Stout v. Lye was a United States Supreme Court case that dealt with the issue of whether a contract between two parties was valid. The case involved a contract between the plaintiff, Stout, and the defendant, Lye, in which Lye agreed to pay Stout a certain amount of money for the use of a patent. The contract was signed by both parties, but Lye failed to pay the money as agreed. Stout then sued Lye for breach of contract. The Supreme Court held that the contract was valid and enforceable. The Court noted that the contract was signed by both parties and that there was no evidence that either party had acted fraudulently or in bad faith. The Court also noted that the contract was not against public policy and that the parties had the capacity to enter into the contract. The Court concluded that the contract was valid and enforceable and that Stout was entitled to recover the money that Lye had agreed to pay.

In the case of Stout v. Lye, the Supreme Court was asked to determine 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 because they lacked consideration and thus did not meet the requirements for an enforceable agreement under common law principles. Justice Field dissented from this decision, arguing that while there may have been no immediate exchange of value in making the contract, its enforcement would still serve as sufficient consideration to make it valid and binding on both parties. He further argued that if courts refused to recognize such agreements then individuals would be discouraged from entering into them out of fear their promises might never be fulfilled or honored by either party involved in the transaction.