Lawrence v. Fox

Summary

This is a New York Court of Appeals opinion in Lawrence v. Fox, a landmark contracts case. The court held that a third-party beneficiary may sue on a promise made for their benefit, rejecting defenses based on lack of privity and want of consideration. The decision affirmed the judgment for the plaintiff and established the modern rule for third-party beneficiary enforcement.

Holdings

1. A promise made to one person for the benefit of a third person can be enforced by that third person, even though there is no privity between the promisee and the third party, provided there is consideration.

Questions Presented

1. Whether the evidence of Holly's declarations was hearsay and incompetent
2. Whether the defendant's promise to pay the plaintiff was void for lack of consideration
3. Whether there was privity between the plaintiff and defendant to support the action

Disposition

affirmed