Good faith in the performance of contractual obligations after Bhasin v. Hrynew

The Supreme Court of Canada has made a significant ruling regarding the obligations of contracting parties (Bhasin v. Hrynew 2014 SCC 71). Cromwell J. for a unanimous Supreme Court of Canada has concluded that there is a duty of honesty in the performance of contractual obligations, and that the “unsettled and unclear” role of good faith in the Canadian common law of contract required clarification and concluded that it is a “general organizing principle” that applies to all contracts. In the attached Briefing Note, Alexander D.C. Kask and Jordan A. Bank consider how this determination was reached, what this new doctrine may involve, and what the significance of it may be for contracting parties going forward.