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Tag Archives: Ontario Court of Appeal

More on Covenants to Insure

Posted in Municipal, Policy

In a recent blog entry, Covenants to Insure, we summarized the protection afforded when a party (the “beneficiary”) obtains a contractual promise from its counter-party (the “covenanter”) to obtain insurance against specified risks.

In short, the obligation to obtain insurance, known as a “covenant to insure”, operates to prevent the covenanter from successfully suing the beneficiary for losses within scope of the risks that were to be insured against, even if such losses are the result of the beneficiary’s own negligence or breach of contract.… Continue Reading

Towards a General Duty of Good Faith Performance of Contractual Obligations – Maybe

The duty of good faith in contract law: the cautious and inconsistent approach of Canadian courts

Posted in Commercial, Litigation

Courts in common law Canadian jurisdictions have been reluctant to recognize any general duty to perform contractual obligations in good faith. Such a duty is a central tenet of American law under the Uniform Commercial Code and is a central tenet of Québec civil law, which recognizes a duty of good faith throughout the contracting process. But common law courts in Canada, like their counterparts in England, have been loath to recognize any general duty. They have also been very inconsistent, finding a host of ad hoc circumstances in which a duty of good faith performance exists, but without ever … Continue Reading