Canada: Litigation, Mediation & Arbitration

Could dishonesty during contractual negotiations or after a contract's termination constitute a breach of the duty of honest performance? Adam speaks with McCarthy Tétrault partner Brandon Kain...

Limitation of liability clauses are a common feature of commercial agreements in Canada. Parties frequently include such provisions in an effort to allocate risk, often by excluding monetary liability for losses of certain types (e.g., consequential or indirect damages), while capping monetary liability for remaining losses to certain amounts (e.g., the price which the contract-breaker was paid under the contract).

The limitation period for claiming this type of damage is usually three (3) years from the fault or the knowledge of the harm, as provided for in section 2925 of the Civil Code of Quebec1.