What is inadequate consideration?
Inadequate consideration refers to a situation where one party argues that the value that it provided the other party is greater than the value it was provided in return. Therefore, the consideration was inadequate.
Why Should consideration be adequate?
Consideration is only present when the parties mean to have an exchange. However, consideration must be sufficient but need not be adequate. It means consideration must be having some values, whether it appropriates in order to meet the return of the agreement.
What is the difference between adequacy and sufficiency of consideration?
The term “sufficiency” describes something that the courts can see of value that makes the bargain binding, whilst “adequacy” may describe the full value of something. Hence, the law requires consideration to be something of sufficient value, but not necessarily the full or adequate market value.
Does consideration have to be adequate?
The rule is that consideration must be sufficient but need not be adequate. What this means is that the law requires the parties to have entered into a bargain where each side has provided something of value that the courts can see.
What are the circumstances in which a court will question whether consideration is adequate?
What are the circumstances in which a court will question whether consideration is adequate? If there is a preexisting duty or in situations involving past consideration.
What do you mean by adequate?
1 : sufficient for a specific need or requirement adequate time an amount of money adequate to supply their needs also : good enough : of a quality that is good or acceptable a machine that does an adequate job : of a quality that is acceptable but not better than acceptable Her first performance was merely adequate.
What is the difference between adequate and sufficient?
Sufficient protection means enough protection, and the same is conveyed by adequate protection, but adequate reflects a level that is barely covering the requirements whereas sufficient reflects comfortable levels. Adequate means just able to fulfill the requirements or the purpose.
When would a court consider the adequacy of consideration?
In addition to reviewing adequacy of consideration if the terms of the contract seem “unconscionable,” courts will also review the adequacy of consideration when the plaintiff is seeking an equitable remedy to the defendant’s breach of contract. Damages in contracts cases can be paid in two ways.
Why do courts usually not inquire into the adequacy of consideration?
Courts do not inquire into the adequacy of consideration, but (with some exceptions) do require the promisor to incur a legal detriment (the surrender of any legal right he or she possesses—to give up something) in order to receive the bargained-for benefit.
What is an example of adequate?
The school lunch should be adequate to meet the nutritional needs of growing children. The machine does an adequate job. The tent should provide adequate protection from the elements. The quality of his work was perfectly adequate.
Does a court consider the adequacy of consideration?
What is the full meaning of adequate?
sufficient for
1 : sufficient for a specific need or requirement adequate time an amount of money adequate to supply their needs also : good enough : of a quality that is good or acceptable a machine that does an adequate job : of a quality that is acceptable but not better than acceptable Her first performance was merely adequate.
What is another meaning for adequate?
Some common synonyms of adequate are competent, enough, and sufficient. While all these words mean “being what is necessary or desirable,” adequate may imply barely meeting a requirement.
What is a good sentence for adequate?
How do you use adequately in a sentence?
Adequately sentence example
- It cannot justly be said that the companies made large profits while neglecting to develop the services adequately , but it is true that they were not able commercially to comply with many of the demands made upon them by the public.
- This, however, does not adequately represent the Hebrew.
What is a synonym for adequately?
In this page you can discover 43 synonyms, antonyms, idiomatic expressions, and related words for adequately, like: sufficiently, appropriately, suitably, satisfactorily, well enough, insufficiently, fittingly, unsatisfactorily, unsuitably, sufficient and capably.
What is the difference between adequate and good?
as much or as good as necessary for some requirement or purpose; fully sufficient, suitable, or fit (often followed by to or for): This car is adequate to our needs. They’ll provide adequate food for fifty people. barely sufficient or suitable: Being adequate is not good enough.
What is “adequate consideration”?
When the law insists that there should be “adequate consideration” and not “good consideration”, it excludes mere love and affection. They may be considered as “good consideration to substantiate a contract, but “adequate consideration” to avoid taxes could not be condoned.
What is an example of inadequate consideration?
Inadequate consideration is not void; however, it can make a contract unenforceable either by itself or due to procedural defects in bargaining. For example, If A promises B, A’s house worth $25,000 for $5, then this would be inadequate consideration. “You have an excellent service and I will be sure to pass the word.”
What is an example of an adequate offer?
A promise to perform or not to perform an act. Property. Money. For example, if you offer to sell off your house to someone at $50,000, and in exchange, he offers services to you worth this amount, then the consideration is deemed to be adequate.
What is a substitute for consideration in a contract?
If the court determines that one party deceived the other and they got into a contract that does not meet the minimum requirements for a consideration, the court may allow for a substitute of consideration, considering that the deceived party greatly relied on the promises made by the other party.