On April 2, 1942, George Batsakis (plaintiff) offered Eugenia Demotsis (defendant) 500,000 drachmas if she would sign a letter agreeing to pay him back the sum of $2,000 in American currency at a future date, with eight percent interest per year added from 1942. Batsakis later brought suit to recover on the signed agreement. In her answer, Demotsis alleged that the agreement failed for lack of consideration because the actual value of the 500,000 drachmas provided to her by Batsakis was only $25. The trial court held for Batsakis and awarded him a $750 principal, plus interest at the rate of eight percent per year from 1942 to the judgment date, or $1163.83 total. Batsakis appealed.