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Definitions: Consideration

‘Consideration’ typically refers to the benefit that each party receives when they enter into a contract.1 In order for there to be an enforceable contract, usually both parties must receive some type of consideration in exchange.2

In an employment contract, for example, the employee promises to provide his or her services to the employer. In exchange, the employer promises to compensate the employee. An employment contract will not usually be enforceable unless both the employee and the employer promise to provide consideration to each other as part of the agreement.

  1. J.D.F. Builders Ltd. v. Albert Pearl (Management) Ltd., [1975] 2 SCR 846) []
  2. Nardulli v. C-W Agencies Inc., 2012 BCSC 1686 at para 547 []