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Law of Contracts

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Explain the difference between “sufficiency of consideration” and “adequacy of consideration”. Give an example of each.

Consideration contains two parts: something of legally sufficient value must be given in exchange for a promise (often a promise for a promise), and there must be a bargained-for exchange. Legal value can be a promise, performance, modification or destruction of a legal right. Legal sufficiency of consideration involves the requirement that consideration be something of legally sufficient value in the eyes of the law. For something to be legally sufficient, consideration for a promise must be either legally detrimental to the party receiving the promise (promisee) or legally beneficial to the one making the promise (Promisor). For example, it must be legally valid. Something of legal value must be given in exchange for a promise. It may be a return promise if it is performance, that performance may be an act other than a promise, or a forbearance refraining from action.
Carbone Inc., begins construction on an office building and after 4 months demands an extra $60,000 on its contract. If the extra $60,000 is not paid, he contractor will stop working. The owner of the land, finding no one else to complete the construction, agrees to pay the extra $60,000. The agreement is unenforceable because it is not supported by legally sufficient consideration. Carbone Inc., had a preexisting contractual duty to complete the building construction.
Adequacy of consideration refers to the fairness of a bargain. Normally, a court will not question the adequacy of consideration. Adequacy of consideration relates to how much consideration is given and whether a fair bargain was reached. Adequacy of consideration refers to the weight or substantiality of the act or promise given in exchange, such as, whether the amount being paid is an appropriate

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