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Contracts - Interpretation - Legal Consistency

. Unique Broadband Systems Inc. (Re)

In Unique Broadband Systems Inc. (Re) (Ont CA, 2026) the Ontario Court of Appeal considers the contractual interpretation principle that ambiguity should be interpretated consistent with legality:
[87] Courts will avoid a contractual interpretation which results in rendering the agreement unlawful. As Blair J.A. discussed in Ventas, Inc. v. Sunrise Senior Living Real Estate Investment Trust (2007), 85 O.R. (3d) 254, [2007] O.J. No. 1083, 2007 ONCA 205, at para. 57, [page98 ]quoting John D. McCamus, The Law of Contracts (Toronto: Irwin Law, 2005), at p. 729,3 "where an agreement admits of two possible constructions, one of which renders the agreement lawful and the other of which renders it unlawful, courts will give preference to the former interpretation"; see, also, Cantor Art Services Ltd. v. Kenneth Bieber Photography Ltd., [1969] 1 W.L.R. 1226, [1969] 3 All E.R. 843 (C.A.).

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Last modified: 21-08-26
By: admin