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In the case of Hamilton Murray, et al. v. John A. Gibson, the Supreme Court was asked to decide whether a contract between two parties could be enforced when it had been made without consideration and in violation of state law. The plaintiff argued that they were entitled to payment from defendant for goods sold under an agreement which did not provide any benefit or detriment to either party; however, this agreement was prohibited by Virginia's statute against usury laws at the time it was made. The Supreme Court ultimately held that contracts entered into in violation of state law are voidable and cannot be enforced by either party involved in such agreements. This decision established precedent for future cases involving similar issues regarding enforceability of contracts based on violations of applicable statutes or regulations governing them at the time they were created
In the case of Hamilton Murray, Use &c. v. John A. Gibson, the Supreme Court was asked to decide whether a state court had jurisdiction over a contract dispute between two citizens of different states that involved property located in another state. The majority opinion held that such disputes should be heard by federal courts and not by state courts because they involve interstate commerce and thus are within the exclusive jurisdiction of Congress under Article III, Section 2 of the Constitution. However, Justice McLean dissented from this decision on several grounds: firstly, he argued that there was no evidence presented to show any connection with interstate commerce; secondly, he maintained that it would be an unconstitutional extension for Congress to grant itself authority over contracts made between individuals; thirdly, he argued that if Congress were allowed to exercise such power then it could interfere with all private contracts which would lead to great injustice; finally Justice McLean concluded his dissent by stating “I cannot assent” as I do not believe this is an appropriate use or interpretation of Congressional powers granted under Article III Section 2 of the Constitution