![]() ![]() ![]() TDI Canada Ltd., where Allan Hobbs was actively recruited by TDI Canada Ltd. ![]() The vast majority of contemporary courts, however, have now implicitly and explicitly rejected "continued" employment as sufficient consideration or have restricted the applicability to very narrow circumstances.Ī relatively modern analysis of the doctrine is found in Hobbs v. Occasionally, courts have held that where an employer has the legal right to terminate employment, the employer's decision not to exercise the right to terminate the employee is sufficient consideration for the enforceability of the agreement. Traditionally, the court has held that the right to continued employment was consideration enough for the enforceability of a written agreement executed after the start of employment. The old legal adage "past consideration is no consideration" often serves to defeat employers' expectations. If an employee was already working for an employer at the time of the employment agreement, no "fresh consideration" can be said to exist for the offering of a written employment agreement. Consideration is the simple legal principle that each party to a contract must give and receive something in order to make a contract binding. While arguably less of a "drafting" error than a procedural error, claiming an agreement is not supported by "consideration" is the most common technique used by employees to avoid the scope and ambit of an employment agreement. The purpose of this paper is to outline the twelve most common avoidable drafting errors and to propose possible "fixes" where an error has occurred. Despite these good intentions, case law is replete with examples of drafted agreements where parties have dramatically different interpretations of their respective rights. As lawyers, we encourage our clients to have written agreements in order to avoid misunderstandings and disagreements regarding what the parties intend. The fundamental legal relationship between employer and employee is one of contract. Philip Dormer Stanhope, 4th Earl of Chesterfield, Letters to his Son. However, they who aim at it, and persevere, will come much nearer to it than those whose laziness and despondency make them give it up as unattainable. Aim at perfection in everything, though in most things it is unattainable. ![]()
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