ANSWERS: 2
  • I am not sure your statement is accurate, but sufficiency of consideration goes to the amount, whereas adequacy goes to legality. For example, if I offer to sell you my house valued at $1 million for $1, that is sufficient consideration and a contract is formed. Thus, we don't look at whether someone would have made such a ridicules deal, we only look to see if there was consideration. NOTE: In practice, this is not really true if parties to the contract are related. If someone contracts to sell a house that is extremely undervalued, courts often look at this as an attempt to fraudulently avoid taxes. Adequacy goes to whether or not something can legally have value. For example, if I offer to sell you my car in exchange for a pound of heroin, there is an adequacy problem. Also, you can have an adequacy problem if you try to disguise a gift as a contract. For example, if I promise to give you $100 in exchange for $1, this would be inadequate consideration. In reality, I am promising to give you $99, and you are offering no consideration.
  • Want of consideration and forethought made six brothers pawn themselves for six dollars.(Instead of one brother pawning himself for the whole amount, in which case the others would be free to work and earn money with which to redeem him.)

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