Two people were having an
affair. The mistress had the guy sign an 'agreement' in which he agreed
to give her a monthly stipend and some other prizes.
The agreement required
nothing from the mistress save not calling the guy at home.
Later he loaned her money
for a house.
When the mistress stopped
paying off the loan, the guy foreclosed on the house. The mistress sued.
The mistress argued that
this was part of the 'agreement'.
The guy argued that their agreement
was not a contract because he got no consideration for the deal.
The Court found for the guy.
The Court found that since
the agreement did not require the mistress to do anything, there was no consideration and therefore it was legally unenforceable as
a contract.
Technically, everybody knew
what the guy was getting in consideration (wink wink nudge nudge). However, under the common-law
contracts involving sexual services are never enforceable, so the
mistress couldn't make an argument about the 'consideration' she was
providing.
