PRINCIPLES OF CONTRACTUAL INTERPRETATION

Question 1

Implied terms

Answer 1

Employment contract does not contain term specifying termination notice requirements – fired without notice – can courts imply notice period? – consideration of intent when fixing an implied term such as this? – Machtinger v Hoj Industries p.521

Question 2

Ambiguity

Answer 2

Fire damage caused by son – parents not given insurance compensation because the son was also under the insurance plan and was at fault per conditions of plan; criminal/negligent acts = no coverage – is son included in definition of “insured” per exemption clause? – Scott v Wawanesa p.524

Question 3

Context and factual matrix

Answer 3

Exclusion clause common to all-risk property insurance – “builders’ risk” “contractors’ risk” “all risks” “multi-risk” “course of construction” insurance – contractor hired to clean windows of building under construction, scratched windows, needed replacing – replacement cost under the builders’ risk insurance denied: “cost of making good faulty workmanship” exclusion – Ledcor v Northbridge Indemnity p.530

Question 4

Doctrine of fundamental breach

Answer 4

Tenders – province accepts ineligible bidder – exclusion clause reads “no proponent shall have any claim for compensation of any kind whatsoever” limits claim for compensation sought by defendant – valid exclusion clause? – Tercon v BC p.537