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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 ...
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 ...
Feb 12, 2021 · The Supreme Court of Canada (“SCC”) in its recent decision C.M. Callow Inc. v. Zollinger, shed light on the duty of honest performance of a contract.This is a further expansion of the duty of honesty, stating clearly that there is no requirement for outright dishonesty for actions to constitute a breach of the duty.
Even if a party complies with the letter of a contract, the way it exercises a right or performs an obligation may still breach the duty of honest performance. Although there is no positive obligation of disclosure, a contracting party cannot engage in “active deception” and, where the facts disclose dishonest conduct, may be required to ...
Feb 18, 2021 · Damages were awarded to Callow. On appeal, the Court of Appeal overturned the trial judge’s decision, finding that the duty of honesty does not include a positive duty to disclose an intention to terminate a contract, absent a clause to the contrary. The Supreme Court restored the trial judge’s decision.
Jan 21, 2021 · In 2014, the Supreme Court of Canada in Bhasin v. Hrynew, 2014 SCC 71, recognized a new common law contractual duty: specifically, the duty of honest performance.The duty requires that parties not lie or otherwise knowingly mislead each other about matters directly linked to the performance of their contract. Six years later, the Supreme Court ...
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Nov 25, 2014 · The duty of honesty recognized by the Court represents a new legal rule, which has immediate implications. Justice Cromwell explained the duty of honesty in contractual performance as requiring that parties "must not lie or otherwise knowingly mislead each other about matters directly linked to the performance of the contract".
