Category Archives: Contracts

There is No Presumption of Loss Flowing from a Breach of the Contractual Duty of Honest Performance

By: Jassmine Girgis

Case commented on: Bhatnagar v Cresco Labs Inc, 2023 ONCA 401 (CanLII)

PDF Version: There is No Presumption of Loss Flowing from a Breach of the Contractual Duty of Honest Performance

In Bhatnagar v Cresco Labs Inc, 2023 ONCA 401 (“Cresco Labs”), the Ontario Court of Appeal addressed whether the Supreme Court’s decision in CM Callow Inc v Zollinger, 2020 SCC 45 (CanLII) (“Callow”) created a legal presumption of loss once a court finds a breach of the contractual duty of good faith. The ONCA found that there is no presumption of loss and that a plaintiff claiming a loss of opportunity has the burden of providing evidence. Continue reading

Can the Failure to Pay for Sexual Services Form the Basis of a Contractual Claim?

By: Jassmine Girgis

Case commented on: Sheehan v Samuelson, 2023 NSSM 27 (CanLII)

PDF Version: Can the Failure to Pay for Sexual Services Form the Basis of a Contractual Claim?

Pat and Al enter into a contract. Pat will drywall Al’s basement in exchange for $2,100. Pat drywalls Al’s basement but Al refuses to pay. Al breached his contractual obligations to Pat and would be liable for damages. Now, keep all the facts the same but assume that the service is sex work as opposed to dry walling – does that change the analysis at all? Continue reading

Interpreting Restrictive Covenants in Commercial and Employment Agreements

By: Jassmine Girgis

Case Commented On: Ruel v Rebonne, 2023 ABCA 156 (CanLII)

PDF  Version: Interpreting Restrictive Covenants in Commercial and Employment Agreements

Restrictive covenants are usually found in two types of agreements: commercial agreements for the purchase of a business and employment agreements. In commercial agreements, these clauses protect the purchaser; after having made a substantial investment, the purchaser can build ties with customers without being concerned about the vendor setting up a competing business for a specified time. In employment agreements, they protect the employer’s interests. Continue reading

Thumbs Up, Bruh – Informality and the New Art of Contract Formation

By: Michael Ilg

Case Commented on: South West Terminal Ltd v Achter Land, 2023 SKKB 116 (CanLII)

PDF Version: Thumbs Up, Bruh – Informality and the New Art of Contract Formation

Saskatchewan grain contracts rarely attract international media attention, but an exception occurred recently after a judge held a farmer liable for damages under a contract entered into by emoji. It was not even a particularly cute or imaginative emoji, simply a humdrum ‘thumbs up’ . Nevertheless, this solitary little did quite a lot of work in the court’s eyes; not only did it signify acceptance of a contract offer, it also constituted the signed endorsement of a written document, thus satisfying the requirements of The Sale of Goods Act, RSS 1978, c S-1. This short post examines the decision of the King’s Bench for Saskatchewan in South West Terminal Ltd v Achter Land (2023 SKKB 116) and suggests some potential implications, with a particular emphasis on the formality requirements of contract formation. Continue reading

Total Claims that its ROFR Rights Were Violated in the Sale of Teck’s Interest in the Fort Hills Project

By: Nigel Bankes

Case commented on: TotalEnergies EP Canada Ltd v Suncor Energy Inc, 2023 ABKB 59 (CanLII).

PDF Version: Total Claims that its ROFR Rights Were Violated in the Sale of Teck’s Interest in the Fort Hills Project

Suncor, Total, and Teck all owned interests in the Fort Hills Oilsands Project (54%, 24.4%, and 21.5%, respectively). Teck agreed to sell its interest in the project to Suncor. The sale triggered a right of first refusal (ROFR) in the relevant agreement. The sale included some of Teck’s other assets (the other assets) but the sale was also subject to a condition precedent that required Teck to vote in favour of a proposed operating budget for the Project (the budget approval covenant). Suncor’s proposed operating budget had been hotly contested among the three partners for a number of years. Total and Teck had repeatedly voted against Suncor’s budget proposals, with the result that those budgets were not approved and operations had to revert to the last approved budget of 2021. Continue reading