeements. [Ch. xx. to this case, he said that here the representation was made to the husband, and the evidence was clear. He then pro- ceeded : "Now then, there is certainty as to the nature of the representation, certainty as to the amount, and a mar- riage contract on the faith of the representation. After that the marriage portion is paid by the father-in-law, and it is sworn to have been paid in performance of the repre- sentation. The case is therefore within the principle laid down in Hammer sley v. De Biel. ' ' The opinion concluded as follows: "I have not entered into the considerations arising out of the fact of the contract in this case being a verbal one, because, in my opinion, the part performance of this contract takes it out of the statute of frauds. That was settled by the decision of the House of Lords in Caton V. Caton,'''' (sic), "although the part performance in that case was the act of the testator, by which he did by a revocable instrument, what he had promised to do by an instrument wholly irrevocable. Different minds take different views •, but I adhere to the clear definitions of the law upon the subject given by Lord Cottenham, Lord Brougham and Lord Campbell." § 761. The decision in this case may possibly be upheld upon principles which were not adverted to by the Vice Chancellor ; but with respect to the question now under discussion, we think that his adherence to the dicta in Hammer sley v. De Biel, after the repeated condemnation by the appellate courts of the doctrine which they uphold, will not command the approval of the profession. The course of Sir John Romilly, in frankly abandoning the views expressed by him in Money v. Jorden, after the Chancellor and the House of Lords had reversed his judg- ment, is much more in accordance with that deference due from an inferior tribunal, however eminent, to the rulings of its oflacial superior, without which there can be no cer- tainty in the administration of justice. We therefore con- clude that the correct doctrine, upon reason and principle, as well as the authority of the decisions collated in this article, is that a representation of an intention to do an act Art. III.] Antenuptial Ageeements. 753 at a future day, if it can be distinguished from a contract, does not, in the absence of actual fraud, entitle the party to whom it was made, to maintain an equitable action for specific performance ; although it was made for the pur- pose of so being acted upon by him ; and although it has so influenced his conduct that a restoration to his former condition would be impossible. On the contrary, in order to enable such an action to be maintained, the representa- tion must have been, in legal eflect, a contract, and the plaintiff must found his action upon it as a contract. But when the contract was made in consideration of marriage, the statute prevents the courts from granting any relief, founded upon the performance of that consideration. Con- sequently a representation of an intention, made for the purpose of inducing a marriage, will not sustain a bill for specific performance, unless the evidence thereof is con- tained in a writing sufficient to satisfy the requirements of the statute of frauds ; or unless the plaintiff, or the person through whom he derives liis right of action, has, in addition to the celebration of the marriage, done some distinct act, sufficient of itself to entitle him to relief ; his performance of which was contemplated by the express terms of the representation itself, or by necessary implica- tion therefrom. 95 INDEX. A. ABANDONMENT: Sceiion. of a subsisting contract, as a ground for taking out of the statute a stranger's promise to pay for the same service, &c., 294-320 See Discharge op Thibd Person, IV. ACCEPTANCE AND ACCEPTOIt: See Bill of Exchange. ACKNOWLEDGMENT : to lake out of the statute of limitations, not within the statute of frauds, 497, and note. ADMINISTRATOR: See EXECtTDORS and ADillNISTRATORS. ADMISSION: by promise, that promisor or his property was originally liable, estops promisor from showing that it was collateral, 485-489 ADPROMISSIO AND ADPROMISSOR: defined, 329 AGREEMENTS, VERBAL: See Statute of Frauds ; Executors and Administrators ; Collateral Undertakings; Marriage Agreements. ALTERATION OF FORM : of existing liability for third person's debt, 490-496 Sec Former Liability, III. AMBIGUITY : in the words of the promise, 188, 298 And see Lla^ility of Third Person, III. "ANOTHER PERSON : " semblc that these words are satisfied, only when they apply to a per- son in existence, and specifically designated, 358 359, CG8 756 INDEX. "ANOTHER 'PERSO'!>i" — {Continued.) Section, whether a factor's engagement under a del credere commission satisfies them, 358, 649, 668 whether they are satisfied by a promise to pay a deceased per- son's debt, made before probate or grant of administration, 15 Twte, 16, 359 but a corporation is within them, 360 statute not applicable merely because another is also liable, .... 484, 581 statute inapplicable to promise to answer for promisor's own debt, whatever its form, 214, 480, 484, 615, 617, 650 These words are not satisfied unless the promisee luns the person to whom the debt or duty was to he discharged (Collateral Undertakings, fifth rule), 361-478 origin of the rule, 363 its effect the same as if the words were *' a third person," 363 how the rule is reconciled with the language actually used, 364 I. General application of the rule : 1. Rule laid down by Lord Denman in Eastwood v. Kenyon, . . . 365 2. Not confined to cases where promise made to debtor, 866 3. Illustrations of the general principle, 366-382 4. The principle rests upon inconclusive reasoning, but it is well settled, 383, 384 II. Where a creditor seeks to enforce the defendant's verbal contract to pay the debt, made with the debtor, 385-426 1. The question stated, 385 2. In England a stranger to the consideration cannot enforce a contract, 386, and note 3. The weight of authority, in the United States, is the other way, id. ; and see 6, post. 4. Reasons for sustaining the action in the United States, stated and discussed, with reference to the question whether the statute applies, 387-395 5. "When creditor not a party to the contract, application of the statute not dependent on same principle as when he ■ was, 395, 396. And see Fund, VII. 6. American cases, where the creditor was not a party, examined with reference to the application of the statute ; and inci- dentally to the common law rule ; the right of the debtor to release the contract ; and other questions arising, 397-426 rulings in various states that the statute does not apply, . . 397^17 rulings in other states that the statute does apply, 418-426 III. Indemnity against a liability to be thereafter incurred by prom- isee, not within the statute, where no one except the promisor was primarily bound to indemnify him, 428-437 cases illustrating this proposition, 429-436 but indemnity must be confined to the liability so to be incurred, 437 IV. Whether an indemnity against a liability to be incurred as security for a third person, is within the statute, 438-477 INDEX. 757 "ANOTHER PERSON" — (Ct^Hfmwfrf.) Section. 1. Statement of the question ; arguments on both sides, 438-440 2. Fhictuations of opinion in the English courts, 440-448 3. But parties to a bill of exchange, &c., may vary their apparent liabilities to each other by verbal agreement, 445, 446 4. In England, indemnity for becoming bail for a third person, in a criminal proceeding, is not within the statute, 447, 448 whether the defendant in a criminal proceeding is liable to his bail, upon default, &c., 448, 7ioto 5. Fluctuations of oi)inion in the New York courts upon the principal question, 449-455 6. But when promisor and promisee are sureties on same instru- ment, the indemnity is not within the statute, 453, 454 7. The course of decision in Massachusetts upon the principal question, 456, 457 8. Rulings in some other states that statute does not apply,. 