Adequate Consideration

Adequate consideration refers to the concept in contract law that the value exchanged between parties must be sufficient to support a binding agreement. It means that both parties are providing something of reasonable value, whether it's money, services, or other benefits. Adequate consideration ensures that the exchange is fair, though it doesn't require the values to be equal. If one party receives significantly less value than what they give, the contract may be questioned or deemed unenforceable. Essentially, adequate consideration helps maintain balance and fairness in agreements.