Legal Remedies Available in Alberta

• Damages:Monetary compensation covering losses from the breach, including compensatory and consequential damages.
• Specific Performance:Court orders compelling the breaching party to fulfill their contractual obligations.
• Injunctions: Court orders preventing or requiring certain actions related to the contract.
• Rescission: Cancellation of the contract, releasing parties from obligations and restoring original positions.
• Quantum Meruit: Payment for work done based on reasonable value, even if contract terms were incomplete or partially performed.

Role of Good Faith

Canadian law, including Alberta, imposes a duty of good faith in contractual dealings, requiring honesty and fairness. The Supreme Court of Canada in Bhasin v. Hrynew established good faith as a fundamental organizing principle in contracts.

Limitation Periods

Claims for breach of contract in Alberta must generally be initiated within two years from when the claimant knew or ought to have known of the breach, under the Limitations Act and the discoverability principle confirmed by the Alberta Court of Appeal.

Practical Steps When Facing a Breach

• Review the contract terms carefully, especially clauses on breaches and dispute resolution.
• Document all evidence of the breach, including communications and performance records.
• Mitigate damages by taking reasonable steps to reduce losses, as failure to do so can limit recoverable damages.
• Seek legal advice promptly to evaluate options and protect your interests.

Additional Insights

• Alberta courts recognize the possibility of dividing liability among multiple parties who breach separate contracts causing the same damages, reflecting equitable principles more common in tort law.
• Employers in Alberta should be cautious with fixed-term contracts, as early termination without enforceable clauses can lead to significant damages awards, as seen in recent court decisions.
• The tort of inducing breach of contract may apply when a third party knowingly causes a breach by entering into a contract inconsistent with an existing one.

Conclusion

For businesses and individuals in Alberta, understanding breach of contract law-including types of breaches, remedies, good faith obligations, and limitation periods-is essential for managing risks and resolving disputes effectively. Prompt legal consultation is advised to navigate these complex issues and safeguard contractual rights.