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Contract Interpretation Canada

Bennett Jones LLP

Ontario Court Confirms Temporary Lay-Off Clause Is Distinct From Termination Clause | Bennett Jones

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In Taylor v Salytics Inc., 2025 ONSC 3461 (Taylor), the Ontario Superior Court of Justice emphasized the importance of a substance-over-form analysis in the interpretation of employment agreements, concluding that a temporary...more

Bennett Jones LLP

Bennett Jones Acts for CPKC in Setting Aside "Extraordinary" C$228 Million Award on Commercial Land Deal

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On July 2, 2025, the Court of Appeal of Alberta set aside a C$228 million judgment against Canadian Pacific Kansas City Limited (CPKC) and the Province of Alberta (the Province), arising from a failed real estate transaction....more

Blake, Cassels & Graydon LLP

Limitation and Exclusion of Liability Clauses Under Quebec Law: Legal Guidance and Drafting Tips

The inclusion of limitation and exclusion of liability clauses in contracts entered into in Quebec requires an understanding of civil law and public order restrictions. Since the Supreme Court of Canada (SCC) ruling in...more

Bennett Jones LLP

Lease Termination Clauses: Know the Target Before Pulling the Trigger

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In the glow of negotiating a commercial lease, no landlord or tenant wants to think about how it might end early. But recent developments again remind us that a nuanced termination clause will significantly affect if, when...more

Blake, Cassels & Graydon LLP

L’influence des tribunaux sur les contrats : Survol de décisions récentes rendues par des cours d’appel et la Cour suprême

La jurisprudence canadienne récente influe sur l’approche que devraient adopter les rédacteurs de textes juridiques au moment de formuler des clauses contractuelles. Des décisions clés, notamment de la Cour suprême du Canada...more

Bennett Jones LLP

What Class Action Settlement Costs Will A Defendant’s Insurer Cover? The Ontario Superior Court of Justice Provides Some Answers

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In Tokio Marine & Nichido Fire Insurance v Honda Canada, 2025 ONSC 2856, the Ontario Superior Court upheld an arbitral panel's conclusion that an umbrella insurance policy covered settled class counsel fees, but not...more

Blake, Cassels & Graydon LLP

Nouvelle clause contractuelle : Efforts raisonnables et diligents sur le plan commercial à la date la plus rapprochée possible

Dans l’affaire récente Epix Developments Ltd. v. Bonnis Development Union Street Limited Partnership (l’« affaire Epix ») (en anglais), un tribunal en Colombie-Britannique s’est penché sur l’interprétation d’une nouvelle...more

Blake, Cassels & Graydon LLP

From Court to Contract: Navigating Recent Supreme Court and Appellate Decisions

Recent Canadian case law is reshaping how legal drafters should approach contractual clauses. Key decisions, including rulings from the Supreme Court of Canada and appellate courts in British Columbia, Alberta, Ontario and...more

Bennett Jones LLP

ONSC Denies Claim for Acceleration of Earn-Out Payment

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The Ontario Superior Court of Justice recently released its decision in Project Freeway Inc. v ABC Technologies Inc. (2025 ONSC 1048), addressing whether certain post-closing transactions triggered the acceleration of an...more

Bennett Jones LLP

Termination Provisions and the Perils of Imprecise Drafting: Key Lessons from De Castro v Arista Homes Limited

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The Ontario Court of Appeal’s recent decision in De Castro v Arista Homes Limited, 2025 ONCA 260 (De Castro) provides Ontario employers with yet another reminder about the importance of clear and concise drafting in...more

Blake, Cassels & Graydon LLP

British Columbia and Ontario: Two Diverging Approaches to Interpreting Termination Provisions

Overview - Employers increasingly face challenges regarding whether termination provisions in their employment agreements will be determined to be enforceable if challenged in court. As we continue to see increasing court...more

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A Clarified Approach to Exclusion Clauses in Contracts for Sale of Goods

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Exclusion clauses are a common feature of agreements of purchase and sale and other commercial contracts. While often subject to negotiation, parties sometimes proceed with standard form exclusion clauses that may inject...more

Stikeman Elliott LLP

Interpreting Exclusion Clauses in Contracts for the Sale of Goods: Important Guidance from the Supreme Court of Canada

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On May 31, 2024, the Supreme Court of Canada released its highly anticipated decision in Earthco Soil Mixtures Inc. v. Pine Valley Enterprises Inc., 2024 SCC 20 (“Pine Valley”), clarifying how contracting parties can exclude...more

Bennett Jones LLP

How Liquid is Your Letter of Credit?

