Asked by Eliza Howard on Jun 14, 2024
Verified
Which of the following is true of consideration?
A) A promise cannot be deemed a consideration in a bilateral contract.
B) The legal value of a consideration must be equal to the actual value in a consideration.
C) Gross inadequacy of consideration can give rise to an inference of fraud for setting aside a contract.
D) A preexisting moral obligation is deemed a consideration.
Gross Inadequacy
An extreme lack of sufficiency or competence in performance or provision, often referenced in legal contexts concerning contractual or fiduciary obligations.
Bilateral Contract
A type of contract that involves two parties where each party makes a promise to the other.
- Gain an understanding of the foundational principle of consideration as it applies to contract law.
Verified Answer
CY
chong yik liangJun 15, 2024
Final Answer :
C
Explanation :
Gross inadequacy of consideration may give rise to an inference of fraud,duress,lack of capacity,unconscionability,or some other independent basis for setting aside a contract.
Learning Objectives
- Gain an understanding of the foundational principle of consideration as it applies to contract law.
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