Tag: contracts

Good faith and honesty contractual obligations says Supreme Court: Bhasin v. HrynewGood faith and honesty contractual obligations says Supreme Court: Bhasin v. Hrynew



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”.

Supreme Court kills fundamental breach in enforcement of liability disclaimers in TerconSupreme Court kills fundamental breach in enforcement of liability disclaimers in Tercon



IT lawyers know all too well that IT contracts can go awry. That is why so much time is spent arguing about limits of liability during contract negotiations. A recent example is the BSkyb Ltd & Anor v HP Enterprise Services UK Ltd & Anor (Rev 1) [2010] EWHC 86 (TCC) (26 January 2010) case where the UK court made a huge damage award against HP.

The Supreme Court had considered on several previous occasions the effect of a fundamental breach on limitations of liability terms.