A. Bolieiro, “Bhasin v. Hrynew and the principle of good faith in contracts: Moving towards a modern view of commercial relationships”


The Supreme Court’s decision in Bhasin has raised eyebrows among commercial lawyers. A corporation, complying fully with the express provisions of its contract, was nevertheless found liable because of its dishonest conduct in performing that contract. In reaching this conclusion, the Supreme Court recognized an “organizing principle” of good faith, as well as a duty to act honestly, in the performance of contractual obligations.

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