Question 1

What is the duty of honest performance in Canadian contract law?

Accepted Answer

The Supreme Court of Canada established in Bhasin v. Hrynew (2014 SCC 71) that parties must not lie or knowingly mislead each other about matters directly linked to the performance of their contract, including when exercising termination rights.

Question 2

What notice period is required to terminate a contract in Canada?

Accepted Answer

If the contract specifies a notice period, you must follow it. For indefinite-term contracts without a stated notice period, Canadian courts may imply a reasonable notice period, typically ranging from 30 days to two years depending on the circumstances.

Question 3

What is the limitation period for breach of contract claims in Canada?

Accepted Answer

Limitation periods vary by province but are typically two years in most common law provinces and three years in Quebec. The limitation period generally begins when the breach is discovered or ought to have been discovered.

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