The Supreme Court of Canada (SCC) released an important decision 21 May 2021 cited as 2021 SCC 22. This decision contains at least two important points.
First, it is a good refresher about the difference between a voluntary association like many clubs we join and when a legal contract exists where a remedy can be given by a court for the wrong alleged. In this case five church members were expelled by the church leaders and they sued for reinstatement. The trial judge said no contract existed thus no remedy could be given. The Appeal Court said there was an enforceable contractual relationship because the relationship between the members and the Church involved rules and membership forms and monthly dues etc. In first year law school, lawyers learn that the basic ingredients to form a legal contract are an Offer of certain terms, Acceptance and Consideration to bind the Parties.
The SCC said no in an unanimous decision, that no enforceable contract had been created in this voluntary association because there had been no intent by the parties to create legal rights and obligations towards each other. It is not enough to sign forms and pay dues, there has to be an intent by the parties to create legal rights and obligations towards each other.
This SCC decision also reminds us that not all of our many human activities are a legal relationship. Often we feel hurt but if it is not a legally defined wrong, eg either a tort or a contract, then there is no legal remedy.
