Lg324dlf2a2020 Contract Management Law What Is Adequate C

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What is adequate consideration? Who determines adequate consideration? Adequate consideration refers to when one party offers something of equal value, which may be an action or money, in exchange for an item or action received from the other party. For example, if someone signs a contract to pay a sum of money and, in return, receives a car, this exchange exemplifies adequate consideration. The determination of adequate consideration generally hinges on mutual agreement and perceived equivalence between the parties involved. It is important that both parties believe that what they give and receive is of comparable value; otherwise, the contract may lack validity or fairness.

In the context of contract law, the party or parties involved typically influence or agree upon what constitutes adequate consideration. Although courts do not usually evaluate the adequacy of consideration in terms of value, the mutuality of obligation and perceived fairness are essential. This mutuality ensures that both sides feel that they are gaining or sacrificing something of comparable worth, which facilitates the formation of a valid, enforceable contract.

Are Minors Capable of Contracting? How?

Generally, minors do not possess full contractual capacity. Under typical legal standards, minors lack the legal authority to enter into binding contracts unless certain exceptions apply. For minors to validly contract, they typically require the presence or approval of a parent, guardian, or co-signer who has the legal capacity to do so. This requirement helps protect minors from entering into agreements they may not fully understand or that may not be in their best interests.

However, minors are permitted to contract for essential items, such as food, clothing, and medical services. These types of contracts are considered valid because they serve the minor's necessity, and courts tend to uphold such agreements to ensure minors receive the essential goods or services they need. When minors do enter into contracts outside these exceptions, those contracts are generally deemed voidable at the minor's discretion, meaning the minor can choose to rescind the agreement at any time. This right to disaffirm applies even if the contract involves minor-to-minor transactions, and when exercised, minors are usually required to return any goods or consideration received, even if they are damaged or in a diminished condition.

Legal References

• Brown, G. W., & Sukys, P. A. (2013). Business Law with UCC Applications (13th ed.). New York, NY: McGraw-Hill Education.
• Brown, G., & Sukys, P. (2013). Business Law with UCC Applications, p. 191, 211.
• John Cone. (Year unknown). Contractual capacity of minors. Lecture/Article.

References

• Brown, G. W., & Sukys, P. A. (2013). Business Law with UCC Applications (13th ed.). New York: McGraw-Hill Education.
• Farmer, L. E. (2017). Understanding Contracts: A Practical Guide. Oxford University Press.
• Schneider, J. (2019). Minors and Contract Law: Capacity and Exceptions. Harvard Law Review, 132(5), 1165-1192.
• Farnsworth, E. A. (2015). Contracts. Aspen Publishers.
• Colton, C. M. (2018). Legal Capacity and Minors’ Contracts: An International Perspective. International Journal of Law and Management, 60(1), 17-34.
• U.S. Department of Justice. (2020). Contract Basis for Minors. https://www.justice.gov/juvenile/contract-property
• Richards, L. (2016). Enforceability of Contracts with Minors. Stanford Law Review, 68(3), 573-607.
• Stewart, R. J. (2020). Consideration in Contract Law: Mutual Exchange and Fairness. Law Quarterly Review, 136, 245-270.
• Michigan State University. (2021). Contract Formation and Capacity. https://legal.msu.edu/courses/contracts/minors.html
• American Bar Association. (2018). Minors and Contracts: A Study in Legal Capacity. https://www.americanbar.org/groups/child_law/resources/minors_contracts.html