Draper v. . Snow

20 N.Y. 331
CourtNew York Court of Appeals
DecidedDecember 5, 1859
StatusPublished
Cited by25 cases

This text of 20 N.Y. 331 (Draper v. . Snow) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Draper v. . Snow, 20 N.Y. 331 (N.Y. 1859).

Opinions

Selden, J.

Although the complaint in this case avers that the guaranty was executed at the same time with the principal contract, yet if it appear from the complaint itself that the averment is one which could not by possibility be supported upon a trial, the plaintiff cannot avail himself of it upon demurrer. The contract and guaranty are both set forth. If from these it appears, either expressly or by inference, that they were executed at the same time, or if the plaintiff could be permitted upon a trial to prove their simultaneous execution by parol, the averment is available to the plaintiff; otherwise tiot. It becomes necessary, therefore, to consider these questions.

The guaranty is written at the foot of the contract, upon the same paper; the principal contract being dated, but the guaranty without any separate date. Under these circumstances a presumption may arise, in the absence of all proof to the contrary, that the contract and guaranty were both executed at the *333 game time, especially where, as in this case, the consideration of the principal contract is executory: but I will not dwell upon this point, as I entertain no doubt, .that it would be entirely competent for the plaintiff, upon a trial, to prove by parol that the papers were simultaneously executed. Whenever the time of the execution of any writing, even of the most solemn kind, becomes material, it may be proved by parol; not merely to supply an omission, where the paper itself is without date, but in opposition to the date, where it contains one. The time when a contract is executed is no more a part of the contract than the place where it is executed. Both belong to that class, of attending and surrounding circumstances which may always be resorted ■ to for assistance in explaining and applying the terms of the contract.

This rule applies to contracts required by the statute of frauds to be in writing, no less than to all other contracts. That statute abrogates none of the rules of the common law, except such as are necessarily in conflict with it. Judge Cow- ■ bit, speaking on this subject, in Douglass v. Howland (24 Wend., 35), says: “ Some of the most difficult cases on the rule respecting the ambiguitas latens of written contracts, have arisen on these guarantees. You are to see what they mean in such "cases, by looking to collateral facts or surrounding circumstances. You do this in order to sustain the most solemn contracts, such as deeds or wills.”

Many other authorities might be cited to the same effect, but it is unnecessary, as I deem the point too plain to admit of serious question.

There is no doubt that the principal contract in this case expresses the consideration with sufficient clearness; and we are to assume upon this demurrer that the guaranty was executed at the same time with it. The case presents, therefore, in the most unmixed form, the question whether, under such circumstances, the consideration expressed in the principal contract can be read as a part of the contract of guaranty, so as to remove the objection arising under the statute of frauds, which requires not only that the guaranty should be in *334 writing, but that the "writing should express the consideration of such guaranty. (2 R. S., 135, § 2.)

There have been several decisions of this court since its organization which bear upon this question; and it will scarcely be necessary to go beyond these decisions in considering the present case. The plaintiff’s counsel, to maintain that the guaranty does express the consideration, insists m his printed points that the principal contract and the guaranty, having been executed at the samejtime, to the same party, and in relation to the same subject matter, should “be deemed to have been parts of the same transactionand that “the two instruments may be read together as one contract

The rule here invoked is a familiar one; but three things are essential to its applipation, viz: The contracts must be executed at the same time, they must relate to the same matter and must be between the same parties. It is by no means sufficient, as the counsel has assumed, that they should be executed to the same party. A single familiar illustration will sufficiently test this, and show the importance of the distinction. Suppose two insurance companies were to execute separate policies at the same time, upon the same property, and to the same person, it would scarcely be claimed that the two could be read together as one contract; and yet the case would embrace every element which the counsel, as it would seem from his point, deems essential to that result. The two contracts would be executed at the same time, to the same party, and in relation to the same subject matter.

In the present case, Hazewell, the principal, and Snow, the guarantor, have both made contracts with the plaintiff, at the same time, and relating to the same subject; but Snow is not a party to Hazewell’s contract, nor Hazewell to that of Snow; nor are the two contracts identical in substance. Hazewell agrees to purchase certain stocks, and that he himself will pay. Snow agrees neither to purchase nor pay, but that Hazewell shall do both. Hazewell is hable primarily, Snow only in case of his default. The contracts, therefore, are plainly separate and distinct, and cannot be read together as one. To a certain *335 extent, no doubt, the principal contract may be read in connection with and as a part of the guaranty. The latter impliedly refers to the former, for a statement of what the guarantor undertakes that the principal shall do. But this implication clearly does not extend to the consideration. That may be the same, or it may be other and different. There can be no presumption in this case that it is the same; and even if there could, that would not satisfy the statute, which requires the consideration to be expressed in the guaranty.

The plaintiff’s counsel relies mainly upon the case of Union Bank v. Coster's Executors (3 Comst., 204), to support his position. But the decision in that case, does not necessarily rest, and cannot, I think, be sustained, upon the doctrine that different instruments made at the same time, in respect to the same matter, are to be read and construed together; because there as here, one essential circumstance was wanting, viz.: an identity of parties. The primary contract in that case and in this, are very much alike in respect to the consideration, which is executory in both. But the guarantees are very different. In the case of Coster it was as follows: “ I hereby guaranty the due acceptance and payment of any draft, issued in pursuance of the above credit."

It would be difficult to make two guarantees more unlike in frame and structure than the two under consideration. The guaranty in the present case is entirely silent as to the things guaranteed to be done; that in the Coster case contains a pretty full recital of what is guaranteed. Again, the former contains no reference, express or implied, to the consideration of the original contract, or to a consideration of any sort, while the latter may -be construed as expressly referring to the consideration of the principal contract.

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Bluebook (online)
20 N.Y. 331, Counsel Stack Legal Research, https://law.counselstack.com/opinion/draper-v-snow-ny-1859.