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'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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Bhasin Revisited: C.M. Callow Inc. v. Zollinger Provides Straightforward Example Of Breach Of Honest Contractual Performance - Corporate/Commercial Law


On Friday, the Supreme Court of Canada released its long-awaited
decision in
C.M. Callow Inc. v.
Zollinger.
1 The decision provides a
significant elaboration of the scope and implications of the
doctrine of good faith in Canadian contract law from the
Court s landmark 2014 decision in
Bhasin v.
Hyrnew.
In 2014, the Supreme Court of Canada in
Bhasin v,
Hrynew recognized a general organizing principle
of good faith to address the types of situations and relationships
where the law requires honest, candid, forthright or reasonable
contractual performance.
3 The Court s decision,
however, left important questions about the scope of this
organizing principle and the particular duty of honest contractual ....

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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 ....

New York , United States , Tammy Zollinger , Claire Villeval , Lisa Spantig , Justice Obonsawin , Bhasinv Hrynew , Kasirerj Wagner , Eugene Soltes , Kennethe Jull , Marting Kocher , Chloe Tergiman , Malcolm Gladwell , Bernie Madoff , Daniel Hermann , Ontario Court , Thomson Reuters , Ontario Superior Court , Sharwood Company , Cm Callow Inc , Company New York , Lower Court Decisions , Supreme Court , Committee Baycrest , Public Affairs , Joint Use Committee ,

You Should Have Said Something: Supreme Court Of Canada Holds That Failure To Correct A Mistaken Belief Violated The Duty Of Honest Contractual Performance - Corporate/Commercial Law


The Supreme Court of Canada (
SCC )
recently released its much-anticipated decision in
C.M. Callow
Inc. v. Tammy Zollinger et. al (
C.M.
Callow ).
1  The decision
revisits the common law duty of honest contractual performance six
years after the SCC s seminal decision in
Bhasin v. Hrynew
(
Bhasin ).
2  The
C.M. Callow decision clarifies what constitutes a breach of the
duty of honesty in circumstances where one party does not correct
the other s mistaken belief pertaining to the agreement.
Background: Unanswered Questions following
The SCC s unanimous decision in
Bhasin described
good faith as a general organizing principle in the
Canadian common law of contracts that requires parties to perform ....

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