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.

Question

Quizplus · Accepted Answer

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.

When Would a Court Consider the Adequacy of Consideration