Performance Anxiety: The Decision of the Supreme Court of Canada in Bhasin v. Hrynew


Constanza Pauchulo co-authored an article for the Advocates' Society Spring symposium held on April 29, 2015.

"In Bhasin v. Hrynew  the Supreme Court of Canada recognized, as a manifestation of a broader, overarching organizing principle of good faith in contract law, a new duty of honest performance of contractual obligations at common law.  The Court characterized this as a "modest step" in the law of contract, rather than a revolutionary change.[1]

At issue was the manner in which the defendant had exercised a non-renewal clause in the contract governing its relationship with the plaintiff.  The trial judge determined that it was an implied term of the contract that the non-renewal clause be exercised in good faith and that it had been breached. The Court of Appeal reversed this decision, finding that such a term could not be implied..."

[1] Bhasin v. Hrynew, 2014 SCC 71 at para. 82.