Fact Pattern 10-1

question 36

Multiple Choice

Fact Pattern 10-1
Bridey defends against a suit for breach of contract by Continental Mortgage Company by claiming that their deal-a mortgage loan secured by Bridey's purchase of a house-was unfair because the consideration for their contract was inadequate.
-Refer to Fact Pattern 10-1. "Adequacy" of consideration refers to

• A) "how much" consideration is given.
• B) legally sufficient value in the eyes of the law.
• C) the intangible value to a contracting party of a thing exchanged.
• D) the substantiality of the consideration exchanged.

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Definitions:

Real Wages

The purchasing power of wages, adjusted for inflation, representing the quantity of goods and services that can be bought.

Consumer Price Index

An index measuring the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Base Year

The year with which other years are compared when an index is constructed: for example, a price index.

Minimum Wage

The lowest legal hourly pay for employees, set by government law.