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THIS EXAMINATION CONSISTS OF FiVE (5) PAGESPLEASE ENSURE THAT YOU HAVE A COMPLETE PAPER
THE UNIVERSITY OF BRITISH COLUMBIAFACULTY OF LAW
FINAL EXAMINATION - APRIL 2014
LAW 110Contracts
Section 2Professor Biukovió
TOTAL MARKS: 100
TIME ALLOWED: 2 HOURSand 20 minutes reading time
********************
NOTE:
1. This is a LIMITED OPEN BOOK examination. You may use onlya CLEAN copy of the syllabus and case chart provided to you inthe exam.
2. If you think that additional facts are necessary to answer anyquestion fuiiy, please state those facts and explain why they arenecessary.
3. Please write legibly.
THIS EXAMINATION CONSISTS OF TWO (2) QUESTIONS.PLEASE ANSWER BOTH
LAW 110, Section 002 Page 2/5
MARKS
50 1. Carolyn and Markus started dating in Squamish in 2009 when she camefrom Hamilton, Ontario, to visit her relatives in BC. She moved in withMarkus in 2010, and they got engaged in May 2013. Before they broke upon January 8, 2014, the following story had unfolded:
When Carolyn moved into Markus’ house, she started working as a SalesAssistant in a local hardware store. Markus owned a few apartments thathe rented to students attending Quest University. It is possible to say thatMarkus always lived comfortably without breaking a sweat. On the otherhand, Carolyn could not make enough money to meet her needs. She couldnot even get her own credit card so Markus had to come to her rescue. Heasked his bank for an “additional card” and authorized Carolyn to use it.
Although the credit card agreement between Markus and his bankprovided that he was the primary holder that was responsible for any debtarising through the use of either of the cards, Carolyn had verballypromised Markus that in exchange for his agreement to let her use theadditional card, she would pay down the card whenever Markus wouldreceive the balance from the bank showing that Carolyn spent money. SoCarolyn started spending: first on gifts to Markus, then on theirentertainment and dining, but most often on her own travels back east. Shewould use the credit card almost every day, sometimes several times perday during the period of 2012-2013. She made cash advances on top ofusing the card for her purchases.
Markus tried to talk to Carolyn about her shopping spree but she wouldnot accept any responsibility and would tell him that it was all spent fortheir well-being. In 2013, she was making only sporadic payments on thecard and by the end of year, she owed $14,000. Markus finally cancelledCarolyn’s card after Christmas and she completely stop making paymentsalthough her indebtedness continued to grow along with late charges.
Carolyn was dreaming of having a wedding in Las Vegas’ Luxor Resort,in an ancient Egypt-themed ceremony replicating her favourite movie,Cleopatra, where she would be Cleopatra, Markus would be her MarkAntony, and their guests would be dressed as Egyptian and Romanroyalty. Only two months after the engagement, and despite the fact thatno specific wedding plans had yet been made, Carolyn secretly visitedBonny’s Atelier, a tailoring studio of an old Vancouver seamstressformerly employed in Milan by a famous Italian haute couture designer,and asked for an appropriate custom-made wedding dress. Bonny said thatthat the work would be very challenging, considering Carolyn’s broadshouldered physique and extraordinary height, and that it would take 150hours and 3 fittings to create a feminine dress that would be a perfect fit.
LAW 110, Section 002 Page 3/5
(Question 1 Continued)
The $13,000 price was to be paid within 10 days after delivery. Carolynwould pay the costs of fabrics and other necessary materials on the day ofthe first fitting session. Carolyn asked Bonny if it would be proper to puttheir agreement in writing, but Bonny insisted that in her world of hautecouture, the relationship between a seamstress and a client is a question oftrust.
The wedding dress, a thing of ultimate beauty, was completed anddelivered the afternoon before the wedding. Carolyn couldn’t wait to put iton.
Three days after she had picked up her wedding dress, Carolyn received atext message from Markus saying that he was breaking up with her. Hetold her that he was fed up with her compulsive overspending and lies, andthat she should pick up her things from his house, leave her engagementring behind, and pay him back all the money she had spent by using hiscredit card, including the interest charges accumulated.
Distressed Carolyn tried to return the dress to Bonny’s Atelier and torecover money she had paid for the material. She said that her weddingplans were totally ruined, that she could have not predicted this happening,and that she had no use for such a dress. The Store Manager, Helena,refused to take it back. Helena said that Bonny had performed herobligation and that she should be indemnified as previously agreed.Besides, Helena said that it would be impossible to resell such a specialwedding dress to any other lady in Canada and that Carolyn should keepthe dress for another occasion, be that Halloween or another wedding.Carolyn said that she has no money on her at the moment and that shewould send her cheque later. Helena explained that Carolyn had 10 days topay Bonny the full price or they would see her in court.
Carolyn decided to contact a lawyer, but since she had no money, shevisited the student legal clinic at Allard Hall. Somebody wrote down thisstory and the file is now on your desk. Carolyn is upset and thinks that sheshould get remedy for all distress she suffered. Take the file and adviseCarolyn regarding her relationships with Markus and Bonny Atelier.Imagine that no statutes are applicable and that you have to explainCarolyn’s rights and duties arising out of these relations on the basis ofcommon law of contracts.
MARKS
50 2. Min-Jun Kim, aka Super Dry, is a twenty-two year old songwriter, tryingto make a living in the music business in Vancouver, BC. He still lives
LAW 110, Section 002 Page 4/5
(Question 2 Continued)
with his father in Burnaby, and occasionally helps in his father’s homebusiness of producing organic kimchi.
Super Dry entered into an agreement with a local music publishingcompany, Happy Tunes, whereby the company engaged the musician’sexclusive services for a period of 4 years. Happy Tunes specializes inAsian pop music and is relatively well-known in North America as well.Happy Tunes gave the young artist a standard form contract that includedSuper Dry assigning to the publishing company the full copyright forEurope, the Americas and Asia in all of his original music and lyricscreated by him or in collaboration with other artists. Super Dry also agreednot to do any work in the music publishing business with anybody otherthan Happy Tunes during the term of their contract. Happy Tunes agreedto pay Super Dry 50% of all fees collected in respect of performing rightsas well as a royalty of 10% of the marked selling price of all copies of hiswork, regardless of the form of distribution. Under the contract, HappyTunes was not under obligation to publish any of Super Dry’s work, but inorder to help him create music, they were obliged to give him yearlyadvances of $5,000 against payable royalties.
Super Dry soon regretted that he had signed this contract. He could not gethis peace of mind with the $5,000 advance payments given by HappyTunes and he spent more time making kimchi than making music. He alsothought that Happy Tunes was not proactive in trying to promote themusic he occasionally made. Therefore, he decided to create and recordmusic in the basement of his father’s home. In order to set up his studio,he needed computers, microphones and other necessary equipment. Ofcourse, he needed money to pay for all of these things and decided toapproach his father for help.
Mr. Kim is a fifty year old immigrant from South Korea. He is a widowerand Super Dry is his only child and the only family he has in Canada. Mr.Kim moved to Canada when he was twenty but his command of English isless than average. Still, he manages his own home business and supportsall his needs without any problems. However, Mr. Kim does not have anysavings or any assets other than his business and his home. Although hedoes not understand his son’s desire to become a musician, he agrees tohelp him by mortgaging his home to provide security for money borrowedfrom the bank to help his son.
The Bank Manager who saw Mr. Kim and Super Dry was very nice and helet the father look over the contract at home. The following day, Mr. Kimsigned the papers in front of the same Bank Manager and Super Dry gothis $25,000 loan.
LAW 110, Section 002 Page 5/5
(Question 2 Continued)
Super Dry now has all the equipment he needs and is able to make music,but is still not making any money because he does not know how to sell itwithout Happy Tunes’ knowledge. One of his musician friends told himthat if Happy Tunes finds out what he is doing, they would try to stop himin court by seeking an order of injunction. Super Dry knows nothing aboutinjunctions and court proceedings but knows that he is already late inpaying back his loan and is afraid of showing his father a letter the banksent him, noting that they would claim possession of the house.
Super Dry cries for your help. He is not quite sure what will happen to himnow but he is pretty certain that it is not going to be good. More thananything he wants to help his father to keep the house. Advise him withrespect to the relevant legal issues we have covered in our Contract Lawclass. Provide him with your well-reasoned opinion.
EN]) OF EXAMINATION
LAW 110.002: Contract LawSyllabus and Outline 2013/2014
Professor: Ljiljana BiukoviéClass schedule: Tuesdays & Thursdays 9:00 — 10:30Classroom: # 121 Allard HallOffice: #454 Allard HallOffice hours: Wednesdays 1 - 3 pm (or by appointment)Telephone: 604-822-0312E-mail: [email protected]. u bc.caSecretary: Abbey Barley ([email protected])
Course description and objectives:
The aim of this course is to introduce the basic concepts that underlie contractualobligations and to examine contract law in Canada in its social and political context.While the focus is primarily on common law, different ideas on which contract law isfounded in civil law in Quebec are also discussed. The main objective of the course is toenable students to acquire basic legal skills to competently identify, analyze, synthesizeand apply the law of contract. Students will learn to analyze and evaluate judicialopinions, statutory provisions and contractual clauses.
In the first term (September-December 2013), the objectives are to help studentsunderstand the relationship between contract law and other categories of obligationsrecognized by the common law (tort and restitution), to familiarize them with differentfunctions of contract law, and to introduce them to the key concepts of contractformation, such as an agreement between the parties, certainty, intention to create legalobligation, consideration, and privity.
In the second term (January-April 2014), the focus is on interpretation of contractualobligations and on remedies for breach of contract. The objectives are to enable studentsto distinguish terms of the contracts from representations and puffs, to understand theimportance and consequences of classification of terms of the contract, to learn when andwhy terms will be implied into a contract, and to understand consequences of non-performance of contractual obligations.
Course materials (required):
• Stephanie Ben-Ishai and David Percy, Contracts: Cases and Commentaries, 8th
ed. (Toronto: Carswell, 2009)• Biukovic, Supplementary Materials (Connect course web page)
http:I/faculty.Iaw.u bc.calbiukovic/Contracts%2Olaw/contractsindex.htm
1
Other sources (Law Library):
• B. MacDougall, Introduction to Contracts (Lexis/Nexis Canada, 2012)• McCamus, The Law ofContracts, 2 ed. (Toronto: Irwin Law, 2012)• Waddams, McCamus, Waidron, Neyers and Girgis, Cases and Materials on
Contracts, 4 ed. (Toronto: Edmond Montgomery Publications, 2010)• Swan, Canadian Contract Law, 2d ed. (Lexis/Nexis Canada, 2010)• Swan, Reiter and Bala, Contracts, Cases, Notes and Materials, 8th ed.
(Lexis/Nexis Canada, Butterworths, 2010)
The Law Library collection related to common law of contracts includes many valuablecasebooks and textbooks which could be used for further readings (Anson ‘s Law ofContract, Cheshire, F(foot and Furmston ‘s Law ofContract, Chitty on Contract, orTreitel on Law ofContract). NOTE: The US materials available in the Law Library arebased on primarily US case law, the Restatement ofContracts and Uniform CommercialCode (UCC). The Restatements (Second) ofContracts were drafted by the American LawInstitute and they summarize in statute-like form the major common law rules oncontracts. The UCC is statutory law that covers contracts for the sale of goods and isapplicable only in the US.
Key dates:
September 3, 2013 First Contracts class I termNovember 28, 2013 Last Contracts class I termDecember 9, 2013 December examination (1:30 pm)January 7, 2014 First Contracts class II termFebruary 17-21, 2014 Midterm breakApril 8, 2014 Last Contracts class II termApril14, 2014 Final examination (1:30 pm)
2
COURSE SYLLABUS
Note: All cases are available in Ben-Ishal & Percy (8th edition) and the on-lineSupplement
INTRODUCTION TO THE STUDY OF THE LAW OF CONTRACT
Boyle & Percy 1-15
II. FORMATION OF THE CONTRACT
1. Offer, invitation to treat, tenders, communication of offer
Canadian Dyers Ass. Ltd. v. Burton 18Pharmaceutical Society v. Boots 20Carlill v. Carbolic Smoke Ball Co. 25Goldthorpe v. Logan 30Harvela Investments Ltd. v. Royal Trust Co ofCanada 33R. v. Ron Engineering & Construction (Eastern) Ltd. 35MJ.B. Enterprises Ltd. v. Defence Construction (1951) Ltd. 38Double N Earthmovers Ltd v. City ofEdmonton,htpj//sccJexuçg/en/2OO7/2007scc3/2007scc3.htrn1 (Supp.)Williams v. Carwardine 50R. v. Clarke 51
2. Acceptance, communication of acceptance, electronic contracts
Livingstone v. Evans 54Butler Machine Tool v. Ex-cell-o Corp. 56Carlill v. Carbolic Smoke Ball Co. 25Dawson v. Helicopter Exploration Co. 66Feithouse v. Bindley 72Saint John Tug Boat Co. v. Irving Refinery Ltd. 75TimberwolfLog Trading Ltd v. Columbia National Investments Ltd. (Supp.)
Household Fire v. Grant 81Holwell Securities v. Hughes 85Brinkibon v. Stahag Stahl 88Rudder v. Microsoft Corp. 93Century 21 Canada Ltd. v. Rogers Communications Inc., (Supp.)
Electronic TransactionAct [SBC 2001] C.10 - ss. 11 & 15 (Supp.)
3. Termination of Offer: revocation, rejection and counter-offer, lapse of time; problemswith unilateral contracts
Dickinson v. Dodds 97
3
Byrne v. Van Tienhoven 100Errington v. Errington and Woods 102Carlill v. Carbolic Smoke Ball Co. 25Livingstone v. Evans 54Dawson v. Helicopter Exploration Co. 66Barrick v. Clark 103
4. Certainty of Terms; vagueness, incompleteness, agreements to negotiate, anticipation offormalization
R. v. CAE Industries Ltd. 114May&Butcherv.R. 119Hillas v. Arcos 122Foley v. Classique Coaches Ltd. 126Sale ofGoods Act ss. 12 & 13 - Ascertainment of price (Supp.)http://www.bclaws.calEPLibrariesfbclawsnew/document/ID/freeside/0O 96410 01Empress v. Bank ofNova Scotia 131Mannpar Enterprises Ltd. v. Canada 134Bawitko Investments Ltd v. Kernels Popcorn Ltd. 145Wallace v. Allen (Supp.)http://www.canlii .org/en/on/oncaldoc/2009/2009onca36/2009onca36.html
5. Consideration: nature of consideration, past consideration, forbearance, pre-existingduty
The Governors ofDaihousie College v. the Estate ofArthur Boutilier 156Thomas v. Thomas 169Eastwoodv. Kenyon 166Lampleigh v. Brathwait 168Pao On v. Lau Yiu Long 173Stilk v. Myrick 177Gilbert Steel v. University Construction Ltd. 178Williams v. Roffey Bros. 182Greater Fredericton Airport Authority Inc. v. NA V Canada 186Foakes v. Beer 192Re Selectmove 195Foot v. Rawlings 197Law and EquityAct (R.S.B.C. 1996, c. 253) s. 43 (Supp.)http://www.bclaws.calEPLibraries/bclaws new/document/ID/freeside/00 96253 01
6. Waiver and Promissory Estoppel
Hughes v. Metropolitan Railway Company 201Central London Property v. High Trees House 203John Burrows v. Subsurface Surveys 205D &C Builders v. Rees 208Combe v. Combe 224Walton Stores v. Maher 230M(N) v.A.(T.A.) 239
4
7. Intention to Create Legal Obligation
Balfour v. Balfour 243Rose and Frank v. JR. Crompton Bros. 246TD Bank v. Leigh Instruments Ltd. 247
8. Formality: The Requirement of Writing
Dynamic Transport Ltd. v. O.K Detailing Ltd. 258Degiman v. Guaranty Trust Co. 262
III. PRIVITY OF CONTRACT
Tweddle v. Atkinson 276Dunlop PneumaticTyre Co. v. Selfridge & Co. Ltd. 277Besweck v. Beswick 283
London Drugs Ltd. v. Kuehne & Nagel International Ltd. 298Fraser River Pile & Dredge Ltd. v. Can-Dive Services 310
IV. CONTENT OF THE CONTRACT
1. Representations and Terms: Misrepresentation and Rescission: Parol EvidenceRule and Rectification; Classification of Terms
Redgravev.Hurd 355Smith v. Land & House Property Corporation 359Kupehak v. Dayson Holdings 363Hielbut, Symons & Co. v. Buckleton 371Leafv. International Galleries 378Sodd Corp. v. N. Tessis 392B. G. Checo Int’l Ltd. v. B.C. Hydro 395No. 2002 Taurus Ventures Ltd. v. Intrawest Corp. (Supp.)http://courts.gov. bc.caijdb-txt/ca/07102/2007bcca0228.htmHawrish v. Bank ofMontreal 412Bauer v. Bank ofMontreal 415Gallen v. Butterley 422Hong Kong Fir v. Kawasaki Kisen Kaisha Ltd 436Wickman v. Schuler 443Business Practice and Consumer Protection Act (Supp.)http://courts.ov.bc.ca/jdb-txt/caJ07/02/2007bcca0228.htrn
2. Discharge by Performance or Breach
Jedfro Investments (USA) Ltd. v. Jacyk (Supp.)
Fairbanks v. Sheppard 450Sumpter v. Hedges 454Howe v. Smith 455Stevenson v. Colonial Homes Ltd. 457
5
3. Standard Form Contracts; Interpretation; Incorporation of Terms; Exclusion andLimitation of Liability Clauses
Machanger v. Ho] Industries Ltd. 463Thornton v. Shoe Lane Parking Ltd. 478McCutcheon v. David MacBrayene Ltd. 488Tilden Rent-A-Car CO. v. Clendenning 492Karroll v. Star Mountain Resorts Ltd. 496Kanitz v. Rogers Cable Inc. (Supp.)http://www.can1ii.org/enJonJonsc/doc/2002/2002canli14941 5/2002canl11494 I 5.htmlSilverTercon Contractors Ltd. v. BC (Transportation and Highways) (Su pp.)http://scc.1exum.org/en/20lO/2010scc4/200scc4.htrn1Loychuk v. Cougar Mountain Adventures (Supp.)http://can Ii i.calen/bc/bccaldoc/20 12/201 2bcca 122/201 2bcca I 22.html
V. EXCUSES FOR NON-PERFORMANCE
1. Mistake
Smith v. Hughes 546Bell v. Lever Brothers Ltd. 560McRae v. Commonwealth Disposals Commission 565Solle v. Butcher 571Great Peace Shipping v. Tsavliris Salvage Ltd. 574Miller Paving v. Gottardo 579Sylvan Lake Golf& Tennis Club v. Performance Industries Ltd. 604
2. Frustration (TBC)
Paradine v. Jane 620Taylor v. Caldwell 621KBKNo. 138 Ventures Ltd. v. Canada Safeway Ltd. 636
VI. THE PROTECTION OF WEAKER PARTIES: DURESS, UNDUE INFLUENCE,UNCONSIONABILITY
Pao On v. Lau Yiu Long 173Greater Fredericton Airport Authority Inc. v. NA V Canada 666Geffen v. Goodman Estate 680Royal Bank ofScotland Plc. v. Etridge (no. 2) 688Morrison v. Coast Finance Ltd. 697Marshall v. Can. Permanent Trust Co. 701Harry v. Kreutziger 709Business Practices and Consumer ProtectionAct (S.B.C. 2004, c.2) ss. 4-10 (Supp.)http://www.bclaws.calEPLibrariesibclaws new/document/ID/freeside/04002 00
VII. ILLEGALITY AND PUBLIC POLICY
Still v. Minister ofNational Revenue 762Shafron v. KRG Insurance Brokers (Western) Inc. 730
6
VIII. REMEDIES
Damages: interest protected, quantification, certainty, causation and remoteness,
mitigation, time of measurement
McRae v. Commonwealth Disposals Commission 793
Sunshine Vacation Villas Ltd. v. Hudson Bay Co. 801
Attorney General v. Blake 805
Chaplin v. Hinks 814
Groves v. John Wunder Co. 816
New West Homes Ltd. v. Thunderbird Petroleums Ltd. 821
Jarvis v. Swans Tours 825
Hadley v. Baxendale 858
Victoria Laundry v. Newman 861
Koufos v. Czarnikow (The Heron II) 868
Semeihago v. Paramadevan 879
Southcott Estates Inc. v. Toronto Catholic District School Board (Supp.)
http//vww.Iexisneds.ca/documents/20 1 2scg5IpçW
2. Aggravated and Punitive Damages
Whiten v. Pilot Insurance Co. 846
Fidler v. Sun Ljfe Assurance (Supp.)
1,”exumoig/en/2006/2006scc3/2006scc3OJitnHonda v. Keays (Supp.)
http://scc.1exum.org/en/2008/2008scc39/2008scc39.htrnl
3. Liquidated Damages, Deposits and Forfeitures
Shatilla v. Feinstein 885
HF. Clarke Ltd. v. Thermadaire Corporation Ltd. 889
J. G. Collins Insurance Agencies Ltd. v. Esley 896
Stockloser v. Johnson 898
4. Equitable Remedies (Specific Performance, Injunctions, Rectification)
John E. Dodge Holdings Ltd. v. 805062 Ontario Ltd. 904
Warner Bros. v. Nelson 910
Zipper Transportation v. Korstrom 916
Zipper Transportation v. Korstrom 917
Shafron v. KRG Insurance Brokers (Western) Inc. 730
NOTE: CASES AND READINGS ARE SUBJECT TO ADDITIONS,
DELETIONS AND REORDERING WHICH WILL BE ANNOUNCED IN CLASS
7
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eB
all
Co.
[6]
orde
r tha
tthe
two
min
dsm
ayco
me
toge
ther
.so
met
hing
[189
3]1
Q.B
.256
(C.A
.)H
owev
er,
inth
eca
seof
aun
ilat
eral
contr
act
anof
fer
ism
ade
toth
epu
blic
butt
heC
omm
unic
atio
nof
cont
ract
isno
tco
nclu
ded
with
ever
ybod
y(a
llth
ew
orld
).It
ison
lyfo
rmed
with
that
Acc
epta
nce;
limite
dpo
rtio
nof
the
publ
icw
hoco
me
forw
ard
and
perf
orm
the
cond
ition
onth
efa
ithof
Uni
late
ral
the
adve
rtis
emen
t(fo
llow
ing
the
indi
cate
dm
etho
dof
acce
ptan
ce).
