Parting Ways In Good Faith: SCC Clarifies Contract Termination Disclosure Requirements - Corporate/Commercial Law
To print this article, all you need is to be registered or login on Mondaq.com. 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, particularl...