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  1. Jan 20, 2021 · As a result, the duty of honesty doesn’t impose a duty of loyalty or disclosure and doesn’t require a party to forgo its rights stemming from a contract. The Court of Appeal held that although the trial judge’s findings suggest a failure to act honourably, this failure didn’t give rise to a breach of honest performance ( Callow SCC, para 27).

    • Condominium

      Business, Commercial, Civil Litigation / Condominium Law /...

    • Contracts

      Business, Commercial, Civil Litigation / Commercial Law /...

  2. 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 ...

  3. March 2022 - 10 min read. In 2020 and 2021, two significant Supreme Court of Canada cases, Callow Inc. v. Zollinger and Wastech Services Ltd. v Greater Vancouver Sewerage and Drainage District, clarified and confirmed the duty of good faith and honest contract performance. These cases have since been followed several times in Alberta and Canada ...

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  4. Jan 12, 2021 · The duty of honest performance requires that the matter at issue be directly linked to the performance of a contract, such as the exercise of a right under the contract or the performance of an obligation under the contract. Ultimately, the SCC held that the Respondent’s deception was directly linked to the Contract because its exercise of ...

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  5. 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.

  6. Nov 18, 2014 · In its judgment in Bhasin v. Hrynew, 2014 CarswellAlta 2046 (S.C.C.) (Bhasin), released on November 13, 2014, the court has introduced a duty of honest performance applicable to all contracts and brought the Canadian common law into closer alliance with the civil law of Québec and the Uniform Commercial Code (UCC) in the USA. The ruling is ...

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  8. Apr 17, 2023 · The Court established that this general organizing principle of good faith includes a new duty of honest performance. This means that companies and people must be honest with each other in performing contractual obligations. Although Bhasin v Hrynew was about a commercial dispute, it is nevertheless an important ruling for Canadian employment law.

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