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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 ...
- Brandon Kain
Brandon has repeatedly litigated issues involving good faith...
- Brandon Kain
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 ...
Dec 22, 2014 · This general duty of honesty is not an implied term but “a general doctrine of contract law that imposes as a contractual duty a minimum standard of honest contractual performance” (at para 74). Lastly, it is important to note that Cromwell J. noted that an entire agreement clause cannot oust the duty, however express contractual provisions may be able “relax the requirements of the ...
The duty of honest performance underpins all contractual rights and obligations. Eight of nine judges of the Supreme Court (Côté J. dissenting) allowed the appeal and found in favour of Callow. Baycrest breached its duty of honest performance by deliberately misleading Callow about Baycrest’s decision to terminate the winter contract.
fiduciaries to one another, "a basic level of honest conduct is necessary to the proper functioning of commerce."[8] The Duty of Honesty in Contractual Performance Accordingly, in addition to affirming the general organizing principle of good faith, the Court held there is a general duty of honesty in contractual performance.
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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Can the duty of honesty be relaxed?
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Can a defendant rely on a dishonest conduct?
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 ...