Con
trac
ts•
The
cour
thel
dth
atin
the
case
ofre
war
ds(o
ran
offe
rto
anyo
new
hoca
ngi
veth
eFo
rmat
ion:
Will
iam
sv.
Car
war
dine
info
rmat
ion
requ
este
d)th
ede
fend
anti
sen
title
dto
the
rew
ard
rega
rdle
ssofh
erm
otiv
esC
omm
unic
atio
nof
[7]
(1883)4
B.&
Ad.
621,
11O
E.R
.59
0(K
.B.)
(fea
rof
God
’spu
nish
men
t)be
caus
esh
ekn
ewoft
here
war
dan
dsh
epe
rfor
med
the
act
inO
ffer
—pu
blic
offe
rqu
estio
n.to
anyo
new
hodo
es
1
Lay
110.
02C
ase
Rul
eT
opic
Con
trac
tsB
iuko
vic
•T
heca
sedo
esno
tgi
veof
fer-
acce
ptan
cean
alys
isbu
tde
als
wit
hhu
man
mot
ives
,so
met
hin
g•
Inco
ntr
ast w
ith
Will
iam
sv.
Car
war
dine
, the
cour
the
ldth
atth
edef
endan
tw
asno
ten
titl
edF
orm
atio
n:to
the
rew
ard
beca
use
hedi
dno
t act
inre
lian
ceon
the
offe
rbu
t for
othe
rre
ason
s(t
ocl
ear
Com
mun
icat
ion
ofR
.v.
Cla
rke
[8]
him
self
from
afa
lse
accu
sati
on).
Off
er—
publi
coff
er(1
927)
40C
.L.R
.22
7(A
ust.
H.C
.)•
Rec
onci
lew
ithW
illia
ms
v.C
arw
ardi
neby
noti
ng
that
ina
hi-l
ater
alco
ntr
act
know
ledge
isto
anyo
new
hodo
esre
quir
ed(t
oen
able
mee
ting
ofth
em
inds
),bu
tmot
ive
isir
rele
vant
,so
met
hing
‘W
het
her
anin
vita
tion
from
ase
ller
topr
ospe
ctiv
ebu
yers
was
tobe
cons
true
das
anin
vita
tion
topa
rtic
ipat
ein
afi
xed
bidd
ing
sale
orin
anau
ctio
nsa
lede
pend
edon
the
Har
vela
Inve
stm
ents
Ltd
.v.
Roy
alp
resu
med
inte
ntio
no
fthe
sell
eras
dedu
ced
from
the
expr
ess
prov
isio
nsoft
he
invi
tati
onto
[9]
Tru
stC
o.ofC
anad
abi
d(a
nin
vita
tion
for
the
subm
issi
ono
f“o
ffer
s”w
ashe
ldto
bean
invi
tati
onfo
ra
“fix
ed”
Form
atio
n:O
ffer
&
[198
6]A
.C.
207,
[198
5]2
All
E.R
.bi
d).
invit
atio
nto
Tre
at
•T
hele
galn
atur
eo
fthe
invi
tati
onw
asth
ato
funi
late
ral c
ontr
acts
;if
anof
fer
was
rece
ived
-te
nder
s96
6(H
.L.)
from
both
Har
vel
aan
dSi
r Leo
nard
,th
eob
liga
tion
of t
he
bank
(the
vend
ors)
was
tose
llth
esh
ares
toth
epr
omis
orw
hose
offe
r was
the
high
est a
ndan
yob
ligat
ion
toth
eot
hert
ende
rer
unde
rth
eot
her
unila
tera
lco
ntra
ctca
me
toan
end.
•A
naly
ses
the
tender
proc
ess
a2
phas
epr
oces
sw
hich
incl
udes
form
atio
nof
two
cont
ract
s(A
and
B).
Thi
sch
ange
dth
etr
aditi
onal
anal
ysis
of
aca
llfo
rte
nder
sas
anin
vita
tion
topo
tent
ial
tend
erer
sto
mak
eof
fers
.•
The
tend
erca
llis
the
offe
ran
dth
ebi
dsu
bmis
sion
isth
eac
cept
ance
ofth
atof
fer
whi
chF
orm
atio
n:O
ffer
&R
.v.
Ron
Eng
inee
ring
&le
ads
tofo
rmat
ion
of
cont
ract
A;
the
cons
ider
atio
nis
the
pre
par
atio
noft
hebi
d;In
vita
tion
toT
reat
[10]
Con
stru
ctio
n(E
aste
rn)
Ltd
.[1
981]
1S
.C.R
.11
1,13
B.L
.R.
72co
nseq
uenc
eo
ffo
rmat
ion
of
contr
act
Ais
the
impo
siti
ono
fco
ntra
ctua
lli
abil
ity
onth
e-
tender
ste
nder
er(n
otto
wit
hdra
wfr
omth
ebi
d)an
dth
eow
ner
(to
trea
tte
nder
ers
fair
lyan
din
good
faith
).•
Co
ntr
act
Bis
the
cons
truc
tion
contr
act
tobe
form
edbe
twee
nth
eow
ner
and
the
succ
essf
ulte
nder
er.
The
subm
issi
on
of
ate
nd
erin
resp
onse
toan
invi
tati
onto
ten
der
may
give
rise
toco
ntr
actu
alobli
gat
ions
(con
trac
tA
),qu
ite
apar
tfr
omth
eob
liga
tion
sas
soci
ated
wit
hth
eco
nstr
uctio
nco
ntra
ctto
been
tere
din
toup
onth
eac
cept
ance
ofa
tend
er(c
ontr
act B
).B
utit
isal
way
spo
ssib
leth
atco
ntr
act
Ado
esnot
aris
eup
onth
esu
bm
issi
on
of
ate
nder
(ift
he
ten
der
isin
vali
d).
M.J
.B.
Ent
erpr
ises
Ltd
.v.
Def
ence
•T
hein
vita
tion
for
tend
ers
may
bech
arac
teri
zed
asan
offe
rto
cons
ider
ate
nder
,if
that
For
mat
ion:
Off
er&
[11]
Con
stru
ctio
n(1
951)
Ltd
)te
nder
isva
lid.
Invi
tati
onto
Tre
at[1
999]
1S
.C.R
.61
9•
The
subm
issi
ono
fth
ete
nder
isgo
odco
nsid
erat
ion
of
the
owne
r’s
prom
ise,
asth
ete
nder
-te
nd
ers
was
of
ben
efit
toth
eow
ner,
pre
par
edat
ano
tan
insi
gnif
ican
tco
stan
dac
com
pani
edby
the
bid
secu
rity
.•
The
priv
ileg
ecl
ause
ison
lyon
ete
rmo
fco
ntra
ctA
and
must
bere
adin
harm
ony
wit
hth
ere
stof
the
tend
erdo
cum
ents
—it
does
not
over
ride
the
obli
gati
onto
only
acce
ptco
mpl
iant
Do
ub
leN
.E
arth
mo
ver
sL
tdv.
Cit
y•
The
owne
rdo
esno
tha
vea
duty
toin
vest
igat
eas
tow
het
her
asu
bmit
ted
bid
isco
mpli
ant
orF
orm
atio
n:O
ffer
&[1
2]of E
dmon
ton,
2007
SC
C3
tolo
okbe
yond
the
face
of
the
bid
toen
sure
com
plia
nce;
iton
lyha
sa
duty
totr
eat a
llbi
dsIn
vita
tion
toT
reat
2
rL
’1
10
2C
ase
Rule
Topic
LB
iukovic
fair
lyan
deq
ual
ly-
ten
ders
•W
hen
ano
wn
er
acce
pts
acom
pli
ant
bid
and
en
ters
into
Contr
act
Bo
nth
ete
rms
set
ou
tin
the
tender
do
cu
men
ts,
Contr
act
Ais
full
ydis
charg
ed
and
anow
ner
has
no
any
furt
her
obli
gati
ons
tou
nsu
cces
sfu
l_b
idd
ers
An
off
er
that
has
been
reje
cte
dis
there
by
en
ded
and
itcannot
be
afte
rwar
dsaccepte
d.
.w
ithout
the
co
nse
nt
ofth
eone
who
mad
eit
.F
orm
ati
on.
Liv
zngsto
ne
v.
Evans
Accepta
nce
—
[13
][1
92
5]
3W
.W.R
.45
3,[1
92
5]
4•
Acounte
r-offer
isa
reje
cti
on
ofth
eo
rig
inal
off
er,
am
ere
inguir
’is
not,
co
un
ter-o
ffer;
D.L
.R.
76
9(A
lta
S.C
.)If
anoff
ero
rre
pli
es
toth
ere
jecti
on,
the
rep
ly(“
cannot
reduce
pri
ce”)
may
amou
ntto
are
jecti
on
an
dre
new
al
ofth
eo
ffer
.T
he
answ
er
isdependent
up
on
consi
deri
ng
all
surr
oundm
gco
un
ter
off
er
cir
cum
stances.
•In
ord
er
toav
oid
pro
ble
ms
wit
hcontr
act
form
ati
on
(and
revocati
on
of
off
er)
co
urt
ssh
ou
ldtr
eat
off
ers
“as
call
ing
for
bil
ate
ral
rath
er
than
un
ilate
ral
acti
on
when
the
language
can
be
fair
lyso
const
rued”
Wh
ere
accepta
nce
isnot
ex
pre
ssly
giv
enth
eq
uest
ion
of
wheth
er
the
language
use
dF
orm
ati
on:
offer
Daw
son
v.H
elic
opte
rE
xplo
rati
onam
ou
nts
toaccepta
nce
wil
lb
ea
matt
er
of
const
ructi
on
ofth
ecourt
whic
hm
ay
inclu
de
an
daccepta
nce;
L-I
Co.
[1955]
S.C
.R.
868
taki
ngin
toco
nsid
erat
ion
cond
uct
ofth
eac
cept
orun
ilat
eral
and
.A
lthough
inth
eory
ano
ffer
for
aunil
ate
ral
contr
act
can
be
revoked
any
tim
ebefo
reth
eb
ilate
ral
co
ntr
acts
accep
tan
ce,
such
asoff
er
co
uld
be
inte
rpre
ted
toh
av
ean
imp
lied
term
that
anoff
ero
rw
ho
co
ntr
ols
condit
ions
of
coopera
tion
of
ano
ffere
ew
ould
not
be
all
ow
ed
topre
vent
perf
orm
ance/a
ccepta
nce
of
ano
ffere
e
•L
ord
Dennin
gre
state
dth
etr
adit
ional
last
sho
tfo
rmula
for
the
reso
luti
on
of
the
batt
leof
the
form
s,id
enti
fyin
gse
vera
lposs
ibil
itie
sfo
rco
urt
s:B
utl
er
Machin
eT
oo
lv.
Ex-
cell-
oa
1.L
ast s
hot:
acontr
act
isconclu
ded
up
on
the
term
so
fth
ela
st
docum
ent
sen
tb
yone
ofth
eF
orm
ati
on:
r-
Corp.
part
ies
that
was
not
ob
jecte
dto
;2.
Fir
st
shot:
acontr
act
isconclu
ded
up
on
the
term
softh
eA
ccepta
nce
—
L[1
979]
1W
.L.R
.4
01
,1
All
E.R
.fi
rst
do
cu
men
t;3.
All
shots
count
and
the
court
must
dis
cover
its
term
so
nan
ob
jecti
ve
counter-offer;
965
(C.A
.)ba
sis:
A)
acontr
act
isco
nclu
ded
upon
term
sd
raw
nfr
om
all t
he
docum
ents
that
hav
eb
att
leoffo
rms
pass
ed
betw
een
the
part
ies
wh
en
the
term
sca
nb
ere
concil
ed
asto
giv
ea
harm
onio
us
resu
lt,
or
B)
acontr
act
isnot
conclu
ded
sin
ceth
edif
fere
nces
are
irre
concil
ab
le.
•F
oll
ow
sth
ete
stin
Butl
er
Machin
eth
at
ina
batt
leo
fth
efo
rms
the
court
wil
lexam
ine
all
of
.th
edocum
ents
exchanged
betw
een
the
part
ies
and
look
into
their
com
merc
ial
rela
tionsh
ip,
Form
ati
on:
Tyw
ood
Indu
stri
esv
.S
t.A
nn
.m
ord
erto
find
ou
tif
they
consi
dere
dan
yte
rms
oth
er
than
those
fou
nd
on
the
face
of
the
Accepta
nce
—[1
6]
Nac
kaw
icP
ulp
&P
aper
do
cu
men
ts.
co
un
ter-o
ffer;
(1979)
10
0D
.L.R
.(3
d)
(On
t.H
.C
.).
•T
he
co
urt
on
lyconsi
dere
dth
ete
rms
on
the
face
of
the
do
cu
men
ts.
Th
eoth
er
part
y’s
batt
leof
form
s
atte
nti
on_m
ust
be
dra
wn
toth
e_im
po
rtan
tte
rms,
_el
seunconsc
ionable
.
aS
ilen
cedoes
not
am
ou
nt
toaccep
tan
ce.
Fei
thou
sev
.B
indl
ey•
Even
though
the
nephew
(sel
ler)
mig
ht
hav
ein
tended
tose
ll,
he
never
com
munic
ate
dth
isF
orm
ati
on:
[1
7]
(1962)
11C
.B.
(N.S
.86
9,142
E.R
.in
tenti
on
tohis
un
cle
(buyer
).C
om
munication
of
1037
(Ex
.C
h.)
•In
gen
era
l,th
eoff
ero
ris
inco
ntr
ol
of
the
mo
de
of
accepta
nce
bu
tth
eco
urt
sar
ere
lucta
nt
toA
ccepta
nce
allo
w_si
lence
to_be_
spec
ifie
d_as
_th
e_m
ode_
ofaccep
tan
ce.
[18]
Sai
ntJo
hnT
ugB
oat
Co.
v.
Irvin
ga
Th
econduct
of
ano
ffere
e,
unaccom
panie
db
yan
yv
erb
al
or
wri
tten
undert
akin
g,
co
uld
Form
ati
on:
3
Law 11
002
Con
trac
tsC
ase
Rul
eT
opic
Biu
kovi
c
Refi
nery
Ltd
.[1
964]
S.C
.R.
614
unde
rce
rtai
nci
rcum
stan
ces
(for
exam
ple,
cont
inui
ngse
rvic
edon
term
spr
evio
usly
agre
ed)
Com
mun
icat
ion
ofbe
reas
onab
lyco
nstr
ucte
das
valid
acce
ptan
ceA
ccep
tanc
e•
Whe
nth
ere
was
now
ritte
nco
ntra
ctbe
twee
nth
epa
rtie
sth
eco
urth
adto
revi
ewal
lco
mm
unic
atio
nsbe
twee
nth
emto
see
ifth
eym
ade
anor
alag
reem
ent,
asw
ell
asto
cons
ider
Tim
berw
oifL
og
Tra
din
gL
tdV
.th
eir
cond
ucts
over
the
rele
vant
peri
odof
time
and
inth
eco
ntex
tof a
part
icul
arin
dust
ryFo
rmat
ion:
[19]
Colu
mbia
Nati
onalIn
vestm
ents
Ltd
.(B
Clo
ggin
gin
dust
ry)
Com
mun
icat
ion
of20
11B
CSC
864
•H
eld
that
“whe
reon
epa
rty
repr
esen
tsth
roug
hco
nduc
tand
sile
nce
that
aco
ntra
ctha
sbe
enA
ccep
tanc
efo
rmed
soas
tole
adth
eot
herp
arty
tore
ason
ably
conc
lude
that
such
isth
eca
se,t
hatt
hela
wfi
nds
aco
ntra
ctto
have
been
form
ed”.
[par
a.11
61•
Gen
eral
rule
re-e
mph
asiz
ed:
anof
fer
ofa
barg
ain
byA
toB
impo
ses
nole
galo
blig
atio
nE
liason
v.H
ensh
awup
onA
until
itis
acce
pted
byB
acco
rdin
gto
the
term
sin
whi
chth
eof
fer
was
mad
e.Fo
rmat
ion:
[201
(181
9)4
Whe
aton
225,
4U
.S.
(L.
•If
the
offe
ror
spec
ifie
dth
em
ode
ofac
cept
ance
and
the
acce
ptan
cew
asno
tmad
ein
the
Com
mun
icat
ion
ofE
d.)
55
6re
ques
ted
man
ner,
ther
eis
noco
ntra
ct(M
irro
rim
age
rule
).A
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hes
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ate
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Mus
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onth
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Com
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999]
O.J
.37
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Rog
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•T
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esth
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[26]
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mad
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Ter
ms
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se.”
[92]
Bro
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The
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rms
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ms
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ract
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inue
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lusi
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Law 110.
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ase
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trac
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vic
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mat
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[27]
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Van
Tie
nhov
en•
The
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rule
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catio
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8](1
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. 463
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er-
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ocat
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ract
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rty
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icul
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me
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plet
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ion
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91[1
952]
1K
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290,
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2]1
All
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ent b
yth
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t the
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t hel
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fer
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Uni
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.14
9(C
.A.)
cont
ract
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ked
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omis
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omes
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ror
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plet
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edby
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ifie
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leof
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truc
tion
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min
atio
nof
[30]
[195
1]S.
C.R
.17
7,[1
950]
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bjec
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apse
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clud
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Cou
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ew
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eous
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illco
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eco
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ct.
Ter
min
atio
nof
[31]
Inve
stm
ents
Ltd.
•[1
970]
1W
.L.R
. 241
,[1
969]
3A
llR
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phas
izes
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inci
ple
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rean
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ris
mad
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term
sw
hich
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me
Off
er—
Lap
seof
E.R
.15
93(C
h.D
.)lim
itfo
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cept
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fer
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t be
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pted
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hin
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ason
able
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ake
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ime
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ract
.
•A
cont
ract
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Inte
rnet
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ice
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ake
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eit”
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ract
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heor
igin
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reem
ent
For
mat
ion:
On-
line
[32]
Kan
itz
v.R
oger
s[2
002]
O.T
.C.
143
(Ont
.S.
C.J
.)al
low
edfo
rch
ange
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the
cont
ract
and
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nth
eal
ert m
essa
geon
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act
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leto
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cta
cust
omer
who
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Inte
rnet
togo
furt
her
than
the
mai
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reas
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leno
tice
5
Law 110.
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ase
Rul
eT
opic
Con
trac
tsB
iuko
vic
the
web
site
and
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kfo
rch
ange
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ract
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here
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acl
ear
ineq
ualit
yof
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aini
ngpo
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part
ies,
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onsi
onab
ility
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ent w
asno
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easo
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ybu
ried
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reem
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asse
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ain
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rati
on
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sela
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ithou
tle
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atio
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trat
ean
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ngco
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emen
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ere
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The
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Indu
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t oft
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edby
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urpo
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atio
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3]co
ntra
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hich
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rfor
med
Vag
uene
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f[1
986]
1F.
C.
129
(F.C
.A.)
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ract
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t agr
eed
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l ter
ms.
Form
atio
n:[3
4][1
953]
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.B.
543,
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3]1
All
Am
eani
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ause
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seso
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ean
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ain
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leav
esno
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gto
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ttled
byla
ter
agre
emen
tbe
twee
nth
epa
rtie
s.
[35]
May
&B
utch
erv.
R.
•It
has
long
been
aw
ell-
reco
gniz
edpr
inci
ple
ofco
ntra
ctla
wth
atan
agre
emen
t in
whi
chFo
rmat
ion:
[193
4]2
K.B
.17
(H.L
.)so
me
criti
cal
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ris
left
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isno
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ract
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l.C
erta
inty
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erm
s•
Itis
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ectly
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ible
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ain
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sw
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ree
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tal t
oth
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ct.
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ourt
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But
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illa
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6](1
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erm
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ms
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ract
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seo
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odem
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oach
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rdth
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ost
Hil
las
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reas
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rtan
t agr
eem
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ude
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sum
mar
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shio
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odes
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sion
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icie
ntan
dFo
rmat
ion:
[37]
clea
rto
them
inth
eco
urse
ofth
eir
busi
ness
that
are
far
from
com
plet
eor
prec
ise.
(193
2)14
7L
.T.
503
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.)C
erta
inty
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erm
sIt
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tyo
fthe
cour
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men
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irly
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dly,
with
out b
eing
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astu
teor
subt
lein
find
ing
defe
cts.
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terp
rete
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ege
nera
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inci
ples
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.L.’
sde
cisi
onin
Hil
las
tom
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that
each
case
shou
ldbe
deci
ded
onth
eco
nstr
ucti
onof
the
part
icul
ardo
cum
ent.
[38]
Fol
eyv.
Cla
ssiq
ueC
oach
esL
td.
•H
eld
that
anag
reem
ent t
oag
ree
onpr
ice
from
time
toti
me
was
cert
ain
enou
ghsi
nce
the
For
mat
ion:
[193
4]2
K.B
.1
(C.A
.)pa
rtie
sbe
liev
edth
eyha
da
cont
ract
and
had
acte
dfo
r3
year
sas
ifth
eydi
di.e
. the
rew
asC
erta
inty
ofT
erm
sal
read
ypa
rtia
l per
form
ance
:T
hela
ndha
dbe
entr
ansf
erre
dan
da
port
ion
oft
hesa
leof
gas
agre
emen
t had
been
perf
orm
ed.
[39]
Cou
rtne
yan
dF
airb
airn
v.T
olai
ni•
Lor
dD
enni
nghe
ldth
atth
epr
ice
ina
buil
ding
cont
ract
isof
fund
amen
tal
impo
rtan
ce.
For
mat
ion:
6
Law 110.
02C
ase
Rul
eT
opic
Con
tract
sB
iuko
vic
Bro
s.•
The
reis
noco
ntra
ctun
less
the
pric
eis
agre
edor
ther
eis
anag
reed
met
hod
ofa
scer
tain
ing
Cer
tain
tyof
Ter
ms
[197
5]1
All
E.R
.71
6,[1
975]
1it
that
isno
t dep
ende
nton
the
nego
tiatio
nsof
the
two
part
ies
them
selv
es.
W.L
.R.2
97(C
.A.)
