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The Lay of the Land DEVELOPMENTS IN CANADIAN REAL PROPERTY LAW

Tag Archives: letter of intent

Bhasin Two Years On: The Impact of Bhasin v. Hrynew on the Practice of Canadian Commercial Real Estate Law

Posted in Commercial

Edited and approved by Ben Leith

In 2014, the Supreme Court of Canada in Bhasin v. Hrynew (“Bhasin”) established good faith contractual performance as a general organizing principle of the common law of contract and created a specific duty of honesty in contractual performance – ultimately, imposing a stand-alone duty of good faith. Despite Justice Cromwell’s repeated assertions that the judgement in Bhasin was an incremental step in the common law, Canadian legal scholars and prominent Canadian law firms dubbed it a “landmark” decision that would transform the manner in which business parties performed their contractual obligations.… Continue Reading

Legal warranties: when selling real estate in Québec, silence will be used against you in a court of law

Posted in Commercial

One not familiar with the special set of rules outlined in the Civil Code of Québec (the “Civil Code”) will likely be in for a big surprise when selling real estate assets in La Belle Province: if the contractual documentation does not expressly exclude the legal warranties provided for in the Civil Code, the vendor will end up granting to the purchaser a “warranty of ownership” and a “warranty of quality” with respect to the immovable assets being transferred.… Continue Reading

The Binding Non-Binding Letter of Intent

Posted in Commercial, Policy

Proposed parties to a transaction often enter into a letter of intent to reflect the basic terms of the deal. These letters are usually expressed to be non-binding (with the exception of the confidentiality and exclusive dealing provision). The parties then begin negotiating definitive binding agreements. An unintended consequence of the activities taken during the negotiating period can turn the non-binding letter of intent into a binding agreement. … Continue Reading