Duncan v. Black
Court of Appeals of Missouri
324 S.W.2d 483 (Mo. 1959)
Black (defendant) sold Duncan (plaintiff) farmland along with a 65-acre cotton allotment - even though cotton allotments were legally granted only by the county government, not transferable by private individuals. When the first year's official allotment fell short, Black privately transferred acreage from his own allotment to make up the difference; in year two, when Duncan again asked for a similar transfer, Black refused and instead promised Duncan $1,500 not to sue for breach of the original land contract. Black never paid, and Duncan sued to recover the $1,500. The trial court ruled for Black, and Duncan appealed.
Whether a settlement agreement consisting of a promise to forbear from filing suit for breach of an inherently illegal contract is supported by sufficient consideration to be enforceable.