Schnell v. Nell
17 Ind. 29 · Indiana Supreme Court · 1861
Facts
Zacharias Schnell promised to pay $600 to J.B. Nell and the Lorenzes, as his deceased wife, Theresa, had intended in her will, though she owned no property. The agreement cited considerations including one cent, love for his wife, and her past contributions. Schnell later argued lack of consideration, and the trial court sustained a demurrer to his answer.
Issue
Can a promise to pay $600 be legally enforced when the stated considerations include a nominal one cent, a moral obligation from an inoperative will, and past services/love for a deceased spouse?
Holding
No. The court reversed the lower court's decision, finding that the stated considerations were insufficient to create a legally binding contract. The demurrer to Schnell's answer, which alleged lack of consideration, should have been overruled.
Rule
A nominal consideration of one cent for a promise to pay a much larger sum is insufficient when it's a mere exchange of fixed sums of money. Moral obligations, past considerations, and legally groundless claims do not constitute valid consideration for a contract.
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