Vinal v. Richardson

95 Mass. 521
CourtMassachusetts Supreme Judicial Court
DecidedNovember 15, 1866
StatusPublished
Cited by1 cases

This text of 95 Mass. 521 (Vinal v. Richardson) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vinal v. Richardson, 95 Mass. 521 (Mass. 1866).

Opinion

Wells, J.

It is difficult to determine the rights of parties upon pleadings so inartificial and loose as those in the present case. The plaintiff’s declaration sets forth an agreement by the defendant to pay certain sums of money for the future rent, and for arrears of rent due from one Bailey. The copy of agreement annexed shows a contract of guaranty that Bailey shall pay said sums. The declaration does not refer to the copy annexed, nor allege that the contract set forth was in writing. The defendant omits to demur, and seeks to defeat the action by a request to the court to order a nonsuit, or a verdict for the defendant, on the ground that the evidence did not support the declaration, and there was a variance between the claim and the proof.” The case is argued «here by the defendant upon the position that the “ copy of agreement ” is no part of the declaration, 1st, because not referred to as a part of the declaration ; and 2d, because repugnant to the allegations of the declaration.

If these grounds are open to the defendant, they would seem to be fatal to the action. But, upon recurring to the answer, we find that the defendant denies that he ever signed a paper as alleged by plaintiff, and if he did ever sign such a paper, it was without consideration.” We think this cures the defect in the declaration, and makes an issue upon the written agreement set out by the copy annexed, as if it were well set forth by the plaintiff’s allegations. As the copy of agreement thus becomes part of the pleadings, the question of variance in the proof disappears.

The ruling of the court upon the question of consideration was correct. The plaintiff’s forbearance to eject Bailey, and his [526]*526restoration to the relation of tenant at will, were a sufficient consideration for the defendant’s guaranty. Johnson v. Wilmarth 13 Met. 416. Boyd v. Freize, 5 Gray, 553. It is the existence of a consideration, not its quantity, nor quality, nor appropriateness, that gives validity to a contract. It need not be an equivalent. Nor is there any reason for distinguishing between the different parts of this contract, or of its subject matter. A guaranty of past indebtedness requires no other or different consideration from any other contract. The legal quality of the consideration is determined without any regard to the character of the contract that is sought to be based upon it. A consideration bemg shown for the defendant’s agreement, all its provisions alike are supported by it.

The case stated shows no ground for the claim that the plaintiff changed the terms of the contract by his dealings with Bailey. The very consideration of the guaranty was that Bailey should be restored to the relation of tenant at will. That tenancy was again terminated at the defendant’s request, and the easing to another party was its proper sequence. Neither change released the defendant from his contract of indemnity. Mellen v. Nickerson, 12 Gray, 445. There is nothing in the case to sustain the 4th and 5th positions taken by the defendant at the trial.

The ruling of the court upon the measure of damages was correct. It accords with the terms of the guaranty.

The last ruling, that under the circumstances of this case it was not necessary to prove a formal demand upon and refusal by Bailey, or notice of such demand and refusal to the defendant,” was also, in the opinion of a majority of the court, correct. The subject of the guaranty was the payment of certain sums at certain times, both absolute and fixed by the terms of the guaranty itself. It required no act of the plaintiff to precede the performance by Bailey, except the permission for Bailey to remain, which the defendant knew had been given. If Bailey made a corresponding agreement to do what the defendant agreed he should do, it was broken by the mere fact of non-payment, without demand upon him. The same fact was, of itself, a breach of the defendant’s contract of guaranty. A forma [527]*527demand upon Bailey is not necessary to make his failure to pay the rent a breach of his obligation ; and the defendant’s contract is simply that Bailey shall perform his agreement. But, whether Bailey made such a corresponding agreement or not, the defendant, by his guaranty, undertook that Bailey should perform certain specific acts ; and he is liable on his agreement for Bailee’s failure to do those acts.

It is true, there are authorities to the effect that a demand upon the party primarily liable, and notice of his default given to the guarantor, are necessary, before any action can be maintained upon the guaranty. But the better doctrine, and that which seems to us to be best supported, both upon reasoning and authority, is that demand and notice are not essential prerequisites to an action, and need not be alleged nor proved, unless the terms of the guaranty, or the nature of the thing guaranteed, require such proceeding, in order to a proper fulfilment of the obligations imposed by the guaranty upon the party holding it, or in order to establish a default by the principal and a breach of the contract declared on. The necessity of such demand and notice is not incidental to the relation of guarantor and guarantee, as it is to that of indorser and indorsee. It must be derived, if it exist, from the terms of the contract, or the nature and circumstances of the particular case, and not from the general rule.

In a certain class of cases the writing of guaranty has been sometióles treated as a proposition only, requiring from the other party notice of its acceptance in order to make it take effect as a complete contract.

In another class, such as continuing guaranties, and guaranties of future credits of uncertain amount, with or without a fixed limit, it is held that, when the transactions are effected, the guarantor is entitled to be informed of the extent to which the credit has been availed of; that is, the amount of liability for which the guaranty is relied on. But this rule is generally held subject to a qualification that makes the effect of omission to give the notice within a reasonable time depend upon the question whether the guarantor has suffered any loss or been prejudiced thereby. And, in the great diversity of decisions and [528]*528opinions upon this subject, it is difficult to determine whether the notice is to be regarded as an essential condition of the con tract, or whether the want of notice, coupled with some prejudice to the guarantor, furnishes a ground of defence merely. In Babcock v. Bryant, 12 Pick. 133, notice in such cases was held to be essential. But even in this view, the notice, does not serve to fix the liability of the guarantor as for a breach of the contract ; it has no relation to any default of the principal debtor. Its office is to render fixed and absolute that which was indefinite and uncertain by the terms of the guaranty itself; to ripen into perfect obligation that which was originally an undertaking imperfect in the uncertainty of one of its terms. When such notice has been given the case will still stand, in principle, upon the same footing, as to the necessity of demand and further notice of default, as other cases of guaranty where the terms are absolute and the amount fixed.

Many of the authorities which seem to hold such demand .and notice of default necessary are only attempts to extend or apply, without careful discrimination, the principles which relate to continuing guaranties.

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Bluebook (online)
95 Mass. 521, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vinal-v-richardson-mass-1866.