R2d § 79

Adequacy of Consideration; Mutuality of Obligation

R2d § 79 Adequacy of Consideration; Mutuality of Obligation
If the requirement of consideration is met, there is no additional requirement of (a) a gain, advantage, or benefit to the promisor or a loss, disadvantage, or detriment to the promisee; or (b) equivalence in the values exchanged; or (c) "mutuality of obligation."

Professor's notes

Element: if the requirement of consideration is met, there is no additional requirement of (a) a gain, advantage, or benefit to the promisor or a loss, disadvantage, or detriment to the promisee; or (b) equivalence in the values exchanged; or (c) mutuality of obligation.

This is the "courts do not weigh adequacy" rule.

Hamer v. Sidway operationalizes (a) and (b): no benefit to the uncle, no equivalence; doesn't matter.

Common misunderstanding: students think a gross disparity in values destroys consideration. § 79 says no. Disparity may signal that the recital is a sham or that something else is going on (fraud, duress, unconscionability): but it does not itself defeat consideration. Adequacy is a defense doctrine; consideration is a formation doctrine. Keep the categories separate.

Cases that operationalize this rule

Text

R2d § 79. Adequacy of Consideration; Mutuality of Obligation.

If the requirement of consideration is met, there is no additional requirement of

(a) a gain, advantage, or benefit to the promisor or a loss, disadvantage, or detriment to the promisee; or

(b) equivalence in the values exchanged; or

(c) “mutuality of obligation.”