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Other than cash, a standby letter of credit (LoC) is generally considered the most liquid form of performance security. While beneficiaries generally believe drawing on an LoC should be a relatively simple process, many do...more

Blake, Cassels & Graydon LLP

Interprétation contractuelle des décharges de responsabilité : la CSC écarte une règle vieille de 150 ans

Le 23 juillet 2021, la Cour suprême du Canada (la « CSC ») a rendu une décision unanime dans l’affaire Corner Brook (Ville) c. Bailey (l’« arrêt Corner Brook »). La CSC a statué que les règles habituelles d’interprétation des...more

Blake, Cassels & Graydon LLP

The Supreme Court of Canada Applies General Rules of Contractual Interpretation to Releases, Overtaking a 150-year-old Rule

On July 23, 2021, the Supreme Court of Canada (SCC) released its unanimous decision in Corner Brook (City) v. Bailey (Corner Brook). The SCC held that the general rules of contractual interpretation apply to releases: courts...more

Bennett Jones LLP

You Oughta Know: The General Principles of Contractual Interpretation Apply to Releases

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Releases are to be interpreted pursuant to the general principles of contractual interpretation, the Supreme Court of Canada recently held in Corner Brook (City) v Bailey, 2021 SCC 29 [Corner Brook]. The decision overtakes an...more

Littler

Supreme Court of Canada Clarifies Duty to Exercise Contractual Discretion in Good Faith

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In 2020, the Supreme Court of Canada (SCC) heard arguments in Wastech Services Ltd. v. Greater Toronto Sewage and Drainage District, 2021 SCC 7 (Wastech) and C.M. Callow Inc. v. Zollinger, 2020 SCC 45 (Callow), both of which...more

Blake, Cassels & Graydon LLP

La Cour suprême du Canada reconnaît l’obligation de bonne foi dans l’exercice d’un pouvoir discrétionnaire contractuel

Dans l’arrêt qu’elle a rendu dans l’affaire Wastech Services Ltd. c. Greater Vancouver Sewerage and Drainage (l’« affaire Wastech »), la Cour suprême du Canada (la « Cour suprême ») a reconnu l’obligation générale d’exercer...more

Blake, Cassels & Graydon LLP

Supreme Court of Canada Recognizes Duty of Good Faith in Exercise of Contractual Discretion

In Wastech Services Ltd. v. Greater Vancouver Sewerage and Drainage (Wastech), the Supreme Court of Canada (SCC) recognized a general duty to exercise contractual discretion in good faith. This bulletin summarizes the SCC’s...more

Littler

Supreme Court of Canada Expands Duty of Honest Performance in Contract

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The Supreme Court of Canada (SCC) recently issued a decision expanding the duty of honest performance, which applies to parties to all contracts, by holding that they cannot knowingly deceive one another about matters...more

Bennett Jones LLP

What Constitutes Surrounding Circumstances in Contractual Interpretation? The Alberta Court of Appeal

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Pre-contract negotiations, such as prior drafts of agreements, are generally inadmissible as part of "surrounding circumstances" when interpreting a contract, and parties' subjective intentions are always inadmissible, the...more

Bennett Jones LLP

Supreme Court of Canada to Revisit Bhasin and Contractual Parties' Duty of Good Faith

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The Supreme Court of Canada (SCC) recently granted leave to appeal from the British Columbia Court of Appeal's decision in Greater Vancouver Sewerage and Drainage District v Wastech Services Ltd., 2019 BCCA 66. The case...more

Jones Day

Construction Contracts: When Is Industry Best Practice Not Good Enough?

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The Situation: A recent ruling in MT Højgaard A/S v E.ON Climate & Renewables UK Robin Rigg East Limited by the UK Supreme Court gives guidance on construction contracts where the contractor undertakes both to deliver a...more

Bennett Jones LLP

The Appeal in Teal: SCC Majority Restores Commercial Arbitrator's Award

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The Supreme Court has again restricted the scope of appeals from decisions of commercial arbitrators, this time upholding an arbitrator's award of compensation under a British Columbia statute by a close majority....more

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