Do letters of intent fall outside the principle of good faith?

By Marco P. Falco ( November 20, 2025, 2:40 PM EST) -- The principle of good faith in Canada includes an obligation to perform contractual obligations honestly and to exercise any discretion under the agreement in a reasonable manner, consistent with the purposes for which the discretion was granted. (See Bhasin v. Hrynew, 2014 SCC 71; C.M. Callow v. Zollinger, 2020 SCC 45; Wastech Services Ltd. v. Greater Vancouver Sewerage and Drainage District, 2021 SCC 7.)...