Batsakis_Case_brief - Can mere inadequacy of consideration...

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Case Name: Batsakis v. Demotsis, 226 SW2d 673 (Court of Civil Appeals of Texas, 1949) Procedural History: Plaintiff sued for repayment of contracted for loan, amount $2000 plus interest. Jury awarded Plaintiff $750 plus interest, and Plaintiff. Facts: The defendant, Demotsis, was suffering financial hardship in Nazi-occupied Greece. She had money in the USA, but could not access it. Thus, she borrowed money from Batsakis. Though the terms of the contract state otherwise, Batsakis borrowed 500,000 drachmas, which was worth only $25 American dollars at the time. Nevertheless, Demotsis agreed, in writing to pay the plaintiff $2,000 plus interest. After the war Batsakis sought repayment of the loan arguing that Demotsis should pay the full amount of the note. Demotsis offered to pay $25 plus interest, but not $2000. Batsakis declined the offer and sued Demotsis to recover the amount contracted for. Question/Legal Issue:
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Unformatted text preview: Can mere inadequacy of consideration void a contract? Answer/Holding: No. While a contract is void is there is no consideration, a contract cannot be voided on the grounds that consideration is present, but inadequate. Reasoning: The defendant does not argue that the drachmas she borrow had no value. In fact, the trial court placed a value of $750.00 on them or on the other consideration which plaintiff gave defendant for the instrument if he believed plaintiff's testimony. Therefore, the defendant cannot argue that there is “want of consideration.” Having established that, the court does inquire as to the adequacy of consideration. Adequacy of consideration should not be determined by a court because require courts to place objective values on the items exchanged in contracts, thus infringing on the freedom to individuals to assign items their own idiosyncratic values....
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This note was uploaded on 02/21/2009 for the course LAW LAW 101 taught by Professor Bowman during the Spring '98 term at Cornell College.

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