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Dec 21, 2020 · In Callow, the Supreme Court of Canada held that: Parties to a contract have a duty of honest performance, as the Court first recognized six years ago in Bhasin v. Hrynew. [2] This duty “applies to the performance of all contracts and, by extension, to all contractual obligations and rights”. [3] Further, parties are “not free to exclude ...
Dec 11, 2014 · The Court noted that the duty honesty could be relaxed by the parties through agreement, so long as they respect its minimum core requirements, and any modification would need to be in express terms. The Court chose to adopt a flexible approach with respect to the organizing principle of good faith, which recognizes the importance of the general principle without displacing existing ...
In Bhasin v Hrynew, [1] a unanimous Supreme Court of Canada recognized that good faith contractual performance is a general organizing principle of Canadian common law, and that parties to a contract are under a duty to act honestly in the performance of their contractual obligations. The case is the first time our highest court has examined ...
that the scope of this duty may be relaxed in certain contexts, and even limited by express contractual terms so long as those terms respect minimum core requirements.[12] In short, the Court would permit parties to define the precise content of honest performance and the standards by which that performance is to be measured in
Good faith and honesty are the boundaries of the field on which the contractual relationship is negotiated and performed. learn from American experience on this point.18 Part VI offers only modest conclusions, especially because the newly identified principle and duty are very much in their early days.
Nov 14, 2014 · The duty of honesty is a general doctrine applicable to all contracts, so parties can’t totally exclude it or contract out of it. However, the SCC did allow for a limited ability on the part of contracting parties to “relax” the scope of the duty by adjusting the standard or degree of honesty required, as long as it does not eliminate the core requirement of honest conduct.
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Rather, the duty requires “a minimum standard of honesty in contractual performance”. The court indicated that the “precise content of honest performance will vary with context” and suggested that in some circumstances parties would be free to relax the requirements of the doctrine so long as they respect its minimum core requirements.
