Story Case

Lord Roaksby said to his old servant, James: "James, I promise to give you a thousand pounds next week as a gift, in addition to your regular salary".

But before the next week, Lord Roaksby changed his mind and refused to give the sum to James. Thereupon, James sued him for breaking his promise to pay. His Lordship defended the suit on the grounds that James had given no consideration for the thousand pounds and hence that the promise was not binding.

Is the defense a good one?

Ruling Court Case. Page Vs. Trufant, Volume 2 Massachusetts Reports, Page 159; Volume 3 American Decisions, Page 41

After Carlson Trufant and Maria Page had been married for several years, domestic unhappiness arose, and they agreed to a separation; she returned to live with her mother, Mary Page, the plaintiff in this action. Carlson made a bond, that is, an agreement under seal, in favor of Mary Page, his wife's mother, whereby he promised to pay to her a certain sum for the support of his wife. Sometime thereafter, Carlson refused to pay the money he had promised. Suit was then begun by Mary Page upon this bond.

The defense of Carlson Trufant was that the bond was given without consideration and it was therefore not binding upon him. In reply to this, Mary Page contended that it was binding, even though it was unsupported by a consideration, because the agreement was given under seal.

Decision

This agreement was binding upon Carlson Trufant, notwithstanding the fact that there was no consideration. It was under seal, and a sealed agreement is binding without any consideration. It is often said that a seal imports consideration. Strictly speaking, that is not true, but the presence of a seal renders consideration unnecessary to make the agreement thereunder binding.

Mr. Chief Justice Parson said in part:"A bond, from the solemnity of its execution, imports a consideration, the want of which the obligor is estopped to plead. He may avoid the bond by showing that it was obtained by fraud, or duress, or that the consideration is illegal, or against the policy of the law".

It was held that the action might be maintained by Mary Page and recovery had on the bond.

Ruling Law. Story Case Answer

It has been pointed out heretofore that contracts are classified either as simple or sealed contracts. A simple contract, in this classification is either oral or written. A sealed contract is a formal agreement or instrument which acquires its binding force from the formality of its execution.

At common law simple contracts, as will be seen later, were binding by virtue of the fact that they were supported by a consideration. However, sealed contracts were never required to be supported by any consideration. All that was necessary to render a sealed contract binding was that it be sealed in some appropriate manner. It is often said that the seal imports a consideration. This means, merely, that consideration is unnecessary.

The promise of Lord Roaksby was not binding in the Story Case because it was neither under seal nor was there any consideration given for his promise. His defense is therefore good. But had the promise been under seal, James would have won the suit.