Consideration must be sufficient but does not have to be adequate. What does this mean

Question 1: a) Consideration must be sufficient but does not have to be adequate. What does this mean?

ANSWER a): Consideration is considered to be one of the essential elements of a valid contract. It can be described as the return made by one of the parties to the other when the latter provides any offering to him. Absence of any consideration would make the contract invalid and would be never be legally enforced.

b) Can you give examples of consideration which are:
• Sufficient but not adequate;
• Not sufficient nor adequate.

ANSWER b):

For a valid consideration, it is important that it is worth something either in cash or kind. In the eyes on the society, it could be easily estimated of something even if it is of a small value. The term sufficient could be described as anything that is enough to hold something in value and hence, may not be completely adequate for the also been received. It should be Something and not nothing. The term and great can be described as the right value of the offering been received. For instance if a residential property is sold for $200,000 having a book value of $ 195,000 shall be considered as adequate. On the other hand if the same property was Sold for $10,000 only, then it could have constituted an insufficient consideration. This would be considered as In adequate and insufficient consideration as per legal regulations. It would be considered that the seller is trying to evade taxes and hence proper tax measures shall be undertaken to assess the current value of the property

Question 2:  Answer the following questions:
a) What is the parol evidence rule, and what is the court's reasoning in applying the rule?

ANSWER a):
The Parol evidence rule can be described as a legislative rule applicable for written contacts only. It is defined as an evidence that pertains to a particular agreement which hasn't been mentioned exclusively in the written contract. This can be termed as an additional evidence and strictly prohibited by the courts because it is important for the court of law to assess and determine the intentions of the parties involved. It is assumed and construed that a written contract would be the best explanation of their expectations and intentions and applies final verdict on the same. Hence, parol evidences are expected to contradict the written contract already entered into by the parties.

b) List and explain the exceptions to the parol evidence rule.

ANSWER b):

Some of the exceptions to this rule are provided as under-
1. If there are any chances of existence of defects while from the contract
2. The Intention of the parties to the contract are vague and ambiguous
3. If there has already been a problem with respect to the payment of consideration
4. When the contract has been modified subsequently
5. When there exists a prior valid agreement that is not reflected in the written instrument
6. Any condition that could occur prior to the contract performance being due.

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