News & Analysis as of

Breach of Contract Canada

Blake, Cassels & Graydon LLP

La CSC donne des précisions sur les exigences qui se rattachent aux clauses d’exclusion

La Cour suprême du Canada (la « CSC ») a récemment rendu une décision très attendue dans l’affaire Earthco Soil Mixtures Inc. c. Pine Valley Enterprises Inc. Dans une décision rendue à six contre un, la CSC a clarifié les...more

Blake, Cassels & Graydon LLP

SCC Releases New Guidance on Requirements for Exclusion Clauses

The Supreme Court of Canada recently released its highly anticipated decision in Earthco Soil Mixtures Inc. v. Pine Valley Enterprises Inc. In a 6-1 decision, the Court clarified the requirements for showing that parties to a...more

Dickinson Wright

When Development Deals Go Wrong, Damages Come in the Form of Land Value, Not Lost Profits

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This column was originally published on RENX.ca. When a deal to buy and sell land for development goes awry, an innocent purchaser can sue for the damages suffered....more

Blake, Cassels & Graydon LLP

Exécution en nature : un redressement pas si « extraordinaire » dans un contexte de différend immobilier

Introduction - Dans deux affaires récentes, la Cour supérieure de justice de l’Ontario (la « Cour ») a rendu des décisions qui s’éloignent de la position voulant que l’exécution en nature soit un redressement «...more

Stikeman Elliott LLP

Choose Your Words Carefully: Three Recent Earnout Cases Under Delaware Law

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When the prospects of an acquired business are uncertain, an earnout can bridge the valuation gap between buyer and seller and help get the deal done. Taking this route is not without risk, however, particularly where...more

Blake, Cassels & Graydon LLP

Specific Performance: Not Too “Extraordinary” of a Remedy for Real Estate Disputes

Introduction - In two recent cases, the Ontario Superior Court of Justice (Court) endorsed a shift away from the view of specific performance as an “extraordinary” remedy in the context of commercial real estate disputes. In...more

Esquire Deposition Solutions, LLC

Technology Is No Substitute for Careful Planning of International Depositions

No doubt remote deposition technology is compelling. Not only can remote depositions lower litigation spending and free up valuable attorney hours, they offer litigators the ability to efficiently depose witnesses located...more

Blake, Cassels & Graydon LLP

Pas facile pour les acheteurs de se libérer d’une convention d’achat d’un condo en prévente

En cette période où les taux d’intérêt et l’inflation sont en hausse, certains acheteurs d’appartements en copropriété offerts en phase de prévente (ou de préconstruction) peuvent avoir des regrets à l’approche de la date de...more

Blake, Cassels & Graydon LLP

High Bar to Establish Developer Breached Contract for Pre-Sale Condo Allowing Purchaser to Walk Away

During this period of rising interest rates and high inflation, some purchasers of pre-sale (also known as pre-construction) condominiums may be experiencing buyer’s remorse as their closing date approaches. In many cases,...more

Morrison & Foerster LLP - Social Media

Be Careful What You Click For: A Canadian Court Rules That A Thumbs-Up Emoji Indicates A Binding Contractual Agreement

In this age of social media and texting, we use a plethora of shorthand visual and typographic icons to express a range of responses or reactions to posts or texts: a heart to indicate love, a laughing face or an “LOL” to...more

Holland & Hart LLP

Canada Emoji Ruling Considers Digital-Age Contract Realities

Holland & Hart LLP on

When do you have an agreement that will be enforceable by law — a binding contract? Fundamental components necessary to the formation of a contract include a valid offer and acceptance with respect to final, essential terms. ...more

Houston Harbaugh, P.C.

Text Message Emoji Was Sufficient to Agree to Contract

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Agreeing to a contract does not require everyone sitting around a table signing documents; sending a “thumbs up” text message emoji was sufficient to agree to a contract according to a recent Canadian court decision....more

Bennett Jones LLP

Force Majeure Clauses and COVID-19 Pandemic Impacts—An Assessment of Ontario Judgments Three Years On

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Early on in the COVID-19 pandemic, many businesses began to scrutinize force majeure clauses in their commercial contracts and leases. Such contractual clauses, when engaged, either permanently or temporarily relieve the...more

McGlinchey Stafford

MedMen’s Illegality Defense: Will the Court Take the Case?

