Question

When would a court consider the adequacy of consideration? Select one: A. To verify that a sale of assets was not done to avoid payment to creditors. B. When one party has promised forbearance as consideration. 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. To verify that property was sold at its fair market value.

Answer 1

Answer:

E. To verify that property was sold at its fair market value

Explanation:

Adequacy of consideration is an aspect of law that says a lawful agreement is made when the buyer of a good or service gives a fair price for offerings made by the seller.

The fair price may however come in different forms - property, a promise to perform an action, an act, or money.

For example if a person offers to sell a car at $3,000 and the buyer accepts this price, the agreement is said to have adequate consideration.

If a court determines that a contract does not meet fair market price of goods and services sold, it can nullify the contract