Does the amount of rent paid in the lease have any bearing on its legality?
Full Question:
Answer:
Generally, as long as something of value is given in exchange for a promise in a contract, it will be enforced without regard to the amount. However, consideration received under a contract should not be so far below market value as to offend the conscience.
In the case of property leased by the trustee of a trust, the trustee is responsible for protecting the best interests of the beneficiaries of the trust. If the trustee uses the assets of the trust in a way that is against the best interest of the beneficiaries, the trustee can be sued for breach of fiduciary duty, among other charges. The amount received by a trustee for leased property should not adversely affect the beneficiaries nor directly or indirectly benefit the trustee. Generally, transactions by the trustee need to be free from bad faith, self-dealing, and fraud. Whether a property leased below market value is a breach of fiduciary duty is a determination for the court based on the facts and circumstances in each case.