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ARTICLE · 17 MARCH 2020

"You're Making A Bad Deal": Tilden Rent-A-Car Rides Again!

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Failing to do so may result in such terms being unenforceable.

CanadaLitigation, Mediation & Arbitration
Jeremy Opolsky
Jeremy Opolsky
Lara Guest
Lara Guest
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When do parties have an obligation to point out onerous contractual terms during contractual negotiations? In the recent case of MacQuarie Equipment Finance Ltd. v. 2326695 Ontario Ltd. (Durham Drug Store), the Ontario Court of Appeal addressed how "extremely onerous or unfair" contract terms may be unenforceable if inadequate notice of those terms was provided to the other contracting party at the time of contract formation.1

What you need to know

  • Potentially expanded the scope of obligations for negotiating parties. In certain circumstances, contracting parties have an obligation to bring "extremely onerous or unfair" contract terms to the attention of the other party. Failing to do so may result in such terms being unenforceable.
    • While this obligation was previously confined to consumer contracts of adhesion (such as a rental car contract), it is possible that MacQuarie may have extended this obligation to circumstances involving negotiated deals between

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