•T
heco
urtw
illtr
y,w
here
ver
poss
ible
, to
give
the
prop
erle
gale
ffec
tto
any
clau
seth
atth
epa
rtie
sun
ders
tood
and
inte
nded
toha
vele
gale
ffec
t.•
Agr
eem
ents
toag
ree
cann
otbe
enfo
rced
.•
Whe
nth
epa
rtie
sst
ated
afo
rmul
a(e
.g.m
arke
tren
tal)
toas
cert
ain
acl
ause
,but
did
not
[40]
Em
press
v.B
ank
ofN
ova
Sco
tia
supp
lym
achi
nery
(e.g
.arb
itrat
ion)
for
appl
ying
the
form
ula,
the
cour
tsw
illsu
pply
(be)
the
Form
atio
n:[1
991]
1W
.W.R
.53
7(B
.c.c
.A.)
mac
hine
ryan
dap
ply
the
form
ulae
solo
ngas
the
form
ulae
isno
tdef
ectiv
e.C
erta
inty
ofT
erm
s•
Whe
reth
efo
rmul
ais
seto
utbu
tis
defe
ctiv
e,an
dm
achi
nery
ispr
ovid
edfo
rap
plyi
ngth
efo
rmul
a,th
em
achi
nery
may
beus
edto
cure
the
defe
ctin
the
form
ula.
•W
hile
ther
eis
noco
mm
onla
wob
ligat
ion
tone
gotia
tein
good
faith
(bec
ause
itis
unw
orka
ble)
,in
this
case
ther
ew
asan
impl
ied
term
requ
irin
ggo
odfa
ithne
gotia
tions
for
the
rene
wal
ofth
ere
ntal
agre
emen
t.M
annpar
En
terprises
Ltd
.v.
Canada
•T
heco
urth
eld
that
the
rene
wal
clau
sein
the
rent
alco
ntra
ctw
asa
mer
eag
reem
entt
oFo
rmat
ion:
[41]
[199
9]17
3D
.L.R
.(4th
)24
3ag
ree—
the
cont
ract
did
notp
rovi
dea
form
ula
orob
ject
ive
mea
sure
tode
term
ine
rent
(suc
hC
erta
inty
ofT
erm
s(B
.C.C
.A.)
asfa
irm
arke
tval
ue)
ora
mec
hani
smto
appl
yth
efo
rmul
a.B
aw
itko
Investm
ent
Ltd.
v.K
ern
els
•T
heor
alag
reem
enti
nco
ntem
plat
ion
ofa
form
alw
ritte
nag
reem
entn
oten
forc
eabl
edu
eto
Form
atio
n:[4
2]P
op
oco
rn
Ltd
(199
1)79
D.L
.R.(4th)
the
lack
ofce
rtai
nty;
itis
aco
ntra
ctto
mak
ea
cont
ract
Cer
tain
tyof
Ter
ms
97(O
nt. C
.A.)
Wel
lingt
onC
ityC
ounc
ilv.
Bod
y•
The
proc
ess
cont
ract
orth
eag
reem
entt
one
gotia
tein
good
faith
isun
enfo
rcea
ble
for
the
Form
atio
n:[4
3]C
orpo
rate
5170
2la
ckof
cert
aint
yC
erta
inty
ofT
erm
s[2
002]
3N
.Z.L
.R.4
86(C
.A.)
•L
ette
rof
inte
ntco
uld
amou
ntto
anen
forc
eabl
eco
ntra
ctif
the
part
ies
clea
rly
expr
ess
thei
rFo
rmat
ion:
inte
ntio
nto
bebo
und
byth
ete
rms
ofL
Ol
whi
chw
ere
late
rto
bein
corp
orat
edin
toa
mai
nW
alla
cev.
Alle
n,20
09O
NC
A36
Cer
tain
tyof
Ter
ms
[44]
cont
ract
,if
the
term
sof
LOT
are
prec
ise
and
com
plet
e,an
dif
the
part
ies
afte
rsi
gnin
gLO
Tan
dle
tter
sof
inte
nt
cond
ucte
dth
emse
lves
asif
the
deal
isco
mpl
eted
.•
Shri
nk-w
rap
licen
ses
are
enfo
rcea
ble
unle
ssth
eirt
erm
sar
eob
ject
iona
ble
ongr
ound
s
Pro
CD
vM
atth
ewap
plic
able
toco
ntra
cts
inge
nera
l.Fo
rmat
ion:
[45]
(199
6)86
F.3d
1447
•If
the
buye
rdo
esno
twan
tto
bebo
und
byth
ete
rms
cont
aine
din
side
the
box
the
buye
rha
sC
erta
inty
ofT
erm
sth
eri
ghtt
ore
turn
the
good
spr
ompt
ly(u
nuse
d)fo
ra
refu
nd,b
utw
illot
herw
ise
bebo
und
byth
ose
term
s.•
Atk
inU
.:th
eco
mm
onla
wdo
esno
treg
ulat
eag
reem
ents
betw
een
spou
ses.
..T
heE
nfor
cem
ent
of
[46]
Bal
four
v.B
alfo
urco
nsid
erat
ion
that
real
lyob
tain
sfr
omth
emis
that
natu
ral
love
and
affe
ctio
n.Pr
omis
es:
Inte
ntio
n[1
919]
2K
.B.
571
•T
here
isa
stro
ngpr
esum
ptio
nth
atfa
mily
agre
emen
tsar
eno
tint
ende
dto
prod
uce
lega
lto
Cre
ate
Leg
alco
nseq
uenc
es.
Obl
igat
ion
Ros
ean
dF
rank
v.JR
.C
rom
pton
•T
here
isa
stro
ngpr
esum
ptio
nth
atbu
sine
ssag
reem
ents
are
inte
nded
topr
oduc
ele
gal
Enf
orce
men
tof
[47]
Bro
s.,
[192
3]2
K.B
.26
1(C
.A.)
cons
eque
nces
.Pr
omis
es:
Inte
ntio
n
7
Law 110.
02C
ase
Rul
eT
opic
Con
trac
tsB
iuko
vic
•H
owev
er,
ifth
ere
isa
clea
ran
dde
fini
teex
pres
sion
ofth
ebu
sine
sspa
rtie
sth
atth
eydo
not
toC
reat
eL
egal
inte
ndto
besu
bjec
tto
lega
ljur
isdi
ctio
n,th
ere
isno
reas
onin
publ
icpo
licy
why
effe
ctO
blig
atio
nsh
ould
_not
be_g
iven
to_t
heir
_int
entio
n.•
Hel
dth
atth
ear
rang
emen
t bet
wee
nm
othe
ran
dda
ught
erw
asth
roug
hout
afa
mily
Enf
orce
men
t of
Jone
sv.
Pad
avat
ton
arra
ngem
ent
depe
ndin
gup
onth
ego
odfa
ithof
the
part
ies
inke
epin
gth
epr
omis
esm
ade
Prom
ises
:In
tent
ion
[48]
[196
9]2
All
ER
616,
[196
9]1
WL
Ran
dno
tin
tend
edto
bea
rigi
dbi
ndin
gag
reem
ent;
toC
reat
eL
egal
328
(C.A
.)•
The
fam
ilyar
rang
emen
t was
held
far
too
vagu
ean
dun
cert
ain
tobe
itse
lfen
forc
eabl
eas
aO
blig
atio
nco
ntra
ct.
Enf
orce
men
t of
Tor
onto
Dom
inio
nB
ank
v.L
eigh
Prom
ises
:In
tent
ion
[49]
Inst
rum
ents
(199
9)17
8D
.L.R
.(4th)
•A
com
fort
lette
ris
afo
rmof
unde
rtak
ing
that
isde
liber
atel
yde
sign
edw
ith
the
inte
ntio
nno
tto
Cre
ate
Leg
alto
crea
teen
forc
eabl
eob
ligat
ions
.O
blig
atio
n63
4(O
nt.
C.
A.)
The
Gov
erno
rso
fDai
hous
ieE
nfor
cem
ent
of
•F
ora
prom
ise
tobe
bind
ing
asa
cont
ract
itha
sto
besu
ppor
ted
bya
good
and
suff
icie
ntPr
omis
es:
[50]
Col
lege
atH
alif
axv.
The
Est
ate
of
cons
ider
atio
nw
hich
mov
esfr
omth
epr
omis
eeat
the
tim
eof
and
inex
chan
gefo
rth
eC
onsi
dera
tion
Art
hur
Bou
tilie
r,D
ecea
sed
prom
ise
whi
chis
soug
htto
been
forc
ed[1
934]
S.C
.R.
642
Eas
two
od
v.K
enyo
n•
Mor
alob
liga
tion
isnu
dum
pact
um,
avo
lunt
aiy
prom
ise
wit
hout
any
cons
ider
atio
n.E
nfor
cem
ent
of[5
1](1
840)
11A
d.&
E.
438,
113
E.R
.•
Pas
tco
nsid
erat
ion
isno
tago
odco
nsid
erat
ion
for
ane
wpr
omis
em
ade
afte
ra
bene
fitw
asPr
omis
es:
Pas
t48
2(Q
.B.)
conf
erre
dan
dw
hen
the
bene
fit
was
not
conf
erre
dat
the
requ
est
ofth
epr
omis
or.
Con
side
rati
on
[551
Lam
plei
ghv.
Bra
thw
ait,
(161
5)•
Past
cons
ider
atio
nm
aybe
ago
odco
nsid
erat
ion
for
asu
bseq
uent
prom
ise
ifth
ebe
nefi
tw
asE
nfor
cem
ent:
Pas
tH
obar
t10
5,80
E.R
.25
5(K
.B.)
conf
erre
dat
the
requ
est o
fthe
prom
isor
.C
onsi
dera
tion
•C
onsi
dera
tion
isso
met
hing
whi
chis
ofso
me
valu
ein
the
eyes
oft
hela
w.
Enf
orce
men
tof
Tho
mas
v.T
hom
as[5
3]•
Con
side
rati
onm
ustm
ove
from
the
prom
ise.
Prom
ises
:N
ature
of(1
842)
2Q
.B.
851,
114
E.R
.33
0C
onsi
dera
tion
mus
tbe
suff
icie
ntbu
tnee
dno
tbe
adeq
uate
.C
onsi
dera
tion
•If
anag
reem
ent
ism
ade
toco
mpr
omis
ea
disp
uted
clai
m,
forb
eara
nce
tosu
ein
resp
ect
ofE
nfor
cem
ent
of
[54]
Cal
lish
erv.
Bis
chof
fshe
imth
atcl
aim
isa
good
cons
ider
atio
nPr
omis
es:
(187
0)1L
.R.
5•
Ifa
pers
onbo
nati
debe
liev
eshe
has
are
ason
able
grou
ndfo
rsu
ing,
his
forb
eara
nce
tosu
eC
ompr
omis
ean
dw
illco
nsti
tute
ago
odco
nsid
erat
ion
Con
side
rati
on
Enf
orce
men
tof
[55]
War
dv.
Byh
am,
[195
6]1
WL
R49
6•
Con
side
rati
onca
nbe
anyt
hing
beyo
nda
basi
cle
gal
duty
.Pr
omis
es:
Nat
ure
of(C
.A.)
Con
side
rati
onB
.v.A
rkin
•A
forb
eara
nce
tosu
eis
good
cons
ider
atio
nan
dm
onie
spa
idin
exch
ange
for
apr
omis
eno
tE
nfor
cem
ent
of
[56]
[199
6]8
W.W
.R.
100
(Man
.Q.B
.);
tosu
eis
ava
lid
and
enfo
rcea
ble
lega
lco
ntra
ct. T
hefo
rbea
ranc
eca
nbe
good
cons
ider
atio
nPr
omis
es:
affi
rmed
[199
6]10
W.W
.R.
689
even
ifth
eva
lidity
ofth
ecl
aim
isdo
ubtf
ulor
notk
now
nto
bein
valid
(but
not
ifth
ecl
aim
Forb
eara
nce
(Man
.C
.A.)
iskn
own
tobe
inva
lid).
•P
ast
cons
ider
atio
nca
nso
met
imes
bego
odco
nsid
erat
ion
if:1.
The
actw
asdo
neat
the
Enf
orce
men
tof
Pao
On
V.L
auY
iuL
ong
[571
[198
0]A
.C.
614
(P.C
.)pr
omis
or’s
requ
est;
2.T
hepa
rtie
sun
ders
tood
that
the
act
was
tobe
rem
uner
ated
;an
d3.
Prom
ises
:P
reP
aym
ent w
ould
have
been
lega
llyen
forc
eabl
eha
dit
been
prom
ised
inad
vanc
e,ex
isti
ngL
egal
8
Law 110.
02C
ase
Ru
leT
opic
Con
tract
sBi
ukov
ic
•A
prom
ise
tope
rfor
m,o
rth
epe
rfor
man
ceof
apr
e-ex
istin
gco
ntra
ctua
lob
ligat
ion
toa
thir
dD
uty—
Dut
yO
wed
part
yca
nbe
valid
cons
ider
atio
n.to
aT
hir
dP
arty
;
•D
ures
s,w
hate
ver
form
itta
kes,
isa
coer
cion
ofth
ew
illso
asto
vitia
teco
nsen
t;du
ress
may
Eco
nom
icD
ures
s;re
nder
aco
ntra
ctvo
idab
le,b
utth
ism
ustb
ecl
aim
edpr
ompt
ly.
Pas
tCon
side
rati
on
•T
heco
mm
erci
alpr
essu
real
lege
dto
cons
titut
edu
ress
mus
tbe
such
that
the
vict
imen
tere
dth
eco
ntra
ctag
ains
tthe
irw
ill,t
hey
had
noal
tern
ativ
eco
urse
open
toth
em,a
ndth
eyw
ere
conf
ront
edw
ithco
erci
veac
tsby
the
part
yex
ertin
gth
epr
essu
re.
•A
unila
tera
lpro
mis
eto
incr
ease
pric
eis
unen
forc
eabl
ebe
caus
eth
ere
isno
clea
rag
reem
ent
tore
scin
dth
eex
istin
gco
ntra
ct—
the
new
prov
isio
nsw
ere
unila
tera
llyim
port
edin
toth
eE
nfor
cem
ent
ofdo
cum
ent
and
acco
rdin
gly,
cons
ider
atio
nof
the
oral
agre
emen
twas
notf
ound
ina
mut
ual
Prom
ises
:P
reG
ilbe
rtSt
eel v
.U
nive
rsity
agre
emen
tto
aban
don
the
earl
ier
wri
tten
cont
ract
and
assu
me
the
oblig
atio
nsun
der
the
new
exis
ting
Legal
Con
stru
ctio
nL
td.
oral
one.
Dut
y—D
uty
Ow
ed[5
8](1
976)
12O
.R.(2h
1d•)
19,
67D
.L.R
.•
InS
tilk
v.
Myr
ick
(18
09
),w
hen
two
outo
f11
sailo
rsde
sert
edth
esh
ip,t
heca
ptai
nto
the
Pro
mis
or;
(3d)
606
(C.A
.)pr
omis
edto
pay
the
rem
aini
ngsa
ilors
extr
am
oney
ifth
eysa
iled
the
ship
back
.How
ever
,R
efer
ence
toSU
lkhe
late
rref
used
topa
yth
atex
tra
mon
ey.T
heco
urth
eld
that
the
capt
ain
was
noto
blig
edto
v.M
yric
k(1
80
9)
pay
the
extr
am
oney
beca
use
the
oblig
atio
nto
sail
the
ship
back
was
nota
valid
170
E.R
.1168
cons
ider
atio
nfo
rthe
subs
eque
ntag
reem
entw
hich
vari
edth
eor
igin
alon
e.E
nfor
cem
ento
f•
Pre-
exis
ting
lega
ldu
tyow
edto
the
prom
isor
may
bea
valid
cons
ider
atio
nfo
ra
subs
eque
ntPr
omis
es:P
re[5
9]W
illia
ms
v.R
offe
yB
ros.
[199
0]1
All
ER
.51
2(c
.A.)
prom
ise
ifth
epr
omis
orde
rive
spr
actic
albe
nefi
tfro
mth
eag
reem
ent
and
ifth
esu
bseq
uent
exis
ting
Legal
prom
ise
isno
tgiv
enun
der
econ
omic
dure
ss(n
ote
Glid
ewel
l’s
6po
intt
est)
.D
uty—
Dut
yO
wed
toth
eP
ro
mis
or
•R
ober
tson
J.A
.hel
dth
atit
istim
eto
build
upon
UK
deci
sion
inW
illia
ms
v.R
offe
yan
dac
cept
edth
atpo
st-c
ontr
actu
alm
odif
icat
ion,
unsu
ppor
ted
byco
nsid
erat
ion,
may
beE
nfor
cem
ento
fen
forc
eabl
eso
long
asit
ises
tabl
ishe
dth
atth
eva
riat
ion
ofco
ntra
cts
was
notp
rocu
red
Prom
ises
:P
reG
reat
erF
rede
rict
onA
irpo
rtun
der
econ
omic
dure
ss.
[60]
Aut
hori
tyIn
c.v.
NA
VC
anad
aex
isti
ngL
eg
al
•C
omm
erci
alre
ality
need
sto
bere
cogn
ized
and
cons
ider
ed—
that
is,t
hatt
hepa
rtie
sD
uty—
Dut
yO
wed
[200
8]N
.B.J
.No.
108
(N.B
.C.A
.)fr
eque
ntly
vari
edan
dm
odif
ied
thei
rco
ntra
ctua
lobl
igat
ions
and
that
the
law
has
topr
otec
tto
the
Pro
mis
or
thei
rle
gitim
ate
expe
ctat
ions
that
the
mod
ific
atio
nsor
vari
atio
nsw
illbe
rega
rded
asen
forc
eabl
e.•
The
prom
ise
topay
asum
wh
ich
the
debto
rw
as
alr
ead
yb
ou
nd
topay
was
no
tgood
Enfo
rcem
ent
of
[61]
Re
Sele
ctm
ove
Ltd
.[1
995]
2A
llco
nsid
erat
ion
(confi
rms
Foak
esv.
Bee
r)P
rom
ises:
Duty
E.R
.53
1(C
.A.)
•W
illia
ms
v.R
offe
ypr
inci
ple
nota
pplic
able
whe
reth
eex
istin
gob
ligat
ion
isto
pay
mon
eyO
wed
toth
ebu
trat
her
only
whe
reth
eex
istin
gob
ligat
ion
isto
supp
lygo
ods
orse
rvic
esP
rom
isor
Enf
orce
men
tof
•T
hetr
aditi
onal
com
mon
law
posi
tion
isth
atan
agre
emen
t to
acce
pta
smal
ler
sum
inPr
omis
es:P
reF
oake
sv.
Bee
r[6
2]sa
tisfa
ctio
nof
ade
btof
ala
rger
sum
isno
tago
odco
nsid
erat
ion.
exis
ting
Legal
(188
4)9
App
.C
as.
605
(H.L
.).
Thi
sca
seha
sbe
enov
erru
led
inB
.C.
bys.
43of
the
Law
and
Equ
ityA
ct.
Dut
y—D
uty
Ow
edto
the
Pro
mis
or[6
3]F
oot
v.R
awli
ngs
[196
3]S.
C.R
.19
7•
Inth
eca
seof
the
debt
orw
hoow
edth
ecr
edito
ra
larg
esu
mun
der
ase
ries
ofpr
omis
sory
Enf
orce
men
tof
note
sas
full
paym
ento
fthe
debt
,as
long
asth
ede
btor
cont
inue
dto
perf
orm
his
oblig
atio
nPr
omis
es:
9
Law
110.
02C
ase
Rul
eT
opic
Con
tract
sB
iuko
vic
and
kept
payi
ngby
post
-dat
edch
eque
sas
subs
eque
ntly
agre
edbe
twee
nth
etw
o,th
eP
art
paym
ent
ofcr
edit
or’s
righ
t to
sue
onth
eno
tes
was
susp
ende
d.deb
t
“[I]
tis
the
firs
tpr
inci
ple
upon
whi
chal
lC
ourt
so
fEqu
itypr
ocee
d,th
atif
part
ies
who
have
ente
red
into
defi
nite
and
dist
inct
term
sin
volv
ing
cert
ain
lega
lre
sult
s—ce
rtai
npe
nalt
ies
or
Hug
hes
v.M
etro
poli
tan
Rai
lway
lega
lfo
rfei
ture
—af
terw
ards
byth
eir
own
act
orw
ith
thei
row
nco
nsen
ten
ter
upon
aco
urse
Enf
orce
men
tof
[64]
Co.
(187
7)2
A.C
.43
9(H
.L.)
ofn
egot
iati
onw
hich
has
the
effe
ctofl
eadi
ngon
eo
f the
part
ies
tosu
ppos
eth
atth
est
rict
Pro
mis
es:
Wai
ver
righ
tsar
isin
gun
der
the
cont
ract
wil
lno
t be
enfo
rced
,or
wil
lbe
kept
insu
spen
se,
orhe
ldin
and
Pro
mis
sory
abey
ance
,th
epe
rson
who
othe
rwis
em
ight
have
enfo
rced
thos
eri
ghts
wil
lno
tbe
allo
wed
Est
oppe
lto
enfo
rce
them
whe
reit
wou
ldbe
ineq
uita
ble
havi
ngre
gard
toth
ede
alin
gsw
hich
have
thus
take
npl
ace
betw
een
the
part
ies”
Cen
tral
Lon
don
Pro
perl
yv.
Hig
h•
Apr
omis
ein
tend
edto
bebi
ndin
g,in
tend
edto
beac
ted
onan
din
fact
acte
don
,is
bind
ing
Enf
orue
men
to
fT
rees
Hou
seev
enif
ther
eis
noco
nsid
erat
ion
(Lor
dD
enni
ngre
lied
onth
edo
ctri
neof p
rom
isso
ryPr
omis
es:W
aive
r[6
5][1
947]
1K
.B.
130,
[195
6]1
All
esto
ppel
).an
dP
rom
isso
ryE
.R.
256
•E
stop
pel
was
used
asa
shie
ldby
tena
nts
agai
nst t
hela
ndlo
rdw
how
ante
dto
enfo
rce
aE
stop
pel
high
erre
nt.
John
Bur
row
sv.
Sub
surf
ace
•T
hepa
ssiv
eco
nduc
to
f the
appe
llan
t was
not t
aken
byth
eco
urt
asa
wai
ver
ofh
isri
ghts
toE
nfor
cem
ent
of
[66]
Surv
eys
seek
enfo
rcem
ento
f the
cont
ract
,bu
ton
lyas
frie
ndly
indu
lgen
ces.
Pro
mis
es:
Wai
ver
[196
8]S
.C.R
.60
7,68
D.L
.R.(2
j•
Whe
nth
ere
isno
cons
ider
atio
nor
deed
,an
yre
laxa
tion
oft
erm
sm
ust
becl
ear
and
and
Pro
mis
sory
354
uneq
uivo
cal.
