Batsakis v. Demotsis
Court of Civil Appeals of Texas
226 S.W.2d 673 (1949)
During wartime scarcity in 1942, Batsakis (plaintiff) gave Demotsis (defendant) 500,000 drachmas, worth only about $25 at the time, in exchange for her signed promise to repay $2,000 in American currency plus 8 percent annual interest. When Batsakis later sued to enforce the agreement, Demotsis argued it failed for lack of consideration because what she actually received was worth far less than what she promised to pay. The trial court awarded Batsakis a reduced amount based on the $25 actual value plus interest, and Batsakis appealed for the full contractual amount.
Whether an agreement in which one party provides minimal consideration relative to the other party's consideration nonetheless constitutes a valid, enforceable contract.