Case Name: In re ESTATE OF FORD. APPEAL OF DROUILLARD
Court: Michigan Supreme Court
Jurisdiction: Michigan
Decision Date: 1931-10-05
Citations: 255 Mich. 266
Docket Number: Docket No. 82, Calendar No. 35,589
Parties: In re ESTATE OF FORD. APPEAL OF DROUILLARD.
Judges: Wiest, McDonald, Potter, Sharpe, and Fead, JJ., concurred with Clark, J.
Reporter: Michigan Reports
Volume: 255
Pages: 266–271

Head Matter:
In re ESTATE OF FORD. APPEAL OF DROUILLARD.
Contracts — Personal Undertaking — Discharge of Contract by Death of Promisor.
Agreement by third party in writing to indorse notes to be given vendor by contract purchaser for interest to fall due in future was purely personal undertaking, and therefore death of promisor before indorsing any of such notes operated as discharge of contract, although it was executed simultaneously with execution of land contract.
Appeal from Wayne; Richter (Theodore J.), J.
Submitted April 14,1931.
(Docket No. 82, Calendar No. 35,589.)
Decided October 5, 1931.
Claim by George E. Drouillard against the estate of John Ford, deceased. From disallowance of the claim in probate court, plaintiff appealed to circuit court. Directed verdict and judgment for defendant. Plaintiff appeals.
As to effect on contract of the death of a party thereto, see annotation in 23 L. R. A. 707, 709; 45 L. R. A. (N. S.) 349, 350.
Affirmed.
Thomas A. E. Weadock, for plaintiff.
Austin & Newman, for defendant.

Opinion:
Clark, J.
George E. Drouillard, vendor, and Clinton C. DeWitt, purchaser, in a land contract, made, on June 3, 1927, a supplemental or collateral agreement by which the vendor promised to accept from the purchaser the first four installments of interest, which were to become due semi-annually from and after July 1, 1927, as follows:
"On December 31, 1927, one-half cash and one-half by note bearing six per cent, interest payable semi-annually for two years;
"On July 1, 1928, one-half cash and one-half by note bearing six per cent, interest payable semiannually for one and one-half years;
"On December 31, 1928, one-half cash and one-half by note bearing six per cent, interest payable semi-annually for one year;
"On July 1, 1929, one-half cash and one-half by note bearing interest at six per cent, for six months."
On this agreement was written the following by John Ford:
"In consideration of George E. Drouillard agreeing to accept notes for one-half of the interest as above provided I agree to indorse said notes and become responsible to George E. Drouillard for their payment.
"John Ford."
John Ford died September 27, 1927. It will be seen that he died before any of such interest became due and before any of the notes was to be made and indorsed, and it follows that he indorsed none of them.
A claim upon this writing is presented against the estate of Mr. Ford. The trial judge, without a jury, found for the estate, and judgment was entered accordingly. Claimant appeals.
The trial judge considered and accepted but one of the reasons advanced by the estate for decision in its favor — that there was no competent evidence from which damage might be determined, and this view made consideration of other reasons unnecessary. Perhaps he is right, but we prefer to rest decision on other ground.
Mr. Ford's undertaking to indorse the notes and thereby become responsible for their payment was purely personal and died with him.
It is said in 5 Page on Contracts (2d Ed.), p. 4722:
"If a contract is to be performed in part by delivering notes in the future to be executed by one party, the personal credit of such party who is to execute such notes is a material element of the contract, and accordingly his death without executing such notes operates as a discharge of such contract."
See, also, Browne v. Fairhall, 213 Mass. 290 (100 N. E. 556, 45 L. R. A. [N. S.] 349); note 23 L. R. A. 707; 3 Elliott on Contracts, § 1906; 3 Williston on Contracts, § 1940; 13 C. J. p. 644; 6 R. C. L. § 372, pp. 1009-1011. Affirmed.
Wiest, McDonald, Potter, Sharpe, and Fead, JJ., concurred with Clark, J.