Source: https://chestofbooks.com/business/law/Handbook-Law-Of-Contracts/Failure-Of-Consideration.html
Timestamp: 2019-04-22 20:28:14+00:00

Document:
"Strictly speaking, there can be no such thing as a failure of consideration. Either the promisor receives the consideration he bargained for, or he does not. If he does not receive the consideration, there is no contract; if he does receive the consideration, there can be no failure of consideration thereafter." 49 The term is, however, frequently used to express the situation which arises where the promisee fails wholly or partly to perform a promise which was the consideration of the promise of the promisor. Some cases usually considered under the head of failure of consideration may be mentioned here.
47 Wiley v. Inhabitants of Athol, 150 Mass. 426. 23 N. E. 311, 6 L. R. A. 342, per Field, J. Bee "Contracts," Dec. Dig. (Key-No.) § 278; Cent. Dig. §§ 1207-1215.
48 Ante, p. 558; UNITED STATES v. BEHAN, 110 U. S. 338, 4 Sup. Ct 81, 28 L. Ed. 168, Throckmorton Cas. Contracts, 409; Hinckley v. Steel Co., 121 U. S. 264, 7 Sup. Ct. 875, 30 L. Ed. 967; Hood v. Exploration Co. (C. C.) 106 Fed. 408; Mooney v. Iron Co., 82 Mich. 263, 46 N. W. 376; Caldwell v. Myers, 2 S. D. 506, 51 N. W. 210; Thompson v. Gaffey, 52 Neb. 317, 72 N. W. 314; Wellston Coal Co. v. Paper Co., 57 Ohio St 182, 48 N. E. 888; Southern Pac. Co. v. Well Works, 172 I11. 9, 49 N. E. 575; San Francisco Bridge Co. v. Improvement Co., 119 Cal. 272, 51 Pac. 335. See "Contracts,". Dec. Dig. (Key-No.) §§ 300, SOS; Cent. Dig. §§ 7374, 1424-1429.
49 Harriman, Cont § 524. See 9 Cyc. Law & Proc. 369.
51 Jones v. Ryde, 5 Taunt. 488; Gurney v. Womersley, 4 El. & Bl. 133; Terry v. Bissell, 26 Conn. 23; Aldrich v. Jackson, 5 R. I. 218; Merriam v. Wolcott, 3 Allen (Mass.) 258, 80 Am. Dec. 69. See, also, Whitney v. Bank, 45 N. Y. 303; Bell v. Dagg, 60 N. Y. 528. See "Bills and Notes," Dec. Dig. (Key-No.) § 97; Cent. Dig. §§ 166-212.
52 Burchfield v. Moore, 2 El. & Bl. 683 (material alteration); Gompertz v. Bartlett, 2 EL & Bl. 849, 23 Law J. Q. B. 65 (a bill of exchange purporting to be a foreign bill, which turned out to be a domestic bill, and invalid because unstamped); Wood v. Sheldon, 42 N. J. Law, 421, 36 Am. Rep. 523 (scrip illegally and fraudulently issued); Paul v. City of Kenosha, 22 Wis. 266, 94 Am. Dec 598; Meyer v. Richards, 163 U. S. 3S5, 16 Sup. Ct 1148, 41 L. Ed. 199 (bond stricken with nullity by constitutional provision adopted after act authorizing issue). See "Bills and Notes," Dec. Dig. (Key-No.) § 97; Cent. Dig. §§ 166-212; "Contracts," Cent. Dig. §§ 398-400.
53 Nash v. Lull, 102 Mass. 60, 3 Am. Rep. 435; Harlow v. Putnam, 124 Mass. 553; Shepherd v. Jenkins, 73 Mo. 510; Green v. Stuart, 7 Baxt (Tenn.) 418; Herzog v. Heyman, 151 N. Y. 587, 45 N. E. 1127, 56 Am. St Rep. 646. Cf. Chemical Electric Light & Power Co. v. Howard, 148 Mass. 352, 20 N. E. 92, 2 L. R. A. 168; Gloucester Isinglass & Glue Co. v. Cement Co., 154 Mass. 92, 27 N. E. 1005, 2 L. R. A. 563, 26 Am. St. Rep. 214. See "Bills and Notes," Dec. Dig. (Key-No.) § 97; Cent. Dig. §§ 166-212.
