Supreme Court confirms that Quebec law permits courts to rectify transaction documents

Par Jillian Friedman The Supreme Court confirmed in December that Quebec courts are justified in intervening to find, by means of a declaratory judgement, that amendments made by parties to documents associated with transactions are legitimate and necessary. Adjudicating on two separate cases, the Supreme Court considered in Quebec (Agence du Revenu) v. Services Environnementaux AES inc. (2013 SCC 65) (“Services Environnementaux AES”) whether amendments made to transaction documents in order to correct errors that created unintended tax consequences could be validated by the court in the form of a declaratory judgment. Lebel J, in his reasons, confirmed that the law of contracts as applied in Quebec provides for the possibility for the court to confirm corrections of discrepancies between the common intentions of the parties and intentions declared in the documents, where the application for correction is legitimate and the correction does not affect the rights of third parties…. Lire la suite