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...