Canadian courts consistently hold that a promise to perform a pre-existing contractual obligation cannot provide consideration under a new contract with the same party.They apply that rule because it always reflects commercial reality.

Question

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Canadian courts recognize that a promise to perform a pre-existing contractual obligation can sometimes provide consideration under a new contract with the same party, especially if there are new or modified terms that provide some benefit or detriment not originally contemplated. This approach allows for flexibility and acknowledges the complexities of commercial realities.

Canadian Courts Consistently Hold That a Promise to Perform a Pre-Existing