The adequacy of consideration,while not important to the existence of consideration,may be relevant to the availability of certain defenses or remedies.

Question

Quizplus · Accepted Answer

This statement is true. While consideration is important for a contract to be binding, the adequacy of consideration (i.e. whether it is fair or not) may affect the availability of certain defenses or remedies in case of breach of contract. For example, a court may refuse to enforce a contract if the consideration was grossly inadequate or if it was obtained through coercion or fraud. Additionally, the amount of damages that a plaintiff can recover in a breach of contract case may depend on the adequacy of consideration.

The Adequacy of Consideration,while Not Important to the Existence of Consideration,may