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1、Louisa W. Hamer v. Frankin Sidway,BY: Jasmin 111090549 Sherry 111090552,Class 1110,Facts,William E. Story William E. Story 2d,an agreement,If William E. Story,2d would refrain from liquor, tobacco, swearing and playing cards for money until he should become 21, William E. Story would at that time pa

2、y William E. Story ,2d $5,000 for such refraining.,When William E. Story ,2d was 21,he wrote to his uncle that the $5,000 was due him. Then his uncle replied that he didnt intend to interfere with the money until he thought his nephew was capable of taking care of it. 2 years later, William E. Story

3、,2d sold all his right, title and interest in the said $5,000 to his wife, who thereafter transferred the same to the plaintiff in this case.,Plaintiff: Louisa W. Hamer (assignee) Defendant: Franklin Sidway (William E. Storys executor) There are 2 legal disputes between them, which are also legal is

4、sues in this case:,Whether the agreement between William E. Story and his nephew has valuable consideration. After William E. Story replied to his nephew, were the relations of them that of debtor and creditor, or that of trustee and cestui que trust?,Parties and disputes,citing the definition of co

5、nsideration given by the Exchequer Chamber,A valuable consideration may exist in either some right, interest profit or benefit accruing to one party, or some forbearance, loss or responsibility given, suffered or undertaken by the other.,the 1st legal issue,Consideration means not so much that one p

6、arty is profiting as that the other abandons some legal right in the present or limits his legal freedom in the future as an inducement for the promise of the first.,the judges understanding of consideration,applying the above rule to the facts of the agreement,The promisee used tobacco, occasionall

7、y drank liquor, and he had a legal right to do so. That right he abandoned for a period of years is upon the strength of the promise of the testator that for such forbearance he would give him $5,000.,It is sufficient that William E. Story,2d restricted his lawful freedom of action within certain pr

8、escribed limits upon the faith of his uncles agreement, and now having fully performed the conditions imposed.,a sufficient consideration exists in the agreement .,The agreement is effective.,The Second Legal Issue,After William E. Story replied to his nephew, were the relations of them that of debt

9、or and creditor, or that of trustee and cestui que trust? debtor and creditorbarred by lapse of timethis action is not maintainable OR trustee and cestui que trustthe result must be otherwise,How to create a trust?,A person in the legal possession of money or property acknowledging a trust with the

10、assent of the cestui que trust,becomes from that time a trustee if the acknowledgement be founded on a valuable consideration. His antecedent relation to the subject,whatever it may have been,no longer controls.,How to create a trust?,If before a declaration of trust a party be a mere debtor ,a subs

11、equent agreement recognizing the fund as already in his hands and stipulating for its investment on the creditors account will have the effect to create a trust.,The effect of the letter,“This money you have earned much easier than I did. I had it in the bank the day you were 21 years old and dont intend to interfere with it in any way until I think you are capable of taking care of it, and the sooner that time comes the better it will please me.”,The effect of the letter,The said William E. Story : indebted to the said William E.Story,2d in the sum of $5,000,and payment had been requested