Brad defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal-a student loan accruing interest at a certain rate and payable beginning on a certain date-was unfair because the consideration for their contract was inadequate.
-Refer to Fact Pattern 11-2.A court is most likely to evaluate the adequacy of consideration if
A)a thing exchanged has no intangible value to one of the parties.
B)something exchanged is not of direct economic or financial value.
C)the items exchanged were of unequal value.
D)there is a gross disparity in the value of the consideration exchanged.

Question

Quizplus · Accepted Answer

A court is most likely to evaluate the adequacy of consideration when there is a gross disparity in the value of the consideration exchanged. In this case, Brad is claiming that the consideration for the contract was inadequate, which suggests that there may have been a gross disparity in the value of the consideration exchanged. Therefore, the court would likely evaluate the adequacy of consideration in this situation.

Brad Defends Against a Breach-Of-Contract Suit by College Credit Corporation