Fact Pattern 10-2 (Questions 10-12 Apply)

question 57

Multiple Choice

Fact Pattern 10-2 (Questions 10-12 apply)
Brad defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal-a student loan accruing interest at a certain rate and payable beginning on a certain date-was unfair because the consideration for their contract was inadequate.
-Refer to Fact Pattern 10-2.A court is most likely to evaluate the adequacy of consid?era?tion if

• A)a thing exchanged has no intangible value to one of the parties.
• B)something exchanged is not of direct economic or financial value.
• C)the items exchanged were of unequal value.
• D)there is a gross disparity in the value of the consideration exchanged.

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Definitions:

Coin Toss

A simple randomness procedure used to decide between two equally probable outcomes with the flip of a coin.

Expected Value

The predicted value of a variable, calculated as the sum of all possible values each multiplied by the probability of its occurrence.

Expected Value

An average value determined by weighing all potential outcomes of a random variable according to their likelihood of happening.

Payoffs

The returns or benefits received from a particular course of action or decision, often evaluated in decision-making processes.