Hutchison v. The Royal Institution for the Advancement of Learning

Hutchison v. The Royal Institution for the Advancement of Learning

Ross’s 1920 subscription constituted a legally enforceable obligation (lawful cause under Quebec law) and the University’s forbearance/extension of time given at Ross’s request constituted valuable consideration under the common law and s.53 of the Bills of Exchange Act; therefore the promissory note was supported by consideration and the trustee’s disallowance of the claim was incorrect.

Citation
[1932] SCR 57
Parties
Appellant (trustee in Bankruptcy): James Hutchison; Respondent (petitioner): The Royal Institution for the Advancement of Learning (McGill University); Insolvent / Debtor: J. K. L. Ross
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
6 October 1931
Procedural Posture
Bankruptcy Appeal / Appeal to the Supreme Court of Canada (final)
Outcome
Appeal dismissed
Legal Topics
Consideration, Promissory Note, Subscription Pledge, Forbearance / Extension of Time, Civil Code (cause)
Source Language
English
Contract Bankruptcy Bills of Exchange Consideration Promissory Note Subscription Pledge Forbearance / Extension of Time Civil Code (cause)

Case Brief

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Parties

James Hutchison

Appellant (trustee in Bankruptcy)

The Royal Institution for the Advancement of Learning (McGill University)

Respondent (petitioner)

J. K. L. Ross

Insolvent / Debtor

Procedural Posture

Bankruptcy Appeal / Appeal to the Supreme Court of Canada (final)

Legal Issues

  1. 1 Whether Ross’s 1920 subscription and pledge created a legally enforceable obligation under the law of Quebec
  2. 2 Whether the promissory note dated December 1, 1925 was supported by valuable consideration
  3. 3 Whether forbearance/extension of time constitutes valuable consideration under common law and s.53 of the Bills of Exchange Act

Ratio Decidendi

Ross’s 1920 subscription constituted a legally enforceable obligation (lawful cause under Quebec law) and the University’s forbearance/extension of time given at Ross’s request constituted valuable consideration under the common law and s.53 of the Bills of Exchange Act; therefore the promissory note was supported by consideration and the trustee’s disallowance of the claim was incorrect.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs
  • Respondent’s claim for $118,862.19 admitted and to be collocated according to its rank