Enforceability of Smart Contracts on Blockchain in Ontario Law

As blockchain technology continues to reshape how transactions are conducted, legal systems around the world are being forced to reckon with the implications of a decentralized digital future. In Ontario, where innovation in fintech and digital assets is steadily growing, smart contracts are attracting increasing attention. But with this technological evolution comes a fundamental question: […]

A Primer on Contract Repudiation and Rescission

Navigating the complexities of contract law often hinges on understanding the nuances between repudiation and rescission—two terms frequently confused yet critically distinct. A recent Ontario court decision offers a real-world illustration of these concepts, highlighting their practical implications in a failed real estate transaction. Case Concerned a Failed Real Estate Transaction Through its representative, the […]

When Are Changes To A Contract Legally Enforceable?

Three things are generally required for a contract to be legally enforceable: an offer, acceptance of the offer, and an exchange of something of value (or “consideration”) between the parties to the contract. Consideration need not be an exchange of money, and courts will generally not inquire whether the consideration is adequate. Nominal consideration may […]

Enforceability of Non-Competition Clauses Within Business Sales

It is common for an agreement for the purchase and sale of a business to contain terms restricting the future ability of the vendor to compete with the company that is sold. The intent of such a restrictive covenant is generally to protect the goodwill associated with the business. This spring, Ontario’s Court of Appeal […]

Can A Franchisee Rescind A Franchise Agreement For Deficient Disclosure?

In Ontario, franchise agreements are subject to the requirements of the Arthur Wishart Act (Franchise Disclosure), 2000 (the “Act”).  The Act imposes a “duty of fair dealing” on the parties to such an agreement and grants franchisees the right to form an organization of franchisees.  One of the most significant aspects of the Act is […]

The Legal Effect of Requiring Payment of a Criminal Rate of Interest in a Contract

Section 347 of the Criminal Code makes it a criminal offence for someone to enter into an agreement or arrangement to receive interest at a “criminal rate” or to receive a payment or partial payment of interest at that rate. In turn, a “criminal rate” is “an effective annual rate of interest calculated in accordance […]

The Parol Evidence Rule and Contractual Interpretation

Litigation involving contracts often hinges on the interpretation to be given to one or more terms of the contract.  Parties will typically advocate for a particular interpretation.  Sometimes, a question arises about whether and to what extent a party can introduce evidence substantiating that interpretation.  Among other things, that question may involve the application of […]

What Does “Best Efforts” Mean?

Businesses that agree to carry out their contractual obligations using “best efforts” may wonder what standard that phrase imposes on them.  The words have a lengthy judicial history, and the issue recently arose again in the Superior Court of Justice decision of 2271047 Ontario Ltd. v. Window City Industries Inc. In 2010, Window City Industries […]

A Review of the “Indoor Management Rule”

It is common for businesses to have long-term relationships with particular individuals. Still, when someone new comes into the picture, a business may have questions about the level of authority that person has.  This issue can sometimes arise in the context of contracts between parties.  When can a business assume that the individual they are […]

Breach of Contract by a Company: A Potential Path to Personal Liability for Directors

When a business enters into a contract with another company, it must carry the risk that it will not be able to recoup its losses from the company in the event of its breach.  This risk may be magnified when the company is small and closely held.  Much of this risk originates in a legal […]

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