Asked by Joshua Rieser on Jun 03, 2024
Verified
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.
Verified Answer
Learning Objectives
- Ascertain the elements that courts evaluate to assess the sufficiency of consideration.
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