Jim wishes to sell his house to his daughter for $1 based on love and affection. This arrangement would be considered:

Jim wishes to sell his house to his daughter for $1 based on love and affection. This arrangement would be considered:

• A. Deficient consideration
• B. Good consideration
• C. Inadequate consideration
• D. Valuable consideration

Answer: (B)

The arrangement where Jim wishes to sell his house to his daughter for $1, motivated by love and affection, falls under the category of good consideration. Good consideration recognizes the sentimental or emotional value behind a transaction rather than its monetary value. It's common in relationships where familial bonds prompt actions that may not conform to typical market values. In real estate transactions, consideration refers to what is being exchanged. While $1 might seem nominal or inadequate from a market standpoint, in this context, it's the underlying intention of love and affection that defines the arrangement. Good consideration emphasizes that the parties involved have valid reasons for their agreement, even if those reasons don’t involve substantial financial terms. The notion of inadequate consideration usually implies a lack of sufficient value to support a contract, but here, the emotional bond provides a compelling justification for the transaction. Deficient consideration would refer specifically to a failure to include adequate terms within the agreement. Lastly, valuable consideration generally indicates a fair exchange of goods or services, which does not apply in this case since the value of the home greatly exceeds the $1 price tag.

The arrangement where Jim wishes to sell his house to his daughter for $1, motivated by love and affection, falls under the category of good consideration. Good consideration recognizes the sentimental or emotional value behind a transaction rather than its monetary value. It's common in relationships where familial bonds prompt actions that may not conform to typical market values.

In real estate transactions, consideration refers to what is being exchanged. While $1 might seem nominal or inadequate from a market standpoint, in this context, it's the underlying intention of love and affection that defines the arrangement. Good consideration emphasizes that the parties involved have valid reasons for their agreement, even if those reasons don’t involve substantial financial terms.

The notion of inadequate consideration usually implies a lack of sufficient value to support a contract, but here, the emotional bond provides a compelling justification for the transaction. Deficient consideration would refer specifically to a failure to include adequate terms within the agreement. Lastly, valuable consideration generally indicates a fair exchange of goods or services, which does not apply in this case since the value of the home greatly exceeds the $1 price tag.