Fair Consideration Law and Legal Definition
Fair consideration is a consideration given for property, in exchange for such property, as a fair equivalent therefor, and in good faith. It is given when property is conveyed or as an antecedent debt is satisfied. [Seligson v. New York Produce Exchange, 394 F. Supp. 125 (S.D.N.Y. 1975)].
The following is an example of a state statute (New York) referring to fair consideration:
NY CLS Dr & Cr § 272. Fair consideration is given for property, or obligation:
a. When in exchange for such property, or obligation, as a fair equivalent therefor, and in good faith, property is conveyed or an antecedent debt is satisfied; or
b. When such property, or obligation is received in good faith to secure a present advance or antecedent debt in amount not disproportionately small as compared with the value of the property, or obligation obtained.
Legal Definition list
Related Legal Terms
- Additional-Consideration Rule
- Adequate and Full Consideration in Money or Money’s Worth
- Adequate Consideration
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