Fact Pattern 10-1

question 2

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. The court is most likely to evaluate the adequacy of consid?era?tion if

• A) one of the parties claims that they entered into an unwise contract.
• B) something exchanged is not of direct economic or financial value.
• C) the items exchanged are of unequal value.
• D) there is a large disparity in the amount or value of the consideration exchanged.

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Definitions:

Legal Fees

Expenses paid or incurred for legal services, which businesses may incur in the course of operations or dispute resolution.

Equipment Account

An account on a company's balance sheet that reports the value of equipment owned by the company.

Routine Repairs

Regular maintenance activities required to maintain the functionality and efficiency of equipment or facilities.

Major Overhauls

Significant refurbishments or restorations of equipment or assets to extend their useful life, often involving considerable expenditure and downtime.