Difference between revisions of "Clinician Guide for Consumer Transactions (11:X)"
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In the past, Canadian courts would not enforce those contracts created for an illegal purpose. | In the past, Canadian courts would not enforce those contracts created for an illegal purpose. | ||
A leading case in this area is ''International Paper Industries Ltd v Top Line Industries Inc'', [1996] 7 WWR 179, 135 DLR (4th) 423 (BCCA), in which a lease for a portion of land was declared invalid, preventing the tenant from exercising the option to renew, because the land was subdivided contrary to the ''Land Title Act'', RSBC 1996, c 250. | A leading case in this area is ''[https://www.canlii.org/en/bc/bcca/doc/1996/1996canlii3340/1996canlii3340.html?autocompleteStr=International%20Paper%20Industries%20Ltd%20&autocompletePos=1 International Paper Industries Ltd v Top Line Industries Inc]'', [1996] 7 WWR 179, 135 DLR (4th) 423 (BCCA), in which a lease for a portion of land was declared invalid, preventing the tenant from exercising the option to renew, because the land was subdivided contrary to the ''Land Title Act'', RSBC 1996, c 250. | ||
Today, courts may enforce contracts made for an illegal purpose if inequity would otherwise result, or if the purpose of the governing statute is not undermined. See Still v Canada (Minister of National Revenue), [1997] FCJ No 1622, [1998] 1 FC 549 (CA). The Court will consider the purpose and object of a statutory prohibition when deciding whether the contract is enforceable or not. | Today, courts may enforce contracts made for an illegal purpose if inequity would otherwise result, or if the purpose of the governing statute is not undermined. See ''[https://www.canlii.org/en/ca/fca/doc/1997/1997canlii6379/1997canlii6379.html?autocompleteStr=Still%20v%20Canada%20&autocompletePos=1 Still v Canada (Minister of National Revenue)]'', [1997] FCJ No 1622, [1998] 1 FC 549 (CA). The Court will consider the purpose and object of a statutory prohibition when deciding whether the contract is enforceable or not. ''[https://www.canlii.org/en/ca/scc/doc/1998/1998canlii794/1998canlii794.html?autocompleteStr=Continental%20Bank%20Leasing%20Corp%20&autocompletePos=1 Continental Bank Leasing Corp v Canada]'', [1998] 2 SCR 298 at para 67, in particular, offers a good summary of the law of illegality. | ||
=== 8. Duty of Honest Performance === | === 8. Duty of Honest Performance === | ||