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- This duty “applies to the performance of all contracts and, by extension, to all contractual obligations and rights”. Further, parties are “not free to exclude” this duty altogether, including by “agree [ing] to a term that provides for an apparently unfettered right to terminate the contract for convenience”.
www.mccarthy.ca/en/insights/blogs/canadian-appeals-monitor/supreme-court-canada-clarifies-duty-honest-contractual-performanceThe Supreme Court of Canada Clarifies the Duty of Honest ...
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Dec 21, 2020 · The duty of honest performance means that “parties must not lie or otherwise knowingly mislead each other about matters directly linked to the performance of the contract”.
Nov 18, 2014 · In Bhasin v. Hrynew, the Supreme Court of Canada has introduced a duty of honest performance applicable to all contracts. This article summarizes the key duties set out by the court, their outer limits and the possible ability of parties to modify the duties.
- Background
- The Decision
- Key Takeaways
The case involved a dispute between therespondent, a group of condominium corporations (“Baycrest”), and theappellant, C.M. Callow Inc. (“Callow”), regarding a two-year wintermaintenance contract (the “Contract”) and separate summer maintenancecontract, both executed in 2012.TheContract stipulated that Baycrest was entitled to terminate the Contrac...
With only one dissent,the Supreme Court set aside the decision of the Ontario Court of Appeal andfound that the duty to act honestly in performance of the contract precludedthe active deception by Baycrest by which it knowingly misled Callow intobelieving that the Contract would not be terminated. At the outset of its decision, the SupremeCourt rei...
The decision in Callow, and inparticular its expansion of the duty of honest performance to prohibithalf-truths, omissions, or silence, under certain circumstances, and not merelyovert dishonesty, will require parties to a contract to tread very carefullywhen engaging with counterparties when termination, contract renewal, or othermaterial matters,...
The Supreme Court of Canada released a decision this week in Bhasin v. Hrynew which revamps the understanding of how representations made during contractual negotiations are adhered to. The unanimous Court created an "incremental step" in developing a duty of honest performance, which was described as follows: [93] ...
The Court limited the scope of this duty as follows: It does not impose a duty of loyalty or of disclosure or require a party to forego advantages flowing from the contract; it is a simple requirement not to lie or mislead the other party about one’s contractual performance.
Oct 15, 2015 · By Damon Stoddard. In its landmark November 2014 decision in Bhasin v. Hrynew 1, the Supreme Court of Canada held that there is a general organizing principle of good faith governing the common law of contract in Canada 2, from which flows a duty of honesty in contractual performance. 3.
