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Litigation

Can I accidentally give up my right to sue for a contract breach in Ontario?

TSL Written by the Treadstone Law team· Updated June 2026

Yes. Rights under a contract can be waived — intentionally or inadvertently — through words, conduct, or a course of dealing that the other party reasonably relies upon. In Ontario, two main doctrines are relevant: waiver and promissory estoppel.

A waiver occurs when a party with knowledge of a breach (or a right that could be exercised) unequivocally communicates that they are giving it up. If you continue to accept performance under a contract after learning of a material breach, without objecting, a court may find you waived the right to terminate for that breach.

Promissory estoppel can arise when one party makes a clear promise or representation that they will not enforce a contractual right, the other party relies on that promise, and it would be unfair to allow strict enforcement afterward. Courts have used this doctrine to prevent parties from resiling from promises to extend payment deadlines, waive breach notices, or forego penalties.

The practical implication: if you know of a breach, do not simply continue accepting performance and saying nothing. Act promptly, document your concerns in writing, and state clearly that you are not waiving any rights. A "no waiver" clause in your contract is helpful but does not guarantee protection — courts look at overall conduct.

Key takeaways

  • Continuing to accept performance after a known breach can waive your right to terminate.
  • Promissory estoppel can prevent enforcing rights you promised (even informally) not to use.
  • Act promptly and document objections in writing when a breach occurs.
  • "No waiver" clauses help but are not a complete shield against waiver findings.
This is general information, not legal advice. It doesn’t create a lawyer–client relationship, and the rules can change. For advice on your situation, a Treadstone litigation lawyer can help.
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