Final answer:
The statement is false. Gross inadequacy of consideration is not by itself a reason to set aside a contract unless other issues such as fraud or duress are present. Consideration must exist for a contract to be valid but does not have to be equal or fair.
Step-by-step explanation:
In the context of contract law, gross inadequacy of consideration is generally not, by itself, a sufficient reason to set aside a contract. The false belief that inadequacy of consideration can invalidate a contract is a common misconception. A contract may be enforceable as long as there is some form of consideration unless there are other factors at play such as fraud, duress, a mutual mistake, or unconscionability that affect the validity of the agreement. Therefore, the correct answer to whether gross inadequacy of consideration is by itself a sufficient reason to set aside a contract is False.
It's important to note that consideration, which is the value exchanged in a contract, does not need to be equal or fair. Although courts may look into cases where there's a shocking disparity that signals another issue, the mere disproportion in value, without more, does not void a contract.