Avoiding Disputes: The Duties of Good Faith and Honesty in Contractual Performance

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This paper discusses the general principles of contracting that flow from the Supreme Court of Canada decision in Bhasin v Hrynew, 2014 SCC 71, which will aid practitioners to successfully draft enforceable agreements. Three contractual principles arising from the case are discussed: the court expects that parties will not lie or mislead, the court does not require contractual terms to be fair, and the court will uphold express contractual terms but will be slow to imply terms. The paper also provides tips for drafting agreements and suggested clauses to include.

This paper is part of a collection presented at LESA’s Business Disputes program in Lake Louise on May 5, 2018.

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