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Can claiming you broke the law get you out of a contract? Illegality And Unforceability- MedMen – a Canadian corporation, and one of the best-known names in marijuana – recently made headlines for pulling an old trick:...more

Bennett Jones LLP

The High Cost of Cost Indemnification: A Warning

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A contractual indemnification can require the losing party in a lawsuit to pay the winning  party's full legal costs, the Alberta Court of Queen's Bench recently confirmed in Ruel v Rebonne, 2022 ABQB 486 [Ruel]. While courts...more

Bennett Jones LLP

Entire Agreement Clause and Due Diligence Cannot Oust Fraudulent Misrepresentation

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The defence of misrepresentation is still alive in circumstances involving entire agreement clauses and opportunities for due diligence, the Ontario Court of Appeal recently held in 10443204 Canada Inc. v 2701835 Ontario...more

Bennett Jones LLP

Seller Beware: Ontario Court of Appeal on Requirements to Exclude Statutory Warranties and Conditions

Bennett Jones LLP on

The Ontario Court of Appeal recently released Pine Valley Enterprises Inc v Earthco Soil Mixtures Inc [Pine Valley], which reminds businesses that all sales of goods are subject to warranties and conditions under the Sale of...more

Littler

Alberta, Canada: Arbitrator Decides COVID-19 Pandemic is Cataclysmic Event that Did Not Trigger Entitlement to Severance Under...

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In United Utility Workers’ Association of Canada v Dataco Utility Services Ltd., 2022 CanLII 13414 (AB GAA), Arbitrator John Moreau, Q.C., dismissed 11 grievances filed on behalf of 11 service technicians (Grievors) of Dataco...more

Stikeman Elliott LLP

“Commercially Reasonable Best Efforts”: B.C. Court Provides Guidance in Context of Purchase and Sale Contract

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In Sutter Hill Management Corporation v. Mpire Capital Corporation (Sutter), the British Columbia Court of Appeal found that the acquiror of an Abbotsford, B.C. care home had breached the purchase and sale agreement by...more

Stikeman Elliott LLP

Cineplex Awarded $1.24 Billion in Lost Synergies from Failed Cineworld Acquisition: Company’s Pandemic Response Not Out of the...

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In a highly anticipated decision, the Ontario Superior Court of Justice – Commercial List held that Cineworld wrongly terminated its arrangement agreement to acquire Cineplex, which was awarded substantial damages....more

Bennett Jones LLP

B.C. Court of Appeal Decision Reminds Parties to Contracts to Read Before Signing

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Written contracts are an essential tool in confirming the terms of an agreement between two parties following an apparently successful negotiation. Yet too often parties treat such agreements as mere formalities, signing them...more

Bennett Jones LLP

Ontario Superior Court Limits Potential Class Action Entitlement for Pure Economic Loss

Bennett Jones LLP on

While the effects of the Supreme Court of Canada's decision in 1688782 Ontario Inc v Maple Leaf Foods Inc., 2020 SCC 35 [Maple Leaf], begin to reverberate in the decisions of lower courts, Justice Paul Perell's certification...more

Littler

Ontario, Canada Court Reminds Employers it is Important to Adhere to Their Contracts’ Termination Provisions

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In Perretta v. Rand A Technology Corporation, 2021 ONSC 2111, Ontario’s Superior Court of Justice ordered an employer to pay an employee damages for reasonable notice at common law when it decided the employer repudiated its...more

Littler

Ontario, Canada Court Finds Employee Repudiated Her Employment Contract When She Refused to Work Unless New Conditions Were Met

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In Anderson v Total Instant Lawns Ltd, 2021 ONSC 2933 (Total Instant Lawns), an employee claimed her job was terminated and sought damages for wrongful dismissal.  The employer denied the employee was dismissed and argued...more

Littler

Ontario, Canada Court Reminds Employers that Improperly Drafted Restrictive Covenants are Unenforceable

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In Labrador Recycling Inc. v. Folino, 2021 ONSC 2195 (Labrador Recycling), Ontario’s Superior Court denied an employer’s motion for an urgent injunction to restrain its former employee from competing with it contrary to the...more

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