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Case Study: Macera V. Abcon Media Canada Inc.

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Bhasin v Hrynew, 2014 SCC 71 1
Macera v Abcon Media Canada Inc., [2017] OJ No 3740 1

Duty of Good Faith
Acting in good faith in Canadian contract law means to act honestly without malice, however at times, it can come off as unclear in defined terms. In contract law, it refers to each party in the contract who will perform their end of the deal reasonably, with integrity and not unpredictably or randomly. There are two important steps in good faith performances. The first step is acknowledging that good faith comes from an underlying number of various rules that stem from traditional common law, and that demonstrates the importance and duties of good faith in a contract. The second step is recognizing …show more content…
He was told by Mr. Macera that he had a long list of clienteles on his list and wanted an increase of rent per month. However, after 18-24 months, the clientele list never existed to having interest in the billboard. After much failure in gaining clients for the billboards, Mr. Macera was told that there was an agreement for release in exchange for $7,000.00 plus HST. However, what he received was $3,500.00 with no HST from Abcon 2001 Inc. The e-mails for the release had happened between Abcon Media, which was simply a tradename for Abcon 2001 Inc., which Mr. Macera did not know about. AMCI had been a company started for the negotiations with Mr. Macera, and he was told by the defendants that they had 25 years of experience of selling advertising space, when the truth was, the Macera billboard was the first business interaction for …show more content…
The first issue was whether Mr. Bhasin properly pled breach of the duty of good faith. The second issue was whether Can-Am owed Mr. Bhasin a duty of good faith, and if Can-Am breached that duty. The third issue was whether the respondents were liable for the torts of inducing breach of contract or civil conspiracy. Finally, the last issue was if there was a breach, what was the appropriate measure of damages?
Legal Issues Relating to Good Faith in Macera
The case posed four issues in terms of good faith. The first issue was what the meaning of Bhasin was and its application to the facts of Macera. The second issue was whether Abro and McMulkin provided personal guarantees re the lease. The third issue was whether the corporate veil should be pierced, which in turn would make Abro and McMulkin liable. Lastly, the fourth issue was whether the parties agreed to terms to settle the lease.
Holding in

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