What is the implied duty of good faith in contract law in Canada?
Ontario, Canada
The following excerpt is from 1001411 Ont. Ltd. v. City of Toronto, 2012 ONSC 5429 (CanLII):
Justice Perell considered the implied duty of good faith in contract law in Rio Algom Limited v. Canada[iv] and he noted, “…while Canadian courts have been cautious about the scope of a doctrine of good faith in the performance of contracts, the doctrine is developing and it does have a role to play…” In studying the claim as it is framed in the amended Statement of Claim before me, at this stage, I must accept the facts as pleaded and determine whether the claim has any possibility of success.
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