What is the test for reasonableness in a construction contract?
Nunavut, Canada
The following excerpt is from Nunavut v. Northern Transportation Company Limited, 2010 NUCJ 5 (CanLII):
A similar issue was considered by Spiegel J. in Morguard Real Estate Investment Trust v. Hazeldean Ltd. Partnership, [2001] O.J. No. 5096, 2001 CarswellOnt 4534. He held it was proper to ask a witness whether a party took reasonable steps to ensure that the construction of a building proceeded in accordance with conditions imposed by a document. He interpreted the use of reasonableness in this context as not involving a question of law, but rather using the word “reasonable” in the sense of proper or valid.
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