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Legal Blog:
Jan
01
1997
Trust
In our November, 1996 newsletter, we noted that the weight of authority supported the view that there was a breach of trust if overhead costs were paid before payments were made to unpaid suppliers and subcontractors. This is no longer a question of weight; it is now a fact. In Heritage Masonry Ltd. v. De Bartolo, a 1996 decision, the Ontario Divisional Court upheld the trial judge’s decision that payment of overhead costs before payment of suppliers was a breach of trust.
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01
1997
Tender
In the beginning, construction contracts were created in the same manner as all other types of contracts. Before there was a contract, there had to be an offer and an acceptance of that offer. Then, along came R. v. Ron Engineering & Construction (Eastern) Ltd., a 1991 Supreme Court of Canada decision, and the construction industry was turned on its head.
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