Which of the following is true regarding the adequacy of consideration?
A)Courts generally consider the adequacy of consideration in determining whether to enforce a contract.
B)Courts consider the adequacy of consideration,but only if something is sold for less than 75% of its market value.
C)Courts consider the adequacy of consideration,but only if something is sold for less than 50% of its market value.
D)Courts consider the adequacy of consideration,but only if something is sold for less than 25% of its market value.
E)Courts seldom consider the adequacy of consideration,but will do so if an item was sold for a low sum in order to avoid claims of creditors.

Question

Quizplus · Accepted Answer

Courts seldom consider the adequacy of consideration.There is,however,an exception to this rule.Courts will consider the adequacy of consideration if it appears that a debtor sold assets to avoid payment to creditors.In such a situation,the court may set aside each sale and sell the assets to pay creditors.

Which of the Following Is True Regarding the Adequacy of Consideration