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ARTICLE · 15 DECEMBER 2009

What Makes Standard Terms And Conditions Enforceable?

The enforcement of Standard Terms and Conditions is important, especially when involving "limitation" and "exclusion" clauses that mitigate the risks of doing business.

CanadaCorporate/Commercial Law
Christopher Knight
Christopher Knight
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The enforcement of Standard Terms and Conditions is important, especially when involving "limitation" and "exclusion" clauses that mitigate the risks of doing business. A volume-based equipment vendor, for example, will rarely be in a position to sell at competitive rates unless its liability is contractually limited. It is often Standard Terms and Conditions that accomplish this goal, but even given their importance, Standard Terms and Conditions can often be overlooked by contracting parties as mere "boilerplate" or "legalese". Likewise, when multiple parties to a contract come to the table with competing Standard Terms and Conditions, it can often be unclear as to whose terms and conditions are actually included in the final contracts. With these difficulties in mind it is useful to consider how the courts view the enforcement of Standard Terms and Conditions.

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