William E. Story agree to pay his nephew, William E. Story II, a large sum of mo

Question

William E. Story agree to pay his nephew, William E. Story II, a large sum of money (roughly equivalent to $50,000 in 207 dollars) "if he would refrain from drinking liquor, using tobacco, swearing, and playing cards or billiards for money until he should come to be 21 years of age." William II had been using tobacco and occaasionally drank liquor but refrained from using these stimulants over several years until he was 21 and also lived up to the other requirements of his uncle's offer. Just after william II's 21st birthday, Story acknoweledged that William II had fulfilled his part of the bargain and adcised that the money would be invested for him with interest. Story died, and his executor, Sidway, refused to pay William II because he believed the contract betwewn Story and William II was without consideration. Sidway  asserted tht Story received no benefit from William II's performance and William II suffered no detriment (in fact, by his refraining from the use of liquor and tobacco, William II was not harmed but benefited, Sidway asserted). Is there any theory of consideration that William II can rely on? How would you decide this case?

Explanation / Answer

This is the famous case Hamer vs Sidway in which the court decided forbearance is in facr legal consideration and held the contract valid. Here is a summary:

The Court of Appeals reversed and directed that the judgment of the trial court be affirmed, with costs payable out of the estate. Judge Alton Parker (later Chief Judge of the Court of Appeals), writing for a unanimous court, wrote that the forbearance of legal rights by Story II, namely the consensual abstinence from "drinking liquor, using tobacco, swearing, and playing cards or billiards for money until he should become 21 years of age" constituted consideration in exchange for the promise given by Story I. Because the forbearance was valid consideration given by a party (Story II) in exchange for a promise to perform by another party (Story I), the promisee was contractually obligated to fulfill the promise.

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