Multiple choice

What parties give and get as consideration need not be of equal economic value is known as:

  1. Legal Value

  2. Nominal Consideration

  3. Contractual Exchange

  4. Adequacy of Consideration

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The principle that courts do not generally evaluate whether the items exchanged in a contract are of equal economic value is known as the adequacy of consideration. As long as there is some legal value exchanged, the consideration is deemed sufficient, regardless of its fairness or market value. Nominal consideration is a specific token amount, while legal value is the requirement that the consideration have some legal worth.