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Consideration in Alberta Contracts

In order to have an enforceable contract, one of the elements required is consideration. Consideration is often thought of as something of value moving from one party to another, but the definition that courts use has a but more subtlety. In the case of County of Lethbridge v. The Queen, 2005 TCC 809 a good historical definition of consideration is referenced at paragraph 95:

[95] ....

In Dunlop Pneumatic Tyre Co. Ltd. v. Selfridge & Co. Ltd. [1915] AC 847 at 855, HL, Lord Dunedin wrote:

I am content to adopt from a work of Sir Frederick Pollock ... the following words as to consideration:

An act or forbearance of one party, or the promise thereof, is the price for which the promise of the other is bought, and the promise thus given for value is enforceable.

Figuring out what consideration has been used in a given contract can be important.

If you require advice on what consideration is, please feel free to contact us.

The information contained in this article is not legal advice. No solicitor client relationship is formed through this article. The reader is encouraged to retain counsel for advice in these matters.

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