458-467 9. Contrary rulings elsewhere, 408-472 10. Where it does not distinctly appear that any person except the promisee was primarily liable, 473 11. Summing up of on both sides of the question, 474^477 "ANSWER:" meaning of this word in the first clause of the fourth section, 83, 36 its meaning and effect in the second clause, 112 See Guaranty by Indirection. ANTENUPTIAL AGREEMENTS : See Marriage Agreements. ARBITRATION: verbal agreements for, valid, 6 submission to, by executor^ &c., not within statute, 36, and note not an admission of assets, id. ASSENT : distinction between, and request, 163, 439, 400, 461 ASSETS: See Executors and Administrators. ASSIGNMENT AND ASSIGNEE: when debtor's promise to pay his debt to an assignee is valid at com- mon law or under the statute. See Former Liability, V. assignee for benefit of creditors, his duty or implied promise not within statute, 101 note, 531, 533 guaranty given upon assigning a chose in action by guarantor to guarantee, not within statute. See Guaranty, I. FcT other questions, see Transfer. 768 INDEX. ATTACHMENT : Section, forbearing to issue, will not take out of statute promise to pay debt, 58 release of levy, as a ground for taking case out of statute. See Lien. ATTORNEY : promise to pay his costs, &c., when within the statute, 137, 398, 588 B. BAIL: promise to execute bail bond for another not within statute, 113 whether promise to indemnify the prorhisee for executing a baU bond is within the statute. See Another Person, IV. whether defendant in a criminal proceeding bound to indemnify his bail 448,no«tEU Liability. IMPLIED PROMISE: of the distinction between an assent of the third person and his re- quest, when the question is whether he beraine liable, 163, 439, 460, 461 whether promise to pay a debt, made to a debtor, upon a considera- tion moving from him, raises an implied promise in favor of the creditor, 389 98 778 INDEX. IMPLIED FBOM.IQ'E— {Continued.) Section, of the implied promise of a principal to protect his surety, bail, etc., from loss, 438, 439, 477 in England it is held that no such promise arises in favor of bail in a criminal proceeding, 447, 448 and Tiote I. Executors' and administrators' implied contracts are not within the first clause of the fourth section, 38-35 II. Implied contracts to answer for the debt, etc., of another, are not within the second clause, , 95-101 the word " special " is used in this clause in contradistinction to " implied," 95 statute does not apply when defendant's undertaking was im- plied in consequence of a payment by plaintiff on his account, 96 so where a contract was implied from the terms of a deed from plaintiff to defendant, 97, 98 so where the action was founded upon an implied warranty of genuineness of a signature, 99 or an implied guaranty of payment or collection upon the trans- fer of a chose in action, 100 or the duty of a principal to indemnify his agent, 101 the implied promise of a trustee for benefit of creditors is not within the statute, 101 Twte, 531, 533 Incidental liability : for third person, not within the statute, 615 INDEMNITY : contracts of indemnity not within statute, when no one except prom- isor boimd to indemnify promisee. See " Another Person," III. the rule is unsettled, when the indemnity was against a liability to, be incurred as sm'ety for a third person. See "Another Per- son," IV. but where promise of indemnity was in substance promise to pay third person's debt to promisee, the statute applies, 212, 213 INDIRECT GUARANTY: See Guaranty by Indirection. INDORSEMENT AND INDORSER: a promise to indorse the note or bill of exchange of a third person, to be given to the promisee, is within the statute, 209-211 principle the same although promise was to indemnify promisee, if he would afterwards indorse and get discounted, 212, 213 but the statute does not apply when promisor was real debtor, or when indorsement was for his accommodation 214, 215, 445, 467 the statute does not apply to an indorser's renewal of liability, when he has been discharged for want of protest, etc., 503-508 whether, in order to avoid the effect of the statute, it is necessary • that he should have had full knowledge of the facts, 508 See also Bill op Exchange. INDEX. 779 INFANT AND INFANCY: Section, promise to pay debt contracted during infancj'', required, by Lord Tentcrdcn's act, to be in writing, 105 and note so by special statute in some of the United States, id. Whether an auxiliary promise to rc)iid for a debt contracted by an infant, not for neci'ssaries, is icillioat the statute by reason of tJie dis- ability of tlic "priiruiry debtor. I. General doctrine of the elfect of a disability of the primary debtor upon the application of the statute, 248-251, and 248 rwt.e. II. The question with respect to the disability of an infant, 257-267 general statement of the rights and disabilities of an infant, 257 effect of these principles upon the application of thg statute, . . 