Also known as: promises to pay · promised to pay · promising to pay
Written by attorneys · grounded in primary & secondary sources — see below
3 senses
An obligation, typically a debt, that a mortgage or other security device must secure. The obligation may be existing or future and may be stated in the mortgage or in a separate note. Without a valid underlying obligation the security device is unenforceable.
An obligation, typically a debt, that a mortgage or other security device must secure. The obligation may be existing or future and may be stated in the mortgage or in a separate note. Without a valid underlying obligation the security device is unenforceable.
Pinnacle Foundation supplied steel beams to River Steel for a construction project. River Steel executed and recorded a mortgage on its headquarters that recited it secured all sums due under the supply contract. After the prime contract ended, River Steel stopped paying the remaining invoices. Pinnacle commenced foreclosure, relying on the recorded mortgage to reach the headquarters property for the unpaid balance.
A statement that a party will pay medical, hospital, or similar expenses arising from an injury. Such a statement is inadmissible to prove liability for the injury.
Ellie was injured when a bank door shattered. The branch manager told Ellie and bystanders that Blue Fund would cover all emergency room and follow-up medical costs. Ellie later sued the bank for negligence and sought to introduce the manager's statement as evidence of liability. The court excluded the statement.
A new promise to pay all or part of an antecedent contractual or quasi-contractual debt owed by the promisor. The new promise is binding if the original debt remains enforceable or would be enforceable except for the statute of limitations or a discharge in bankruptcy.
Perry Pratt owed Phoenix Technologies $45,000 on a contract that became unenforceable after the statute of limitations ran. Pratt later sent a letter to Phoenix admitting the present debt and promising to pay it in installments. Phoenix sued on the new promise. The court enforced the obligation.
A statement that a party will pay medical, hospital, or similar expenses arising from an injury. Such a statement is inadmissible to prove liability for the injury.
A new promise to pay all or part of an antecedent contractual or quasi-contractual debt owed by the promisor. The new promise is binding if the original debt remains enforceable or would be enforceable except for the statute of limitations or a discharge in bankruptcy.
Each sense below has its own examples, sources, and questions.
Security relationships require a valid underlying obligation. If the obligation is void or discharged, the mortgage may be extinguished or rendered unenforceable. The mortgage remains enforceable only to the extent a valid debt continues to exist.
No. Evidence of furnishing, promising to pay, or offering to pay medical expenses resulting from an injury is not admissible to prove liability for the injury. The rule applies even when the statement is made immediately after the incident and in the presence of witnesses.
Pedro Pacheco's personal liability on a business loan was discharged in bankruptcy. After discharge Pacheco told the lender he would repay the full amount in monthly installments. The lender sued when Pacheco stopped paying. The court held the new promise binding.
Philip Powell asked Pearl Porter to locate a buyer for his equipment on commission. Porter secured a purchaser and demanded the agreed fee. Powell refused, claiming no express promise existed. The court inferred a promise to pay from Powell's request and Porter's performance.
Progressive Healthcare purchased software from ProCD. The box contained a license requiring payment of a higher commercial fee if the software was used for business purposes. Progressive used the software commercially without paying the higher fee. ProCD sued to enforce the payment obligation stated in the license.
A promise to answer for the debt of another is a classic suretyship undertaking that falls within the statute of frauds. It must be evidenced by a writing signed by the party to be charged. Oral assurances that a third party will pay only if the primary obligor defaults are unenforceable absent such a writing.
…Kingdom corporation. Under the terms of the agreement, UGP was to construct a multistory office building above the Terminal. UGP promised to pay Penn Central $1 million annually during construction and at least $3 million annually thereafter. The rentals would be offset in part by a loss of some $700,000 to $1 million in net rentals…