Supply Chain Management Professional (SCMP) · Question
Under Canadian contract law, what is 'consideration' essential for a contract to be legally binding?
Consideration refers to the exchange of something of value between the parties, which is a fundamental element of a valid contract.
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Question: Under Canadian contract law, what is 'consideration' essential for a contract to be legally binding?
Answer options:
- A written document signed by both parties ✅ Something of value exchanged between parties
- An agreement to meet in person
- A public announcement of the contract terms
Correct answer: Something of value exchanged between parties
Explanation: Consideration refers to the exchange of something of value between the parties, which is a fundamental element of a valid contract.
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