Batsakis v. Demotsis - Rational: The contract was valid...

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Batsakis v. Demotsis 226 S.W2d 673 Fact: Procedural Facts: Operative Facts: During WWII, both Batsakis and Demotsis were in Greece. They wrote up a contract basically stating, that, if Batsakis would lend 500,000 drachmae ($25 USD value), then Demotsis will pay Batsakis back $2,000 USD, when he is able to in the future. Also the money would be interested at 8%/year. Issue: Whether, it was a valid contract, with a valid consideration. Does the exchange of a promise of much less value than that of the return promise constitute legally valid consideration? Rule: consideration is when there is a bargain of exchange between the parties.
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Unformatted text preview: Rational: The contract was valid because, even though the $25 to $2,000 is a large difference, the contract was valid in terms of consideration because, if B gave $25 now, as a loan, then B would get $2,000 at a later time. D gets the $25, and B gets the promise. Holding: A enforceable contract exist when there is mutral assent and consideration. Even if the consideration is a merely a promise. Mere inadequacy of consideration will not void a contract Synthesis: Dissent/Concurrences:...
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