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The High Cost of Cost Indemnification: A Warning

A contractual indemnification can require the losing party in a lawsuit to pay the winning  party's full legal costs, the Alberta Court of Queen's Bench recently confirmed in Ruel v Rebonne, 2022 ABQB 486 [Ruel]. While courts...more

Supreme Court of Canada Imposes Good Faith Limits on the Exercise of Contractual Discretion

Good faith requires a party who has a discretionary power under a contract to exercise that discretion in accordance with the purposes for which it was conferred, the Supreme Court of Canada recently held in Wastech Services...more

Alberta Court of Appeal Revisits Contractual Good Faith Principles

The organizing principle of good faith and the duty of honest contractual performance laid down by the Supreme Court of Canada in Bhasin v Hrynew, 2014 SCC 71 [Bhasin] do not give courts the ability to review the fairness of...more

Canadian Contractual Interpretation Just Got More Difficult

Supreme Court of Canada Revives Correctness Test for Interpreting Standard Form Contracts - There is a new exception to the new Canadian approach for reviewing the interpretation of contracts: a trial court’s...more

Dangers of a Self-Drafted Letter Agreement

Court Unwilling to Impose a Reasonableness Limit on Expenditures - Exploration expenditures incurred to earn into a mining claim did not have to be reasonable, the B.C. Court of Appeal recently held in American Creek...more

New Good-Faith Duty of Honesty in Contractual Performance Recognized by Supreme Court of Canada

A new duty of honest performance has been imposed on all Canadian contracts by the Supreme Court of Canada. The notion of a general and independent doctrine of good faith performance of contracts has historically been...more

11/14/2014  /  Canada , Contract Disputes , Good Faith
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