Supreme Court of Michigan
101 N.W. 852 (Mich. 1904)
William Fischer gifted his property to his daughter, Bertha Fischer (plaintiff). The deed contained a covenant against encumbrances, except for two mortgages which William promised to pay. In exchange, Bertha handed her father one dollar, but it was clear that the conveyance was a gift. Williams never paid the mortgages and, after his death, one of the mortgages was foreclosed and satisfied out of part of the property that William had given to Bertha. Bertha brought suit against Union Trust (defendant), the administrator of William’s estate, to enforce his promise to pay the mortgages. The trial court ruled in favor of Bertha and the circuit court affirmed. Union Trust appealed.
Rule of Law
Holding and Reasoning (Grant, J.)
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