The Supreme Court of Canada granted leave to appeal this week in one case that is likely to be of significant interest to Canadian businesses and professions.
The decision appealed from is Bhasin v. Hrynew, 2013 ABCA 98, in which the Alberta Court of Appeal held that the corporate defendant was not under a duty of good faith in exercising a right of non-renewal when the term of its evergreen contract with the plaintiff came to an end. The case will require the Supreme Court to consider when a duty of good faith should be implied in commercial contracts, and also whether the duty can be excluded by a generally worded entire agreement clause.
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