Smith v. Sheeley 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 horse. The plaintiff, Smith, had agreed to purchase a horse from the defendant, Sheeley, for $100. Smith paid Sheeley $50 as a down payment and agreed to pay the remaining $50 when the horse was delivered. Sheeley delivered the horse, but Smith refused to pay the remaining $50. Sheeley then sued Smith for the remaining $50, claiming that Smith had breached the contract. The Supreme Court held that Smith was liable for the remaining $50, as he had agreed to pay it when the horse was delivered. The Court also held that Sheeley was entitled to damages for the breach of contract, as Smith had not paid the remaining $50. The Court's decision in Smith v. Sheeley established that a party who breaches a contract is liable for damages, and that the other party is entitled to recover the amount of the contract that was not paid. This decision has been cited in numerous cases since then, and is still an important precedent in contract law.

In Smith v. Sheeley, the Supreme Court was asked to decide whether a contract between two parties should be enforced when it had been made without consideration. The majority opinion held that the contract could not be enforced because there was no consideration given for it. However, Justice Field dissented from this decision and argued that even though there may have been no consideration given at the time of making the agreement, if one party has already performed their part of the bargain then they should still receive something in return for their efforts. He further argued that enforcing contracts without any form of compensation would lead to injustice and encourage people to take advantage of others by entering into agreements with them knowing full well they will never have to fulfill their end of the bargain. In conclusion, Justice Field believed that courts should enforce contracts even when there is no consideration present as long as one party has already fulfilled his or her obligations under said agreement.