Asked by Joshua Rieser on Jun 03, 2024

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When would a court consider the adequacy of consideration?

A) To verify that property was sold at its fair market value.
B) To verify that a sale of assets was not done to avoid payment to creditors.
C) To verify that one party gave a promise in return for the act of another party.
D) To verify that each party gave a valid promise to the other party.
E) When one party has promised forbearance as consideration.

Adequacy of Consideration

An evaluation of whether something of legally sufficient value has been given in exchange for a promise or action, as part of a contract.

Fair Market Value

An estimate of the market value of a property, based upon what a knowledgeable, willing, and unpressured buyer would probably pay to a knowledgeable, willing, and unpressured seller in the market.

  • Ascertain the elements that courts evaluate to assess the sufficiency of consideration.
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ZK
Zybrea KnightJun 05, 2024
Final Answer :
B
Explanation :
Courts seldom considers adequacy of consideration.This means that as a general rule,courts do not weigh whether a contracting party made a good bargain.There is an exception to this rule.If it appears that a debtor sold assets to avoid payment to creditors,the court may set aside each sale and sell the assets to pay creditors.