Elements of a Contract:

Legality
 R. v. Imperial Tobacco Canada Ltd
• Imperial Tobacco Canada ltd. (ITCL) Is a
tobacco company that manufactures and
distributes cigarettes in Canada.
• The federal government launched a lawsuit
against ITCL indicating that the company
contract for sale was illegal due to the harm
caused by smoking.
• The government claimed that ITCL had
engaged in unlawful conduct in promoting
and selling its products.
 Legal Arguments from the Government

• The federal government’s claimed that the

contract for sale violated public policy and was
therefore illegal and unenforceable.
• The government alleged that:
 ITCL had concealed information on the health risks of
smoking.
 Made false and misleading information about the health
risks.
 ITCL targeted young people and non-smokers in their
marketing campaigns.
• The government sought a new contract law that would hold
ITCL accountable for harmful effects of cigarette smoking.
 ITCL’s Response
• ITCL made arguments that the government
was trying to use contract law to achieve
other policy goals such as taxation.
• ITCL denied conspiracy to conceal any
information about health risks of smoking.
• ITCL arguments defended the integrity of
their contact law and claimed they had not
violated any government laws or
regulations.
 Case Ruling
• The supreme court ruled in favor of the government and found ITCL guilty of an
illegal contract that engaged in unlawful conduct in the sale and promotion of
cigarettes.
• The court highlighted importance of protecting public health and holding companies
accountable for their actions.
• I believe the ruling was a just one as it held ITCL accountable for their sales.
Enforcing a new sales contract will promote public health.
• The decision warned companies of illegal use of contract laws to achieve public
policy goals.
 References
• Supreme Court of Canada. (2011, July 29). R. v. Imperial Tobacco
Canada Ltd., 2011 SCC 42 (CanLII). Canlii.org; CanLII. https://
www.canlii.org/en/ca/scc/doc/2011/2011scc42/2011scc42.html