In 2014, the Supreme Court of Canada in Bhasin v.
Hrynew, 2014 SCC 71, recognized a new common law contractual
duty: specifically, the duty of honest performance. The duty
requires that parties not lie or otherwise knowingly mislead each
other about matters directly linked to the performance of their
contract.
Six years later, the Supreme Court has now issued a new
decision, in C.M. Callow Inc. v. Zollinger, 2020 SCC 45, which
expands the scope of that duty. Notably, the Supreme Court
established that the duty of honest performance not only prohibits
overt lies, but also can prohibit "half-truths, omissions, and
even silence, depending on the circumstances".1
Background
The case involved a dispute between the respondent, a group of
condominium corporations ("Baycrest"), and the appellant,
C.M. Callow Inc. ("Callow"), regarding a two-year winter
maintenance contract (the "Contract") and separate summer
maintenance contract, both executed in 2012.The Contract
