Which statement best encapsulates the Supreme Court of Canada's position regarding the duty of honesty in contract law?
A) Parties must disclose any matters that would adversely impact the other party's decision to enter into the contract.
B) Parties in a contract have a duty to disclose any advantages flowing to them from the contract.
C) Parties in a contract have a duty to be loyal to one another.
D) Parties must not lie or otherwise knowingly mislead each other about matters directly linked to the performance of the contract.

Question

Quizplus · Accepted Answer

The Supreme Court of Canada has established that while parties to a contract do not have a duty to disclose advantages or be loyal to one another, they must not lie or knowingly mislead each other about matters directly linked to the performance of the contract. This principle was notably articulated in the landmark decision of Bhasin v. Hrynew, where the Court recognized a general duty of honesty in contractual performance.

Which Statement Best Encapsulates the Supreme Court of Canada's Position