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Contract Law Ontario

Tools & Checklists

Practical Tools for Ontario Contract Problems

Structured, plain-English checklists to help you work through a contract issue methodically — from first review to final resolution.

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Contract review checklist

A structured pass through the clauses that most often cause problems later, before you sign anything.

  • Confirm the parties, effective date and term of the agreement
  • Read the scope of work or goods described in detail
  • Check payment amounts, currency, schedule and late-payment terms
  • Identify termination rights for both sides, and required notice
  • Look for liability caps, indemnities and insurance requirements
  • Check for non-compete, exclusivity or non-solicitation clauses
  • Review dispute resolution terms — mediation, arbitration, or court
  • Confirm which province's laws govern the agreement

Breach of contract next-steps wizard

A step-by-step way to think through what may have happened and what a reasonable next step could look like.

  • Confirm a valid agreement existed between the parties
  • Identify the specific term or promise that wasn't met
  • Gather the contract, messages, invoices and payment records
  • Estimate the financial loss the breach actually caused
  • Check the applicable limitation period for your claim
  • Consider whether a conversation or demand letter could resolve it
  • Weigh mediation or arbitration if the contract requires it
  • Consider a Small Claims or Superior Court claim if needed

Limitation-period guide

A plain-English walkthrough of Ontario's general time limits for starting a contract claim.

  • Most claims fall under a general two-year limitation period
  • The clock generally starts when the claim was discovered
  • An overall 15-year ultimate limitation period can apply
  • Some claim types carry different or shortened limitation periods
  • Demand letters and negotiations don't automatically pause the clock
  • When in doubt, confirm the applicable deadline as early as possible

Demand-letter checklist

The core elements a demand letter typically needs to be taken seriously.

  • Identify both parties and reference the relevant agreement
  • Summarize the facts and the specific breach clearly
  • State exactly what is being demanded — payment or action
  • Set a clear, reasonable deadline for a response
  • Note the consequences if the deadline isn't met
  • Keep the tone factual and professional throughout
  • Send by a method that creates a delivery record
  • Keep a copy along with proof of delivery

Unpaid invoice recovery guide

A sequence of practical options, from a polite reminder through to a court claim.

  • Send a friendly, documented payment reminder first
  • Confirm the invoice terms, due date and any interest clause
  • Escalate to a formal written demand letter if needed
  • Consider a structured payment plan if the debtor is cooperative
  • Explore mediation for an ongoing business relationship
  • File a Small Claims Court claim for amounts within its limit
  • Consider a collection agency for smaller, resource-limited claims
  • Plan for enforcement steps if a judgment isn't voluntarily paid

Contract damages guide

How to think about loss, mitigation, and what compensation may reflect.

  • Document the financial loss the breach actually caused
  • Separate direct losses from more speculative, indirect ones
  • Keep records showing steps taken to mitigate the loss
  • Check the contract for any liquidated damages clause
  • Consider whether a liability cap limits potential recovery
  • Understand that damages aim to compensate, not to penalize

Agreement comparison checklist

A side-by-side way to compare two drafts, or two competing offers, before deciding.

  • Compare scope of work or goods line by line
  • Compare payment amounts, timing and currency
  • Compare termination rights and required notice periods
  • Compare liability, indemnity and insurance provisions
  • Compare renewal terms and any automatic extension clauses
  • Note any clause present in one draft but missing in the other

Evidence checklist for a contract dispute

What to gather and preserve as soon as a disagreement becomes likely.

  • The signed contract and any amendments or side letters
  • Emails, texts and messages discussing the agreement
  • Invoices, receipts and proof of payment or non-payment
  • Photos or records of delivered goods or completed work
  • Notes of relevant phone calls or in-person conversations
  • Any prior demand letters or written notices sent or received

Settlement agreement checklist

Points worth confirming before you sign off on a negotiated resolution.

  • Confirm the exact payment amount, schedule and method
  • Read the release language — what claims are being given up
  • Check for a confidentiality or non-disparagement clause
  • Confirm what happens if a scheduled payment is missed
  • Check whether the agreement is contingent on any condition
  • Keep a fully signed copy for your records

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.