Batsakis v. Demotsis
- D borrowed 500k drachmae (worth $25) from P while they were both in Greece during WWII.
- D promised to pay P $2k at a later time with 8% interest.
- D later refused to pay, so P sued D for principal and interest.
- Trial court found for P, but only for $750 plus interest.
- TX Court of Appeals affirmed, and found for full $2k plus interest, found for P.
- Can inadequacy of consideration (i.e. large disparity between values of the promise for promisor versus promisee) void a contract?
- Inadequacy of consideration will not void a contract.
- The D got exactly what she bargained for according to her own testimony.
- The sale amounted to a sale by P of the 500k drachmas in consideration of the $2k plus interest repayment by the D.
- Want of consideration is not valid because the 500k drachmas did have value.
- Inadequacy of consideration.