Commercial Contracts

Consideration

Something of value exchanged by each side, which a contract generally needs to be enforceable.

Consideration can be money, goods, services, or a promise to do — or not do — something. It does not have to be a fair market price, but it must be something rather than nothing.

Why it matters: this is why employers are often advised to provide something new when asking an existing employee to sign a new agreement; a signature on fresh terms with nothing given in return may not be enforceable.

Related terms

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A definition can tell you what a term means. It cannot tell you what to do about your matter — that needs a licensed lawyer who knows the facts.

Legal information, not legal advice. Rules differ by province and change over time. A licensed lawyer must review your matter.

Editorial status: Lawkin Editorial — pending independent legal review.

Consideration — Canadian legal glossary | Lawkin — Lawkin