258 • examination of the adjudications, 259-2(56 infant not liable for repairs of his dwelling, 261 note father's and guardian's liability for clothes supplied infant, 263 and note cases where an action was sustained in favor of a surety against an infant principal, and in favor of a person who had paid his debts at his request, the debts being for necessaries, 266 note INSUEANCE : verbal contract for, valid, 5 and note INVALIDITY OF TOE PROMISE : who entitled to insist upon it, and who may be compelled to do so, 160, 161 and mte, 173 J. JOINT PROmSES : I. Whether an auxiliary promise is out of the statute when the promisor undertook jointly with the person benefited, 227-247 1. Cases where the joint promise is clearly not within the statute, 227-229 2. The case whereupon the doubt arises, 230 3. Authorities supposed to maintain the proposition that the statute is not applicable, 231-234 4. Michigan case to that effect 235, 236 5. Authorities bearing with greater or less directness, upon the other side of the question 237-241 6. Comments upon the cases, and examination of the question upon principle, 242-247 II. Assumption by two persons jointly, of the antecedent several debt of one, is out of the statute, ^ 354, 356 but see a case apparently contra, 342-344 in. So, where one of two joint debtors assumed the debt severally,. 357 rV. Whether a joint guaranty of a note, etc., made upon its transfer, by the holder and another as his surety, is within the statute, 656 note, 659, 663 780 INDEX. JOINT SURETIES: Section, a promise by one joint surety to indemnify the other is not within the statute, 463, 454 JURY: whether promisee gave any credit to third person is generally a ques- tion for the jury 150, 180 they are to take into consideration all the attending circum- stances, id., 153-179 how far the general question, whether the promise was original or collateral, belongs to the jury, 180-188 See Liability of Third Person, III. questions for the jury when the promisee insists that he had aban- doned the original .contract, etc., 298 K. KENT, CHIEF JUSTICE : his classification in Leonard v. Vredenburgh 63 whether the thu'd class of cases was correctly defined by him, 593 594, 613 and note. See Leading Object of Promisor ; Lien, II. L. LAW MERCHANT : statute not applicable to cases governed by, 84r-86 LEADING OBJECT OF THE PROMISOR: Whether the doctrine is law, that a promise to pay a third persorCs debt is Twt within the statute, whenever the promisors leading object was to subserve some interest of his awn. this question generally referred to, preliminary observations thereon, 520, 521, 571 I. Cases where property was surrendered to the promisor in consid- eration of his promise to pay a charge thereon, which have been supposed to be dependent upon and illustrations of this doctrine, 575-604 See Lien, I, II. comments of English and American writers, upon those cases, note, 606 II. Various theories derived from the above mentioned cases, and the subsequent American adjudications of the same general cnar- acter, 606-614 statement of four propositions now advocated upon their authority, 607 these propositions briefly examined, 608-614 III. This question discussed and the doctrine condemned, 615-647 INDEX. 781 LEADING OBJECT OF THE PROMISOR — (<7-<>16 2. Cases which repudiate this doctrine, 620, G21 Fulhvm V. Adams, 620 Maule v. Bucknell, 621 3. Cases which depend upon this doctrine, 622-628 Emerson v. Slater, 623-626 Kutzmeyer v. Ennis, 627 4. Cases where this doctrine was unnecessarily asserted,. . . . 629-639 5. Cases which negative this doctrine by implication, 640-646 6. Conclusion of the discussion, 646, 647 LEADING OBJECT OF THE TRANSACTION: when not to render party liable for another's debt, etc., case is not ■within the statute, 615 LEGACY: action at law for general legacy will not lie, 42 otherwise for specific legacy, or when general legacy severed, id. but under special statutes it will lie in some of the United States,. . . 