Est
oppe
l•
Acr
edit
oris
barr
edfr
omen
forc
ing
thei
rle
gal
righ
tson
lyw
hen
itw
ould
bein
equi
tabl
efo
rth
ecr
edit
orto
insi
ston
them
.E
nfor
cem
ent
of
•W
here
ther
eha
sbe
ena
true
acco
rd,
unde
rw
hich
the
cred
itor
volu
ntar
ily
agre
esto
acce
pta
Pro
mis
es:
Wai
ver
D.C
.B
uild
ers
v.R
ees
[67]
less
ersu
min
sati
sfac
tion
,an
dth
ede
btor
acts
onth
atac
cord
bypa
ying
the
less
ersu
man
dan
dP
rom
isso
ry[1
966]
2Q
.B.
617
the
cred
itor
acce
pts
it,th
enit
isin
equi
tabl
efo
rth
ecr
edit
oraf
terw
ards
toin
sist
onth
eE
stoppel
bala
nce,
but t
hey
are
not
boun
dif
ther
ew
asno
true
acco
rd.
•A
prom
ise
mad
eun
der
dure
sssh
ould
not
bees
topp
ed.
•L
ord
Den
ning
expl
aine
dhi
sow
npr
inci
ple
set
out
inH
igh
Tre
es:
a)pr
omis
sory
esto
ppel
Enf
orce
men
to
fC
ombe
v.C
ombe
cann
otbe
used
asa
swor
d,to
crea
tene
wca
uses
ofa
ctio
nw
here
none
exis
ted
befo
re,
b)P
rom
ises
:W
aiv
er[6
8][1
951]
2K
.B.
215,
1A
llE
.R.
767
prom
isso
ryes
topp
elca
non
lybe
used
asa
shie
ld,
asa
part
of
aca
use
ofa
ctio
n,to
prev
ent
aan
dP
rom
isso
ry(C
.A.)
part
yfr
omin
sist
ing
upon
his
stri
ctle
gal
righ
tsw
hen
itw
ould
beun
just
toal
low
him
toE
stop
pel
enfo
rce
them
.•
Aus
tral
ian
cour
tm
ade
anex
cept
ion
toth
ege
nera
lru
leth
atpr
omis
sory
esto
ppel
cann
otbe
Enf
orce
men
tof
Wal
ton
Sto
res
(Int
erst
ate)
Ltd
.v.
used
inth
eab
senc
eo
fa
pre-
exis
ting
lega
lre
lati
onsh
ip.
Pro
mis
es:
Wai
ver
[69]
Mah
er•
The
cour
t hel
dth
atth
edo
ctri
neca
nbe
used
inth
eab
senc
eo
f apr
e-ex
isti
ngle
gal
rela
tion
ifan
dP
rom
isso
ry(1
988)
62A
.L.J
.R.
(H.C
.)th
ere
was
are
lian
ceon
the
prom
ise
that
was
are
ason
able
expe
ctat
ion
and
ifa
depa
rtur
eE
stop
pel
from
the
prom
ise
isun
cons
cion
able
beha
vior
.E
nfor
cem
ent
of
•B
.C.C
.Afo
und
litt
leev
iden
cein
Can
adia
nau
thor
itie
sto
indi
cate
am
ove
tow
ard
am
ore
N.M
.v.
A.T
.A.
(200
3),
13B
.C.L
.R.
Pro
mis
es:
Wai
ver
[70]
(4th)
73(B
.C.C
.A.)
gene
rous
appr
oach
topr
omis
sory
esto
ppel
and
dist
ingu
ishe
dth
eca
sefr
omW
alto
n,fl
and
Pro
mis
sory
whi
chth
ere
was
are
ason
able
expe
ctat
ion
of
ale
gal
obli
gati
on.
Est
oppe
l
10
Law
110.
02C
on
trac
tsC
ase
Ru
leT
op
ic
Biu
kovi
c
•D
ennin
gon
waiv
er:
ifone
part
yb
yits
co
nd
uct
lead
sanother
tobeli
eve
that
the
stri
ctri
ghts
aris
ing
un
der
the
contr
act
wil
lnot
be
insi
sted
on,
inte
ndin
gth
at
the
oth
er
should
act
on
that
Enfo
rcem
ent
of
beli
ef
and
he
does
act
on
it,th
en
the
firs
tpa
rty
wil
ln
ot
afle
rwar
dsb
eall
ow
ed
toin
sist
on
Pro
mis
es:
[7
1]
Wi
Ala
n&
Co.
V.E
lNas
rE
xpor
tth
est
rict
righ
tsw
hen
itw
ould
be
inequit
able
for
him
tod
oso
Pro
mis
sory
&Im
port
Co.
[19
72
]2
Q.B
.189
•O
nso
me
occasi
on
sit
isposs
ible
tore
vert
toth
est
rict
righ
tsif
the
reaso
nable
no
tice
isE
stoppel
an
d
giv
en
;but
not
ifth
at
would
be
inequit
able
Waiv
er
•W
aiv
er
would
op
era
teeven
ifth
ere
isn
odetr
iment
for
the
part
ies
aslo
ng
asth
ere
isso
me
alt
era
tion
of
the
part
ies’
po
siti
on
san
done
part
yacts
inre
lian
ce
on
waiv
er
Soci
étd
lial
o-B
elge
Pou
rL
e•
Esto
pp
el
and
waiv
er
req
uir
ere
liance
on
repre
senta
tion
bu
tdetr
iment
isn
ot
needed
Enfo
rcem
ent
of
Com
mer
cev.
Pal
man
dV
eget
able
•It
must
be
inequit
able
toall
ow
the
part
yw
ho
waiv
es
his
or
her
rights
tore
vert
Pro
mis
es:
[72
]O
ils(T
heP
ost
Cha
ser)
[19
82
]1
All
Pro
mis
sory
E.R
.19
(Q.B
.)E
stoppel
and
Waiv
er
•W
aiv
er
wil
lb
efo
un
dw
here
the
ev
iden
ce
dem
onst
rate
sth
at
the
part
yw
aiv
ing
had
(1)
afu
llE
nfo
rcem
ent
of
[73
]Sa
skat
chew
anR
iver
Bun
galo
ws
v.
kn
ow
ledge
of
his
/her
rights
;(2
)an
unequiv
ocal
and
co
nsc
iou
sin
tenti
on
toabandon
them
Pro
mis
es:
Mar
itim
eL
jfe
Ass
uran
ce•
Waiv
er
can
be
retr
acte
dif
are
aso
nable
no
tice
isg
iven
toth
epa
rty
inw
hose
favour
itP
rom
issory
[1994]
2S
.C.R
.490
opera
tes
Est
oppel
an
d
Waiv
er
Enforcem
ent
of
[74]
Inte
rnat
iona
lKni
rwea
r Arc
hite
cts
•T
he
no
tice
tore
viv
ew
aiv
ed
obli
gati
ons
co
uld
be
reaso
nable
inle
ngth
ev
en
if
it
isnot
aP
rom
ises:
Inc.
v.
Kab
obIn
vest
men
ts(1
995)
17
dated
no
tice
Prom
issory
B.C
.L
.R
.(3d)
125
(B
.C
.C
.A
)E
stoppel
an
d
Waiv
er
Pet
ridi
sv.
Shab
insk
y(1
982)
132
•P
rom
isso
ryest
op
pel
co
uld
only
ap
ply
when
there
was
ale
gal
rela
tion
betw
een
the
part
ies
Enfo
rcem
ent
of
[75]
D.L
.R.
(3d)
430
(On
t.H
.C.)
Pro
mis
es:
Pro
mis
sory
Est
oppel
Rob
icha
udc.
Cas
seP
opul
aire
•P
rom
isso
ryest
op
pel
use
dboth
asa
shie
ldan
das
asw
ord
Enfo
rcem
ent
of
[76]
(1990)
69
D.L
.R.(4th)
58
9P
rom
ises:
(N.B
.C.A
.)P
rom
isso
ry
esto
ppel
Tw
eddl
ev
.A
tkin
son
(1861)
1B
&•
Ap
ers
on
who
isnot
en
gag
ed
ina
contr
act
(ath
ird
part
y)ca
ngenera
lly
neit
her
sue
no
rbe
Pri
vit
yof
Con
trac
t:
[771
s3
93
sued
on
that
co
ntr
act.
Thir
dP
art
y.
•L
ove
and
affectio
nare
no
tsu
ffic
ient
consi
dera
tion.
Ben
efi
cia
ries
•O
nly
apers
on
who
isa
part
yto
acontr
act
can
sue
on
it.
Du
nlo
pP
neu
mat
icT
yre
Co.
V.
•E
ven
ifa
contr
act
pro
vid
es
ath
ird
part
yw
ith
an
en
forc
eab
leri
gh
t,th
ere
stil
lm
ust
be
Pri
vit
yof
Co
ntr
act:
[78
]S
eifr
idge
&C
o.L
td.
[19
15
)A
.C.
consi
dera
tion.
Thir
dP
arty
847(H
.L.)
•A
pri
ncip
al
no
tn
am
ed
inth
eco
ntr
act,
ho
wev
er,
may
sue
up
on
itif
the
pro
mis
ee
reall
yB
en
efi
cia
ries
contr
acte
d_as
_his
_ag
ent.
Bes
wec
kv
.B
esw
ick
[196
6]1
Ch.
•C
.A:
Lo
rdD
ennin
gM
Rfi
nds
an
equit
able
excepti
on
tog
en
era
lru
leof
pri
vit
yw
here
the
Priv
ityof
Con
trac
t:
11
Law
110.
02C
ontra
cts
Cas
eR
ule
Top
icBi
ukov
ic
538;
[196
6]3
All
E.R
.1
(C.A
.)th
ird
part
yis
ina
trus
tee
rela
tion
ship
-in
this
case
the
wid
owsu
edin
her
capa
city
asW
ays
for
Thir
d[1
968]
A.C
.58
;[19
67J
2A
llE
.R.
exec
utri
xo
f the
esta
te,a
ndal
soin
her
pers
onal
capa
city
(Den
ning
for
C.A
.hel
dth
atsh
eP
arti
esto
Acq
uire
[79]
119
(H.L
.)co
uld
mak
eaj
oin
tcl
aim
and
that
ape
rson
alcl
aim
was
good
asw
ell
butH
Ldi
sagr
eed
wit
hB
enef
its
(cho
ice
ofhi
mon
the
poin
t of
ape
rson
alcl
aim
—se
ebe
low
),re
med
y)•
H.L
.:L
ord
Rei
dfo
und
that
alth
ough
the
wid
owin
her
pers
onal
capa
city
had
nori
ght t
osu
e,sh
eha
da
righ
tas
adm
inis
trat
rix
ofh
erhu
sban
d’s
esta
teto
sue
and
seek
for
spec
ific
perf
orm
ance
ofa
cont
ract
(rat
her
than
dam
ages
);th
ew
idow
isin
that
way
enfo
rcin
gth
eco
ntra
ctin
her
bene
fit
•la
cobu
cci
Jhe
ldem
ploy
ees
wer
epr
otec
ted
from
clau
selim
iting
thei
rlia
bilit
yev
enth
ough
they
wer
eno
t par
ties
toth
eco
ntra
ctL
ondo
nD
rugs
Ltd
.v.
Kue
hne
&•
The
empl
oyee
coul
dre
lyon
the
limita
tion
ofl
iabi
lity
clau
seif
such
clau
seex
pres
sly
orPr
ivity
ofC
ontr
act:
[80]
Nag
elin
tern
atio
nal L
td.
impl
icit
lyex
tend
sits
bene
fits
toth
eem
ploy
ees
and
ifth
eem
ploy
ees
have
been
acti
ngin
Exc
epti
ons
—
[199
2]3
S.C
.R.
299
the
cour
seof
thei
rem
ploy
men
tan
dpe
rfor
min
gth
eve
ryse
rvic
espr
ovid
edfo
rin
the
Em
ploy
ees
cont
ract
betw
een
thei
rem
ploy
eran
dth
ecu
stom
erw
hen
the
loss
occu
rred
Lim
ited
Exc
epti
onto
priv
ity,e
mpl
oyee
sm
ayus
eas
‘shi
elds
’.•
McL
achl
inJ
held
that
Eng
inee
rsw
ere
notp
rote
cted
from
clau
selim
iting
thei
rlia
bilit
yin
a
Edg
ewor
thC
onst
ruct
ion
Ltd
..
tend
eras
they
wer
eno
tpar
ties
toth
eco
ntra
ct
rfl
ND
.L
ea&
Ass
ocia
tes
Ltd
.(1
993)
•D
isti
ngui
shed
the
exce
ptio
nin
Lon
don
Dru
gsas
spec
ific
topo
wer
less
empl
oyee
sw
how
ere
Priv
ityof
Con
trac
t:I
thth
eon
lyon
esw
hoco
uld
doth
ew
ork.
Her
eth
een
gine
erin
gfi
rmco
uld
have
take
nm
easu
res
Exc
epti
ons
107
D.L
.R.
(4)1
69(S
.C.C
.)to
prot
ectt
hem
selv
es(i
edi
scla
imer
)un
like
the
empl
oyee
sin
Lon
don
Dru
gs.
No
exce
ptio
nto
priv
ityru
lefo
und
inth
isca
se.
•F
ollo
wed
Lon
don
Dru
gsan
alys
isre
:ap
plic
atio
nof
limita
tion
oflia
bilit
ycl
ause
onem
ploy
ees
inor
der
toen
forc
eth
ein
sure
r’s
wai
ver
ofits
righ
tso
fsub
roga
tion
agai
nst t
he.
.ch
arte
rer
Priv
ityof
Con
trac
t:F
rase
rR
n’er
Pil
e&
Dre
dge
Lt.
v..
.
[82]
Can
-Div
eSe
rvic
es[1
997]
39•
Doe
sno
tm
odif
yth
ete
stof
Lon
don
Dru
gsbu
tex
tend
sits
appl
icat
ion
onco
ntra
cts
othe
rE
xcep
tion
soth
er
BC
LR
(3d)
187
(BC
CA
)th
anem
ploy
men
tco
ntra
cts
aslo
ngas
the
cont
ract
expl
icitl
yor
impl
icit
lyex
tend
sits
than
Em
ploy
ees
•be
nefi
tsto
the
thir
dpa
rty
and
ifth
eth
ird
part
yha
sbe
enpe
rfor
min
gth
eac
tivi
ties
cont
empl
ated
inth
eco
ntra
ctD
ynam
icT
rans
port
atio
nL
td.
v.•
Stat
utor
yre
quir
emen
t tha
t aco
ntra
ctbe
inw
ritin
gha
sbe
ensa
tisfi
edw
ith
am
emor
andu
mR
eui
rem
ent
of
[83]
O.K
Det
aili
ngL
td[1
978]
2S.
C.R
.ev
iden
cing
the
agre
emen
t(th
atis
,des
crip
tion
ofla
nd)
wit
ha
suff
icie
ntce
rtai
nty
of
Wri
tin10
72de
scri
ptio
nth
aten
able
sth
epr
oper
tyto
beid
enti
fied
g
•E
quit
able
doct
rine
ofpa
rtpe
rfor
man
ceco
uld
beus
edto
enfo
rce
an(o
ral)
agre
emen
t for
tran
sfer
ofla
ndw
hich
isno
n-co
mpl
iant
wit
ha
stat
utor
yre
quir
emen
toff
orm
ifan
oral
agre
emen
t is
part
iall
ype
rfor
med
(par
t per
form
ance
rele
vant
toan
oral
agre
emen
t,no
tR
equi
rem
ent o
fD
eglm
anv.
Bru
netE
stat
e[8
4][1
9541
SC
R72
5S
CC
‘who
llyne
utra
lan
dit
wou
ldbe
unju
stto
refu
seen
forc
emen
t ofa
nag
reem
ent
wri
tmg:
effe
cts
of
LJ
.“
•If
the
doct
rine
ofp
artp
erfo
rman
ceis
not
appl
icab
le,
the
plai
ntif
fcou
ldst
illha
vea
clai
min
non-
com
plia
nce
quan
tum
mer
uitb
ased
onth
ere
ason
able
valu
eo
fser
vice
sre
nder
ed,i
ftho
sese
rvic
esw
ould
othe
rwis
e“u
njus
tlyen
rich
ed”
the
defe
ndan
t
Red
grav
ev
Hur
d•
Aco
ntra
ctca
nbe
resc
inde
d(s
etas
ide)
due
toa
mat
eria
lfa
lse
repr
esen
tati
on:
“am
anis
not
Mis
repr
esen
tati
on[8
5](1
88fl
20C
hD
1(C
Ato
beal
low
edto
get
abe
nefi
tfr
oma
stat
emen
t whi
chhe
now
adm
its
tobe
fals
e”,
and
Res
ciss
ion:
I.
‘.‘
•Fa
ilure
toex
erci
sedu
edi
lige
nce
isno
trel
evan
tif
ape
rson
isin
duce
dto
ente
rin
toa
mat
eria
l
12
Law 110.
02C
ase
Rul
eT
opic
Co
ntr
acts
Biu
kovi
c
contr
act
by
afa
lse
repre
senta
tion,
rep
resen
tati
on
,
fraudule
nt
mis
repr
esen
tati
onM
isre
pre
senta
tion
•In
the
case
where
the
facts
are
eq
uall
yw
ell
know
nto
both
part
ies,
what
one
ofth
em
says
toan
dR
esc
issi
on:
Sm
ith
v.L
and
&H
ouse
Property
the
oth
er
isfr
eq
uen
tly
noth
ing
but
an
expre
ssio
no
fo
pin
ion
.[8
6]
Co
rp
orati
on
stat
emen
tof
•H
ow
ever,
ifth
efa
cts
are
not
eq
uall
ykn
own
tobo
thsi
des,
then
ast
ate
mentof
op
inio
nby
(1884)
28
Ch.
D.
7(C
.A.)
op
inio
nor
the
one
who
know
sth
efa
cts
best
very
oft
en
inv
olv
es
ast
ate
ment
of
am
ate
rial
fact.
mis
rep
rese
nta
tio
n
•F
raudule
nt
mis
repre
senta
tion
requir
es
pro
ofo
fa
mis
repre
senta
tion
and
that
itw
as
know
nto
be
incorr
ect
atth
etim
eit
was
mad
e;
that
is,
apro
ofth
at
afa
lse
state
ment
ism
ad
e:
(a)
Fra
udule
nt
[87]
Der
ryv.
Pee
k(1889),
58
L.J
.C
h.
864,
[1889]
All
E.R
.R
ep.
1know
ingly
;o
r(b
)w
ithoutbeli
ef
inits
truth
;o
r(c
)re
ckle
ssly
,care
less
asto
wheth
er
itb
em
isre
pres
enta
tion
true
or
fals
e.
In18
89ty
pe(c
)w
as
cla
ssif
ied
asfr
audule
nt
mis
repre
senta
tion,but
today
(c)
would
likely
be
consi
dere
dto
be
negli
gent
mis
repre
senta
tion.
•G
en
era
lru
le:
there
isno
resc
issi
on
for
mis
repre
senta
tion
ifa
3”pa
rty
has
acquir
ed
rig
hts
,
or
when
resti
tuti
oin
inte
grum
isim
po
ssib
le,
or
ifth
eacti
on
tore
scin
dis
notta
ken
with
ina
reaso
nable
tim
e,
or
the
contr
act
isexecute
d(e
xcept
inth
ecase
of
frau
d),o
rif
the
inju
red
Kup
chak
v.D
ayson
Hol
ding
spa
rty
aff
irm
sth
eco
ntr
act.
Mis
repre
senta
tion
and
Resc
issi
on:
[88]
(196
5)53
W.W
.R.
65,
53
D.L
.R.
•T
he
court
dealt
wit
hth
eposs
ibil
ity
of
resc
issi
on
for
fraudule
nt
mis
repre
senta
tion
usi
ng
the
fraudule
nt
(2d)
482
(B
.C.C
.A.)
2st
ep
test
:a)
isre
scis
sion
pra
cti
cal
and
rest
ituti
on
poss
ible
?b)
was
the
cla
imto
resc
ind
mis
rep
resen
tati
on
subm
itte
din
tim
ely
fash
ion
?
•W
hen
resc
issi
on
isim
poss
ible
then
the
inju
red
part
ym
ay
get
moneta
rycom
pensa
tion
(in
this
case
fair
mark
et
valu
efo
rth
ep
rop
ert
yp
lus
inte
rest
).
•T
he
Supre
me
Co
urt
of
Canada
held
that
there
was
no
contr
act
betw
een
the
bank
an
dth
e
V.K
.M
ason
Co
nstr
ucti
on
Ltd
..
pla
inti
ffbut
thatth
eba
nkw
as
liab
lefo
rnegli
gent
mis
repre
senta
tion
—th
eba
nkha
da
[89
]Th
eB
ank
ofN
ova
Sco
tia
(198
5)58
spec
ial
rela
tion
ship
wit
hth
epl
aint
iffa
ndth
eba
nk’s
fals
est
ate
ment
induced
the
pla
inti
ffto
Mis
repre
senta
tion:
N.R
.19
6(S
.C.C
.)si
gna
contr
actw
ith
anoth
er
part
yin
reli
ance
on
the
ban
k’s
fals
est
ate
ment
regard
ing
Neg
lig
en
t
fin
an
cin
g.
The
co
urt
aw
ard
ed
expecta
tion
dam
ag
es
(anti
cip
ate
dpro
fits
)in
addit
ion
to
wast
ed
ex
pen
ses.
•In
the
case
of
innocent
mis
repre
senta
tion
the
court
rely
ing
on
Lord
Dennin
g(L
eafV
.
Inte
rnati
onal
Gal
leri
es)
and
Canadia
ncase
law
held
that
resc
issi
on
may
be
avail
able
Mis
repre
senta
tion
desp
ite
the
executi
on
of
the
contr
act—
executi
on
or
perf
orm
ance
isa
rele
vant
bu
tn
ot
and
Resc
issi
on:
S-2
44
Hol
ding
sL
td.
Seym
our
decis
ive
facto
rto
be
consi
dere
dw
hen
decid
ing
wheth
er
resc
issi
on
should
be
denie
d[9
0]re
scis
sio
nw
hen
the
Bui
ldin
gSy
stem
sL
td.
(B.C
.C.A
.)because
ofth
ep
lain
tiff
su
nd
ue
dela
yin
seekin
ga
rem
edy
or
because
resc
issi
on
mig
ht
contr
act
isaff
ect3
part
ies,
or
would
oth
erw
ise
be
ineq
uit
ab
le.
exec
uted
•D
enia
lo
fre
scis
sion
co
uld
,in
cert
ain
cir
cu
mst
an
ces,
bein
equit
able
because
resc
issi
on
isan
“all
or
noth
ing”
rem
ed
y.
