Can a company offering extended warranties defer the amounts collected as a reserve under the Taxation Act1? This is what the Court of Quebec is trying to clarify in a recent decision2. The Quebec tax rules provide, as do the federal rules, that when a taxpayer receives an amount in…
The penalty clause makes it possible to establish, in advance, the damages to be paid by the party that does not respect its obligation1. It is particularly well known for accompanying a non-competition clause that may be found in an employment contract. When parties negotiate the terms of a transaction,…
The interpretation of a contract for the sale of shares that does not respect the obligations of good faith can by synonymous with abuse of rights. The Court of Appeal, in a decision issued in November 20211, puts an end to the legal saga regarding Les placements Péladeau inc. (hereafter…
The Court of Québec recently recalled the principles to be applied in matters of extinctive prescription when the Agence du Revenu du Québec (hereinafter “ARQ”) alleges that a taxpayer has deliberately made false representations. In 2012, the ARQ carried out a random audit of the tax returns of the corporation…
As discussed in our last publication, in relation to workplace mandatory vaccination, there is, to date, no clear guidance to help employers manage the issue of mandatory vaccination, nor legal precedent that can be applied to the letter. On the other hand, an arbitral award rendered on November 15, Service…
Through access to information, is it possible to have access to images captured by surveillance cameras in a public place? In the age of technology, it is increasingly common to question the disclosure and sharing of our information. Recently, in the decision of Whaley v. Université du Québec à Trois-Rivières1,…
Can an unreasonable takeover offer constitute oppression against a minority shareholder? The Superior Court recently ruled on the possibility of such an action. The oppressive remedy is a mechanism provided for in the Business Corporation Act1 that allows you to claim corrective measures when a corporation has behaved abusively or…
Usually, when you carry on commercial activities, you are required to register for the GST and QST. Since these taxes influence the method used to enter transactions, it is important to understand how the process works. The acronyms QST and GST mean "Quebec Sales Tax" and "Goods and Services Tax,"…
In legal drafting, although it is not recommended, it is common for lawyers to insert standard terms in contractual clauses that have a very broad scope, that can sometimes be excessive, with a statement specifying the discretionary power left to the judge to corrects and minimize the extent of such…
A shareholders’ agreement is often the appropriate legal tool for a new project or business partnership. Such a union is usually compared to a marriage contract, rightly so, since the shareholders' agreement, like said marriage contract, aims to provide the new "partners" with clear corporate governance rules. But often the…
When exercising their freedom of contract, the parties involved have a myriad of opportunities when stipulating clauses that are specific and customized to the circumstances surrounding their legal situation. However, one slight note of caution remains: all aspects that are necessarily contrary to public order may be challenged in court.…
The court of appeal allowed, on February 4th of this year, a class action to proceed against seven major furniture and appliance Quebec-based retailers located in Fortier c. Meubles Léon Ltée. The plaintiffs allege that they were offered extended warranty plans by these merchants without ever being informed about the…
Lance Armstrong, the cycling champion, could get away with penal charges. Indeed, some American lawyers believe prosecutors may drop charges against Lance Armstrong due to limitation period prescribed by US penal law. In fact, when it comes to charges related to illegal possession and distribution of steroids, human growth hormone…