NCA Canadian Common Law Foundations 4 — Questions and Answers
Question 1: In Canadian employment law, the common law 'reasonable notice' period for wrongful dismissal is determined by which factors (the Bardal factors)?
- Only the employee's length of service
- The employee's age, length of service, character of employment, and availability of similar employment (Correct answer)
- The employer's profitability and ability to pay
- The provincial minimum notice period set by employment standards legislation
Correct answer: The employee's age, length of service, character of employment, and availability of similar employment
Bardal v. Globe & Mail [1960] (Ontario) established the factors for assessing reasonable notice at common law: age, length of service, character of employment, and availability of similar employment. These factors have been consistently applied by Canadian courts.
Question 2: The tort of defamation in Canadian law requires a plaintiff to establish which elements?
- That the defendant made a false statement intentionally and with malice
- That the statement was defamatory (tended to lower reputation), referred to the plaintiff, and was published to a third party (Correct answer)
- That the plaintiff suffered measurable financial loss as a direct result
- That the defendant was in a position of trust or authority over the plaintiff
Correct answer: That the statement was defamatory (tended to lower reputation), referred to the plaintiff, and was published to a third party
Defamation (libel or slander) requires: (1) the statement was defamatory in meaning; (2) the statement referred to the plaintiff; (3) it was communicated to at least one person other than the plaintiff. Falsity and damage are presumed once these elements are proved.
Question 3: Which of the following is a defence to defamation in Canadian common law?
- The statement was published in a reputable newspaper
- Justification (truth), fair comment on a matter of public interest, or qualified privilege (Correct answer)
- The plaintiff is a public figure who accepted the risk of criticism
- The statement caused no actual financial harm to the plaintiff
Correct answer: Justification (truth), fair comment on a matter of public interest, or qualified privilege
Recognized defences include: (1) justification (truth is a complete defence); (2) fair comment on matters of public interest (must be opinion, on a matter of public interest, and not actuated by malice); (3) qualified privilege (duty-interest situations); (4) absolute privilege (Parliament, courts). Grant v. Torstar Corp. [2009] added responsible communication on matters of public interest.
Question 4: Under the Statute of Frauds (or equivalent provincial legislation in most Canadian common law provinces), which type of contract must be evidenced in writing to be enforceable?
- All contracts over $500
- Contracts for the sale of land, contracts not to be performed within one year, guarantees, and contracts in consideration of marriage (Correct answer)
- All employment contracts
- All contracts between businesses
Correct answer: Contracts for the sale of land, contracts not to be performed within one year, guarantees, and contracts in consideration of marriage
The Statute of Frauds requires written evidence for: (1) contracts for the sale or other disposition of land; (2) contracts not performable within a year; (3) guarantees (contracts to answer for the debt of another); (4) contracts in consideration of marriage. 'Writing' requires a note or memorandum signed by the party to be charged.
Question 5: The principle of mitigation in Canadian contract law requires that:
- A party in breach must pay interest on damages from the date of breach
- The innocent party must take reasonable steps to reduce their losses following a breach (Correct answer)
- Damages must be offset by any benefit the breach confers on the innocent party
- The innocent party may claim aggravated damages for emotional distress in all cases
Correct answer: The innocent party must take reasonable steps to reduce their losses following a breach
A plaintiff must mitigate their loss by taking reasonable steps to reduce damages after a breach. Failure to mitigate reduces the recoverable damages by the amount the plaintiff could have avoided. However, the plaintiff is only required to take reasonable steps—not to make extraordinary efforts.
Question 6: In Canadian law, a contract that is void ab initio differs from a voidable contract in that:
- A void contract can be ratified; a voidable contract cannot
- A void contract has no legal effect from the outset; a voidable contract is valid but may be set aside at the option of one party (Correct answer)
- A voidable contract requires court intervention to set aside; a void contract is automatically treated as valid
- Only void contracts can give rise to a claim in unjust enrichment
Correct answer: A void contract has no legal effect from the outset; a voidable contract is valid but may be set aside at the option of one party
A void contract has no legal existence—neither party can enforce it and third party rights are generally unaffected. A voidable contract is valid and enforceable until the party with the right of avoidance (e.g., for misrepresentation, duress, or undue influence) elects to rescind it.
In Canadian employment law, the common law 'reasonable notice' period for wrongful dismissal is determined by which factors (the Bardal factors)?