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In the realm of Business Law, the concept of consideration plays a central role in determining the validity of a contract. Consideration refers to something of value, such as money, goods, services, or a promise, that is exchanged between parties entering into a contract. It acts as the inducement or motive that binds the parties to their promises. The law requires that a contract must be supported by consideration; however, it does not require that the consideration be adequate in terms of value. This is what is meant by the principle that “insufficiency of consideration is _________ ______ __________ _________ ___ ___ ______ __________ ___.
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