Court of Appeals of New York
39 N.E. 330 (1895)
Benjamin Strong (Strong) (plaintiff) sold a business on credit to Gerardus Sheffield (Gerardus), husband of Louisa Sheffield (Louisa) (defendant). Strong and Gerardus memorialized the debt in a promissory note that was payable on demand. Louisa endorsed the note, per Strong’s request. Strong later brought an action against Louisa for payment on the promissory note. The question before the trial court was whether there was consideration for Louisa’s agreement to be responsible for Gerardus’ debt. Strong testified that he had promised to hold the note and not sell it or collect on it until he decided that he wanted the money, provided that Louisa endorsed it. Strong then held the note for two years before demanding payment. The trial court ruled in favor of Strong. The General Term reversed the trial court on an initial appeal by Louisa, and Strong appealed that reversal to the Court of Appeals of New York.
Rule of Law
Holding and Reasoning (Andrews, C.J.)
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