Adequacy of Consideration. In 1972, Thomas L. Weinsaft signed a written agreement with his son, Nicholas L. Weinsaft. Thomas agreed that during his lifetime he would not transfer any interest in his 765 shares of stock of Crane Manufacturing Co unless

Question

he first gave Nicholas an opportunity to purchase it, and on Thomas's death, Nicholas would have the "option and right to purchase all of the stock" from the estate. The agreement stated that it was entered into "In consideration of $10.00 and other good and valuable consideration, including the inducement of Second Party

Answer 1

Adequacy of consideration
The beneficiary's claim that the terms of "$10 and other valuable consideration" were in-sufficient to support a contract was deemed by the court to have no merit. The court held that the consideration included the inducement of Nicholas to remain as chief executive officer of the corporation and Nicholas had done so. Nicholas "was not legally obligated to work for the corporation and could have left, but did not do so." Consideration sufficient to support a contract may be either a detriment to the promisee or a benefit to the promisor. The detriment to the promisee may consist of doing anything that legally he or she is not bound to do or refraining from doing anything he or she has the right to do. In addition, the court held that the $10 recited was sufficient consideration. "Because an option contract may be of no benefit to the optionee, depending upon changes and circumstances which occur during the life of the agreement, little consideration is necessary to support it. Amounts as low as $1.00 have been held sufficient."