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] B.C.J. 1089, 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 ''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 Minister of National Revenue'', [1998] 1 FC 549 (CA). The Court will consider the purpose and object of a statutory prohibition when  deciding whether or not the contract is enforceable. ''Continental Bank Leasing Corp v Canada'', [1998] 2 SCR 298, at para 67 in particular offers a good summary of the law of illegality.
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 or not the contract is enforceable. ''Continental Bank Leasing Corp v Canada'', [1998] 2 SCR 298 at para 67 in particular offers a good summary of the law of illegality.


== E. Determine the Limitation Period for Making a Claim ==
== E. Determine the Limitation Period for Making a Claim ==