LAW OF CONSIDERATION
Khalid Farooq Parvaiz ESQ
Barrister and Solicitor in Ontario and Attorney at law in Lahore, Pakistan (Dual Licensed)
Brant Securities Limited v. Goss, 2025 ONCA 8 (CanLII)
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[8]?? ?? ???The motion judge correctly summarized several core principles concerning the law of consideration. He set out the long-standing principle that consideration can take multiple forms and that the law does not concern itself with the adequacy thereof. As long as there is consideration, the court leaves it to parties to form their own judgment over the adequacy thereof and to make their own bargain:?Loranger?v. Haines,?1921 CanLII 520 (ON CA), [1921] 64 D.L.R. 364 (Ont. C.A.). Further, as he provided, the law does not require that consideration be in the form of money, or that the economic value of the benefits provided equal or exceed the economic cost of the agreement:?Techform Products Ltd.?v. Wolda?(2001),?2001 CanLII 8604 (ON CA), 56 O.R. (3d) 1, at paras.?24, 28;?Lancia?v. Park Dentistry,?2018 ONSC 751, at para.?54; see also?Giacomodonato?v?PearTree?Securities?Inc.,?2023 ONSC 3197, at para.?48, aff’d?2024?ONCA?437.
[9]?? ?? ???The motion judge also correctly held that clarifying an unclear term in a contract to create certainly and avoid disputes can constitute valid consideration:?Richcraft Homes Ltd.?v. Urbandale Corporation,?2016?ONCA?622, at paras.?46-47.
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