Batsakis v. Demotsis

226 S.W.2d 673 · Court of Appeals of Texas · 1949

Facts

Eugenia Demotsis signed an instrument in Greece during WWII, acknowledging receipt of $2,000 USD from George Batsakis as a loan and promising repayment with 8% interest. Demotsis claimed she only received 500,000 drachmae, valued at $25, and argued want or failure of consideration, or inadequacy of consideration, for the $2,000 promise. The trial court awarded Batsakis $750.

Issue

Can a contract be voided for want or failure of consideration when the defendant admits receiving some consideration, even if its value is significantly less than the promised repayment amount?

Holding

No. The court reformed the judgment, awarding the plaintiff the full $2,000 principal with 8% interest as specified in the instrument.

Rule

A plea of want of consideration is unavailing if any consideration was received, as it implies the instrument never became a valid obligation. Mere inadequacy of consideration will not void a contract, and failure of consideration requires a breach of agreement by the plaintiff.

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Case brief last reviewed 2026-05-09. Prepared by CaseReader from the published opinion.