Will Your Limitation of Liability Clause Stand Up To Court Scrutiny?
In 6362222 Canada Inc. v Prelco Inc., 2021 SCC 39 (38904) (“Createch v Prelco“), the Supreme Court of Canada considered the issue of whether a limitation of liability clause in a contract between the two parties was invalid on the basis of the doctrine of breach of a fundamental obligation. The Court ultimately held that the parties’ free will had to be respected and thus the clause was valid.