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ARTICLE · 11 MARCH 2026

The Delicate Balance Between Rights And Abuse Of Rights

The parties to a construction project contract have to make decisions that require them to interpret their contractual obligations and engage in conduct that could be considered by the Court in the event of a dispute.

CanadaReal Estate and Construction

The parties to a construction project contract have to make decisions that require them to interpret their contractual obligations and engage in conduct that could be considered by the Court in the event of a dispute. From contract formation to termination, the parties have a duty to act in good faith, even if it is not explicitly specified in the contract.1 According to established case law, the Court can go beyond contractual stipulations when determining the good faith of the parties based on their conduct. This article will focus on how the duty of good faith imposes certain limits on the exercise of contractual rights. To this end, it will first address the concept of good faith, and then provide an overview of recent case law.

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