Government measures in key jurisdictions 5th edition - Flipbook - Page 28
Canada
•
Contractual
Issues
What measures
have been taken
to reinforce
contracts?
The Office of the Superintendent of Bankruptcy Canada, which regulates Licensed
Insolvency Trustees (LITs) and is the regulator under the BIA and CCAA, has
recommended that LITs work with debtors and third parties to ensure that they
are handling insolvencies in a flexible manner that is
the least prejudicial to individuals in financial distress. Under
the BIA, the courts have broad authority to allow bankruptcy cases to
move forward in irregular circumstances if the courts believe it is appropriate.
Each Canadian province has its own legislation outlining the requirements for
doing business electronically and using eSignatures. In Ontario, British Columbia and
Alberta, barring a few important exceptions, eSignatures may be utilized for closing
transactions to create binding obligations.
Documents requiring a traditional “wet ink” signature include:
•
wills, codicils and trusts created by wills or codicils,
•
powers of attorney regarding an individual’s financial affairs or personal care,
•
negotiable instruments (such as certificated securities and negotiable promissory
notes),
•
beneficiary designations (such as for life insurance),
•
certain real estate matters, and
•
documents that are from time to time prescribed or that belong to a prescribed class.
With regard to real estate matters, parties may use eSignatures to sign documents that
create or transfer an interest in land. However, it is important to note that certain
restrictions may apply depending on the applicable province.
For a more detailed explanation, see the Cassels Comment located here.
Other contractual matters, including material adverse effect and material adverse change
provisions and Force Majeure clauses, have been impacted by the effects of Covid-19.
For more information, see additional Cassels Comments located here and here.
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Government measures in key jurisdictions
