Parties to a contract owe an obligation of honesty towards each other (Bhasin v. Hrynew, 2014 SCC 71). They must not act capriciously or arbitrarily. In the simplest of terms – parties must be honest during performance of a contract and not mislead each another.
The letter of offer or employment contract must set out the purpose of a probationary period including how performance will be evaluated; what happens if the Employee is unsuccessful; and what will be paid on termination of employment?
Bad or poorly worded termination clauses will only be rectified under exceptional circumstances. Rectification is a discretionary remedy applied where there is clear and unambiguous evidence demonstrating the parties to an agreement made a mutual mistake when drafting the contract.