fair consideration


fair consideration
An adequate, just, or proper consideration; something more than a nominal consideration. Rude v Levy, 43 Colo 482, 96 P 560. A consideration fairly proportioned to the money, property, or services furnished by the contracting party. Manello v Bornstine, 44 Wash 769, 270 P2d 494, 45 ALR2d 494. The discharge of an antecedent debt, provided it is the obligation of the contracting party. Hansen v Cramer, 39 Cal 2d 321, 245 P2d 1059, 30 ALR2d 1204. As defined by the Bankruptcy Act for the purpose only of that portion of the statute dealing with the avoidance of fraudulent transfers, a consideration given for the property or obligation of a debtor is "fair" (1) when, in good faith, in exchange and as a fair equivalent therefor, property is transferred or an antecedent debt is satisfied, or (2) when such property or obligation is received in good faith to secure a present advance or antecedent debt in an amount not disproportionately small as compared with the value of the property or obligation obtained. 9 Am J2d Bankr § 1113.

Ballentine's law dictionary. . 1998.

Look at other dictionaries:

  • fair consideration — see consideration Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • fair consideration — A fair equivalent. One which, under all the circumstances, is honest, reasonable, and free from suspicion. Full and adequate consideration. Good faith satisfaction of an antecedent debt. One which fairly represents the value of the property… …   Black's law dictionary

  • fair consideration — A fair equivalent. One which, under all the circumstances, is honest, reasonable, and free from suspicion. Full and adequate consideration. Good faith satisfaction of an antecedent debt. One which fairly represents the value of the property… …   Black's law dictionary

  • fair consideration — appropriate recompense, fair reward or compensation …   English contemporary dictionary

  • consideration — con·sid·er·a·tion n: something (as an act or forbearance or the promise thereof) done or given by one party for the act or promise of another see also contract compare motive ◇ Except in Louisiana, consideration is a necessary element to the… …   Law dictionary

  • fair — adj 1: characterized by honesty and justice: free from self interest, deception, injustice, or favoritism a fair and impartial tribunal 2: reasonable as a basis for exchange a fair wage a fair valuation 3: consistent with merit or importance …   Law dictionary

  • fair and impartial jury — n. A jury composed of people who have no preconceptions about a case and who will form opinions based on a fair consideration of evidence and testimony. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney… …   Law dictionary

  • consideration — The inducement to a contract. The cause, motive, price, or impelling influence which induces a contracting party to enter into a contract. The reason or material cause of a contract. Some right, interest, profit or benefit accruing to one party,… …   Black's law dictionary

  • consideration — The inducement to a contract. The cause, motive, price, or impelling influence which induces a contracting party to enter into a contract. The reason or material cause of a contract. Some right, interest, profit or benefit accruing to one party,… …   Black's law dictionary

  • fair and valuable consideration — One which is a substantial compensation for the property conveyed, or which is reasonable, in view of the surrounding circumstances and conditions and market value of comparable properties in same vicinity, in contradistinction to an inadequate… …   Black's law dictionary