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.
Read more about this topic: Fundamental Breach
Famous quotes containing the word canada:
“I see Canada as a country torn between a very northern, rather extraordinary, mystical spirit which it fears and its desire to present itself to the world as a Scotch banker.”
—Robertson Davies (b. 1913)