Sentences with phrase «duty of honest performance»

Beyond the creation of the new duty of honest performance, the decision contains a fair amount of nuanced commentary on the general contractual obligations of good faith.

In a post-Bhasin legal landscape, the question of how ROFR obligations will be interpreted in light of the newly recognized duty of honest performance in contract law was addressed in the Saskatchewan Court of Appeal («SKCA») case of Northrock Resources v ExxonMobil Canada Energy, 2017 SKCA 60 («Northrock»).

«So you couldn't put a clause in your agreement that says, quite apart from the terms of this agreement or what the Supreme Court has said in Bhasin, the parties are not required to perform any of these obligations in good faith because, in Bhasin, the court was clear you can't contract out of this underlying duty of honest performance.»

I am at this point concerned only with a new duty of honest performance and, as I see it, this should not be thought of as an implied term, but a general doctrine of contract law that imposes as a contractual duty a minimum standard of honest contractual performance.

Moreover, the Supreme Court of Canada recently held in Bhasin v. Hrynew, 2014 SCC 71 that «It is appropriate to recognize a new common law duty that applies to all contracts as a manifestation of the general organizing principle of good faith: a duty of honest performance, which requires the parties to be honest with each other in relation to the performance of their contractual obligations.»

The unanimous Court created an «incremental step» in developing a duty of honest performance, which was described as follows:

In another recent decision of the SCC, Bhasin v Hrynew, 2014 SCC 71, the Court recognized a new common law contractual duty: the duty of honest performance.

[4] The SCC confirmed the existence of a duty of good faith in commercial contracts in Bhasin v Hyrnew («Bhasin»), where the duty of honest performance was recognized as a general doctrine of contract law.

Instead, Justice Cromwell, writing for a unanimous panel, took «two incremental steps» in the development of the common law (para 33): first, he acknowledged «good faith contractual performance» as «a general organizing principle of the common law of contract»; second, he recognized as a «manifestation» of this principle, a duty of honest performance.

In November 2014, the Supreme Court of Canada («SCC») released their decision in Bhasin v. Hrynew, setting out a duty of honest performance in contract law.

The majority of the Court of Appeal rejected the trial judge's expansion of the duty of honest performance in contracts to create a common law duty of «reasonable exercise of discretionary contractual powers,» noting that the duty of honest performance does not relate to the negotiation of terms, and confirmed that an agreement should be interpreted in accordance with its terms unless it is unconscionable or contrary to public policy.

Recognizing a duty of honest performance flowing directly from the common law organizing principle of good faith is a modest, incremental step.

The precise content of the duty of good faith, and of the duty of honest performance, will have to be unpacked by trial courts across the country in the years to come.

The Supreme Court expressed the view that this new good faith duty, and the duty of honest performance, would accord with the reasonable expectations of commercial parties and would enhance commercial certainty.

The duty of honest performance is connected to the principle of good faith in contract law.

(3) It is appropriate to recognize a new common law duty that applies to all contracts as a manifestation of the general organizing principle of good faith: a duty of honest performance, which requires the parties to be honest with each other in relation to the performance of their contractual obligations.

[86] The duty of honest performance that I propose should not be confused with a duty of disclosure or of fiduciary loyalty.

Duty of Honest Performance The recent decision of the Supreme Court of Canada in Bhasin v. Hrynew, though not a case about partnerships, nonetheless has a wide - ranging impact... Read More

The Supreme Court's ruling in Bhasin recognizes that a duty of honest performance applies to all contracts.