Understanding Breach of Contract Laws in British Columbia

Published by:
Aisha Patel

Reviewed by:
Alistair Vigier
Last Modified: 2024-01-21
Are you looking into what can be done regarding a breach of contract in BC? In order for a breach to have occurred, it’s necessary that there was a contract, to begin with.
This contract can be oral, written, or confirmed by email. There is also something called an implied contract. An implied contract means that it makes sense that the parties were in agreement.
When you buy a coffee maker, you don’t sign a contract with the store confirming that the coffee will be hot when it comes out of the machine. It’s implied.
If you purchase a car from a dealership, there is an implied contract that the vehicle wasn’t stolen. It wouldn’t be possible to sign a 200-page agreement confirming everything imaginable.

Legal Consequences of Contract Breaches
An implied contract, and an oral agreement, are just as valid as a written agreement. This is true unless the written agreement had ILA attached to it.
The problem will not written agreements is that they are hard to prove. If you hire a breach of contract lawyer to go to court for you, they can present to the court what the contract says.
The written agreement will say what it says, and then both sides try their best to prove they followed it.
If you need an attorney in BC for a breach of contract lawsuit, contact us. We have many attorneys signed up with us that can assist with a breach of contract lawsuit.
Oral agreements
With an oral agreement, it will be necessary for the judge to look at the factual matrix. See our detailed article about what that means. It’s actually very important.
But it will be even more complicated than that. The judge will also need to hear testimony from witnesses. The witnesses will need to be cross-examined.
The cross-examination will be important to determine if the witnesses are honest or not. It might not surprise you that people lie under oath. This often happens to protect their friends, family, or themself.
This is why you will need a skilled litigation lawyer to help you prove to the court that the other side is lying. The judge isn’t just going to believe you that the other side isn’t being truthful.
Win your breach of a contract dispute in BC
Depending on your budget, the law firm you hire will be able to set the other side up to fail. It depends on how much you are willing to spend to win your breach of a contract dispute.
Your law firm can prepare Notice to Admits, Interrogatories, file Applications, and also conduct Examination for Discoveries.
By the way, when we mentioned a breach of a contract dispute, you could be on either side of the issue. It could be you trying to prove the contract. Or it could be you want to say there was no contract.
You could be the one suing someone (the plaintiff) or the one being sued (the defendant.)
Complex Disputes In The Courts
Sometimes you could also be involved in a lawsuit as a third party, or as someone who filed a counterclaim. You could also be a defendant by counterclaim.
This goes to show how complex disputes are in the court system. People often watch movies and think “I can do that.”
Just because you can fix your own roof, is that the best use of your time? Are you going to do a good job? Is it going to start leaking after six months?
If your time and stress are worth the money, then just hire an expert to do things for you. A lawyer should handle your breach of a contract dispute. A dentist should handle your dental health.
What Can You Sue For In British Columbia?
Let’s assume that you have signed a contract with a construction company. You are willing to pay them $200,000 to build an extension of your house. They agree to do so.
You pay the company, and they start work. Sadly, because of a mistake by one of their employees, the new extension falls apart. No damage is done to the rest of your home.
How much can you sue them for? You might have heard of people suing for millions of dollars to punish companies. This is called punitive damages. This is common in the United States.
It’s not common in places like BC. Let’s assume that the construction project happened in Vancouver, Canada.
Breach Of Contract Example
The person who hired the company will sue to be put in a position that she would have been in, had the contract been successfully fulfilled.
Let’s say that the person now needs to hire another construction company to clean up the mess. Once the mess is cleaned up, the other company will complete the project.
It will cost $50,000 to clear up the mess, and $250,000 for them to build the extension on the house. This means that the cost will be $300,000.
The person can sue the previous construction company that messed up for the difference. The difference here is $100K.
If you need help with a breach of contract in BC, contact a law firm. We can recommend one.

Lawsuits That Made The News In British Columbia
A high-stakes dispute roiled British Columbia’s business landscape, the case of Teck Resources Ltd vs. Canpotex Ltd. The fight centred on an alleged breach of contract, casting the spotlight on the legal intricacies of such issues.
Teck Resources, a major player in the mining sector, entered a contract with Canpotex, a potash export company. As per the agreement, Canpotex promised to supply specific quantities of potash, a crucial ingredient for fertilizer production.
Canpotex fell short, delivering only 75% of the agreed amount. Teck Resources saw this as a blatant breach, demanding compensation for the losses incurred.
Key Points to Know About BC’s Breach of Contract Laws
A judicial review ensued, with the British Columbia Supreme Court scrutinizing the deal’s details. The court’s task was to evaluate whether Canpotex’s failure constituted a significant breach, warranting damages.
The ruling held in favour of Teck Resources, with Justice David Harris stating that Canpotex had “substantially failed to perform its contractual obligations”. The judgment stirred the business community, highlighting the criticality of adherence to contracts.
This ruling had wide-reaching implications for businesses across BC. An estimated 85% of all commercial transactions hinge on contracts. A breach, especially one involving prominent corporations, delivers a jolt to business confidence.
Over the year following the verdict, commercial litigations in BC spiked by 15%, reflecting the impact of this landmark ruling.
Resolving Breach of Contract Issues in British Columbia
A renowned BC real estate developer, Magnum Projects Ltd, found itself embroiled in a breach of contract controversy. The developer allegedly violated a contract with subcontractor Reliable Steel Ltd.
The bone of contention was a delay in payment amounting to $2 million, contrary to the agreed-upon payment schedule. Reliable Steel pressed charges, claiming financial distress due to the non-payment.
The legal saga culminated in a ruling that favoured Reliable Steel. The court found Magnum Projects guilty of breaching the contract, affirming that Reliable Steel had performed its obligations in good faith.
Adhering to contractual obligations
The verdict directed Magnum Projects to pay the overdue amount, in addition to interest and court costs.
The repercussions of the case were seen across BC’s real estate sector. The ruling served as a wake-up call, emphasizing the importance of adhering to contractual obligations. Following this case, BC saw a 20% increase in contractual adherence rates within the real estate industry.
These high-profile breaches underscore the risks that contractual non-compliance poses. Contracts serve as the bedrock of business transactions.
Their breach not only disrupts individual operations but can also ripple across entire industries. The Teck Resources and Magnum Projects cases illustrate the magnitude of these ramifications, underlining the necessity for contractual diligence in the world of business.
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