Hamilton Bancshares, Inc. v. Leroy

Hamilton Bancshares (plaintiff) obtained 80-day options to buy bank stock from the Leroys and the Gordens (defendants). Each contract recited "one Dollar and other good and valuable consideration," but Hamilton never actually paid the $1. It did pay $5,000 in earnest money under each contract, refundable if the option went unexercised. The defendants withdrew both options, and Hamilton sued for specific performance. The trial court granted summary judgment for the defendants, reasoning the refundable earnest money gave them no real benefit and so there was no consideration. Hamilton appealed.