Inadequate Consideration

In the context of contracts, inadequate consideration refers to a situation where the value exchanged between the parties is so unequal that one party receives far less than what they give. For a contract to be legally binding, both sides must agree to a fair exchange. If one party feels they received significantly less value, this could make the contract unenforceable. Essentially, while parties can agree to whatever terms they want, a huge imbalance in what is exchanged may raise questions about the contract's legitimacy.