Good faith in business is the LAW: SCoC

[jacee]

duty-of-honesty-between-contracting-parties

In perhaps the most important contract decision of the past 20 years, the Supreme Court of Canada today established a general doctrine of good faith between parties and a specific duty of honesty opening up the civil courts to a potential wave of lawsuits based on perceived deceptions.

The case outlines the rather convoluted tale of how Hrynew attempted to capture Bhasins clientele at first by suggesting a merger, then by working with CAF to mislead Bhasin and pressure him into a merger. In the end, CAF terminated Bhasins contract and his sales agents jumped ship to work with Hrynew.Bhasin sued both parties, ...

Today, the SCC ... decision states: there is a common law duty which applies to all contracts to act honestly in the performance of contractual obligations.

I think this is awesome, and will provide a lot of clarity in cases that may previously been pretty murky. It should streamline the process.

It will be a rude awakening for those who operate in the 'grey areas' of bad faith.

Hmmm ... US Steel in Hamilton comes to mind!

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Edited November 14, 2014 by jacee

[hitops]

duty-of-honesty-between-contracting-parties

In perhaps the most important contract decision of the past 20 years, the Supreme Court of Canada today established a general doctrine of good faith between parties and a specific duty of honesty opening up the civil courts to a potential wave of lawsuits based on perceived deceptions.

The case outlines the rather convoluted tale of how Hrynew attempted to capture Bhasins clientele at first by suggesting a merger, then by working with CAF to mislead Bhasin and pressure him into a merger. In the end, CAF terminated Bhasins contract and his sales agents jumped ship to work with Hrynew.Bhasin sued both parties, ...

Today, the SCC ... decision states: there is a common law duty which applies to all contracts to act honestly in the performance of contractual obligations.

I think this is awesome, and will provide a lot of clarity in cases that may previously been pretty murky. It should streamline the process.

It will be a rude awakening for those who operate in the 'grey areas' of bad faith.

Hmmm ... US Steel in Hamilton comes to mind!

.

It sounds like the main benefit of this will be to allow judges more discretion on whether bad faith occurred or not. Overall probably a positive.

[Moonbox]

I wonder how much this will actually change things, because good faith and whatnot were already factors in a lot of contract law....