Supreme Court of Canada: Good Faith and the Duty to Act Honestly Apply to Contracts

Firm News

On November 13, 2014, the Supreme Court of Canada issued unanimous reasons in a case called Bhasin v. Hrynew, in which the Court attempted to “make the common law less unsettled and piecemeal, more coherent and more just” by extending the principal of good faith to all contracts and by recognizing a common law duty to act honestly in the performance of contractual obligations. In this Feature Article, Warren Brazier, with assistance from Shauna Towriss, sets out key aspects of the ruling and the Court’s explanation of what a duty of honesty entails in practical terms.