In 2014 the supreme court of Canada spoke to to the issue of breach of contract. In effect the court significantly expanded a point of law – good faith – which had a long pre-existence in law – for example in the law of trusts – the law of solicitors for example – whereby a solicitor must deal with his client in good faith – that is to say – not as a adversary. The law of insurance contracts , where for example, it was considered bad faith for the insurer to deny coverage to a family who had loss their family residence and the insurer had no good reason to deny coverage – merely making the insured’ job of recovering more difficult thereby perhaps securing advantage to the insurer. The supreme court of Canada (in Pilot’s Insurance) determined this to be ‘bad faith’. Bad faith was not a new idea – its extension to ordinary contract law was a new idea. In the intervening period since 2014, the courts have spoken to this new doctrine – significantly restricting its scope.
Below are a number of commentaries mostly digging up old cases referred to by the court in their construction of ‘good faith’.
This doctrine (good faith) is practically important for lawyers and clients – it will fit into almost every contract claim and will have to be defended in every contract defense. It is a now-established idea. Nevertheless, it is a subject of some interest how it is that the ideas reflected in earlier cases (such as those cited by the SCC) will be re-integrated into the corpus of the common law – along side this expanded good faith rule.
Good Faith in Contracts: does this mean no more ‘AS-IS WHERE-IS’ sales?
Good Faith in contract: Are contracts now insurance traps?
Good Faith in Contract: does this mean the other guy has a fiduciary duty to me?
Good Faith in Contract: What does ‘Honesty’ mean?
Good faith in contract: is ‘good faith’ really a proxy for ‘dependent contractor’
Good Faith in contract: What is really wrong with the supreme court’s decision?
‘Honesty’ in Contract: What exactly was the ‘active deception’ in Callow v. Zollinger?
Honest in contract: Kasirer’s misuse of precedent
Good Faith in contract: the latest Ontario Case
