Emerson v. Universal Products Co.

162 A. 779, 35 Del. 277, 5 W.W. Harr. 277, 1932 Del. LEXIS 26
Superior Court of Delaware·Decided October 17, 1932·No. No. 26·Published·Cited by 5 cases

Opinion

Rodney, J.,

delivering the opinion of the Court:

This case raises for the first time in Delaware, the precise question whether an oral contract which by its terms cannot be completely performed by both parties within a year comes within the Statute of Frauds when the [280] complaining party could and did within the year fully and completely perform his part of the agreement.

Our Statute is almost the exact counter part of Section 4 of the English Statute of 29 Charles II, and was adopted by our Colonial Assembly in 1752. It is suggested by the plaintiff that because the Delaware Statute was adopted from the English Law that the English decisions construing their own act have peculiar weight in this case. It is only necessary to suggest that the Delaware Statute was adopted many years before any construction of the English Act that we have seen pertinent in this case and these cases, therefore, are entitled to that measure of respect that their reasoning warrants.

Because, however, our Statute of Frauds was essentially a re-enactment of the English Statute, it seems logical first to consider the construction placed there upon it. Of the English Rule there can be no doubt. 7 Halsbury Laws of England, p. 366. Beginning with Donellen v. Read, 3 B. & Ad. 899, 23 E. C. L. 215, 6 Eng. Rul. Cas. 298, 110 Eng. Reprint 330, the English cases have all consistently held that the Statute of Frauds only applied to cases where the contract was wholly executory on both sides; that the Statute was no defense where it appeared that the contract was to be and had been fully performed by the plaintiff within the year even though complete performance could not be made by the defendant until after the expiration of the year. Donellen v. Read was followed by Cherry v. Heming, 4 Exch. 631; Miles v. Neto Zealand Alford Co., 32 Ch. Div. 266; Bevan v. Carr, 1 Cababe & Ellis 499; Smith v. Neale, 2 C. B. (N. S.) 67. See, also, Bracegirdle v. Heald, 1 B. & Ad. 722; Reeve v. Jennings, 2 K. B. (1910) 522.

In Smith v. Neale the facts were somewhat similar to the case at bar. Here the plaintiff had assigned a patent to ■defendant reserving a percentage of profits of manufacture covering a number of years. As indicated by the head note the Court held:

[281] “* * * An agreement whereby all that is to be done by the plaintiff constituting one entire consideration for the defendants promise is capable of being performed within the year and no part of what the plaintiff is to do constituting such consideration is intended to be postponed until after the expiration of the year is not within the fourth section of the Statute of Frauds notwithstanding the performance on the part of the defendant is or may be extended beyond that period.”

Turning then from the English authorities we find a vast preponderance of American cases adopting and approving the same rule. Some of the general authorities where these citations are collected are 27 C. J. 350, 356; 8 A. & E. (1st Ed.) 692; 29 A. & E. (2d Ed.) 943, under heading of Verbal Agreements; City of Tyler v. St. Louis Southwestern R. Co., 99 Tex. 491, 91 S. W. 1, 13 Ann. Cas. 916, and note; East Tennesee Tel. Co. v. Paris Electric Co., 156 Ky. 762, 162 S. W. 530, Ann. Cas. 1915C, 548, and note; Seddon v. Rosenbaum, 85 Va. 928, 9 S. E. 326, 3 L. R. A. 337, and note; 6 Eng. Rul. Cas. 297; 1 Williston on Contracts, § 504; 2 Elliott on Contracts, § 1289, etc.; 2 Page on Contracts, §§ 1295, 2240; Browne on Statute of Frauds (5th Ed.), p. 385; 1 Reed on Statute of Frauds, § 206, etc.; Smith on Frauds, § 352, and note.

It is vain to attempt to disguise the fact that the rule adopted in England and some, twenty odd states of this Union has been severely and ably criticized. In Massachusetts, Vermont, Michigan, and to some extent in New York, the Courts have refused to accede to the doctrine and Marcy v. Marcy, 9 Allen (Mass.) 8, and Pierce v. Paine’s Estate, 28 Vt. 34, leave little to be added in support of the minority view. The opinion of Chief Justice Bigelow in Marcy v. Marcy, supra, seems in particular to be approved in Browne Statute of Frauds, § 290, 1 Reed Statute of Frauds, and in the excellent article in 29 Amer. Law Review 481.

Before listing some of the authorities reaching the same conclusion reached by this Court, a short discussion of the underlying principles may not be inappropriate.

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Emerson v. Universal Products Co., 162 A. 779, 35 Del. 277, 5 W.W. Harr. 277, 1932 Del. LEXIS 26 (Del. Ct. App. 1932).

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