•A
pers
on
isnot
liable
indam
ages
for
anin
nocent
mis
repre
senta
tion
no
matt
er
inw
hat
way
Mis
repre
senta
tion
or
under
what
form
the
att
ack
ism
ade,
there
fore
ifre
scis
sion
isnot
poss
ible
there
isno
an
dR
esc
issi
on:
[91]
Hei
lbut
,Sy
mon
s&
Co.
v.B
uckl
eton
[191
3]A
.C.
30(H
.L.)
rem
ed
y.
innocent
An
aff
irm
ati
on
atth
eti
me
of
sale
isa
warr
anty
,pro
vid
ed
itap
pears
on
evid
ence
tobe
som
isre
pre
sen
tati
on
;
inte
nd
ed
,els
eit
isonly
anin
nocent
mis
repre
senta
tion.
bre
ach
ofw
arr
an
ty
13
Law 110.
02C
ase
Rul
eT
opic
Con
tract
sB
iuko
vic
•A
colla
tera
lw
arra
nty
mus
t be
prov
edst
rict
ly,
not o
nly
the
exis
tenc
eof
such
term
sbu
tthe
exis
tenc
e_of
anim
usco
ntra
hend
i_m
ust b
e_cl
earl
y_sh
own.
•L
ord
Den
ning
:if
are
pres
enta
tion
ism
ade
inth
eco
urse
of d
ealin
gsfo
ra
cont
ract
for
the
very
purp
ose
of i
nduc
ing
the
othe
rpa
rty
toac
ton
it,an
dit
actu
ally
indu
ces
him
toac
ton
itM
isre
pres
enta
tion
[92]
Dic
kB
entl
eyv.
Smith
Mot
ors
byen
teri
ngin
toth
eco
ntra
ct, t
hat
ispri
maf
ad
egr
ound
for
infe
rrin
gth
atth
ere
pres
enta
tion
and
Res
ciss
ion:
was
inte
nded
asa
war
rant
y.in
noce
nt[1
965]
1W
.L.R
.62
3(C
.A.)
•T
hem
aker
of t
here
pres
enta
tion
can
rebu
tthi
sin
fere
nce
ifth
eyca
nsh
owth
atit
real
lyw
asm
isre
pres
enta
tion
;an
inno
cent
mis
repr
esen
tati
on,
inth
atth
eyw
ere
infa
ctin
noce
ntof
faul
tin
mak
ing
it,an
dbr
each
ofw
arra
nty
that
itw
ould
not
bere
ason
able
inth
eci
rcum
stan
ces
for
them
tobe
boun
dby
it.
•In
terp
reta
tion
of
aco
ntra
ctis
anex
erci
sein
dete
rmin
ing
the
inte
ntio
nof
the
part
ies
inan
Mis
repr
esen
tati
onan
dR
esci
ssio
n:ob
ject
ive
sens
e.br
each
of•
The
cour
tdo
esno
tqu
esti
onw
hat
the
part
ies
subj
ecti
vely
inte
nded
, but
inst
ead
asce
rtai
nsC
harb
onne
auv.
Bra
wn
wha
tthe
irin
tent
ions
wer
efr
omth
eci
rcum
stan
ces,
war
ranty
;[9
3](2
002)
113
A.C
.W.S
.(3
d)62
0P
arol
evid
ence
rule
:B
.C.S
.C.
Evi
denc
eof
the
subj
ectiv
ein
tent
ion
ofth
epa
rtie
sis
not
adm
issi
ble.
adm
issi
bili
tyof
•E
xtri
nsic
evid
ence
isad
mis
sibl
eto
show
that
wor
dsin
anag
reem
ent
have
bycu
stom
orex
trin
sic
evid
ence
;us
age
ape
culi
arm
eani
ng;
orw
hen
the
wor
dsar
esu
scep
tibl
eto
mor
eth
anon
em
eani
ng,
orIn
terp
reta
tion
of
ifan
ambi
guity
emer
ges.
cont
ract
•L
ord
Den
ning
held
:re
scis
sion
may
beav
aila
ble
inca
ses
ofin
noce
ntm
isre
pres
enta
tion
ifno
othe
rop
tion
isav
aila
ble
and
the
inno
cent
part
ybe
have
dre
ason
ably
.M
isre
pres
enta
tion
and
Res
ciss
ion:
Lea
fV.In
tern
atio
nal
Gal
leri
es•
But
,no
resc
issi
onis
avai
labl
efo
rin
noce
ntm
isre
pres
enta
tion
whe
nth
eco
ntra
ctis
exec
uted
inno
cent
[94]
[195
0]2
K.B
.86
,1
All
E.R
.69
3an
da
reas
onab
leti
me
for
acl
aim
laps
es.
(C.A
.)•
Dis
tinc
tion
draw
nbe
twee
nth
equ
ality
ofth
epa
intin
g(w
hopa
inte
dit)
and
the
subs
tanc
eof
mis
repr
esen
tati
on;
resc
issi
onan
dth
epa
inti
ng(p
ictu
reof
Salis
bury
Cat
hedr
al).
Onl
yal
low
resc
issi
onif
diff
ers
insu
bsta
nce.
laps
eof
tim
e
•T
heco
urtf
ound
that
the
bank
’sfa
ilur
eto
disc
lose
mat
eria
lfa
cts
toth
ede
fend
ant(
i.e.t
hat
Mis
repr
esen
tati
onth
ere
had
been
ach
ange
toco
llate
ral
secu
ritie
she
ldby
the
bank
)co
nsti
tute
dan
dR
esci
ssio
n:B
ank
ofB
.C.
v.W
ren
Dev
elop
men
tsm
isre
pres
enta
tion
byw
ords
,ac
tsan
dco
nduc
t whi
chin
duce
dth
ede
fend
ant t
osi
gnth
eom
issi
ons
[95]
(197
3),
38D
.L.R
.(3
rd)
759
guar
ante
ew
hich
heot
herw
ise
wou
ldno
thav
esi
gned
(uni
late
ral
mis
take
indu
ced
by(B
.C.C
.A.)
negl
igen
t mis
repr
esen
tati
on)
•O
mis
sion
sca
nbe
mis
repr
esen
tati
onw
here
the
omis
sion
sar
ere
late
dto
the
mat
eria
las
pect
so
fthe
cont
ract
•If
apa
rty’
ssk
illan
dju
dgm
ent
isfo
rese
eabl
ybe
ing
reli
edup
on,
adu
tyis
owed
tota
keca
reM
isre
pres
enta
tion
[96]
Hed
ley
Byr
ne&
Co.
Ltd.
v.H
elle
rin
mak
ing
stat
emen
ts. I
fca
reis
nott
aken
,an
din
jury
resu
lts, t
hepa
rty
that
was
reli
edup
onan
dR
esci
ssio
n:&
Par
tner
sL
id,
[196
4]A
.C. 4
65w
illbe
liabl
e,ne
glig
ent
.Sp
ecia
lrel
atio
nshi
pm
ust b
esh
own,
mis
repr
esen
tati
on•
Den
ning
held
:a
negl
igen
tmis
repr
esen
tati
onin
duci
nga
cont
ract
give
sri
seto
actio
nsin
tort
Mis
repr
esen
tati
on
Ess
oP
etro
leum
v.M
ardo
n(n
eglig
ence
)an
dco
ntra
ct(b
reac
hof
colla
tera
lw
arra
nty)
.an
dR
esci
ssio
n:[9
7][1
976]
Q.B
.80
1,1
All
E.R
.5
(c.A
.)If
apa
rty,
who
has
orpr
ofes
ses
toha
vesp
ecia
lkn
owle
dge
orsk
ill,
mak
esa
repr
esen
tati
onco
ncu
rren
tli
abil
ity
byvi
rtue
ther
eoft
oan
othe
r(a
dvic
e,in
form
atio
nor
opin
ion)
wit
hth
ein
tent
ion
ofi
nduc
ing
inco
ntr
act
and
the
othe
rto
ente
rin
toa
cont
ract
,the
yar
eun
der
adu
tyto
use
reas
onab
leca
reto
see
that
the
tort
;ne
glig
ent
14
Law 110.
02C
ase
Rul
eT
opic
Con
tract
sB
iuko
vic
repr
esen
tati
onis
corr
ect.
Ifth
eyne
glig
ently
give
unso
und
advi
ceor
mis
lead
ing
info
rmat
ion
mis
repr
esen
tati
onan
dth
ereb
yin
duce
the
othe
rsi
dein
toa
cont
ract
,the
yar
elia
ble
inda
mag
es.
•B
reac
hof
aco
llate
ralw
arra
nty
give
sth
eri
ghtt
oda
mag
es.
Mis
repr
esen
tatio
n•
Lia
bilit
yfo
rne
glig
entm
isre
pres
enta
tion
may
befo
und
both
inco
ntra
ctan
dto
rtw
here
and
Res
ciss
ion:
[98]
Sod
dC
orp.
v.N
.T
essi
s(1
977)
,17
ther
eis
asp
ecia
lre
latio
nshi
pcr
eatin
ga
duty
ofca
re—
the
defe
ndan
tas
apr
ofes
sion
alco
ncur
rent
O.R
.(2
d)15
8(O
nt.
C.A
.)ac
coun
tant
and
trus
tee
inba
nkru
ptcy
and
the
part
ysu
bmitt
ing
anac
cept
edte
nder
wer
ein
Lia
bil
inT
ort
ssu
cha
rela
tions
hip
and
Con
trac
ts•
SCC
held
that
the
limita
tion
clau
ses
inth
eco
ntra
ctdi
dno
tneg
ate
Hyd
ro’s
duty
ofca
re.
Mis
repr
esen
tatio
n•
Hel
dth
atac
tions
inco
ntra
ctan
dto
rtm
aybe
conc
urre
ntly
purs
ued
unle
ssth
epa
rtie
sby
aan
dR
esci
ssio
n:va
lidco
ntra
ctex
plic
itly
indi
cate
that
they
inte
nded
othe
rwis
e.co
ncu
rren
tB
.G.
Che
coIn
t’lL
td.
v.B
.C.
Hyd
ro,
[99]
•la
cobu
cci
indi
ssen
tsai
dth
ata
cont
ract
prec
lude
dth
eco
ncur
rent
liabi
lity,
butt
hem
ajor
ityL
iabi
fity
inT
ort
s[1
993]
1S.
C.R
.12
ofSC
Che
ldth
atth
em
ere
fact
that
the
part
ies
have
deal
twith
am
atte
rex
pres
sly
inth
eir
and
Con
trac
ts
cont
ract
does
notm
ean
that
they
inte
nded
toex
clud
eal
lthe
righ
tsto
sue
inre
latio
nto
that
mat
ter
(in
this
case
,tor
t).
•[3
8]“T
heSC
Cm
ade
itcl
ear.
..th
atbr
each
ofpr
econ
trac
tual
repr
esen
tatio
nsm
aybe
actio
nabl
eas
both
abr
each
ofco
ntra
ctan
dne
glig
entm
isre
pres
enta
tion,
with
clea
rM
isre
pres
enta
tion
exce
ptio
nsar
isin
gfr
omth
eex
pres
ste
rms
ofth
eco
ntra
ct.”
and
Res
ciss
ion:
No.
2002
Tau
rus
Ven
ture
sL
tdv.
•T
heen
tire
agre
emen
tcla
use
inth
eco
ntra
ctbe
twee
nth
epa
rtie
sdi
dno
texp
licitl
yre
fer
toco
ncur
rent
liab
ilit
y[1
00]
Intr
awes
tC
orp.
negl
igen
cebu
tBC
CA
held
that
whe
reth
epa
rtie
sw
ere
both
“sop
hist
icat
ed,
com
mer
cial
into
rts
and
2007
BC
CA
228
entit
ies”
and
the
cont
ract
was
not
ast
anda
rdad
hesi
onco
ntra
ctan
dw
ascl
earl
yin
tend
edto
cont
ract
san
dth
ego
vern
the
rela
tions
hip
betw
een
the
part
ies,
“itw
ould
nota
ccor
dw
ithco
mm
erci
alre
ality
enti
reag
reem
ent
togo
veno
effe
ctto
the
entir
eag
reem
entc
laus
ein
dete
rmin
ing
whe
ther
Tau
rus
can
clai
mcl
ause
ato
rtre
med
y”[5
9]•
Res
ciss
ion
not
allo
wed
for
inno
cent
mis
repr
esen
tatio
nif
the
cont
ract
isex
ecut
edun
less
the
bene
fitp
rovi
ded
diff
ers
insu
bsta
nce
from
that
prom
ised
.M
isre
pres
enta
tion
Red
ican
vN
esbi
tt•
For
frau
dule
ntm
isre
pres
enta
tion
resc
issi
onm
aybe
gran
ted
even
ifth
eco
ntra
ctis
and
Res
ciss
ion:
[101
][1
924]
S.C
.R.
135
exec
uted
Ava
ilab
ilit
yof
•Im
poss
ibili
tyof
rest
itutio
nw
illpr
even
tres
ciss
ion
unle
ssth
atim
poss
ibili
tyha
sbe
enre
med
ies
caus
edby
the
guilt
ypa
rty.
Mis
repr
esen
tatio
nB
ank
ofB
Cv.
Wre
n•
An
oblig
atio
nto
disc
lose
mat
eria
lfac
tsar
ises
whe
na
part
yas
ksa
dire
ctqu
estio
n.an
dR
esci
ssio
n:[1
02]
(197
3)38
D.L
.R.
(3d)
759
•Fa
ilure
todi
sclo
sea
mat
eria
lfa
ctw
hich
wou
ldha
vepr
even
ted
apa
rty
from
mak
ing
aE
nfor
cem
ent
of(B
.C.S
.C.)
guar
ante
e,m
ayre
nder
that
part
yno
tlia
ble
for t
hete
rms
ofth
egu
aran
tee.
term
s•
Lim
itatio
ncl
ause
sm
aybe
valid
even
inth
eca
seof
illeg
alre
scis
sion
.M
isre
pres
enta
tion
•Fo
rth
epu
rpos
eof
trig
geri
nga
limita
tion
peri
od,k
now
ledg
eof
the
righ
tto
mak
ea
clai
mis
and
Res
ciss
ion:
Gua
rant
eeC
o.o
fNor
thA
mer
ica
v.de
emed
toar
ise
whe
nth
ere
are
suff
icie
ntfa
cts
avai
labl
eto
caus
ea
reas
onab
lepe
rson
toap
plic
abil
ity
of[1
03]
Gor
don
Cap
ital
Cor
p.(1
999)
assu
me
that
alo
ssof
aty
peco
vere
dun
dert
heco
ntra
ctha
soc
curr
ed.
excl
usio
ncl
ause
s17
8D
.L.R
.(4th
)1
(S.C
.C.)
•R
esci
ssio
nis
are
med
yav
aila
ble
for
mis
repr
esen
tatio
n,an
dis
inde
pend
ent
ofw
heth
eror
and
opti
ons
for
the
nott
hegu
ilty
part
yac
cept
sth
ere
scis
sion
.in
noce
ntp
arty
•T
he_e
ffec
tofr
epud
iatio
n_de
pend
s_on
the_
attit
ude_
ofth
e_no
n-re
pudi
atin
gpa
rty.
_Ift
he_n
on-
15
Law 110.
02C
ase
Rul
eT
opic
Con
tract
sB
iuko
vic
repu
diat
ing
part
yag
rees
that
the
cont
ract
shou
ldbe
diss
olve
d,th
enth
eco
ntra
ctis
atan
end
and
ther
ear
eno
furt
her
oblig
atio
ns,
buti
f the
non-
repu
diat
ing
part
yw
ants
toco
ntin
ueth
eco
ntra
ct,t
hey
can
reje
ctth
ere
pudi
atio
nan
dsu
efo
rda
mag
es.
•T
heco
urtu
phel
dth
etr
adit
iona
lpr
inci
ple
that
any
agre
emen
tco
llat
eral
orsu
pple
men
tary
to
[104
]H
arw
ish
v.B
ank
ofM
ontr
eal
the
wri
tten
agre
emen
tm
aybe
esta
blis
hed
bypa
rol
evid
ence
, pro
vide
dit
ison
ew
hich
coul
dP
arol
Evi
denc
eR
ule
[196
9]S.
C.R
.51
5be
mad
eas
anin
depe
nden
tag
reem
entw
itho
utw
ritin
gan
dth
atit
isno
tin
any
way
inco
nsis
tent
wit
hor
cont
rary
toth
ew
ritte
nag
reem
ent.
[105
]B
auer
v.B
ank
ofM
ontr
eal
•C
onfi
rmat
ion
oft
hege
nera
lpr
inci
ple
that
oral
evid
ence
whi
chco
ntra
dict
sth
em
ain
wri
tten
Par
olE
vide
nce
Rul
e[1
980]
S.C
.R.
102
cont
ract
isin
adm
issi
ble
unde
rth
epa
rol
evid
ence
rule
.•
The
rear
em
any
case
sw
here
evid
ence
ofan
oral
stat
emen
tis
rele
vant
and
may
bead
mitt
ed:
the
wri
tten
agre
emen
tis
not t
hew
hole
cont
ract
,in
supp
ortofi
nter
pret
atio
noft
heco
ntra
ct,
toco
rrec
ta
mis
take
oran
erro
rin
wri
tten
cont
ract
s,to
show
mis
repr
esen
tati
on,e
tc.
Gal
len
v.B
utte
rley
•T
hepa
rol
evid
ence
prin
cipl
eca
nnot
bean
abso
lute
one.
Itis
only
apr
esum
ptio
nth
ata
[106
](1
984)
53B
.C.L
.R.
38,
25B
.L.R
.co
llat
eral
agre
emen
tca
nnot
bead
mit
ted
ifit
isin
cons
iste
ntw
ith,
orco
ntra
dict
s,th
ew
ritte
nPa
rolE
vide
nce
Rul
e31
4(B
.C.C
.A.)
term
s.B
utth
epr
esum
ptio
nis
“str
onge
stw
hen
the
oral
repr
esen
tati
onal
lege
dto
beco
ntra
ryto
the
docu
men
t,an
dso
mew
hat
less
stro
ngw
hen
the
oral
repr
esen
tati
onon
lyad
dsto
the
docu
men
t.”It
wou
ldbe
”m
ore
rigo
rous
ina
case
whe
reth
epa
rtie
sha
dpr
oduc
edan
din
divi
dual
lyne
goti
ated
docu
men
ttha
tit
wou
ldbe
whe
rea
prin
ted
form
was
used
.”•
Inad
diti
onto
trad
itio
nal
com
mon
law
cate
gori
zati
onof
term
so
fcon
trac
tint
otw
ogr
oups
(con
diti
ons-
the
brea
chof
whi
chgi
veri
seto
repu
diat
ion;
war
rant
ies-
the
brea
chof
whi
chH
ong
Kon
gF
irv.
Kaw
asak
i Kis
engi
veri
seto
dam
ages
only
)th
ere
are
inte
rmed
iate
term
s-th
ose
whi
char
ene
ithe
rco
ndit
ions
Cla
ssif
icat
ion
of[1
07]
Kai
sha
Ltd.
nor
war
rant
ies.
Ter
ms
[196
2]1
All
E.R
.47
4(C
.A.)
•T
hete
stth
eco
urtu
sed
tode
term
ine
ifth
ete
rmw
asa
cond
itio
nor
inte
rmed
iate
term
isth
ena
ture
ofev
ent
and
itspr
actic
alef
fect
—do
esit
depr
ive
the
part
yto
perf
orm
of
subs
tant
ially
the
who
lebe
nefi
tof
cont
ract
.•
The
cour
tap
plie
dH
ong
Kon
gF
irte
stan
dhe
ldth
atth
egr
avity
oft
heco
nseq
uenc
esof
the
Kra
wch
ukv.
Ulr
ycho
vabr
each
did
not
depr
ive
the
part
yto
perf
orm
ofsu
bsta
ntia
lly
the
who
lebe
nefi
toft
heC
lass
ific
atio
nof
[108
](1
996)
40A
lta.
L.R
.(3
d)19
6(A
lta.
cont
ract
;ac
cord
ingl
yth
eco
urtf
ound
only
abr
each
ofw
arra
nty
and
orde
red
dam
ages
(not
Ter
ms
Prov
.C
t.)re
pudi
atio
n).
•T
heco
ntra
ctsh
ould
bein
terp
rete
das
aw
hole
and
wor
d“c
ondi
tion
”sh
ould
,on
the
fact
sof
Wic
kman
v.Sc
hule
rth
isca
se,
begi
ven
anor
dina
rym
eani
ngno
tas
ate
rmw
hich
will
entit
leth
ein
noce
ntpa
rty
Cla
ssif
icat
ion
of[1
09]
[197
4]A
.C.
235,
2A
llE
.R.
39(H
.L.)
tore
pudi
ate
the
cont
ract
inth
eev
ento
fa
brea
ch.
Ter
ms
•If
the
part
ies
inte
ndto
give
aco
ndit
ion
such
anef
fect
they
mus
tmak
eth
atin
tent
ion
clea
r.•
Ince
rtai
nci
rcum
stan
ces
the
gene
ral
rule
rela
ted
toth
eso
-cal
led
“ent
ire”
cont
ract
s(t
hat
Dis
char
geby
ther
eis
nore
cove
ryfo
ra
cont
ract
todo
wor
kfo
ra
lum
psu
mun
tilth
ew
ork
isfu
llyP
erfo
rman
ceor
[110
]F
airb
anks
v.S
hepp
ard
com
plet
ed)
coul
dbe
inte
rpre
ted
tom
ean
that
the
reco
very
for
aco
ntra
ctto
dow
ork
for
aB
reac
h:R
emed
y[1
953]
1S.
C.R
.31
4,2
D.L
.R.
193
lum
psu
mis
poss
ible
ifth
ew
ork
is“s
ubst
anti
ally
”co
mpl
eted
albe
itde
fect
ivel
y,fo
ra
par
tyin
•W
hat
cons
titu
tes
“sub
stan
tial
”pe
rfor
man
ceis
tobe
dete
rmin
edon
the
fact
sof
each
case
defa
ult
Dis
char
geby
[111
1Su
mpt
erv.
Hed
ges
•T
hege
nera
lru
leis
that
whe
reth
ere
isa
cont
ract
todo
wor
kfo
ra
lum
psu
m,
until
the
wor
kP
erfo
rman
ceor
[189
8]1
Q.B
.67
3(C
.A.)
isco
mpl
eted
the
pric
eof
itca
nnot
bere
cove
red.
Bre
ach:
Rem
edy
16
Law 110.
