Fischer v. Union Trust Co.
138 Mich. 612, 68 L.R.A. 987, 101 N.W. 852 (1904)
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Rule of Law:
A promise to make a future gift that is supported only by meritorious consideration, such as love and affection, is not a legally enforceable executory contract. To be enforceable, a promise must be supported by valuable consideration.
Facts:
- A father decided to provide for his daughter by gifting her a parcel of land.
- The land was encumbered by existing mortgages for which the father was liable.
- The father executed and delivered a deed to his daughter, transferring ownership of the land to her.
- The deed contained an express promise from the father that he would pay off the existing mortgages on the property.
- The stated consideration was one dollar, which was treated as a formality, while the true motivation was parental love and affection.
- The father died before paying the mortgages.
Procedural Posture:
- The daughter (claimant) filed a claim against her deceased father's estate in the trial court to enforce his promise to pay the mortgages on a property he had gifted her.
- The trial court entered a judgment in favor of the daughter.
- The representative of the father's estate appealed the judgment to the state's highest court.
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Issue:
Does a grantor's written promise in a deed of gift to pay existing mortgages on the gifted property, which is supported only by the meritorious consideration of love and affection, create an enforceable contract against the grantor's estate?
Opinions:
Majority - Grant, J.
No, a grantor's written promise in a deed of gift to pay existing mortgages on the gifted property, which is supported only by the meritorious consideration of love and affection, does not create an enforceable contract against the grantor's estate. The court reasoned that there are two distinct components to the transaction: the executed gift of the land and the executory promise to pay the mortgages. The gift of the land was completed upon delivery of the deed and is valid. However, the promise to pay the mortgages in the future is a separate, executory contract that requires its own valuable consideration to be enforceable. The court held that 'meritorious consideration,' such as a father's love for his daughter, is not sufficient at law to enforce an executory promise. This promise is akin to a gratuitous promissory note, which is merely a promise of a future gift and is a legal nullity until it is actually performed.
Analysis:
This case solidifies the distinction between an executed gift and an executory promise to make a gift. It clarifies that including a gratuitous promise within an otherwise valid deed does not make that promise legally binding. The decision reinforces the common law requirement of valuable consideration for contract enforcement, limiting the scope of 'meritorious consideration' to niche equitable remedies. This precedent protects estates from claims based on a decedent's unfulfilled donative intentions, ensuring that only promises part of a bargained-for exchange are enforced after death.
