How Does A Court Find And Interpret An Oral Construction Contract?


What principles should apply to the interpretation of oral contracts? The British Columbia Court of Appeal recently addressed this issue in Copcan Contracting Ltd v. Ashlaur Trading Inc.

This decision is a handy reference in relation to any dispute over an alleged oral contract. It contains three essential principles applicable to the existence and terms of the oral contract:

the objective test to determine its existence;

the industry perspective from which the parties must be assumed to be acting;

and the flexibility with which the court will determine the terms of the contract.

Interpretation - oral contract - invoices - subcontractors

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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