Pi in the Sky Aircraft Inc. files a suit against Quest Engineering Inc., claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if
A) there is a large disparity in the amount of consideration exchanged.
B) the consideration involves the performance of services.
C) something of value passed between the parties.
D) the consideration is worth less than $100.

Question

Pi in the Sky Aircraft Inc. files a suit against Quest Engineering Inc., claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if​
A) ​there is a large disparity in the amount of consideration exchanged.
B) ​the consideration involves the performance of services.
C) ​something of value passed between the parties.
D) ​the consideration is worth less than $100.

Quizplus · Accepted Answer

The court will not examine the adequacy of consideration as long as something of value passed between the parties. Adequacy of consideration is determined by whether there was any consideration at all, not by the amount of it. Hence, option A is incorrect. Similarly, the nature of the consideration, whether it is money or services, isn't important in determining adequacy. Hence option B is incorrect. A contract for a sum below $100 is still enforceable, and thus option D is incorrect.