The ideas of good faith and reasonableness have informed the Canadian common law's approach to contract law for many years. Despite the importance of these two principles, however, Canadian courts have struggled to determine their scope and application.
The approach of Canadian courts generally has been to impose minimal requirements on parties to a contract not to act arbitrarily and capriciously. Using the language of good faith and reasonableness, the courts have attempted to strike a balance between freedom of contract and the law's imposition of minimal behavioral requirements on all contracting parties.
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Originally published by Business Law Today
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