Davison v. Davis was a United States Supreme Court case that addressed the issue of whether a state court could modify a contract between two parties. The case involved a dispute between two brothers, William and John Davison, over a contract they had entered into in 1867. William had agreed to pay John $2,000 for a tract of land in Virginia. The contract was modified by the Virginia state court in 1871, reducing the amount of money that William was obligated to pay John. The Supreme Court held that the state court had the authority to modify the contract. The Court reasoned that the contract was subject to the laws of Virginia, and the state court had the power to modify the contract in accordance with those laws. The Court also noted that the contract was not a contract of adhesion, meaning that the parties had negotiated the terms of the contract and had not been forced to accept the terms. The Court's decision established that state courts have the authority to modify contracts between two parties, provided that the contract is subject to the laws of the state and is not a contract of adhesion. This decision has been cited in numerous subsequent cases involving contract disputes.

In the case of Davison v. Davis, the Supreme Court was tasked with deciding whether a contract between two parties could be enforced even though it had been made without consideration. The majority opinion held that such contracts were not enforceable, but Justice Field dissented from this decision. He argued that while consideration is generally required for an enforceable contract, there are exceptions to this rule when one party has already performed their part of the agreement and would suffer harm if they did not receive what was promised in return. In his view, since Davison had already completed his part of the bargain by providing services as agreed upon in exchange for money he expected to receive from Davis at some point in time, it would be unjust to deny him compensation simply because no formal consideration had been given at the time of making their agreement.