Question

What factors are used to judge if consideration is adequate to ensure a fair bargain?

1) The amount of consideration
2) The value of consideration
3) The fairness of consideration
4) The legality of consideration

Answer 1

Consideration is judged based on the amount, value, fairness, and legality of what is being exchanged in a contract.

Step-by-step explanation:

In the context of contract law, consideration refers to something of value that is given in exchange for a promise or performance. To determine if consideration is adequate to ensure a fair bargain, several factors are considered:

1. The amount of consideration: This refers to the monetary value or quantity of what is being exchanged.
2. The value of consideration: This considers the subjective worth of what is being exchanged, which may not always be reflected in monetary terms.
3. The fairness of consideration: This examines whether both parties are receiving a reasonable benefit from the exchange.
4. The legality of consideration: This evaluates whether the consideration being exchanged is lawful and not against public policy or any legal restrictions.