Shockingly inadequate consideration can indicate fraud in a contract.

Inadequate Consideration

A situation in a contractual agreement where the value exchanged between parties is significantly disproportionate or deemed insufficient.

Fraud

Deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

Contract

A legally binding agreement between two or more parties that is enforceable by law, characterized by an offer, acceptance, consideration, and mutual intent to be bound.

Set apart the adequacy of consideration from the elements taken into account by courts during evaluation.

Verified Answer

Yusuf Sar?yarMay 16, 2024

Final Answer :

True

Explanation :

Inadequate consideration, especially if it is shockingly disproportionate, can be an indicator of fraud or that the contract was entered into under unfair circumstances, potentially voiding the agreement.

Learning Objectives

Set apart the adequacy of consideration from the elements taken into account by courts during evaluation.

Shockingly inadequate consideration can indicate fraud in a contract.

Definitions

Learning Objectives

Learning Objectives

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