10/16/2026
Settlement agreements are meant to bring finality to disputes, but poorly drafted terms granting unilateral choices can spark entirely new litigation.
When a contract grants a party discretionary power, that discretion is not absolute. Under Canadian law, the duty of good faith acts as a vital limitation, requiring parties to exercise discretionary powers reasonably and in accordance with the purposes for which they were conferred, rather than arbitrarily or capriciously.
Read more in our latest blog: https://ow.ly/kUxz50ZY0VW
Learn how good faith limits contractual discretion in BC commercial settlements, releases, and contract disputes under Canadian law.