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 an inoperative will, despite her having no property. The agreement cited considerations including Theresa's past services, Schnell's love for her, and the payment of one cent by the recipients. Schnell argued there was no valid consideration for his promise.

Issue

Can a promise to pay $600 be legally enforced when the stated considerations include a nominal payment of one cent, past services, and moral obligations arising from an inoperative will?

Holding

No. The court held that the stated considerations were insufficient to create a legally binding contract, reversing the lower court's decision. The demurrer to Schnell's answer should have been overruled.

Rule

A nominal consideration of one cent for a promise to pay $600 is unconscionable and insufficient to support a contract. Moral obligations, past services, and legally groundless claims do not constitute valid legal consideration for a promise.

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