02C
ase
Rul
eT
opic
Con
trac
tsB
iuko
vic
Ther
ear
eca
ses
inw
hic
h,
thou
ghth
epl
aint
iff h
asab
ando
ned
the
perf
orm
ance
of
aco
ntra
ct,
for
apa
rty
init
isposs
ible
for
him
tora
ise
the
infe
rence
of
an
ewco
ntr
act
topay
for
the
work
do
ne
ona
def
ault
quan
tum
mer
uit b
asis
from
the
def
endan
t’s
hav
ing
taken
the
ben
efit
of
that
work
.B
ut
ino
rder
that
that
may
be
done,
the
circ
umst
ance
sm
ustb
esu
chas
togi
vean
optio
nto
the
def
endan
tto
take
or
no
tto
take
the
ben
efit
ofth
ew
ork
done.
Th
em
ere
fact
of
the
appel
lant
rem
ained
inposs
essi
on
ofth
eir
lan
dis
not
evid
ence
up
on
wh
ich
anin
fere
nce
of
an
ewco
ntr
act
can
be
fou
nd
ed.
Dis
char
ge
by.
How
ev.
Smith
Wh
eth
er,
inab
sen
ceo
fan
expre
ssst
ipula
tion,
apa
rty
indef
ault
who
pai
dm
on
eyas
aP
erfo
rman
ceor
[112
](1
88
4)
27C
h.D
.89
(c.A
.)dep
osi
to
nth
esi
gnin
go
fa
con
trac
t,co
uld
reco
ver
that
dep
osi
to
rhe
has
lost
allr
ight
toB
reac
h:D
epos
itpe
rfor
man
ceby
the
othe
r par
ty, w
ould
depe
ndon
wha
t ter
ms
are
tobe
impl
ied
paid
bya
part
yin
defa
ult
Dis
char
geby
•T
ode
term
ine
ifth
epa
ymen
t is
ade
posi
t or
apa
rtpa
ymen
t the
cour
twill
look
atth
ePe
rfor
man
ceor
inte
ntio
nof
the
part
ies
inth
eci
rcum
stan
ces
ofea
chca
seas
indi
cate
dby
the
actu
alw
ords
ofB
reac
h:ca
ses
ofSt
even
son
v.C
olon
ial H
omes
LtdL
,th
eco
ntra
ctan
dev
iden
ceof
wha
twas
said
unco
mpl
eted
wor
k[1
13]
[196
1]O
.R. 4
07(O
nt.
C.A
.)•
Ifth
epa
ymen
t is
ade
posi
t (m
oney
paid
inad
vanc
eto
guar
ante
eth
epe
rfor
man
ceof
the
K)
whe
nso
me
mon
eyth
ere
wou
ldbe
nore
turn
whe
nth
eco
ntra
ctis
set a
side
.How
ever
ifth
em
oney
ispa
idas
aw
asgi
ven
befo
repa
rtpa
ymen
t on
acco
unt
ofth
epu
rcha
sepr
ice
then
itis
reco
vera
ble
the
perf
orm
ance
star
ted
•“A
band
onm
ent d
isch
arge
sa
cont
ract
only
ifit
amou
nts
toa
new
cont
ract
inw
hich
the
part
ies
agre
eto
aban
don
the
old
one.
”[17
Ane
wco
ntra
ctco
uld
bem
ade
expl
icitl
yor
Dis
char
geby
Jedf
roIn
vest
men
ts(U
SA)
Ltd
.v.
impl
icitl
ybu
tit
mus
tbe
clea
r tha
t the
part
ies
have
mad
ea
new
cont
ract
Perf
orm
ance
or[1
14]
Jacy
k•
Mor
eth
ana
sim
ple
igno
ranc
eof
aco
ntra
ctua
lob
ligat
ion
isne
eded
toes
tabl
ish
repu
diat
ion.
Bre
ach:
2007
SC
C55
“Aco
ntra
ctm
aybe
said
tobe
repu
diat
edw
hen
one
part
yac
tsin
aw
ayth
atev
ince
sin
tent
toab
ando
nmen
t/re
puno
lon
ger
be
bound
byth
eco
ntra
ct. T
heot
her p
arty
then
may
,at
itsop
tion,
elec
tto
dia
tion
term
inat
eth
eco
ntra
ct.”
[20]
Dis
char
geby
Perf
orm
ance
orM
arki
and
Ass
ocia
tes
Lid
.v.
Loh
nes
•W
here
the
wor
kw
asdo
ne, b
utba
dly,
and
the
defe
cts
have
been
orca
nbe
rem
edie
d,th
eB
reac
h:ca
ses
of[1
15]
(1973),
22D
.L.R
.(3
d)
493
(N.S
.co
urts
tend
tofi
ndth
atth
ere
has
been
subs
tant
ial
perf
orm
ance
and
that
the
build
ersh
ould
T.D
.)hav
eth
eag
reed
pri
cele
ssth
eco
sto
fco
rrec
ting
the
def
ects
and
om
issi
ons
lum
psu
mco
ntra
cts
and
unco
mpl
eted
wor
k•
Are
asonab
lenoti
ceper
iod
isan
impl
ied
term
of
anem
plo
ym
ent
contr
act
and
the
inte
nti
on
of
the
cont
ract
ing
part
ies
isnot
rele
van
tto
term
sim
pli
edas
am
atte
rof
law
(but
only
toSt
anda
rdFo
rm[1
16]
Mac
htin
ger
v.H
ojIn
dust
ries
Ltd
.[1
992]
1S
.C.R
.98
6te
rms
imp
lied
asa
mat
ter
offa
ct).
Con
trac
ts:
•T
he
test
for
imp
lica
tio
no
fa
term
asa
mat
ter
of
law
isnec
essi
tyo
rw
het
her
the
term
sought
Ex
clu
sio
nC
lause
sto
be
imp
lied
isa
“nec
essa
ryin
cid
ent”
of
the
con
trac
t.
•In
ordi
nary
case
sw
her
ean
actio
nis
brou
ghto
na
wri
tten
agre
emen
tw
hic
his
signed
byth
eS
tan
dar
dF
orm
Par
ker
v.So
uth
Eas
tern
R.y
.C
o.[1
17]
(1877)
2C
.P.D
.416
(c.A
.)pa
rtie
sth
eag
reem
ent
ispro
ved
bypro
vin
gth
esi
gnat
ure
and,
inth
eab
sence
of
frau
d,
itis
Con
trac
ts:
who
lly
imm
ater
ial
that
the
part
yh
asno
t rea
dth
eag
reem
ent a
nddo
esno
tkno
wits
conte
nts
Ex
clu
sio
nC
lause
s
17
Law 110.
02C
ase
Rul
eT
opic
Con
tract
sBi
ukov
ic
•In
the
case
of u
nsig
ned
docu
men
tsth
epa
rty
impo
sing
aco
ndit
ion
(or
anex
clus
ion
clau
se)
and
unsi
gned
has
tota
kere
ason
able
step
sto
give
the
othe
rpa
rty
notic
eo
fthe
cond
itio
n.do
cum
ents
—ti
cket
•T
hete
stto
dete
rmin
ew
hat
cons
titu
tes
reas
onab
lest
eps
isan
obje
ctiv
ete
st—
notw
heth
erca
seth
epa
rty
knew
ofth
eco
ndit
ion
but
whe
ther
the
part
yim
posi
ngth
eco
ndit
ion
did
wha
twas
reas
onab
lysu
ffic
ient
togi
veth
eot
her
part
yno
tice
of t
heco
nditi
on.
•L
ord
Den
ning
onth
efo
rmat
ion
ofc
ontr
acts
ina
park
ing
lot:
the
tick
etis
nom
ore
than
avo
uche
ror
rece
ipt
for
the
mon
eyth
atha
sbe
enpa
idon
term
sw
hich
have
been
offe
red
and
Stan
dard
Form
Tho
rnto
nv.
Shoe
Lan
eP
arki
ngL
td.
acce
pted
befo
reth
eti
cket
isis
sued
...T
heof
fer
was
acce
pted
whe
nth
epl
aint
iffd
ove
upto
Con
trac
ts:
the
entr
ance
and
byth
em
ovem
ento
fhis
car,
turn
edth
elig
htfr
omre
dto
gree
n,an
dth
eE
xclu
sion
Cla
uses
[118
][1
971]
2Q
.B.
163,
1A
llE
.R.
686
tick
etw
asth
rust
athi
m.T
heco
ntra
ctw
asth
enco
nclu
ded
and
itco
uld
notb
eal
tere
dby
any
and
unsi
gned
(C.A
.)w
ords
prin
ted
onth
eti
cket
itsel
f.do
cum
ents
—ti
cket
•T
heco
urt s
houl
dno
tbin
da
part
yby
unus
ually
wid
ean
dde
stru
ctiv
eex
clus
ion
clau
ses
case
unle
ssth
eyar
edr
awn
toth
eir
atte
ntio
nin
the
mos
tex
plic
itw
ay.
Sta
ndar
dFo
rm•
Pre
viou
sde
alin
gsbe
twee
nth
epa
rtie
sar
ere
leva
nton
lyif
they
prov
e(1
)kn
owle
dge
oft
heC
ontr
acts
:M
cCut
cheo
nv.
Dav
idM
acB
raye
neL
td.
term
s(a
ctua
lan
dno
tco
nstr
uctiv
e),
and
(2)
asse
ntto
the
term
sin
the
prev
ious
deal
ings
.E
xclu
sion
Cla
uses
[119
][1
964]
1W
.L.R
.12
5,1
All
E.R
.•
Ifpr
evio
usde
alin
gssh
owth
ata
pers
onkn
ewof
and
agre
edto
ate
rmon
99oc
casi
ons,
itan
dun
sign
ed43
0(H
.L.)
can
beim
port
edin
toth
e100
th
cont
ract
wit
hout
anex
pres
sst
atem
ent,
butw
itho
utpr
ovin
gdo
cum
ents
—ti
cket
know
ledg
eth
ere
isno
thin
g.ca
seS
tand
ard
Form
Con
trac
ts:
[120
]O
lley
v.M
arlb
orou
ghC
ourt
,[1
949]
•A
llte
rms
mus
tbe
disc
lose
dpr
ior
tofo
rmat
ion
ofth
eco
ntra
ctif
they
are
tofo
rmpa
rtof
the
Exc
lusi
onC
laus
es1
K.B
.53
2ag
reem
ent,
rega
rdle
ssof
the
leng
thof
the
ensu
ing
rela
tion
ship
betw
een
the
part
ies.
and
unsi
gned
docu
men
ts•
Inm
oder
nco
nmie
rcia
lpr
actic
e,m
any
stan
dard
form
prin
ted
docu
men
tsar
esi
gned
wit
hout
bein
gre
ador
unde
rsto
odan
din
man
yca
ses
the
part
ies
seek
ing
tore
lyon
the
term
sof
the
cont
ract
know
orou
ghtt
okn
owth
atth
esi
gnat
ure
apa
rty
toth
eco
ntra
ctdo
esno
trep
rese
ntSt
anda
rdFo
rmth
etr
uein
tent
ion
ofth
esi
gner
and
that
the
part
ysi
gnin
gis
unaw
are
oft
hest
ring
ent
and
Con
trac
ts:
Tild
enR
ent-
A-C
arC
o.v.
[121
]C
lend
enni
ngon
erou
spr
ovis
ions
whi
chth
est
anda
rdfo
rmco
ntai
ns.
Exc
lusi
onC
laus
es.
(197
8)18
O.R
.(2
d)60
1(O
nt.
C.A
.)T
hepa
rty
seek
ing
tore
lyon
such
stri
ngen
tand
oner
ous
term
ssh
ould
not
beab
leto
doso
inan
dsi
gned
the
abse
nce
offi
rst h
avin
gta
ken
reas
onab
lem
easu
res
todr
awsu
chte
rms
toth
eat
tent
ion
docu
men
tso
fthe
othe
rpa
rty,
and,
inth
eab
senc
eof
such
reas
onab
lem
easu
res,
itis
not
nece
ssar
yfo
rth
epa
rty
deny
ing
know
ledg
eof
such
term
sto
prov
eei
ther
frau
d,m
isre
pres
enta
tion
orno
nes
tfac
tum
;w
hat
isre
ason
able
isth
equ
esti
onof
fact
sin
each
inst
ance
.•
Ina
split
deci
sion
oft
heB
CC
A(N
emet
zdi
ssen
ting,
Tag
gart
conc
urri
ng)
McF
arla
neJ.
held
Sd
ard
Form
that
the
lang
uage
ofth
est
anda
rdlia
bilit
yre
leas
em
ust b
ein
terp
rete
dan
dun
ders
tood
Con
trac
ts:
Del
aney
v.C
asca
deR
iver
Hol
iday
sha
ving
rega
rdto
the
who
lepu
rpos
eof
the
rela
tion
ship
bet3
veen
the
part
ies
orth
ena
ture
of
Exc
lusi
onC
laus
es[1
22]
Ltd
.th
eve
ntur
ein
volv
ed.
(198
3)44
B.C
.L.R
.24
(B.C
.C.A
.)an
dsi
gned
•T
hepu
rpos
ew
asto
enga
gein
wha
tm
ust
have
been
inte
nded
tobe
anex
citi
ngan
dth
rill
ing
docu
men
tsch
alle
nge_
and_
such
_int
entw
as_i
nvol
ved_
inth
e_la
ngua
geo
fthe
_rel
ease
.[1
23]
Kar
roll
v.Si
lve
Sta
rM
ount
ain
•T
heco
urth
eld
that
whe
ther
the
duty
tota
kere
ason
able
step
sto
advi
seof
anex
clus
ion
Sta
ndar
dF
orm
18
Law
110.
02C
on
tracts
Case
Rule
Topic
Biu
kovi
c
Reso
rtL
td.(1
988)
33B
.C.L
.R(2
d)cl
ause
aris
esde
pend
son
man
yfa
ctor
s,su
chas
the
natu
reof
the
cont
ract
,the
leng
than
dC
ontr
acts
:16
0(B
.C.S
.C.)
form
atof
the
cont
ract
and
the
time
avai
labl
efo
rre
adin
gan
dun
ders
tand
ing
itE
xclu
sio
nC
lauses
•T
he
purp
ose
ofth
eco
ntra
ctw
asto
engag
ein
aha
zard
ous
activ
ityupon
whic
hK
arro
llan
dsi
gn
edvo
lunt
ary
emba
rked
, the
excl
usio
ncl
ause
was
cons
iste
ntw
ithth
epu
rpos
eof
the
cont
ract
,docum
ents
ther
ew
asno
fine
prin
t,no
unus
ualt
erm
s,an
dsh
ew
asan
expe
rien
cera
cerw
hoha
dsi
gned
such
clau
ses
befo
re•
Del
aney
’sde
cisi
onis
follo
wed
and
itis
hel
dth
atth
e2
step
test
ofre
quir
ing
(1)
reas
onab
lem
ust b
eco
nsid
ered
inex
amin
ing
whe
ther
the
part
yre
lyin
gon
the
unus
ual
excl
usi
on
clau
sedi
dw
hatw
asne
cess
ary
tobr
ing
itto
the
othe
rpa
rty’
sat
tent
ion
and
(2)
that
the
Stan
dard
Fo
rm..
purp
ose
ofth
ere
lati
onsh
ipand
the
natu
reo
fth
eventu
rein
vo
lved
mus
tbe
cons
ider
ed.
Sch
ust
er
v.B
lackcom
bS
kii
ng
Con
trac
ts:
[124
]E
nte
rpri
ses
Ltd
.P
art
ners
hip
•In
exam
inin
gth
e“r
easo
nabl
est
eps
test
”th
eco
urt r
efer
red
toK
arr
oll
v.
Sil
ver
Sta
rE
xclu
sio
nC
lauses
[199
5]3
W.W
.R.
443
(B.c
.s.c
.)M
ounta
inw
here
the
circ
umst
ance
so
fth
esi
gnin
gw
ere
such
that
are
ason
able
pers
onan
dsig
ned
(com
pet
itio
norg
aniz
erw
itnes
smg
the
sig
nin
g)
would
not
hav
ekn
own
that
the
signor
did
docu
men
tsnot
inte
nd
toag
ree
tow
hat
she
sig
ned
.T
he
purp
ose
of
perm
ittin
gth
esi
gnor
and
oth
ers
toen
gag
ein
such
anac
tiv
ity
and
wh
ere
and
how
the
excl
usi
on
clau
sew
asre
pre
sente
dw
ere
also
consi
der
edin
the
reas
onab
lest
eps
test
-*T
he
wai
ver
was
found
toex
clu
de
liab
ilit
y.
Enfo
rcea
bil
ity
of
aw
aiver
of
liab
ilit
yw
asch
alle
nged
byth
ep
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onth
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mis
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senta
tion
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mis
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ack
of
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),2.
unco
nsc
ionab
ilit
y;
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lati
on
of
stat
ute
(dec
epti
ve
and
unco
nsc
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leac
tsin
BPC
PA);
lack
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esh
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ider
atio
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exch
ange
for
Sta
ndar
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orm
sign
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are
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eC
on
trac
ts:
[125
]L
oy
ch
uk
v.C
ougar
Mo
un
tain
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elan
ey’s
maj
ori
tyre
asonin
gfo
llow
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ith
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ect
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so
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clu
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ture
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ed
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ost
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and
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ned
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com
mon
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esta
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per
Mor
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Coa
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cia
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arry
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reutz
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and
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No
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ason
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rce
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ver
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on
test
)
[126
1In
terf
oto
Pic
ture
Lib
rary
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tile
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hem
ore
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ition
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eco
ntra
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hem
ore
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ngen
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itto
Stan
dard
Form
L[1
989]
Q.B
.43
3th
eat
tent
ion
ofth
eot
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arty
.E
xcl
usi
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Cla
use
s
Stan
dard
Fo
rm.
..
..
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Con
trac
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err
ill
Ly
nch
HS
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disc
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clud
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liab
ilit
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ran
ypo
or[127i
Ex
clu
sio
nC
lau
ses
[200
2]B
.C.J
. No.
2883
(B.C
.P.C
)pe
rfor
man
cem
ay
beun
enfo
rcea
ble,
and
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ned
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ents
•T
hear
bitr
atio
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reem
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exte
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ell
Com
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orp
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ssly
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oth
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sre
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edun
der
art.
1435
C.C
.Q.
Stan
dard
Fo
rm
p128
1co
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urs
and
Oliv
ier
Whi
leth
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illk
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ntr
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:L
-ID
um
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ithin
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ryst
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rds.
Itca
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erefore
Incorporation
of
2007
SC
C34
beco
ncl
uded
that
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kw
asev
iden
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defe
ndan
t.T
erm
s
.F
urt
her
more
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eC
onfi
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Pag
eco
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ned
an
oti
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atth
esa
lew
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ctto
the
Ter
ms_
and
Con
ditio
ns_o
f Sal
e,_a
vaila
ble
byhy
perl
ink,
thus
brin
ging
the
Ter
ms
and
19
Law 11
0.02
Cas
eR
ule
Top
icC
ontr
acts
Biu
kovi
c
Con
diti
ons
expr
essl
yto
defe
ndan
t’s
atte
ntio
n.
Sta
ndar
dF
orm
Soiw
ayv
Dav
isM
ovin
gan
dC
ontr
acts
:•
Ade
fend
ant
wil
lno
tbe
perm
itte
dto
rely
ona
liab
ilit
yli
mit
atio
ncl
ause
ifit
wou
ldbe
[129
]S
tora
ge,
[200
2]O
.J.
4760
(Ont
.E
xclu
sion
Cla
uses
unco
nsci
onab
lein
the
circ
umst
ance
s.C
.A.)
and
sign
eddo
cum
ents
•L
ord
Den
ning
form
ulat
eshi
sdo
ctri
neo
ffun
dam
enta
lbr
each
:A
part
yca
nnot
rely
onan
exem
ptio
ncl
ause
whe
nth
eyde
live
rso
met
hing
“dif
fere
ntin
kind
”fr
omth
atco
ntra
cted
for,
Fun
dam
enta
l
Kar
sale
sv.
Wai
isor
whe
nth
eyha
vebr
oken
a“f
unda
men
tal
term
”or
a“f
unda
men
tal
cont
ract
ual
obli
gati
on”.
Bre
ach:
Lo
rd
[130
][1
956]
1W
.L.R
.93
6,2
All
E.R
.•
Doc
trin
eo
ffl
inda
men
tal
brea
chsa
ysth
ata
brea
chw
hich
goes
toth
ero
otof t
heco
ntra
ctD
enni
ng’s
do
ctri
ne
866
(C.A
.)di
sent
itle
sth
epa
rty
from
rely
ing
onth
eex
empt
ion
clau
se,
offu
nd
amen
tal
•T
his
doct
rine
has
been
over
rule
dby
the
Hou
seo
fLor
dsin
Pho
toP
rodu
ctio
nv.
Sec
uric
orb
reac
h
Tra
nspo
rtL
td.
•C
onfi
rms
the
Suis
seA
tlan
tiqu
eca
seru
ling
that
the
ques
tion
whe
ther
,an
dto
wha
tex
tent
,an
excl
usio
ncl
ause
isto
beap
plie
dto
afu
ndam
enta
lbre
ach,
ora
fund
amen
talt
erm
,or
inde
ed
Pho
toP
rodu
ctio
nv.
Sec
uric
orto
any
brea
cho
fco
ntra
ct,
isa
mat
ter
of
cons
truc
tion
of t
hew
hole
cont
ract
.F
unda
men
tal
[131
1T
rans
port
Ltd
.•
Lor
dD
iplo
ck’s
anal
ysis
ofp
rim
aiy
and
seco
ndai
yob
liga
tion
sis
base
don
the
fund
amen
tal
Bre
ach:
Lord
[198
0]A
.C.
827,
1A
llE
.R.
556
prin
cipl
eo
fthe
com
mon
law
of
cont
ract
that
part
ies
toa
cont
ract
are
free
tode
term
ine
for
Den
ning
’sd
oct
rin
e
(H.L
.)th
emse
lves
wha
tpr
imar
yob
liga
tion
sth
eyw
ill
acce
pt.
ov
erru
led
•If
the
excl
usio
ncl
ause
iscl
ear
and
unam
bigu
ous
itw
ill
prot
ectt
hepa
rty
rely
ing
onit
from
liab
ilit
y..
