Wednesday, August 6, 2014

Implied term of contract

First Elgin Mills Developments Inc. v. Romandale Farms Limited, 2014 ONCA 573:

[49]   Fifth, the application judge effectively implied a term where the normal conditions for doing so are not met. A court may imply a term in a contract where doing so is necessary to give effect to the intention of the parties and to give business efficacy to the agreement: see M.J.B. Enterprises Ltd. v. Defence Construction (1951) Ltd., [1999] 1 S.C.R. 619, at paras. 27-29. Further, it must be obvious that the parties intended the contract to include such a term before a court will imply it.

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