7:  Special contracts: Insurance, employment, and leases

Insurance is

insurance premium, which is calculated based on

In order for insurance contracts to be legal, they must not be

Wagering contracts not covered by statute are unenforceable at common law because

an important distinction between a wager and an insurance contract

Insurance policies are strictly construed against an insurer if clauses in a policy are considered ambiguous. If the literal and liberal method of interpretation does not resolve the ambiguity, the courts will use

An insurable interest exists where

There can be no windfall gain. In other words

The insured has a duty of

utmost good faith
This complete disclosure allows the insurer to

The insured is also under a duty to communicate promptly to the insurer any change in the

Once the insurer has compensated the insured by paying a claim for a loss, the insurer has all the rights that the insured had to recover the loss against third parties. This is called the right of

There are three main types of working relationships

control test, which looks at

organization test

An employer has certain obligations imposed by statute, such as

An agency relationship exists where a principal authorizes an agent to

An independent contractor is a

The person hiring an independent contractor is not vicariously liable for the actions of the independent contractor, so an independent contractor should carry his or her own

“On a frolic of this own”

At common law, there are two ways for an employment contract to end:

What is reasonable notice

Reasonable notice is not required when an employee is

Any major breach of the employment contract by the employee may constitut

Employees may leave without notice where

Wrongful or constructive dismissal occurs when

The usual remedy for wrongful or constructive dismissal is

Reinstatement, a form of

Damages are awarded based on

If a person has been unjustly terminated and treated very poorly to the extent that his or her reputation and health has suffered, the courts may award

retroactive justification, where an employee has been dismissed initially without cause, but then later

All provinces have a provincial employee welfare act, titled

The Canada Labour Code covers employment that is

These acts set out the minimum standards required for employment, including working conditions, wages and hours of work, notice of termination, employment equity, and health and safety.

Workers’ compensation is contained in provincial legislation designed to

The Employment Insurance Act, a federal statute, allows

Certification is the formal acknowledgment that

Certification is the formal acknowledgment that

The process of establishing conditions of employment through negotiations between a business and the bargaining agent for its employees is known as

Mediation or conciliation is used to assist in negotiations, usually between an employer and the union, and must occur before either

Mediation or conciliation is used to assist in negotiations, usually between an employer and the union, and must occur before either

Grievances are usually referred to

Grievances are usually referred to

There are four main types of labour disputes:

There are two main types of leases:

An operating lease is also known as

Purchase leases (called capital leases in accounting) are

There are two types of purchase leases:

Businesses wishing to sell assets to obtain funds to run the business may enter into another type of lease:

Lease – is an

Most leases contain terms setting out

“residual guarantee,”