Underwood v. Waldron

12 Mich. 73, 1863 Mich. LEXIS 74
CourtMichigan Supreme Court
DecidedDecember 5, 1863
StatusPublished
Cited by22 cases

This text of 12 Mich. 73 (Underwood v. Waldron) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Underwood v. Waldron, 12 Mich. 73, 1863 Mich. LEXIS 74 (Mich. 1863).

Opinion

Campbell J. :

Judgment was rendered against Underwood, in the Circuit Court, upon a subscription made to aid in erecting-college buildings. He, with others, who were induced to subscribe by mutual reliance, agreed to pay certain sums to defendants in error, “for the purpose of purchasing land or erecting a college building, in or near the village of Hillsdale, for the use of the Michigan Central Colleger Plaintiff in error acted as one of a building committee in erecting a building, portions of the subscriptions, including part of his own, having been paid- in, and used for that purj>ose. In the summer of 1853, it was known the college refused to accept the building, or remove to Hills-dale. In September, 1853, the owner of the land conveyed it to plaintiff and others, in trust for the erection thereon of buildings for college purposes, and ' for the transfer [88]*88thereof to trustees who might, within ten years, be incorporated upon the appointment of the Free Will Baptist Conference of Michigan. The parties agreed that the enterprise should go on for these purposes, and, in January, 1854, plaintiff and the others met and renewed their subscriptions, and agreed to pay the unpaid balance. The building was completed, and conveyed by plaintiff in error and others to the corporation designated by the conference, and has been used since for its purposes. Most of the subscriptions have been paid. Plaintiff, in January, 1856, offered to pay in flour made from grown wheat,-but not otherwise.

The conclusions at which we have arrived, under the peculiar state of the record in this case, render it necessary to make some examination of the principles which we think should govern in similar cases.

It is obvious to any one who has given any attention to religious and educational movements, in this country, that few institutions can be established except by combined effort in the form of subscriptions. It is equally clear that the success of such efforts is generally regarded as an advantage to the subscribers, as well as to the public. And whenever a church or school, or other like work, has been completed in reliance upon the promise of individuals to pay for it, if undertaken, courts have generally held the subscribers bound to fulfill their promises which have been thus acted on. But there is some confusion among the cases concerning the grounds, as well as the nature and extent, of the liability of subscribers to such purposes.

The difficulties met with in the cases refer, in general, to the parties to the agreement, or to what is loosely called the consideration, including in that term the assurance that the money promised will be beneficially applied. Objections for the want of parties are frequently classed with objections to the consideration; and parties have been [89]*89discharged upon grounds by no means clear or intelligible. Any extended criticism of the cases would be more curious than profitable, as the whole subject must properly be determined by the rules governing ordinary agreements.

There must therefore be not only a party promising^ but a party to enforce the promise. And, although the amount of consideration is unimportant, the promise of a subscriber can only be enforced where something is done or undertaken in reliance on that promise, in a responsible shape. And, where a subscription is to accomplish a particular object, and no direct pecuniary advantage is to result to the promisor, the consideration must usually 'be something done or undertaken in order to carry out that object. These principles seem to be generally recognized.

It is intimated by Prof. Parsons, 1 Pars. on Cont. 378, that the simple promise of one subscriber to pay money can not be a sufficient consideration for a similar promise by another. But this principle, it is presumed, was intended to apply only where there is no person designated to receive the funds, who assumes or is bound to expend them for the purpose designed. The cases which have denied the force of subscriptions as mutual considerations, are usually cases where no payee is named or designated, or where the one designated is either incapable of acting, or does not assume and is not bound to act: — Boutell v. Cowdin, 9 Mass. 254; Limerick Academy v. Davis, 11 Mass. 113; Farmington Academy v. Allen, 14 Mass. 172. And where this difficulty has not existed, it has been recognized repeatedly that it is a sufficient consideration that others were led to subscribe by the very subscription of the defendant: — Trustees v. Stetson, 5 Pick. 506; Watkins v. Eames, 9 Cush. 537 ; George v. Harris, 4 N. H. 533; Congregational Society v. Perry, 6 N. H. 164; Troy Academy v. Nelson, 24 Vt. 189; Amherst Academy v. Cowls, 6 Pick. 427. Where work is done or expense incurred under a promise, the liability is not disputed by any authority. [90]*90Until the persons designated to receive the money assume their duties — or, where none are designated, until some person incurs expense or liability in fair reliance on the subscriptions — the offer of the subscribers may properly be regarded as liable to withdrawal. In such case the question is not properly whether there is any consideration for the agreement, but whether there is any agreement at all. Much of the confusion in the cases arises from not ■distinguishing between the contract and the consideration, ■and in not drawing any line between different forms of ■subscription to determine who are the contracting parties. There are decisions which hold, that subscriptions in favor ■of persons or corporations legally bound to apply such funds as are subscribed, in accordance with the wishes of the donors, need no acceptance or further action to make them binding on the subscribers: —Troy Academy v. Nelson, 24 Vt. 189; Trustees v. Stetson, 5 Pick. 506; Amherst Academy v. Cowls, 6 Pick. 427. In other cases there must, as it. would seem, be an acceptance of the trust or duty, by some .one competent in law to undertake it. And in all cases the object must be one which is not rendered evidently impossible by law or otherwise.

But where there is no legal or natural obstacle to the performance of the thing designed, and lawful means are provided, and competent agents are designated and accept their trust, it is not easy to see how such an agreement differs from any other valid contract whereby parties contract to furnish funds for a common object beneficial to them both. We can not hesitate to hold that a school or church, or other similar institution, which men are anxious to have built, and promise to pay for, is “ valuable ” to them in a legal sense. In most cases there is a pecuniary value in the enhanced price of neighboring property. But, apart from this, any worthy purpose for which men generally are willing to expend money, must be regarded by courts as worth money, when it is promised. We know of no safer test to apply to human transactions.

[91]*91Had the declaration been properly framed,- we should, therefore, be_ compelled to hold that the plaintiff in error was liable in this ■ action. And we do not think the evidence admitted would have been improperly received to establish the case under proper pleadings. But we do not think the declaration so framed as to maintain the judgment.

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Bluebook (online)
12 Mich. 73, 1863 Mich. LEXIS 74, Counsel Stack Legal Research, https://law.counselstack.com/opinion/underwood-v-waldron-mich-1863.