Dic
kson
J.(r
elyi
ngon
Pho
toP
rodu
ctio
nan
din
clin
edto
lay
the
doct
rine
off
unda
men
tal
brea
chto
rest
)he
ldth
atif
onits
true
cons
truc
tion
the
cont
ract
excl
udes
liab
ilit
yfo
rth
eki
ndF
unda
men
tal
Hun
ter
Eng
inee
ring
v.S
yncr
ude
of
brea
chth
atoc
curr
ed,
the
part
yin
brea
chw
ill
gene
rall
ybe
save
dfr
omli
abil
ity,
unle
ssB
reac
h:C
anad
ian
Can
ada
Ltd.
[132
][1
989]
1S
.C.R
.42
6,57
D.L
.R.(4th)
the
cont
ract
orth
ecl
ause
isun
cons
cion
able
,as
mig
htar
ise
from
situ
atio
nso
fun
equa
lco
urt
sfo
llow
Pho
to32
1ba
rgai
ning
pow
erbe
twee
nth
epa
rtie
s.P
rodu
ctio
n•
Wil
son
J.he
ldth
atth
ete
stfo
rw
heth
eran
excl
usio
ncl
ause
ora
cont
ract
wil
lbe
enfo
rced
ison
eo
funr
easo
nabl
enes
sas
betw
een
the
part
ies
and
inli
ghto
fthe
natu
reo
fthe
brea
ch.
•R
efer
sto
both
Hun
ter
and
Pho
toP
rodu
ctio
nca
ses
inho
ldin
gth
atan
excl
usio
ncl
ause
Fra
ser
Jew
elle
rsLt
d.v.
Dom
inio
nsh
ould
been
forc
edac
cord
ing
toits
true
mea
ning
prov
ided
that
itis
not
unco
nsci
onab
leF
un
dam
enta
lE
lect
ric
Pro
tect
ion
Co.
(Dic
kson
J.in
Hun
ter)
or“u
nfai
ror
unre
ason
able
”(W
ilso
nj.
inH
unte
r).
Bre
ach:
Can
adia
n[1
33]
(199
7)14
8D
.L.R
.(4th
)49
6(O
nt.
•If
anex
clus
ion
clau
seis
not
obsc
ure,
ifit
isvi
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ear
and
unam
bigu
ous,
and
nott
heco
urts
foll
owP
hoto
C.A
.)re
sult
of
abus
eo
fbar
gain
ing
pow
er,
ther
eis
noba
sis
for
the
cour
tto
dist
urb
the
agre
emen
tP
rodu
ctio
n
mad
ebe
twee
nth
epa
rtie
s.T
erco
nC
ontr
acto
rsL
td.
v.B
C•
The
ques
tion
oft
heap
plic
abil
ity
of
excl
usio
no
fli
abil
ity
clau
sepr
oper
lyin
corp
orat
edw
asF
undam
enta
l[1
34]
(Tra
nspo
rtat
ion)
,20
10S
CC
4an
impo
rtan
tis
sue
Bre
ach:
anal
ytic
al
20
Law 110.
02C
ontra
cts
Cas
eR
ule
Top
icB
iuko
vic
•SC
Cre
ferr
edto
Dic
kson
J.in
Hun
terE
ngin
eeri
ngin
stat
ing
that
the
doct
rine
offr
amew
ork
for
fund
amen
tal
brea
chsh
ould
bela
yto
rest
and
that
anan
alyt
ical
appr
oach
ofB
inni
eJ.
toap
plic
atio
nof
excl
usio
nof
liabi
lity
clau
ses
appl
icab
ility
shou
ldbe
appl
ied
excl
usio
ncl
ause
s•
Bin
nie
J.he
ld(d
isse
ntin
g)th
atbe
caus
eca
tego
rizi
ngbr
each
as“f
unda
men
tal”
isno
the
lpfu
l,es
peci
ally
whe
nth
epa
rtie
sar
ebi
g,so
phis
ticat
ed,c
omm
erci
alen
titie
s,th
eco
urts
shou
ldfo
cus
on:
whe
ther
asa
mat
ter
ofin
terp
reta
tion
the
clau
seap
plie
sto
the
circ
umst
ance
sof
the
case
;an
dif
so,w
heth
erth
eex
clus
ion
clau
sew
asun
cons
cion
able
atth
etim
eth
eco
ntra
ctw
asm
ade,
and
ifth
ecl
ause
isva
lidan
dap
plic
able
,whe
ther
the
cour
tsh
ould
neve
rthe
less
refu
seto
enfo
rce
itbe
caus
eof
anov
erri
ding
publ
icpo
licy
[122
-123
]•
Cou
rthe
ldth
atth
em
ilita
ryoc
cupa
tion
did
notf
rust
rate
the
leas
eco
ntra
ct(s
tric
tpac
tasu
nt
Par
adin
ev
Jane
serv
anda
):“W
hen
the
part
yby
his
own
cont
ract
crea
tes
adu
tyor
char
geup
onhi
mse
lf,h
e
[135
](1
647)
Ale
yn26
82A
llE
R89
7is
boun
dto
mak
eit
good
,ifh
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ay,n
otw
iths
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ing
any
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dent
byin
evita
ble
nece
ssity
,B
efor
eD
octr
ine
of‘
beca
use
hem
ight
have
prov
ided
agai
nsti
tby
his
cont
ract
.”Fr
ustr
atio
n•
Cou
rtfu
rthe
rhe
ldth
atfr
ustr
atio
nis
apa
rtof
the
risk
apa
rty
has
tobe
ar(“
As
the
less
eeis
toha
veth
ead
vant
age
ofca
sual
prof
its,s
ohe
mus
trun
the
haza
rdof
casu
allo
sses
....”
).•
The
cour
tcon
firm
edth
ege
nera
lpri
ncip
leof
cont
ract
law
that
apa
rty
toa
cont
ract
had
toei
ther
perf
orm
orpa
yda
mag
es(“
ifth
epe
rfor
man
ceof
aco
ntra
ctha
sbe
com
eun
expe
cted
lyD
octr
ine
ofT
aylo
rv.
Cai
dwel
lbu
rden
som
eor
even
impo
ssib
lein
cons
eque
nce
ofun
fore
seen
acci
dent
s”)
buth
eld
that
the
Frus
trat
ion:
Exc
use
[136
](1
863)
3B
&S
826,
122
E.R
.30
9pa
rtie
ssh
ould
beex
cuse
dfr
omth
eir
oblig
atio
nsbe
caus
eth
ere
was
an“i
mpl
ied
cond
itio
n”fo
rnon
(Q.B
.)to
excu
seth
epa
rtie
sin
the
case
that
perf
orm
ance
beco
mes
impo
ssib
lew
ithou
tdef
ault
ofpe
rfor
man
ce—
the
cont
ract
or...
“[T
]he
part
ies
cont
ract
edon
the
basi
sof
the
cont
inue
dex
iste
nce
ofth
eco
ntr
act
void
able
part
icul
arpe
rson
orch
atte
l.”•
“Fru
stra
tion
occu
rsw
hene
ver
the
law
reco
gniz
esth
atw
itho
utde
faul
tof
eith
erpa
rty
aco
ntra
ctua
lobl
igat
ion
has
beco
me
inca
pabl
eo
fbei
ngpe
rfor
med
beca
use
the
Dav
isC
ontr
acto
rsLt
d.v.
Far
eham
circ
umst
ance
sin
whi
chpe
rfor
man
ceis
calle
dfo
rwou
ldre
nder
ita
thin
gra
dica
lly
..
Frus
trat
ion:
Exc
use
r137i
UD
Cdf
fere
ntfr
omth
atw
hich
was
unde
rtak
enby
the
cont
ract
....
f‘-
-‘[1
956]
A.C
.69
6,[1
956]
2A
llE
.R.
•T
heev
entm
ust b
eun
fore
seea
ble
and
mus
tocc
uraf
tert
hefo
rmat
ion
ofth
eco
ntra
ct.
nance
145
(H.L
.)•
Itis
not
hard
ship
,in
conv
enie
nce
orm
ater
iall
oss
whi
chca
llsth
epr
inci
ple
offr
ustr
atio
nin
topl
ay,b
uta
chan
gein
the
sign
iflc
ance
oft
heob
liga
tion
such
that
the
thin
gun
dert
aken
wou
ld,
jfpe
rfor
med
,be
adj
ffer
ent
thin
gfro
mth
atco
ntra
cted
for.
”•
“The
reca
nbe
nofr
ustr
atio
nif
the
supe
rven
ing
even
tres
ults
from
the
volu
ntar
yac
tofo
neC
apit
alQ
ualit
yH
omes
Ltd
.v.
ofth
epa
rtie
sor
ifth
epo
ssib
ility
ofsu
chan
even
tari
sing
duri
ngth
ete
rmof
the
agre
emen
tFr
ustr
atio
wC
olw
ynC
onst
ruct
ion
Ltd.
was
cont
empl
ated
byth
epa
rtie
san
dpr
ovid
edfo
rin
the
agre
emen
t.”[1
38]
..
..
.m
terv
enm
g(1
975)
9O
.R.(
2d)
617,
61D
.L.R
.•
Inte
rven
ing
legi
slat
ion
whi
chw
asno
twith
mth
eco
ntem
plat
ion
ofth
epa
rtie
san
dw
hich
legi
slat
ion
(3d)
385
(C.A
.)de
stro
ysth
eve
ryfo
unda
tion
ofth
eag
reem
entd
oes
disc
harg
ebo
thpa
rtie
sfr
ompe
rfor
man
ce.
21
Law
11
0.0
2
Cas
eR
ule
Top
icC
on
tracts
Biu
ko
vic
•T
heco
urt
inte
rpre
ted
stri
ctly
and
narr
owly
the
term
so
fthe
cont
ract
and
held
that
“the
very
Victoria
Wood
Developm
ent
foun
dati
ono
f the
agre
emen
t”ha
dno
tbee
nde
stro
yed.
...T
heag
reem
entw
asin
nose
nse
Fru
stra
tion
:[1
39]
Co
rp
oratio
nv.
Ondrey
mad
eco
nditi
onal
upon
the
abili
tyo
fthe
purc
hase
rto
carr
you
tits
inte
ntio
n.In
terv
enin
g(1
977)
14O
.R.
(2d)
723,
1R
.P.R
.•
The
cour
tal
soem
phas
ized
the
natu
reof
the
busi
ness
—th
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rust
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on:
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:[1
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[151
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.C.A
.)•
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ngth
atth
eex
pens
ein
curr
edw
ould
equa
llyha
vebe
enw
aste
d(i
nor
der t
ore
duce
the
amou
ntof
the
relia
nce
dam
ages
).
•C
.A.u
phel
dth
etr
ial
deci
sion
whi
chhe
ldth
atth
ela
wof
cont
ract
com
pens
ates
apl
aint
iff
[157
]B
owla
yL
oggi
ngL
td.
v.D
omta
rL
td.
for
dam
ages
resu
lting
from
the
defe
ndan
t’s
brea
ch,b
utno
tfor
dam
ages
resu
lting
from
the
Dam
ages
:Rel
ianc
e
[198
2]6
W.W
.R.
528
(B.C
.C.A
.)pl
aint
iffm
akin
ga
bad
barg
ain.
Inte
rest
and
•T
heon
usis
onde
fend
ant t
opr
ove
that
none
ofth
epl
aint
iffs
cost
sw
ould
have
been
Nom
inal
Dam
ages
reco
vere
dan
dth
atth
epl
aint
iffi
sth
usen
title
dto
nom
inal
dam
ages
only
.T
heC
ourt
ofA
ppea
lhel
dth
atth
ede
fend
ant c
ould
notr
ecov
erfo
rlo
ssofc
apit
alan
dlo
ssSu
nshi
neV
acat
ion
Vill
asL
td.
v.of
gros
spr
ofit
beca
use
they
wer
eal
tern
ativ
esan
dit
was
wro
ngto
mak
eaw
ards
base
don
[158
]H
udso
nB
ayC
o.m
ixtu
reof
two
appr
oach
es.
Dam
ages
:R
elia
nce
(198
4)58
B.C
.L.R
.33
,13
D.L
.R.
•T
heco
urta
lso
held
that
the
plai
ntif
fcou
ldel
ect t
ocl
aim
itsex
pens
esbu
ttha
t,if
the
owne
rIn
tere
st(4th
)93
(B.C
.C.A
.)co
uld
show
that
the
plai
ntif
fwou
ldha
vein
curr
eda
loss
had
itco
mpl
eted
the
cont
ract
,onl
yno
min
alda
mag
essh
ould
beaw
arde
d.H
unt v
.Silk
•T
heco
mm
onla
wru
lew
ases
tabl
ishe
dth
atth
eri
ght t
ore
stitu
tion
coul
dbe
lost
ifth
e[1
59]
(180
4)5
Eas
t449
,10
2E
.R.
1142
plai
ntif
fenj
oyed
any
bene
fit u
nder
the
cont
ract
(the
plai
ntif
rsoc
cupa
tion
afte
rkno
wle
dge
Dam
ages
:R
esti
tuti
onIn
tere
st(K
.B.)
was
aw
aive
rof
the
righ
tto
term
inat
e).
[160
]C
hapl
inv.
Hin
ks•
“The
fact
that
dam
ages
cann
otbe
asse
ssed
with
cert
aint
ydo
esno
trel
ieve
the
wro
ng-d
oer
Dam
ages
:
24
Law 110.
02C
ase
Rul
eT
opic
Con
trac
tsB
iuko
vic
[191
112
K.B
.78
6(C
.A.)
ofth
ene
cess
ityof
payi
ngda
mag
esfo
r his
brea
chof
cont
ract
.”Q
uant
ific
atio
n•
The
plai
ntif
f was
awar
ded
dam
ages
for
the
loss
ofth
ech
ance
ofse
lect
ion.
•In
aco
nstr
uctio
nco
ntra
ct, t
hela
wat
tem
pts
togi
veth
ein
jure
dpa
rty
wha
the
was
prom
ised
Dam
ages
:an
dth
eco
stof
rem
edyi
ngth
ede
fect
isth
eam
ount
awar
ded
asco
mpe
nsat
ion
for
failu
reto
Qua
ntif
icat
ion-
cost
Gro
ves
v.Jo
hnW
unde
rC
o.[1
61]
(193
9)28
6N
.W.
235
(Min
lI.C
.A.)
rend
erth
epr
omis
edpe
rfor
man
ce—
”the
owne
ris
enti
tled
toco
mpe
nsat
ion
for w
hath
eha
sofp
erfo
rman
ceor
lost
,tha
tis
,the
wor
kw
hich
heha
sbe
enpr
omis
ed”
(cos
tofp
erfo
rman
cete
st).
lim
inut
ion
ofv
alue
Not
follo
wed
inP
eevyhouse
v.
Garland
CoalM
ining
Co.
, 382
P.2d
109
(Okl
a.S.
C.,
1962
)•
Whe
rea
build
eris
inbr
each
ofhi
sob
ligat
ion
unde
ra
build
ing
cont
ract
, the
owne
ris
entit
led
toda
mag
esm
easu
red
byth
eco
stof
mak
ing
good
the
defe
cts
and
omis
sion
sN
u-W
est
Hom
es
v.T
hunderbird
(gen
eral
rule
)un
less
that
cost
isun
reas
onab
lyhi
ghin
rela
tion
toth
ev
alu
eto
be
gained
[162
]P
etroleum
sby
itsex
pen
ditu
re.
Dam
ages
:(1
975)
59D
.L.R
.(3
d)29
2(A
lta.
•T
hela
wis
satis
fied
ifth
epa
rty
plac
edin
adi
ffic
ult s
ituat
ion
byre
ason
ofth
ebr
each
ofa
Qua
ntif
icat
ion
C.A
.)du
tyow
edto
them
has
acte
dre
ason
ably
inth
ead
optio
nof
rem
edia
lmea
sure
s,an
dth
eyw
illno
t be
held
dise
ntitl
edto
reco
ver t
heco
stof
such
mea
sure
sm
erel
ybe
caus
eth
epa
rty
inbr
each
can
sugg
est t
hat o
ther
mea
sure
sle
ssbu
rden
som
eto
them
mig
htha
vebe
enta
ken.
Markiand
Asso
ciates
vL
ohnes
•If
the
cont
ract
iste
rmin
ated
,ab
ando
ned
ordi
scon
tinue
daf
ter
subs
tant
ial c
ompl
etio
n,th
enD
amag
es:
[163
](1
973)
, 33
D.L
.R.
(3d)
493
the
serv
ice
prov
ider
isen
title
dto
paym
ent l
ess
dam
ages
for
non-
com
plet
ion.
Qua
ntif
icat
ion
(N.S
.T.D
.)•
Lor
dD
enni
nghe
ldth
atth
ere
are
case
sw
here
one
can
reco
ver
dam
ages
for
the
men
tal
dist
ress
, dis
appo
intm
ent a
nddi
scom
fort
caus
edas
are
sult
ofbr
each
ofa
cont
ract
for
aJarvis
v.Sw
ans
Tou
rs[1
64]
[197
3]1
Q.B
.233
(C.A
.)pa
ckag
eho
liday
.D
amag
es:
Qua
ntif
icat
ion
•T
heco
urt h
eld
that
the
righ
t mea
sure
ofda
mag
esis
toco
mpe
nsat
eth
epl
aint
ifff
orth
elo
ssof
ente
rtai
nmen
tan
den
joym
ent w
hich
the
plai
ntif
f was
prom
ised
and
whi
chhe
did
notg
et.
•D
amag
esfo
rbr
each
ofa
cont
ract
todo
wor
kon
the
land
ofan
othe
rm
aybe
asse
ssed
eith
erD
amag
es:
Tito
v.W
adde
llon
the
basi
sof
the
cost
ofco
mpl
etin
gth
ew
ork
oron
the
decr
ease
inth
eva
lue
ofth
ela
ndQ
uant
ific
atio
n[1
65]
[197
7]2
W.L
.R.
496
(Ch.
D.)
byre
ason
ofth
ew
ork
noth
avin
gbe
endo
ne.
•Sp
ecif
icpe
rfor
man
cem
aybe
refu
sed
ifth
eco
stof
perf
orm
ance
isw
holly
out
ofpr
opor
tion
Spec
ific
toth
ebe
nefi
t whi
chpe
rfor
man
cew
illco
nfer
.pe
rfor
man
ce•
Afa
ilure
toac
hiev
eth
epr
ecis
eco
ntra
ctua
lob
ject
ive
does
notn
eces
sari
lyre
sult
inth
elo
ssw
hich
isoc
casi
oned
bya
tota
l fai
lure
.•
Dam
ages
are
desi
gned
toco
mpe
nsat
efo
ran
esta
blis
hed
loss
and
nott
opr
ovid
ea
grat
uito
usD
amag
es:
[166
]R
uxle
yE
lect
roni
csv.
For
syth
bene
fit t
oth
eag
grie
ved
part
y.Q
uant
ific
atio
n[1
996]
1A
.C.
344
(H.L
.)•
Hou
seof
Lor
dson
lyaw
arde
dda
mag
esfo
rthe
loss
of“a
plea
sura
ble
amen
ity”
for
the
brea
chof
faili
ngto
build
apo
olas
spec
ifie
dby
the
owne
rbu
t not
the
cost
sof
repa
irof
the
pool
(the
cost
sof
repa
irw
ould
bew
aste
ful
inte
rms
ofa
diff
eren
cein
the
valu
eof
the
pool
)•
Inex
cept
iona
lca
ses
whe
reth
eno
rmal
rem
edie
sof
dam
ages
,sp
ecif
icpe
rfor
man
cean
d
[167
]A
Gv
Bla
ke,
[200
1]1
A.C
.26
8in
junc
tion
are
inad
equa
teco
mpe
nsat
ion
for
abr
each
ofco
ntra
ct,t
heco
urt c
an,i
fjus
tice
Dam
ages
:de
man
dsit,
gran
t the
disc
retio
nary
rem
edy
ofre
quir
ing
the
defe
ndan
t to
acco
unt t
oth
eQ
uant
ific
atio
npl
aint
ifff
orth
ebe
nefi
ts_r
ecei
ved
from
the_
brea
ch_o
fcon
trac
t.[1
68]
Tab
corp
Hol
ding
sL
tdv
Bow
en•
The
Hig
hC
ourt
ofA
ustr
alia
deci
ded
that
whe
rea
delib
erat
ebr
each
ofco
ntra
ctre
sulte
din
Dam
ages
:
25
Law
11
0.0
2C
ase
Rul
eT
opic
Co
ntr
acts
Biu
ko
vic
Inve
stm
ents
Ply
Ltd
prop
erty
dam
age,
the
prop
erm
easu
reo
fda
mag
esis
the
cost
ofre
pair
rath
erth
anth
eQ
uant
ific
atio
n[2
009]
HC
A8
dim
inut
ion
inth
eva
lue
ofth
epr
oper
tybe
caus
eth
eco
sts
ofr
epai
rw
ould
put t
hein
jure
dpa
rty
inth
epo
siti
onit
wou
ldha
vebe
enha
dth
eco
ntra
ctbe
enpe
rfor
med
asag
reed
(but
dim
inut
ion
inva
lue
dam
ages
wou
ldno
t•
The
cost
so
f rep
air
asse
ssm
ent
ofda
mag
esen
sure
sth
atth
ete
nant
hono
rshi
sco
ntra
ctua
lob
liga
tion
toth
efu
ll•
Und
uein
flue
nce
focu
ses
onth
esu
ffic
ienc
yo
f con
sent
and
unco
nsci
onab
ilit
yon
the
reas
onab
lene
sso
fa
give
ntr
ansa
ctio
n•
The
exis
tenc
eo
f aco
ntra
ctdo
esno
t nec
essa
rily
prec
lude
the
exis
tenc
eoff
iduc
iary
obli
gati
ons
betw
een
part
ies
•T
hepr
oper
appr
oach
toda
mag
esfo
rbr
each
ofa
fidu
ciar
ydu
tyis
rest
itut
iona
ry.T
hein
noce
ntpa
rty
isen
titl
edto
bepu
tin
asgo
oda
posi
tion
ashe
wou
ldha
vebe
enin
had
the
[169]
Hodgkin
son
vS
imm
s,
Dam
ages
:br
each
not
occu
rred
.[1
994]
3S.
