The other side broke our contract in Ontario — what can I actually claim?
Ontario contract damages aim to put you in the position you would have been in had the contract been performed, subject to remoteness, mitigation and any limitation or exclusion clause in the agreement.
The starting point for breach of contract in Ontario is expectation damages: the innocent party is put, so far as money can, in the position it would have occupied had the contract been performed. That covers lost profit and wasted expenditure, but only where the loss was within the reasonable contemplation of the parties when they contracted.
Three things routinely reduce a claim. The duty to mitigate requires reasonable steps to limit the loss. Limitation of liability and exclusion clauses in the contract are generally enforced between commercial parties. And consequential losses are often expressly excluded.
Specific performance, injunctions and, in the right case, a certificate of pending litigation against land are available where damages are inadequate. Move quickly: the basic limitation period is two years from discovery, and evidence of the loss is easiest to assemble early.
Source: Limitations Act, 2002, S.O. 2002, c. 24, Sch. B
This work is handled by Arjun Vishwanth (Civil litigation). Read more about civil litigation at VK Law Group, or send us the facts and we will tell you where you stand.
This content is general information about Ontario and Canadian law only. It is not legal advice, it is not reviewed, vetted or verified for your situation, and it should be treated like any other general information available on the internet. It cannot be relied upon or presented to a court, tribunal or opposing party as legal advice. Reading it creates no solicitor-client relationship — that arises only under a signed written retainer with fees paid. Only a properly retained lawyer can advise you. If you are facing a legal issue, or a deadline may be running, we strongly recommend you retain a lawyer rather than proceed on your own.