Contracts
What constitutes 'adequate consideration' in a Georgia real estate purchase contract?
AA. The consideration must equal the fair market value of the property
BB. Any amount agreed upon by the parties — consideration does not have to equal fair market value✓ Correct
CC. At least 10% of the purchase price
DD. The full cash purchase price
Explanation
Consideration in a contract need not be equal to fair market value — it simply must be something of value exchanged. Courts generally do not inquire into the adequacy of consideration as long as it is real and not nominal.
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