Business, Quebec, Quebec Court of Appeal, Rulings
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Terms of contract usurp good faith, holds Quebec Appeal Court

Former employees of an asset management firm who claimed that they were unfairly bought out just before the company was sold lost a legal battle after the Quebec Court of Appeal held that the duty to act in good faith does not mean that a party to a contract must impoverish itself to enrich the other.

In a ruling that will likely reverse a growing trend by the courts to broadly interpret the notion of good faith, the Quebec appeal court reaffirms that the terms of a contract determines the rights of parties and that it almost always trumps the duty to act in good faith, a finding that will reassure corporate lawyers and the business world alike, according to securities lawyers.

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This story was originally published in The Lawyer’s Daily.

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  1. Pingback: The contract is king - Law in Quebec

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