In contract law, consideration refers to the value that each party gives to the other as part of a contract. Generally, consideration must be sufficient and adequate in order for the contract to be enforceable.
Sufficiency of consideration refers to whether there is actually something of value being exchanged between the parties. In other words, the consideration must be legally recognized as having value in order to be considered sufficient. This means that the consideration cannot be illusory, such as a promise to do something that is impossible to perform. The consideration must also be genuine and not made under duress or coercion.
Adequacy of consideration refers to whether the value of the consideration is reasonable in relation to what is being promised in the contract. This means that the court will not generally inquire into the adequacy of consideration, as long as there is some value being exchanged between the parties. However, in some cases, the court may consider the adequacy of consideration if it is so disproportionately low compared to the promise being made that it suggests fraud, duress, or undue influence.
For example, if A agrees to sell a valuable piece of property to B for $1, the court may consider this inadequate consideration if it is so low compared to the value of the property that it suggests A was under duress or undue influence when agreeing to the sale.
Overall, sufficiency and adequacy of consideration are important concepts in contract law. Sufficiency of consideration requires that there be something of value being exchanged between the parties, while adequacy of consideration requires that the value being exchanged be reasonable in relation to what is being promised.