Tuesday, March 26, 2013

Schnell v. Nell case brief

Schnell v. Nell case brief summary

FACTS:
Schnell’s wife died in her will it was said that Mr. Schnell would pay $200 each to
3 different parties.

ISSUE:
-Whether the consideration was sufficient to legally obligate Schnell to pay 3
people?

HOLDING:
The court identified 3 different considerations:
(1) A promise on the part of the Plaintiff to pay one-cent: The court said it is unconscionable contract
– so it is void.
(2) Moral Consideration -- The fact the Schnell loved his wife did not constitute consideration. This was his legal obligation – just moral obligation
(3) There was past consideration -- it was to just be a gift.

Rationale doesn’t support the rule.
-Mr. Schnell wasn’t just trying to get the penny – what was being bargained for wasn’t the penny.
-You need a bargained-for exchange.

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