Monday, September 9, 2013

Contract interpretation

Northwest Plaza Ltd. v. Zellers Inc. and Target Canada Co., 2013 NBCA 54:

According to classical contract theory, the interpretive issue involves a search for the intention of the parties as viewed by a disinterested bystander having regard to the circumstances in which the parties found themselves at the time they entered into the lease: see generally Robichaud, Williamson, Theriault and Johnstone v. Pharmacie Acadienne de Beresford Ltée,2008 NBCA 12 (CanLII), 2008 NBCA 12, 328 N.B.R. (2d) 205, at para. 18. Or as Brooke J.A. stated in Leading Investments Ltd. v. New Forest Investments Ltd. et al.; H.W. Liebig & Co. Ltd. v. Leading Investments Ltd., [1981] O.J. No. 3112 (C.A.) (QL) at paragraph 24, aff'd 1986 CanLII 45 (SCC), [1986] 1 S.C.R. 70, [1986] S.C.J. No. 6 (QL): "… the court should look for and be guided by the reasonable expectation of the parties so long as it is compatible with their written contract." 

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