A Canadian multinational was interested in developing a market in a developing country that had once been communist,and was moving to a free enterprise system.The multinational negotiated with the government to buy and resurrect the fledging state-owned automobile industry.After signing a contract under seal,the company got cold feet and decided to back out of the deal.The contract will be enforced against the company because the application of a seal together with a signature is considered to represent consideration for the contract.

Question

Quizplus · Accepted Answer

In some common law jurisdictions, including Canada, use of a seal on a contract can create a rebuttable presumption of consideration, making the contract enforceable even if no other consideration is given. Therefore, in this scenario, the contract would likely be enforced against the company.

A Canadian Multinational Was Interested in Developing a Market in a Developing