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contracts

By McCarthy Tétrault LLP | 5 Minutes Read January 25, 2022

The Supreme Court of Canada clarifies the duty to exercise contractual discretion in good faith

duty of good faith

On February 5, 2021, the Supreme Court of Canada released its judgment in Wastech Services Ltd. v. Greater Vancouver Sewerage and Drainage District.[1] Wastech clarifies the nature and scope of the duty to exercise discretionary contractual powers in good faith. The appeal was heard together with C.M. Callow Inc. v. Zollinger[2] (see our earlier blog post), which clarified the duty of honest performance established in Bhasin v. Hrynew[3] (see our earlier blog post).

What you need to know

Wastech holds that:

  1. Contracting parties have a duty to exercise contractual discretion in good faith.[4] This duty “operates in every contract irrespective of the intentions of the parties”.[5]
     
  2. The duty requires parties to exercise their contractual discretion “in a manner consistent with the purposes for which it was granted in the contract” — i.e., “reasonably”.[6] This duty can be breached
… Continue reading “The Supreme Court of Canada clarifies the duty to exercise contractual discretion in good faith”

Article by McCarthy Tétrault LLP / Business, Finance and Accounting / contracts, duty of good faith, duty to exercise contractual discretion in good faith, good faith

By McCarthy Tétrault LLP | 2 Minutes Read December 21, 2020

Duty of care of financial institutions to its customers

Given that establishing a duty of care is a prerequisite for establishing negligence, the Motion Judge in Foodinvest Limited v The Royal Bank of Canada granted RBC’s summary judgment motion.

Article by McCarthy Tétrault LLP / Business, Finance and Accounting / contracts, Duty of care, finance, financial institutions

By Sultan Lawyers | 3 Minutes Read November 27, 2020

COVID-19 and employment contracts: Provisions for consideration

two people workingEmployers looking to amend and update employment contracts with current employees should be mindful of the elements that must be satisfied for the agreement to be found valid and enforceable.

Article by Sultan Lawyers / Business, Employee Relations, Employment Standards, Payroll / contracts, employment agreements, employment contract, employment law, layoffs, vacation, work from home

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