Seaver v. Ransom - Case Brief PDF

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Contracts II

Class 29

Seaver v. Ransom Court: Court of Appeals of New York (1918)

Facts: Judge Beman and his wife were advanced in year. Mrs. Beman was about to die. She had a small estate, consisting of a house and lot and little else. Judge Beman drew his wife’s will according to her instructions. She was not happy with the will, as she wanted to leave the PL her house, but was afraid she was too ill to sign a revised will. Judge Beman agreed to leave the PL the house in his will.

Issues: Text

Procedural History: PL recovered the property in the trial court. The intermediate court affirmed.

Judgement: Affirmed.

Reasoning & Rules: The general rule was that privity between a PL and a DF is necessary to the maintenance of an action on the contract. On the other hand, the right of the beneficiary to sue on a contract made expressly for his benefit has been fully recognized in many American jurisdictions as the prevailing rule. In New York, the right for a beneficiary to sue on contracts may be had in cases where there s a pecuniary obligation running from the promisee to the beneficiaries or where it is made for the benefit of the wife, affianced wife, or child of a party to the contract. The right of the third party will also be upheld when the municipality seeks to protect its inhabitants by covenants for their benefit and when, at the request of a party to the contract, the promise runs directly to the beneficiary although he does not furnish the consideration. The court here recognized the distinction between a child and a childless aunt wishing to provide for her niece. To maintain the action by the third person, there must be a debt or duty owing by the promisee to the party claiming to sue upon the promise. In this situation, the equities are with the PL, and they may be enforced in this action, whether it be regarded as an action for damages or an action for specific performance to convert the DF into trustees for the PL’s benefit under the agreement....