Brief Fact Summary. The adequacy of consideration for a piece of property sold was at issue.
Synopsis of Rule of Law. The test to determine whether consideration is adequate is not "whether the [vendor] received the highest price obtainable for his property, but whether the price he received is fair and reasonable under the circumstances."
A consideration, to be adequate, need not amount to the full value of the property.
View Full Point of LawIssue. Was consideration fair and adequate?
Held. Yes. To determine whether consideration was fair and accurate "all circumstances surrounding the transfer of the property as they then existed at that time must be considered." For a consideration to be deemed adequate, the price need not be "the full value of the property." The test is not "whether the [vendor] received the highest price obtainable for his property, but whether the price he received is fair and reasonable under the circumstances."
• The court observed that the discrepancy between the sales price agreed to and the full value of the property is reconcilable, because Howard Benko testified he wished to sell the property quickly and would accept a lower price.
Discussion. This case demonstrates how fact intensive certain damage calculations can be, and how important it is to determine the motive of the buyers and sellers when construing damages.