Batsakis v. Demotsis

Facts:

• D borrowed 500k drachmae (worth $25) from P while they were both in Greece during WWII.
• D promised to pay P $2k at a later time with 8% interest.
• D later refused to pay, so P sued D for principal and interest.

Procedural History:

• Trial court found for P, but only for $750 plus interest.
• TX Court of Appeals affirmed, and found for full $2k plus interest, found for P.

Issues:

• Can inadequacy of consideration (i.e. large disparity between values of the promise for promisor versus promisee) void a contract?

Holding/Rule:

• Inadequacy of consideration will not void a contract.

Reasoning:

• The D got exactly what she bargained for according to her own testimony.
• The sale amounted to a sale by P of the 500k drachmas in consideration of the $2k plus interest repayment by the D.
• Want of consideration is not valid because the 500k drachmas did have value.  

Dissent:

• None.

Notes:

• Inadequacy of consideration.