In: Accounting
Please search the 1891 New York case Hamer v. Sidway
After searching the case please provide the following:
1) Legal Citation
2) What is the main issue of the case?
3) What is the rule the judge used in the case?
4) How did the judge use the rule in this case to come to the proper verdict (decision)? In other words, the judge's analysis.
5) What was the final decision of the judge?
6) Why is this topic important for you as a future business manager or business owner?
1) Legal citation of the case is Hamer v. Sidway - 124 N.Y. 538, 27 N.E. 256 (1891)
2)The main issue of the case was wether a promise to abandon a legal right to use tobacco and alcohol considered sufficient amount of consideration to enforce a contract between the promisor and the promisee?
3) The rule of the case was " A valuable consideration in the sense of the law consists either of some right, interest, profit or benefit accruing to the one gathering, or some patience, drawback, misfortune or obligation given, endured or attempted by the other. Courts won't ask whether the thing which frames the thought does in reality advantage the promisee or an outsider, or is of any generous incentive to anybody. It is sufficient that something is guaranteed, done, refrained or endured by the gathering to whom the guarantee is made as thought for the guarantee made to him"
4) The judge's analysis of the case was that "A promise to forbear or abandon a legal right in return for another's promise is sufficient consideration to support a contract or sustain a promise. Because the nephew-promisee abandoned his legal right to use tobacco and drink liquor in exchange for the testator-promisor’s promise to pay him a sum of money, there was sufficient consideration to enforce the contract. All in all, a waiver of any legitimate right in line with another party is an adequate thought for a guarantee. "
5) Final decision by the judge was " Ruling in favor of the plaintiff, the Court held that the right to use and enjoy the use of tobacco was a right that belonged to the nephew-promisee and was not forbidden by law. The abandonment of its use was a sufficient consideration to uphold the promise because such abandonment was the inducement for the promise. It is not essential in order to make out a good consideration for a promise to show that the promisor was benefited or the promisee injured "
6) This topic important for me as a future business manager or business owner because what i learnt was that a waiver of any legal right at the request of another party is sufficient and manageable consideration for a promise.