C.R
.37
7Q
uant
ific
atio
n•
Aco
urte
xerc
isin
geq
uita
ble
juri
sdic
tion
may
cons
ider
the
prin
cipl
esofr
emot
enes
s,ca
usat
ion,
and
inte
rven
ing
actw
here
nece
ssar
yto
reac
haj
ust
and
fair
resu
lt.W
here
apa
rty
can
show
that
butf
orth
ere
leva
ntbr
each
itw
ould
noth
ave
ente
red
into
agi
ven
cont
ract
, tha
tpar
tyis
free
dfr
omth
ebu
rden
orbe
nefi
to
f the
rest
of t
heba
rgai
n.T
hew
rong
edpa
rty
isen
titl
edto
bere
stor
edto
the
pre-
tran
sact
ion
stat
usqu
o.•
Dam
ages
mus
tbe
fore
seea
ble
asto
kind
,but
note
xten
tT
hesp
ecia
lci
rcum
stan
ces
of t
his
case
wer
ebr
ough
tho
me
toth
ede
fend
anta
t the
tim
eit
New
ell v
.C
anadia
nP
acW
cen
tere
din
toth
eco
ntra
ctw
ith
the
plai
ntif
fs.
Dam
ages
:m
enta
l[1
70]
Air
lines,
Ltd
.(1
976)
,14
O.R
.(2
d)•
Dam
age
toth
epl
aint
iffs
’he
alth
,an
guis
h,un
happ
ines
san
din
conv
enie
nce
wer
ea
75
2(O
nt.
Co.
Ct.)
reaso
nab
lyfo
reseeab
leco
nseq
uenc
eof
the
defe
ndan
tsbr
each
of c
ontr
act,
for
whi
chth
epl
aint
iffs
wer
een
titl
edto
reco
ver
dam
ages
.C
ondi
tion
s&
•T
hefa
ilure
ofa
soun
dsy
stem
ina
luxu
ryve
hicl
eis
only
one
aspe
ctof t
heop
erat
ion
of t
heW
hart
on
v.T
om
Harris
Chevro
let
war
rant
ies
vehi
cle
and
itis
not
afu
ndam
enta
lbr
each
but i
sa
brea
cho
f an
impl
ied
war
rant
y.[1
71]
(199
9),B
.C.D
.C
iv.
J.31
86•
The
plai
ntif
fwas
enti
tled
tosp
ecia
lda
mag
es($
2,25
7)an
dno
n-pe
cuni
ary
dam
ages
for
loss
Dam
ages
:m
enta
l(B
.C.S
.C.)
ofen
joym
ento
f the
luxury
vehic
lean
dfo
rin
conv
enie
nce
inth
eam
ount
of $
5,00
0.di
stre
ssG
ener
alru
leis
that
ifth
elo
ssfl
owin
gfr
ombr
each
isto
ore
mot
eth
enit
cann
otbe
reco
vere
d.R
ecov
erab
lelo
sses
are
thos
ear
isin
gna
tura
lly
from
the
bre
ach
whi
chsh
ould
have
been
[172
]H
adle
yv.
Bax
enda
lew
ith
inth
ereasonable
(ob
jecti
ve
lest)
cont
empl
atio
nof t
hepa
rtie
s(1
’sH
adle
yru
le).
Dam
ages
:(1
854)
9E
xch.
341,
156
E.R
.14
5•
Ifth
eco
ntra
ctw
asm
ade
unde
rspecia
lcir
cu
msta
nces
whi
chw
ere
com
mun
icat
edto
the
Rem
oten
ess
defe
ndan
t,an
dth
usknow
nto
both
parti
es,
the
dam
ages
will
beth
eam
ount
ofi
ijuiy
whi
chw
ould
ordi
nari
lyre
sult
from
such
abr
each
ofth
eco
ntra
ctun
der
the
give
nsp
ecia
lci
rcum
stan
ces(2hId
Had
ley
rule
).
26
Law 110.
02C
ontra
cts
Cas
eR
ule
Top
icB
iuko
vic
•O
nly
dam
ages
whi
char
ere
ason
ably
fore
seea
ble
asar
isin
gfr
omth
ebr
each
are
reco
vera
ble
(obj
ecti
vete
st).
Wha
tis
reas
onab
lede
pend
son
the
know
ledg
eo
f the
part
ies
Q,a
rtic
ular
lyth
ebr
each
ing
Vic
tori
aL
aund
ryv.
New
man
‘.
.D
amag
es:
[173
][1
949]
2K
.B.
528
•E
very
one
has
impu
ted
know
ledg
eo
for
dmar
yci
rcum
stan
ces,
butt
here
may
have
tobe
Rem
oten
ess
actu
alkn
owle
dge
ofsp
ecia
lci
rcum
stan
ces
for
reco
very
tobe
gran
ted
onth
ese
spec
ial
grou
nds.
•It
isno
tnec
essa
ryto
prov
eth
atth
ew
rong
doer
cont
empl
ated
the
loss
. It
isen
ough
ifth
eyco
uld
fore
see
the
Loss
was
likel
yto
resu
lt.
•T
heC
ourt
of A
ppea
lcr
itic
ized
Vic
tori
aL
aund
ryan
dhe
ldth
atth
ecr
ucia
lque
stio
nis
whe
ther
,on
the
info
rmat
ion
avai
labl
eto
the
defe
ndan
twhe
nth
eco
ntra
ctw
asm
ade,
they
shou
ld,o
rth
ere
ason
able
pers
onin
thei
rpo
siti
onw
ould
have
,rea
lize
dth
atsu
chlo
ssw
assu
ffic
ient
lylik
ely
tore
sult
from
the
brea
chof
cont
ract
tom
ake
itpr
oper
toho
ldth
atth
e11
741
Kou
fos
v.C
zarn
ikow
(The
Her
onII
)lo
ssfl
owed
natu
rally
from
the
brea
chor
that
loss
of t
hatk
ind
shou
ldha
vebe
enw
ithi
nth
eir
Dam
ages
:[1
969]
1A
.C.
350
cont
empl
atio
n.R
emot
enes
s•
Inco
ntra
cts,
ifon
epa
rty
wis
hes
topr
otec
tthe
mse
lves
agai
nst a
risk
whi
chto
the
othe
rpa
rty
wou
ldap
pear
unus
ual,
they
can
dire
ctth
eot
her
part
y’s
atte
ntio
nto
itbe
fore
the
cont
ract
ism
ade
and
the
cour
tnee
dno
tsto
pto
cons
ider
inw
hat
circ
umst
ance
sth
eot
her
part
yw
illth
enbe
held
toha
veac
cept
edre
spon
sibi
lity
inth
atev
ent.
.M
cInt
yre:
Agg
rava
ted
dam
ages
may
beaw
arde
din
aca
seof
wro
ngfu
ldi
smis
salp
artic
ular
lyw
here
the
acts
com
plai
ned
ofw
ere
also
ind
epen
den
tly
acti
on
able
.P
unit
ive
dam
ages
may
only
beaw
arde
din
resp
ectof
Vor
vis
V.JC
BC
cond
uct w
hich
iso
f suc
hna
ture
asto
bede
serv
ing
of p
unis
hmen
tbec
ause
of i
tsha
rsh,
Dam
ages
:[1
75]
[198
9]1
S.C
.R.
1085
,36
B.C
.L.R
vind
ictiv
e,re
preh
ensi
ble
and
mal
icio
usna
ture
(mus
t be
anac
tion
able
wro
ng).
Agg
rava
ted
and
(2d)
273
•W
ilson
J.re
lied
onth
ere
mot
enes
ste
stin
Had
ley:
“The
issu
ein
asse
ssin
gda
mag
essh
ould
Pun
itiv
eD
amag
esbe
whe
ther
the
plai
ntif
fsho
uld
beco
mpe
nsat
edfo
rda
mag
eth
ede
fend
ants
houl
dre
ason
ably
have
anti
cipa
ted”
.W
ilson
J.di
dno
tag
ree
that
ase
para
teac
tion
able
wro
ngis
need
edfo
rei
ther
ofag
grav
ated
dam
ages
orpu
niti
veda
mag
es.
.la
cobu
cci
J.(m
ajor
ity):
Dam
ages
for
men
tal
dist
ress
wer
eno
trec
over
able
for
wro
ngfu
ldi
smis
sal
unle
ssth
ere
was
ase
para
tely
acti
onab
leco
urse
ofco
nduc
t,bu
tdid
acco
untf
orD
es[1
76]
Wal
lace
V.
Uni
ted
Gra
inG
row
ers
men
tal
dist
ress
byle
ngth
enin
gth
eno
tice
peri
od-*
“Wal
lace
dam
ages
”.asn
atd
d[1
997]
3S.
C.R
.70
1•
McL
achl
inJ.
(dis
sent
ing)
:th
eac
tion
for
wro
ngfu
ldi
smis
sal
isan
acti
onfo
rbr
each
ofP
.c
Dam
ages
impl
ied
term
inth
eco
ntr
act
ofem
ploy
men
tto
give
reas
onab
leno
tice
ofte
rmin
atio
n.
Wou
ldha
veaw
arde
d$1
5000
aggr
avat
edda
mag
esas
wel
l.•
SCC
awar
ded
1m
illi
onin
puni
tive
dam
ages
for
abr
each
of t
heco
ntra
ctua
ldu
tyofg
ood
..
faith
(sep
arat
eac
tion
able
wro
ng)
inth
eca
seo
f abr
each
ofan
insu
ranc
eco
ntra
ct(b
reac
hof
Dam
ages
:W
hite
nv.
Pil
otIn
sura
nce
Co.
,[1
77]
2002
SCC
18a
duty
topa
yth
elo
ss).
Agg
rava
ted
and
.Pu
nitiv
eda
mag
esar
eaw
arde
din
exce
ptio
nal
case
sfo
rm
alic
ious
,op
pres
sive
and
high
-P
unit
ive
Dam
ages
hand
edm
isco
nduc
ttha
tof
fend
sth
eco
urt’
sse
nse
ofde
cenc
y.
27
Law
110.
02C
ase
Rul
eT
opic
Con
trac
tsB
iuko
vic
•W
here
apu
rpos
eof
aco
mm
erci
alco
ntra
ctis
topr
ovid
ea
peac
eo
fmin
d(e
ithe
rif
itis
anes
senc
eof
aco
ntra
ctor
just
apa
rto
f the
barg
ain)
itis
with
inre
ason
able
cont
empl
atio
nof
the
part
ies
that
itsbr
each
wou
ldca
use
men
tal
dist
ress
(the
righ
tto
com
pens
ator
yda
mag
esar
ises
out
oft
heco
ntra
ctua
lbr
each
not
from
aggr
avat
ing
circ
umst
ance
s)D
amag
es:
[178
]F
idle
rv.
Sun
Lif
eA
ssur
ance
,•
Tru
eag
grav
ated
dam
ages
aris
eou
tof
aggr
avat
ing
circ
umst
ance
san
dar
eno
taw
arde
dA
ggra
vate
dan
d20
06SC
C30
unde
rth
epr
inci
ples
ofH
adle
yv.
Bax
enda
leP
unit
ive
Dam
ages
•P
unit
ive
dam
ages
are
awar
ded
topu
nish
for
am
isco
nduc
t tha
tde
part
sfr
omor
dina
ryst
anda
rds
ofde
cenc
y(m
alic
ious
,op
pres
sive
cond
uct)
and
clai
mfo
rpu
niti
veda
mag
esm
ust
bein
depe
nden
tly
actio
nabl
e(a
sa
clai
min
tort
orin
depe
nden
tco
ntra
ctua
lob
liga
tion
toac
tin
good
faith
)•
SCC
reje
cted
the
“Wal
lace
”ty
peof
aggr
avat
edda
mag
es(e
xten
sion
ofth
epe
riod
ofH
onda
v.K
eays
,re
ason
able
notic
e)fo
rw
rong
ful
dism
issa
lca
ses
and
stat
edth
atth
epr
inci
ples
of
Dam
ages
:[1
79]
2008
SCC
39co
mpe
nsat
ion
stat
edin
Had
ley
v.B
axen
dale
shou
ldap
ply
Agg
rava
ted
and
•SC
Cco
nfir
med
the
Whi
ten
anal
ysis
ofth
est
anda
rdo
fpun
itive
dam
ages
(sep
arat
eP
unit
ive
Dam
ages
acti
onab
lew
rong
ofa
high
-han
ded
man
ner
of
empl
oyer
brea
chin
ga
duty
of g
ood
faith
)•
Gen
eral
rule
:W
hen
apa
rty
toa
cont
ract
repu
diat
es, t
hein
noce
ntpa
rty
has
anop
tion:
toW
hite
and
Car
ter
(Cou
ncils
)v.
Dam
ages
:[1
80]
Mac
Gre
gor,
[196
2]A
.C.4
13,
acce
ptth
atre
pudi
atio
nan
dsu
efo
rda
mag
esor
todi
sreg
ard
orre
fuse
toac
cept
itan
dth
enR
epud
iati
onan
dth
eco
ntra
ctre
mai
nsin
full
effe
ct.F
inel
liv.
Dee
(196
8),
67D
.L.R
.(2
d)39
3O
nt.
C.A
.M
itig
atio
n[1
961]
3A
llE
.R.
1178
(H.L
)di
stin
guis
hed
this
case
.•
The
gene
ral
com
mon
law
rule
toaf
fix
dam
ages
asat
the
date
ofth
ebr
each
does
not
seem
tobe
infl
exib
le.
Dam
ages
:T
ime
ofM
easu
rem
ent;
[181
1W
roth
v.T
yler
•T
heco
urt h
asju
risd
icti
onto
awar
dda
mag
esin
subs
titu
tion
for
spec
ific
perf
orm
ance
dam
ages
inli
euof
[197
6]C
h.30
will
putt
hepl
aint
iffs
into
asgo
oda
posi
tion
asif
the
cont
ract
had
been
perf
orm
ed,
even
ifsp
ecif
icto
doso
mea
nsaw
ardi
ngda
mag
esas
sess
edby
refe
renc
eto
ape
riod
subs
eque
ntto
the
date
perf
orm
ance
oft
hebr
each
(in
this
case
atth
eti
me
ofju
dgm
ent)
.•
The
gene
ral
(but
not
abso
lute
)ru
lees
tabl
ishe
sth
atth
eti
me
ofbr
each
isth
eti
me
rele
vant
for
asse
ssin
gda
mag
es.
•E
stey
J.:
Subj
ect
alw
ays
toth
epr
ecis
eci
rcum
stan
ces
ofea
chca
se,t
his
will
impo
seon
the
Dam
ages
:T
ime
ofin
jure
dpa
rty
the
oblig
atio
nto
mit
igat
eon
the
date
ofbr
each
(or
know
ledg
eth
ereo
fin
the
Mea
sure
men
t,du
tyA
sam
era
Oil
Cor
p.v.
Sea
Oil
&pl
aint
iff)
orm
ore
freq
uent
lyw
ithi
na
peri
odth
erea
fter
whi
chis
reas
onab
lein
allt
heto
mit
igat
e[1
82]
Gen
eral
Cor
p.ci
rcum
stan
ces.
By
clai
min
gsp
ecif
icpe
rfor
man
cean
d/or
dam
ages
ap
lain
tiff
does
not
[197
9]1
S.C
.R.
633
avoi
dits
duty
tom
itig
ate.
Spec
ific
•“W
here
...ci
rcum
stan
ces
reve
ala
subs
tant
ial
and
legi
timat
ein
tere
stin
seek
ing
perf
orm
ance
perf
orm
ance
asop
pose
dto
dam
ages
,the
na
plai
ntif
fwill
beab
leto
just
ii’
his
inac
tion
and
onfa
ilin
gin
his
plea
for
spec
ific
perf
orm
ance
mig
htth
enre
cove
rlo
sses
whi
chin
othe
rci
rcum
stan
ces
mig
htbe
clas
sifi
edas
avoi
dabl
e•
Sopi
nka,
J:Sp
ecif
icpe
rfor
man
cesh
ould
notb
egr
ante
das
am
atte
rof
cour
seab
sent
Dam
ages
:T
ime
ofev
iden
ceth
atth
epr
oper
tyis
uniq
ueto
the
exte
ntth
atits
subs
titu
tew
ould
notb
ere
adily
Mea
sure
men
t[1
83]
Sem
eiha
gov.
Par
amad
evan
avai
labl
e,bu
tsp
ecif
icpe
rfor
man
cew
asgi
ven
inth
isca
se.
[199
6]2
S.C
.R.
415
•S
opin
kaJ:
.W
here
the
vend
orre
nege
sin
anti
cipa
tion
ofp
erfo
rman
ce,
the
inno
cent
part
ySp
ecif
icha
stw
oop
tions
:to
acce
ptre
pudi
atio
nan
dco
mm
ence
anac
tion
for
dam
ages
,or
toin
sist
onpe
rfor
man
ce:
28
Law 110.
02C
ase
Rul
eT
opic
Con
frac
tsB
iuko
vic
perf
orm
ance
.Acl
aim
for
spec
ific
perf
orm
ance
has
the
effe
cto
fpos
tpon
ing
the
date
of
uniq
uene
ssbr
each
.F
orth
ese
reas
ons,
itis
not
inco
nsis
tent
wit
hth
eru
les
ofth
eco
mm
onla
wto
asse
ssda
mag
esas
of t
heda
teoft
rial
.
•T
hede
fend
ant,
havi
ngbr
each
edth
eco
ntra
ct,b
ears
the
onus
ofp
rovi
ngth
atth
epl
aint
iff
unre
ason
ably
faile
dto
mit
igat
eis
loss
.Thi
sen
tails
,on
aba
lanc
eo
fpro
babi
liti
es:
(1)
that
oppo
rtun
itie
sto
mit
igat
eth
elo
ssw
ere
avai
labl
eto
the
plai
ntif
fan
d(2
)th
atth
epl
aint
iff
Dam
ages
and
unre
ason
ably
faile
dto
purs
ueth
ese
oppo
rtun
ities
.E
quit
able
Rem
edie
s:S
outh
cott
Est
ates
Inc.
v.T
oron
to.
[184
]C
atho
lic
Dis
tric
tSch
oolB
oard
,“F
ailu
reto
mit
igat
em
ayno
tbe
unre
ason
able
for
ava
riet
yof
reas
ons
[suc
has
J...a
‘fai
r,S
peci
fic
real
,an
dsu
bsta
ntia
ljus
tific
atio
n’fo
rcl
aim
ing
spec
ific
perf
orm
ance
...[a
nd]
lack
of
Per
form
ance
,20
12SC
C51
fina
ncia
lre
sour
ces.
..”U
niqu
enes
san
d•
The
key
fact
ors
for
dete
rmin
ing
uniq
uene
ssan
dth
eav
aila
bili
tyofs
peci
fic
perf
orm
ance
are
Mit
igat
ion
ofL
oss
that
the
rem
edy
ofda
mag
esis
com
para
tive
lyin
adeq
uate
todo
just
ice
and
that
the
plai
ntif
fsh
ow‘s
ome
fair
,rea
lan
dsu
bsta
ntia
ljus
tifi
cati
onfo
rth
ecl
aim
tosp
ecif
icpe
rfor
man
ce.’
Dam
ages
:D
unlo
pP
neum
atic
Tyr
elid
. v.N
ew•
The
prov
isio
nw
illbe
liqu
idat
edda
mag
eif
itco
ntai
nsno
thin
gun
reas
onab
le,
Liq
uida
ted
[185
]G
arag
ean
dM
otor
Co.
unco
nsci
onab
leor
extr
avag
ant.
Dam
ages
and
[191
51A
.C.
79(H
.L.)
Pen
alti
es•
Whe
nth
eda
mag
esw
hich
may
aris
eou
tof
the
brea
cho
fa
cont
ract
are
inth
eir
natu
reun
cert
ain,
the
law
perm
its
the
part
ies
toag
ree
befo
reha
ndas
toth
eam
ount
tobe
paid
inca
seof
brea
ch.
Dam
ages
:S
hati
lla
v.F
eins
tein
•
[186
1[1
923]
1W
.W.R
.14
74,
16Sa
sk.
Whe
ther
the
sum
agre
edup
onis
ape
nalty
,m
ust
depe
ndup
onth
eci
rcum
stan
ces
ofe
ach
Liq
uida
ted
case
.D
amag
esan
dL
.R.
454
(Sas
k.C
.A.)
•A
nag
reem
entf
orpa
ymen
t ofa
fixe
dsu
mon
any
one
of a
num
ber
ofb
reac
hes,
som
etr
ivia
lP
enal
ties
and
som
ese
riou
s,is
pres
umed
tobe
void
asa
pena
ltysi
nce
“the
stre
ngth
of
ach
ain
isits
wea
kest
link”
.•
Itis
alw
ays
open
toth
epa
rtie
sto
mak
eth
epr
edet
erm
inat
ion,
buti
tmus
tyie
ldto
judi
cial
appr
aisa
lof
itsre
ason
able
ness
inth
eci
rcum
stan
ces.
HF
.C
lark
eLt
d.v.
The
rmid
aire
•T
hesu
mw
illbe
held
tobe
ape
nalty
ifit
isex
trav
agan
tan
dun
cons
cion
able
inam
ount
inD
amag
es:
[187
]C
orp.
com
pari
son
wit
hth
egr
eate
stlo
ssth
atco
uld
conc
eiva
bly
bepr
oved
toha
vefo
llow
edfr
omL
iqui
date
d
[197
6]1
S.C
.R.
319
the
brea
ch(S
nell’
spr
inci
ples
).D
amag
esan
dP
enal
ties
•T
hefo
rmul
aof
gros
str
adin
gpr
ofit
was
notd
efin
edan
dit
depa
rts
mar
kedl
yfr
oman
yre
ason
able
_app
roac
hto
_rec
over
able
_los
s_or
actu
allo
ss.
•H
eld
that
the
pow
erto
stri
kedo
wn
ape
nalty
clau
seis
abl
atan
tin
terf
eren
cew
ith
free
dom
of c
ontr
acta
ndis
desi
gned
for
the
sole
purp
ose
ofpr
ovid
ing
reli
efag
ains
t opp
ress
ion
for
Dam
ages
:1G
.C
ollin
sIn
sura
nce
Age
ncie
s[1
88]
Ltl
v.E
lsle
yth
epa
rty
havi
ngto
pay
the
stip
ulat
edsu
m.I
tha
sno
pla
cew
here
ther
eis
noop
pres
sion
Liq
uida
ted
•A
pena
lty
clau
sesh
ould
func
tion
asa
lim
itat
ion
onth
eda
mag
esre
cove
rabl
e—if
the
Dam
ages
and
[197
8]2
S.C
.R.
916
actu
allo
sstu
rns
out t
oex
ceed
the
pena
lty,t
hepa
rty
shou
ldbe
allo
wed
tore
cove
ron
lyth
eP
enal
ties
agre
ed_s
um.
29
Law 110.
02C
ase
Rul
eT
opic
Con
iract
sB
iuko
vic
Dam
ages
:•
Ade
posi
t is
asu
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