Dougherty v. Salt
- D gives P, her nephew, a promissory note for $3k, payable at her death or before.
- "Value Received" was written on the printed form.
- P handed note to her nephew D and did not pay out.
- Lower court jury found for P, trial judge set aside the verdict and dismissed the case.
- Reversed on appeal and reinstated verdict of jury.
- Reversed again and a new trial granted.
- What is required by the receiver of the promise to show consideration?
- The note was the voluntary and unenforceable promise of an executory gift.
- Consideration requires a return promise or some other sort of action or forbearance.
- Nothing is consideration that is not regarded as such by both parties.
- The note was given as a gift and no contract was made since consideration was not given.
- The label of "value received" was immaterial though the maker may have labeled it so.