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Word of the Week | Rectification

Rectification



McDonald Bankruptcy (Re) | 2017 CarswellBC 3030 | B.C. S.C.


Rectification is not concerned with mistakes in the underlying agreement. If parties use an ambiguous term in the prior oral agreement or otherwise make a mistake, the doctrine of rectification is not available to interpret or correct a term in a manner that a party wishes the term to be corrected or interpreted. Rectification is not intended to be a substitute for due diligence: [Canada (Attorney General) v. Fairmont Hotels Inc. 2016 SCC 56 (S.C.C.)], at para. 13. Neither is rectification a method to rectify a party's error of judgment, or rectify an instrument to better reflect what would have been a more beneficial arrangement at the time.
. . . . .
... the equitable remedy of rectification is a discretionary one.
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