Fact Pattern 12-A1 (Questions A4-A6 apply)
Jesse defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal-a student loan accruing interest at a certain rate and payable beginning on a certain date-was unfair because the consideration for their contract was inadequate.
-Refer to Fact Pattern 12-A1.A court is most likely to evaluate the adequacy of consid?era?tion if
A)a thing exchanged has no intangible value to one of the parties.
B)something exchanged is not of direct economic or financial value.
C)the items exchanged were of unequal value.
D)there is a gross disparity in the value of the consideration exchanged.

Question

Quizplus · Accepted Answer

A court is most likely to evaluate the adequacy of consideration when there is a gross disparity in the value of the consideration exchanged. In this scenario, Jesse is claiming that the consideration for the contract-a student loan accruing interest at a certain rate and payable beginning on a certain date-was inadequate. Therefore, the court would be interested in examining the relative value of what Jesse received (the loan) with what he gave (the promise to pay).

Fact Pattern 12-A1 (Questions A4-A6 Apply)