Unfairness in Contracting

Question 1

When will courts look at the balancing of consideration?

Answer 1

Courts will not look at the balancing of consideration when it is a money agreement or an action at law agreement. Courts will look when it is an action in equity (action vs. inaction) to ensure that there is adequacy of consideration.

Question 2

Why do courts need to look at the adequacy of consideration for equity cases?

Answer 2

To ensure that the relative values of the consideration are adequate.