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Common Law and Civil Law on Franchising Issues

The civil law approach to franchising was, for a considerable time, largely ignored within franchising because franchising was developed in the United…

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NEP Canada awarded damages as court finds liability from deceitful disclosure | Dentons

NEP Canada awarded damages as court finds liability from deceitful disclosure | Dentons
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Canada , Bhasinv-hrynew , Furniture-incv-hryniak , Alberta-court , Energy-company , Cm-callow-incv-zollinger , Deal-team , Alberta-ltd , Merit-energy-company , Share-transaction , Transaction-assets , Surface-casing-vent-flows

'Why'd Ya Do It?' The Supreme Court Of Canada Explains The Duty To Exercise Contractual Discretion In Good Faith - Corporate/Commercial Law


Wastech:
Confirms that the duty to exercise
discretionary contractual powers in good faith, like the duty of
honest contractual performance, applies to all contracts and cannot
be excluded by the parties;
Clarifies that the duty is breached
where a party exercises a contractual power
"unreasonably", meaning in a manner not connected to the
underlying purposes for which the discretion is granted;
Mandates that when ascertaining
whether an exercise of discretion is unreasonable, and therefore a
breach of the duty, the court must interpret the contract (the
"first source of justice between the parties") as a
whole.  The content of the duty is guided by the intentions of

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Supreme Court Of Canada Imposes Good Faith Limits On The Exercise Of Contractual Discretion - Corporate/Commercial Law


Wastech, the Court
clarified the content of another doctrine flowing from the
organizing principle: the duty to exercise contractual discretion
in good faith. 
Background
Wastech involved a waste transportation company
(Wastech) and a corporation responsible for municipal waste
disposal (Metro). In 1996, Wastech and Metro entered into a
contract for waste disposal services that contemplated disposing
waste in three landfills, one of which was much farther away than
the others. The contract stated Metro had "absolute
discretion" in allocating the amount of waste to go to this
farther facility.
In 2011, Metro exercised this discretion by directing less waste
to go to the farther facility, causing Wastech to receive a lower

United-kingdom , Canada , Vancouver , British-columbia , British , Bhasinv-hrynew , Supreme-court , Wastech-services , Cm-callow-incv-zollinger , Ltdv-greater-vancouver-sewerage , British-columbia-supreme-court , Greater-vancouver-sewerage

Supreme Court Of Canada: Silence Can Breach The Contractual Duty Of Good Faith Honesty - Litigation, Mediation & Arbitration


To print this article, all you need is to be registered or login on Mondaq.com.
Good faith requires a party to a contract whose actions or words
have created a false impression in the mind of a counterparty to
take positive steps to correct it, the Supreme Court of Canada
recently held in
C.M. Callow Inc. v Zollinger, 2020 SCC
45. If a party to a contract remains silent when it becomes aware
it has caused a counterparty to misapprehend a matter directly
connected to the performance of the contract or the exercise of a
contractual right, that party may be liable for a breach of the

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Parting Ways In Good Faith: SCC Clarifies Contract Termination Disclosure Requirements - Corporate/Commercial Law


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Contracting parties may have to disclose an intention to
terminate the contract, despite the existence of a clear
contractual provision allowing for unilateral termination. Under
the duty of honesty in contract performance, this obligation arises
where non-disclosure would constitute knowingly misleading the
counterparty. This result will surprise many who would not expect
to be in breach despite strict compliance with a clear and valid
termination clause in a written agreement, particularly when
providing earlier notice could damage their own interests.
This was the holding of the recent decision by the Supreme Court

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Supreme Court of Canada: Silence Can Breach the Contractual Duty of Good Faith Honesty | Bennett Jones LLP


[co-author: Patrick Schembri -
Articling Student]
Good faith requires a party to a contract whose actions or words have created a false impression in the mind of a counterparty to take positive steps to correct it, the Supreme Court of Canada recently held in
C.M. Callow Inc. v Zollinger, 2020 SCC 45. If a party to a contract remains silent when it becomes aware it has caused a counterparty to misapprehend a matter directly connected to the performance of the contract or the exercise of a contractual right, that party may be liable for a breach of the duty of honest performance.

Canada , Bhasinv-hrynew , Ontario-court , Supreme-court , Cm-callow-inc , Bennett-jones , Lower-court-decisions , Directly-linked , கனடா , ஆஂடேரியொ-நீதிமன்றம் , உச்ச-நீதிமன்றம் , செ.மீ.-கால்-இன்க்

Viewing The Supreme Court Of Canada's Decision In Callow Through A Compliance Lens - Corporate/Commercial Law


The Supreme Court of Canada released its decision in
C.M.
Callow Inc. v. Zollinger
1 on December 18, 2020.
This decision is ground-breaking in the world of contracts, and can
have far-reaching repercussions to contracting parties that could
easily fall into the trap of acting outside of their duty of honest
performance as formulated in
Bhasin v Hrynew.
2 Generally, corporate compliance programs
focus on government regulation. After the decision in
Callow, compliance programs would be wise to focus on the
distinction between actively misleading conduct and innocent
non-disclosure in contractual performance as well.
Factual Background
The Appellant, C.M. Callow Inc. (“Callow”) signed a

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Honesty Is The Best Policy: The Supreme Court Of Canada Seeks To Clarify The Duty Of Honest Contractual Performance - Corporate/Commercial Law


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Don't mislead your contracting counterparties about
matters linked to the performance of a contract. That is the
apparently simple message from the Supreme Court of Canada in
CM Callow Inc v Zollinger. Applying
the organizing principle of good faith and, specifically, the duty
of honest contractual performance (recognized in
Bhasin v Hrynew) to a case involving a right to
terminate an agreement on notice for convenience,
Callow
seeks to clarify the circumstances in which the duty of honest
performance may require a contracting party to provide information

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