54 Lambert v. Heath, 15 Mees. & W. 487; Bryant v. Pember, 45 Vt. 487; Blattenberger v. Holman, 103 Pa. 555; Neidefer v. Chastain, 71 Ind. 363, 36 Am. Rep. 198; Wheat v. Cross, 31 Md. 99, 1 Am. Rep. 28; Hunting v. Downer, 151 Mass. 275, 23 N. E. 832. On this principle, it has been held that where bonds are sold which are invalid because the corporation has not power to issue them, or failed to comply with the law in their issuance, the purchaser is liable on his promise to pay. Otis v. Cullum, 92 D. S. 447, 23 L. Ed. 496; Harvey v. Dale, 96 Cal. 1G0, 31 Pac. 14; Sutro v. Rhodes, 92 Cal. 117, 28 Pac. 98. But see Hurd v. Hall, 12 Wis. 112. See "Bills and Notes," Dec. Dig. (Key-No.) § 97; Cent. Dig. §§ 166-212.
55 Mondel v. Steel, 8 Mees. & W. 858; Lyon v. Bertram, 20 How. 149, 154, 15 L. Ed. 847; Bradley v. Rea, 14 Allen (Mass.) 20; Dailey v. Green, 15 Pa.
118, 126; Dayton v. Hooglund, 39 Ohio St. 671; Underwood v. Wolf, 131 I11. 425, 23 N. E. 598, 19 Am. St. Rep. 40; Morehouse v. Comstock, 42 Wis. 626; Polhemus v. Helman, 45 Cal. 573; Breen v. Moran, 51 Minn. 525, 53 N. W. 755; Central Trust Co. v. Manufacturing Co., 77 Md. 202, 26 Atl. 493. See "Sales," Deo. Dig. (Key-No.) §§ 425, 428; Cent. Dig. §§ 1207, 1208, 1214,-1223.
56 Withers v. Greene, 9 How. 213, 13 L. Ed. 109; Ruff v. Jarrett, 94 I11. 475; Wentworth v. Dows, 117 Mass. 14, per Colt, J.; Wright v. Davenport, 44 Tex. 164; Bayview Brewing Co. v. Techlenberg, 19 Wash. 469, 53 Pac 724. See "Sales," Dec. Dig. (Key-No.) § 21; Cent. Dig. §§ 83-88.
57 Thompson v. Manufacturing Co., 29 Kan. 476; Toledo Sav. Bank v. Rathmann, 78 Iowa, 288, 43 N. W. 193; Aultman & Taylor Co. v. Trainer, 80 Iowa, 451, 45 N. W. 757; Brown v. Weldon, 99 Mo. 564, 13 S. W. 342. See "Sales," Dec. Dig. (Key-No.) § 21; Cent. Dig. §§ 33-38.
58 Stevens v. Johnson, 28 Minn. 172, 9 N. W. 677; Nichols & Shepard Co. v. Soderquist, 77 Minn. 509, 80 N. W. 630; Russ Lumber & Mill Co. v. Water Co., 120 Cal. 521, 52 Pac. 995, 65 Am. St. Rep. 186. See "Sales," Dec. Dig. (Key-No.) § 21; Cent. Dig. §§ 83-38.
59Benj. Sales (6th Am. Ed.) § 639; Tiffany, Sales, 165.
60Eichholz v. Bannister, 17 C. B. (N. S.) 708; Chenault v. Bush, 84 Ky. 528, 2 S. W. 160; Flandrow v. Hammond, 148 N. Y. 129, 42 N. E. 511. And see Gould v. Bourgeois, 51 N. J. Law, 361, 18 Atl. 64. See "Sales," Dec. Dig. (Key-No.) § 268; Cent. Dig. §§ 746-151, 163.
61 Murphy v. Jones, 7 In 529; Anderson v. Armstead, 69 I11. 452; Ferguson v. Teel, 82 Va. 690; Curtis v. Clark, 133 Mass. 509; Baird v. Laevison, 91 Ky. 204, 15 S. W. 252; Redding v. Lamb, 81 Mich. 318, 45 N. W. 997; Hall v. McArthur, 82 Ga. 572, 9 S. E. 534. See "Vendor and Purchaser" Dec. Dig. (Key-No.) § 15; Cent. Dig. § 16.

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