Holladay v. Kennard was a case heard by the United States Supreme Court in 1871. The case involved a dispute between two parties over a contract for the sale of a steamboat. The plaintiff, Holladay, had entered into a contract with the defendant, Kennard, to purchase a steamboat for $2,000. The contract stated that the steamboat was to be delivered to Holladay within a certain period of time. However, Kennard failed to deliver the steamboat within the specified time frame. Holladay then sued Kennard for breach of contract. The Supreme Court held that Kennard was liable for breach of contract and awarded Holladay damages in the amount of $2,000. The Court also held that Kennard was liable for any additional damages that Holladay may have suffered as a result of the breach. The Court's decision in Holladay v. Kennard established that a party who breaches a contract is liable for any damages that the other party may suffer as a result of the breach. This decision has been cited in numerous subsequent cases and is still used today as a basis for determining liability in breach of contract cases.

In Holladay v. Kennard, the Supreme Court was tasked with determining whether a contract between two parties could be enforced when it had been made in violation of an existing state law. The majority opinion held that the contract should not be enforced because it violated public policy and thus was voidable at either party's request. However, Justice Field dissented from this decision, arguing that while contracts which violate public policy are generally unenforceable, there is no reason to believe that this particular contract did so as its terms were not contrary to any established laws or regulations. Furthermore, he argued that since both parties entered into the agreement willingly and without coercion or fraudulence present on either side, they should have been allowed to enforce their bargain if they chose to do so regardless of whether it violated some abstract notion of public policy or not.