Section 23 Inadequacy of Consideration

• Library: Remedies 2006

Inadequacy of consideration relates to the sufficiency of the consideration before execution of the contract. There are two
distinct uses of a claim of inadequacy of consideration. First, a claim that a contract or document should be rescinded or cancelled because the consideration is inadequate will generally fail. This
is because the general rule is that mere inadequacy, or even the
lack of consideration, by itself if not sufficient grounds for
rescission or cancellation. See Kassebaum v. Kassebaum, 42 S.W.3d 685 (Mo. App. E.D. 2001); Blaise v. Ratliff, 672 S.W.2d 683, 690
(Mo. App. E.D. 1984). But if a conveyance is made without consideration and without intention to convey title in fee, but with an agreement by the grantee to re-convey at a later date, the refusal of the grantee to return the property to the grantor upon demand will warrant equitable intervention and cancellation. Cook v. Branine, 107 S.W.2d 28, 33 (Mo. 1937); Mentzer v. Mentzer, 30 S.W.2d 146, 148 (Mo. 1930).

Second, although inadequacy of price or consideration is not a ground for claiming rescission or...