What means inadequate consideration?
Inadequate consideration refers to a situation where one party argues that the value that it provided the other party is greater than the value it was provided in return. Therefore, the consideration was inadequate. For example, past consideration is not legally sufficient consideration.
What is an adequate consideration?
Adequate consideration means the reasonable value of the goods or services received in exchange for transferred property approximates the reasonable value of the property transferred.
Is Inadequate consideration valid?
According to the law, consideration for a contract must be sufficient but it need not be adequate.
What is adequate consideration in a contract?
What Does “Adequate Consideration” Mean? In order for a contract to be enforceable in a court of law, the consideration that is exchanged must be deemed “adequate”. This means that the mutual exchange must involve a fair price in comparison to the promise that is made in exchange for it.
What is an example of inadequate?
The definition of inadequate is someone or something that is lacking in something desired or required. An example of something that would be described as inadequate is a broken down car that won’t run.
What is sufficient consideration law?
Consideration means something which is of some value in the eyes of the law – it is the price for which the promise of the other is bought. The consideration must be of sufficient value – this means that it must have some legal worth. It does not need to have economic value.
Why is consideration not necessary?
As per Section 10 and Section 25 of the Indian Contract Act, 1872, consideration is essential in a valid contract. In simple words, no consideration no contract. Hence, you can enforce a contract only if there is a consideration.
What are some examples of contracts that lack consideration?
Lack of Consideration
- When one party is already legally bound to perform,
- When consideration is more like a gift,
- When consideration is made as a result of a past event, or.
- When consideration is based on an illusory promise.
Does inadequate mean bad?
not adequate or sufficient; inept or unsuitable.
What type of word is inadequate?
Not adequate; unequal to the purpose; insufficient; deficient; as, inadequate resources, power, conceptions, representations, etc.
What is the difference between sufficient and adequate consideration?
Whereas adequate consideration demands that a contract constitutes a fair value, sufficient consideration only considers the value as a factor — irrespective of whether it is fair or not.