43 LIABILITY OF THIRD PERSON: in order to set the statute in motion there must be two concurrent liabilities, 126 the liability of the third person must be one which could be enforced by legal proceedings, 137 it must be for the same debt or duty which the promisor imder- took to discharge, 129-137 illustrations of the general proposition. See Concubrent Liabili- TtES, III. Cases not vriihin tJie statute, because tJw third person, although he received the consideration, incurred no liability concurrent with the jyrmiisor's. (Collateral Undertakings, Third Rule.) 139-267 the rule stated, 139 the rule examined upon principle, 140, 141 L Early English cases from which the rule has been derived, 142 Lord Mansfield's theory, in IVIawbrey v. Cunningham, that a promise before the consideration was furnished is not within the statute, 144, 145 abandoned by him, 145 formally overruled, and the modem doctrine settled in Mat- son V. Wharam, 146 n. Where the third person made no express promise to respond, the test is whether any credit was given him, 147-179 1. Elementarj- analysis of this question, 147-152 In most cases the third person's liability dc]iends upon acceptance by promisee of his express or implied under- taking, 147, 148 782 INDEX. LIABILITY OF THIRD FBRSO'i^ — (Contmrnd.) . Section. the test, then is whether the promisee parted with the con- sideration upon the sole credit of the promisor, or upon the credit of both, 148, 149 third person must have been a conduit through which promisee received the consideration, 149 generally the question is for the jury; they are to consider all the attending circumstances, 150 the application of the statute depends upon what took place when the contract was consummated, and subsequent events will not affect it, 153 2. English cases upon the question of credit to the third person, and showing the application of the principle, 153-163 the proposition illustrated that all the attending circum- stances are to be weighed, 155, 156, 158 person falsely representing himself as authorized by another to pledge his credit, 157 who may insist upon the invalidity of the promise, 160, 161 distinction between third person's assent and promise, 163 3. Ainerican cases to the same effect, 164-179 Judge Story's doubts whether the principle was sound, 165 but now firmly settled by authority; illustrations of its application, 166-179 when the defendant cannot be compelled to insist upon the defence of the statute, 173 III. The province of the court and jury, respectively, upon the ques- tion whether the promise was original or collateral, 180-188 questions which undoubtedly belong to the jury, 180 it is sometimes said that the jury are entitled to pass upon the import of the words used, 181, 182 but it seems that unless words of equivocal meaning are used, their effect belongs to the court, 183 cases thereupon, 184-188 and note. when words used are of equivocal meaning, the question is in what sense the promisee received them, 188 IV. Whether the promisee's books, etc., are evidence in his favor, 189-193 it is conceded that they are evidence against him, 189 cases where it has been intimated that they were not evidence in his favor, 190, 191 the authorities in support of this proposition criticized, 192 and riot^. admissibility of the plaintiff's books under local statutes or rules of evidence, id. reasons for the opinion that the books, etc., are, in general, admis- sible, 193 V. Where the promise in terms contemplated a resort by the prom- isee to the third person. See Conditioxal, Promise. VI. Whether an exception to the rule arises when the promisor and the third person assumed a joint liability. See Joint Pkomises, L INDEX. 783 LIABILITY OP THIRD PERSON — (Con^inw«&AavHan# ^^w^uNlVER% ^iw ■^/sa: < A^lUBRARYd;/ ^ 5 1 ir^ ^ .^^\^^lNlV!Ry/A ^lOSANChtJ^^ I %a3AINn3V\V^ AjNlllBRAffYt//^ ^tfOJllWJO^ ^tfO ^OFCAlIFOff^^ ^ ^v: :7^ -v^tUBKAKTi//- -J5^l•llBKAK^(y/^ m Pi i^OFCAllFOI?^ ^OFCAIIFO^^ i §(i?ri "5;, ''"^' IICSDIIltllHNHII.IilNAI llllUAHYfACIUTY I vj^lOSANCfltT;. ""JSiaONYSOl^ ^OFCAIIFO;?^ ^OFCAUFORij^ 5! 5^tU5HAKTC<<: 4,OFCAIIFOR^ >&Aavaan-# ^iifOJIlVJJO'^ ^OFCAllFOff^