Patricia is selling her Myrtle Beach condominium. She signs a purchase agreement with a buyer where the buyer's consideration is $10. The buyer's attorney argues the contract is valid because consideration was exchanged. Under South Carolina contract law, which statement best describes the enforceability of this agreement?
Correct Answer
D) The contract is enforceable because courts do not generally inquire into the adequacy of consideration
Under South Carolina contract law, courts examine whether consideration exists (sufficiency), not whether it is equal in value to what was exchanged (adequacy). As long as some legal consideration is present — even a nominal amount like $10 — the consideration element is satisfied and the contract is generally enforceable. Courts will not rewrite a bargain simply because one party made a poor deal.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
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