Question

In determining whether consideration exists, the law is not concerned with any disproportion in value between the things exchanged in a contract.

a. True
b. False

Answer 1

Consideration is a fundamental element of a valid contract, and the law does concern itself with the value exchanged in a contract.

Step-by-step explanation:

The statement is False.

Consideration is a fundamental element of a valid contract. It refers to something of value exchanged by the parties to the contract. In order for consideration to exist, there must be a bargained-for exchange where each party gives something of value.

The law does indeed concern itself with the value exchanged in a contract. It requires that consideration be reasonably proportionate to the value received. This means that there should be a fair exchange of value between the parties involved. If the value received by one party is significantly disproportionate to what they are giving, the courts may consider the contract voidable due to unconscionability.