Contract law |
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Duties of parties |
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Notes |
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The duty of honest contractual performance is a contractual duty and implied term of a contract, introduced into Canadian law in 2014 as a result of the decision of the Supreme Court of Canada in the case of Bhasin v. Hrynew.
As a sub-category of good faith and a duty arising at common law, contracting parties have a duty to act honestly in the performance of their contractual obligations. The Court recognised, in passing this judgement, that a new common law duty was being created:
The Court further stated:
Parties may not contract out of this duty.[3]