November 16 – Attacking Domestic Contract

“Where there are circumstances of oppression, pressure, or other vulnerabilities and evidence of one party’s exploitation of such vulnerabilities during the negotiation process, with the result that the domestic contract deviates substantially from the legislation, the contract need not be enforced: see Miglin, at paras. 81-83; and Rick v. Brandsema, 2009 SCC 10, [2009] 1 S.C.R. 295, at para. 44.

In determining whether a domestic contract should be set aside pursuant to s. 56(4) of the FLA, the court is to follow a two-step process: see Virc v. Blair et al., 2014 ONCA 392(CanLII)119 O.R. (3d) 721, at para. 52: Step 1. Has the party seeking to set aside the agreement demonstrated that one or more of the s. 56(4) circumstances is engaged?; and Step 2. If so, is it appropriate for the court to exercise its discretion to set aside the agreement?”

Tadayon v. Mohtashami, 2015 ONCA 777 at 29 & 33.