Canadian Contract Law
The key areas in which the Canadian contract law has evolved from traditional concepts to addressing equitable solutions or complex modern day transactions and structure include contract performance and contractual interpretation. First, the evolution of contractual performance followed the unanimous Bhasin v Hrynew, 2014 SCC 71, which saw the identification of good faith as one of the organizing principles that would guide the law of contract (Zhang & McGill University (Montréal, Canada), 2004). The evolution also saw the creation of a new duty of honest contractual performance into the contact law of Canada. The inception of the good faith as an organizing principle meant that traditional concepts would no longer be applicable in Canadian contract law, and thus, the cooperation of parties with the aim of achieving set objectives was a prerequisite for contracts. Besides, contracts would involve the exercise of contractual discretion and with these, equitable solutions or complex modern day transactions and structures would be addressed (Swan & Adamski, 2012). On the other hand, the duty of honest performance meant to see an evolution of the area of contract performance, represented a significant change to Canadian contract law. Unlike before, the duty of honest performance applied to all contracts, and even though the exclusion of parties from their contracts was not allowed, they had the capability of modifying the duty of honest performance depending on contexts. The evolution of the Canadian contract law with the introduction of the duty of honest performance is underlined by the fact that parties were no longer allowed to mislead or lie to each other in matters related to contractual performance.
Furthermore, the duty of honest performance stipulated that it was a prerequisite for parties to forego contractual advantages. Another key area of the Canadian contract law that has evolved is contractual interpretation, which involved the determination of the true intent of parties entering into a contract. The evolution saw the inception of a primary interpretive principle, which gave courts the power to give effect to clear language, reading the contract as a whole, and this would only take place in case the language of the policy of a contract is unambiguous. The evolution of contractual interpretation gave courts the power to rely on general rules of contract construction in case of ambiguity. It should be understood that with the evolution of the key areas of contractual performance and contractual interpretation, the Canadian contract law moved to from traditional concepts to addressing equitable solutions or complex modern day transactions and structures.
It should be understood that compromising certainty in the interest of justice has a negative impact on both contract formation and commercial transactions. The negative impacts have been kept at bay with the evolution of Canadian contract law. The evolution discussed above has had some impacts on the Canadian law of contract and commercial. First, the evolution has played an integral role in bridging the gap that initially existed between the early philosophy of contract and the contemporary society’s reality (Choi et al, 2013). Second, the evolution has seen vital developments in modern Canadian contract law, and this can be seen particularly in the field of collective bargaining (Choi et al, 2013). Moreover, the evolution has led to the involvement of courts in contractual situations with the aim of enhancing contractual performance and interpretation. Today, courts not only in Canada but also other regions of the world play a fundamental role in the formation of contracts between parties, and this is good news to the law of contract and commercial. Most importantly, a positive impact of the evolution is equality between parties entering into contracts. It should be noted that the evolution of the contract law of Canada has seen the involvement of courts as mentioned above, which have been at the forefront of emphasizing on the protection of freedom and quality of contracts. This has led to the advancement of the law of contract and commercialization.
The impact of the evolution of contract law in the key areas of contractual performance and contractual interpretation has been felt in most organizations in Canada; the Canadian Tire Corporation included. Regarding contractual performance, Canadian Tire Corporation like other organizations; has been forced to embrace the duty of honest performance (Collins, 2003), and this has seen enhanced contracts between the organization and its employees. Neither the organization nor its employees give false or misleading facts regarding contractual performance, and this has enhanced employment relationships. As mandated by the evolutions, courts have been involved in contracts between organizations and employee or other stakeholders (Collins, 2003). This has impacted positively on the Canadian Tire Corporation because employees are committed to the contractual agreements, and this has helped achieve its set goals and objectives. Simply put, the evolutions in the key areas of contractual performance and interpretation are of great significance to Canadian Tire Corporation. This is owed to the fact that the relationship between the organization and its employees has been improved, and this has resulted in the improvement of organizational performance.
Choi, S. J., Gulati, M., & Posner, E. A. (2013). Dynamics of Contract Evolution, The. NYUL Rev., 88, 1.
Collins, H. (2003). The law of contract. Cambridge University Press.
Swan, A., & Adamski, J. (2012). Canadian contract law. Markham, Ont: LexisNexis.
Zhang, R., & McGill university (Montréal, Canada). (2004). Good faith in canadian contract law. Ann Arbor (Mich: UMI Dissertation Services.