Fundamental Breach - Canada

Canada

The doctrine of fundamental breach has been “laid to rest” by the Supreme Court of Canada in Tercon Contractors Ltd. v. British Columbia (Transportation and Highways).. In its place, the Court has created a three-step test to evaluate the application of exclusion clauses. The first step is to evaluate the exclusion clause in the factual context of each case to determine if it applies to the material circumstances. The second step is to evaluate if the exclusion clause was unconscionable at the time of incorporation. The final step is to evaluate whether the exclusion clause should not be enforced on public policy grounds.

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Famous quotes containing the word canada:

    “This universal exhibition in Canada of the tools and sinews of war reminded me of the keeper of a menagerie showing his animals’ claws. It was the English leopard showing his claws.”
    —Henry David Thoreau (1817–1862)

    “In Canada an ordinary New England house would be mistaken for the château, and while every village here contains at least several gentlemen or “squires,” there is but one to a seigniory.”
    —Henry David Thoreau (1817–1862)

    “What makes the United States government, on the whole, more tolerable—I mean for us lucky white men—is the fact that there is so much less of government with us.... But in Canada you are reminded of the government every day. It parades itself before you. It is not content to be the servant, but will be the master; and every day it goes out to the Plains of Abraham or to the Champs de Mars and exhibits itself and toots.”
    —Henry David Thoreau (1817–1862)