The Supreme Court released a landmark decision earlier this week in the case Bhasin v. Hrynew, 2014 SCC 71. The case is a very important one for all lawyers involved in negotiating, advising on, and enforcing contracts. This includes IT lawyers who are regularly engaged in complex tech transactions.
The decision establishes two new common principles that will apply to all contracts. First, there is a new “general organizing principle of good faith contractual performance”. Second, as a manifestation of this principle, there is a further common law duty of parties to a contract “to act honestly in the performance of contractual obligations”.