Adequacy Of Consideration Case Study

a) Adequacy of Consideration

a) It is an elementary and oft quoted principle that the law will not inquire into the adequacy of consideration as long as the consideration is otherwise valid or sufficient to support a promise.

i) § 7:21.Adequacy of consideration, 3 Williston on Contracts § 7:21 (4th ed.)

b) Unconscionability

a) "A contract may be unenforceable due to unequal bargaining power if the party challenging the contract . . . was denied the opportunity to seek legal advice prior to entering into the agreement; or if the contract is somehow unconscionable."

i) § 71:43.Disproportionate exchange of value; Disproportionate bargaining power, 28 Williston on Contracts § 71:43 (4th ed.)

b) At a minimum, an unconscionability claim requires proof that a contract “was both procedurally

A party alleging procedural unconscionability should allege information concerning her education, financial status, access to counsel in connection with the negotiation and execution of the agreement and her ability to obtain the bargained for performance elsewhere. A court may take into account disparities between the education and experience of the parties. Examples of procedural unconscionability include, but are not limited to: . . . an imbalance in the acumen and understanding of the parties.

i) § 6:27.Elements of unconscionability—Procedural unconscionability, 28 N.Y. Prac., Contract Law § 6:27

c) A contract may be unenforceable due to unequal bargaining power . . . if it was denied the opportunity to seek legal advice prior to entering into the agreement; or if the contract is somehow unconscionable.

i) Outek Caribbean Distributors, Inc. v. Echo, Inc., 206 F. Supp. 2d 263, 268 (D.P.R. 2002)

d) Substantive