Tuesday, December 21, 2010

Interpretation of contracts

Forest Hill Real Estate Inc. v. Harvey Kalles Real Estate Limited,  2010 ONCA 884, released online today, holds:

[10]          The law is clear that when interpreting the provisions of a contract, the court first looks at the language used to express the intention of the parties.  If the language is not ambiguous, then the interpretive process ends there.  No extrinsic evidence is admissible to interpret clear terms in a contract.  That is not to suggest that meaning is attached to each word in isolation from the rest of the contract.  Context can be used to assist in revealing the meaning of the words.  This context may come from other parts of the agreement.  It may also come from the relationship created by the agreement:  see Glimmer Resources Inc. V. Exall Resources Ltd. (1999), 119 O.A.C. 78, at para. 17.
James Morton
1100-5255 Yonge Street
Toronto, Ontario
M2N 6P4

416 225 2777

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