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:

Bank Error

Mistakes made by a bank in recording transactions in a customer's account, requiring correction to reflect the accurate balance.

Check Printing Charge

Fees incurred for the printing of checks, often charged by banks or printing companies.

Deposits In Transit

Funds that have been deposited by a company but not yet credited to its bank account by the financial institution.

NSF Checks

Checks that cannot be processed by a bank due to insufficient funds in the account of the individual who wrote the check, leading to a "non-sufficient funds" status.