Question

There is adequate consideration to support what might otherwise be a voidable contract when the value of what the

first party to the contract receives under it is comparable to what he or she give to the second party?

a) True
b) False

Answer 1

The statement that adequate consideration based on comparable value between parties makes a contract non-voidable is false. Consideration must simply be lawful and sufficient, and a contract can be voidable for reasons other than consideration, such as misrepresentation or duress.

Step-by-step explanation:

The statement posits that there is adequate consideration to support what might otherwise be a voidable contract when the value of what the first party receives is comparable to what they give to the second party. The answer to this is false. Adequate consideration refers to something of value exchanged between the parties which can be a benefit to one party or a detriment to the other. While adequacy of consideration does touch on the value given and received by the contracting parties, its relevance to whether a contract is voidable is a separate matter. A contract might be voidable for reasons other than inadequate consideration, such as misrepresentation, duress, undue influence, or non-disclosure of material facts. It’s the lawfulness, voluntariness, and the capacity of the parties, not just the comparability of value, that usually determine the enforceability of a contract.