Lawrence v. Fox - Case Brief PDF

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Case Brief...

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Contracts II

Class 44

Lawrence v. Fox Court: Court of Appeals of New York (1859)

Facts: Holly, at the request of DF, loaned and advanced to DF $300, stating at the time that he owed that sum to the PL for money borrowed of him, and had agreed to pay it to him the then next day; that the DF in consideration thereof, at the time of receiving the money, promised ot pay it to the PL the next day.

Issues: Whether the contract was unenforceable for want of privity.

Procedural History: The court overruled a motion to nonsuit. The cause was submitted to the jury, and they found a verdict for the PL for the amount of the loan and interest, $344.66. DF appealed to the Superior Court, who affirmed the judgment.

Judgement: Affirmed in favor of the PL.

Reasoning: Where one person makes a promise to another for the benefit of a third person, that third person may maintain an action upon it. The DF raised a number of arguments. That the DF was not the trustee of the property of Holly for the benefit of the PL. However, the court found that though the aforementioned principle is applicable in trust cases, it is not exclusive to trust cases. The DF further argued that Holly was the party who could have released the DF from his promise, not the PL, which the court simply disagreed with and in any event, DF owed money to someone.

Rules: Where one person makes a promise to another for the benefit of a third person, that third person may maintain an action upon it....