Adequate Consideration in Florida Law
Adequate consideration is the exchange of something of value between contracting parties that makes their agreement legally enforceable. In Florida, the courts generally do not evaluate whether the price is fair; instead, they ask whether each party received something of legal value in exchange for their promise.
The Adequacy Question
Florida follows the common law principle that courts will not police the fairness of a bargain between competent adults. A property worth $500,000 can be sold for $100,000 if both parties agree. However, this principle has limits. If the consideration is so grossly inadequate that it "shocks the conscience," Florida courts may examine whether fraud, duress, or undue influence tainted the transaction.
Consideration in Florida Deeds
Florida deeds routinely recite nominal consideration, such as "$10 and other good and valuable consideration," without specifying the actual purchase price. This is legally sufficient to support the conveyance. For tax purposes, however, Florida imposes documentary stamp taxes on the full actual consideration, and the consideration must be disclosed on the county deed transfer form.
Related Terms
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Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC