When Would a Court Consider the Adequacy of Consideration

question 16

Multiple Choice

When would a court consider the adequacy of consideration?

• A)To verify that property was sold at its fair market value.
• B)To verify that a sale of assets was not done to avoid payment to creditors.
• C)To verify that one party gave a promise in return for the act of another party.
• D)To verify that each party gave a valid promise to the other party.
• E)When one party has promised forbearance as consideration.

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Definitions:

Theory of Planned Behavior

A psychological theory that links beliefs and behavior, suggesting that an individual's behavioral intentions are shaped by their attitudes, subjective norms, and perceived control over the behavior.

Health and Safety

Policies, procedures, and practices designed to protect individuals from injury, illness, and other health hazards in the workplace or living environments.

Broad Liability

Refers to a wide range of legal responsibilities that may be attributed to an entity or individual for various acts or omissions.

Limited Partner

An investor in a partnership who has limited liability to the extent of their investment and does not participate in day-to-day management.