Is inadequate consideration sufficient to cause a breach of contract?

Saskatchewan, Canada


The following excerpt is from Clements Mair and Estate of Elsie Mair v. Mair, 1980 CanLII 2011 (SK QB):

There is no question but that the consideration for the transfers was inadequate. Once the court has determined there is no undue influence, such inadequacy is not, of itself, sufficient to disturb the contract. The question of the inadequacy of consideration was dealt with in Calmusky v. Karaloff, supra, when the judge writes in the judgment of the majority of the court, at p. 120: . . . Under such circumstances, while the courts will inquire as to whether advantage is taken or influence exerted, yet when it is found that neither of these exist and that the parties were equally in possession of all the facts, mere inadequacy of consideration is not a ground for disturbing the contract.

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