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Contract Law Ontario

Ontario Contract Law Information Hub

Ontario Contract Law Information Hub

Clear, practical Ontario resources for contracts, agreements, business disputes, unpaid invoices, contract review and legal rights.

Ontario-wide information Plain-English guides Practical resources

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BA, JDSite Managed by Ryan Manilla
15+ yrsAt Ontario Bar

Glossary

Contract law terms explained

Short, plain-English definitions for the terms that come up most often.

Breach of contract
A failure, without lawful excuse, to perform a promise or obligation set out in an agreement.
Material breach
A significant failure to perform that goes to the heart of the agreement.
Demand letter
A formal written request asking another party to fix a breach or pay an amount owed by a set deadline.
Limitation period
The window of time within which a legal claim must generally be started.
Damages
Financial compensation a court may award to address loss caused by a breach.
Mitigation
The reasonable steps a non-breaching party is expected to take to limit their own losses.
Specific performance
A court order requiring a party to actually carry out its contractual obligations.
Mediation
A process where a neutral third party helps both sides negotiate their own resolution.

Editorial Standards

Clear, carefully maintained Ontario legal information

Contract Law Ontario exists to make common contract-law topics easier to understand, so you can approach your situation with more clarity and confidence.

Plain-English explanations

Legal concepts are written to be understood without a legal background.

Links to primary sources

Where relevant, guides link to Ontario and Canadian legislation and courts.

Published and updated dates

Every guide notes when it was published and last materially reviewed.

Editorial and legal-review standards

Content is reviewed against a documented editorial and legal-review process.

Legal Reviewer

Ryan J. Manilla, BA, JD

Guides on Contract Law Ontario are reviewed for legal accuracy against a documented editorial process. Content is provided as general legal information only and does not constitute personalized legal advice.

FAQ

Frequently asked questions

What makes a contract legally binding in Ontario?+

Generally, an enforceable contract requires an offer, acceptance of that offer, consideration (something of value exchanged), an intention to create legal relations, and enough certainty of terms for a court to understand what was agreed.

Are verbal contracts enforceable in Ontario?+

Many verbal agreements can be enforceable in Ontario, but they are often harder to prove than written contracts. Certain types of agreements, such as some real estate transactions, are generally required to be in writing.

How long do I have to sue for breach of contract in Ontario?+

Ontario's Limitations Act, 2002 sets out a basic two-year limitation period for many claims, generally running from when the claim was discovered. Some claims have different rules or exceptions.

What can I do if someone does not pay an invoice?+

Common steps include sending a clear payment reminder, issuing a formal demand letter, considering mediation, and if needed, pursuing a claim in Small Claims Court or Superior Court depending on the amount owed.

Do I need a lawyer to review a contract?+

You are not always required to have a lawyer review a contract, but a legal professional can help identify risks, ambiguous terms, or missing protections that may not be obvious to someone without legal training.

What's the difference between mediation, arbitration and court?+

Mediation uses a neutral third party to help both sides negotiate a resolution without imposing a decision. Arbitration involves a private decision-maker who issues a ruling. Court is the public litigation process overseen by a judge.

Understand your agreement. Know your next step.

Ontario-wide, plain-English contract law information — built to help you make sense of your situation before you decide what to do next.