Can a defendant set off unliquidated damages which arise out of an independent contract?
Saskatchewan, Canada
The following excerpt is from United Chemicals Ltd. v. Prince Albert Pulp Co. Ltd., 1981 CanLII 2025 (SK QB):
MacKay, J.A., with whom Martin, J.A., concurred, said: None of the unliquidated damages arising herein flow out of or are inseparably connected with the contracts or claims sued on, namely, the notes, but flow out of collateral matter, namely, the securities given as collateral security for the said notes. Brown, C.J.K.B., in Martin v. Haack, 1925 CanLII 237 (SK QB), [1925] 2 W.W.R. 193, made the following statement: The recent decision of our Court of Appeal in Imperial Bank v. Annable Co, (supra) referred to by counsel, simply decides that a defendant cannot set up by way of set off unliquidated damages which arise out of an independent contract.
"The most advanced legal research software ever built."
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.
Other Questions
Does damage arising from a breach of contract constitute a cause of action? (Saskatchewan, Canada)
What is the test for a jury to award damages where damages are in part due in part to a defendant’s negligence? (Saskatchewan, Canada)
How have courts interpreted the terms of a contract where the contract is not enforceable and the contract does not specify terms? (Saskatchewan, Canada)
Can a contract be made even if the contract is more precise than the contract itself? (Saskatchewan, Canada)
What is the test for the purpose of an agreed liquidated damages clause in a contract? (Saskatchewan, Canada)
Can a contractor who contracts for the construction of a 200-foot tunnel run the length of the tunnel, but runs five tunnels instead, can he recover on the contract or on the quantum meruit? (Saskatchewan, Canada)
What is the test for interpreting a contract where a clause in the contract requires a party to pay 100,000 of its covenants to pay £100,000? (Saskatchewan, Canada)
If a contract to sell peas has a description clause that says that the peas are not ordered or sold by description, can the contract still be enforceable? (Saskatchewan, Canada)
What is the test for damages in a personal injury action brought by a defendant who failed to appear in court? (Saskatchewan, Canada)
Does the doctrine of frustration apply when it is alleged that a change in circumstances after the formation of a contract renders it physically or commercially impossible to fulfil the contract? (Saskatchewan, Canada)
