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Jul 28, 2017

Supreme Court of Canada Decision: Intention of Parties


The Supreme Court of Canada released the following decision: 

Uniprix inc. v. Gestion Gosselin et Bérubé inc., 2017 SCC 43, File no. 36718

(Contracts — Interpretation — Intention of parties — Contract of affiliation — Term and renewal procedure — Contract clause stipulating that contract renewable at discretion of only one party — Validity of contract whose effects could be perpetual — Whether trial judge erred in finding that renewal clause was clear and that it faithfully represented parties’ common intention of granting one of parties unilateral option to renew contract every five years, which other party would be unable to oppose — Whether possibility of contract of affiliation having perpetual effect is unlawful in Quebec civil law on basis that it is contrary to Civil Code of Québec or to public order — Civil Code of Québec, arts. 1425, 1512.)
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