In what circumstances will a party be bound by the elements of a contract where the contract is not enforceable when the contract was signed?

Alberta, Canada


The following excerpt is from Nathu v. Imbrook Properties Ltd., 1990 CanLII 5551 (AB QB):

In Bank of New Zealand v. Simpson, [1900] A.C. 182 (P.C.), Lord Davey stated at p. 187: Extrinsic evidence is always admissible, not to contradict or vary the contract, but to apply it to the facts which the parties had in their minds and were negotiating about.

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