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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. ....

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