Thank you for that question.
First, the provision on the duty to act in good faith would help align Canada's insolvency laws with recognized international best practices. Many countries, including the United States, the United Kingdom and Japan, have established the duty to act in good faith in any insolvency case proceeding.
The Civil Code of Quebec requires parties to act in good faith. The courts that apply the Act respecting the collection of certain debts in Quebec rely on that provision, doing so in some cases to compel parties to change their behaviour. The act mentions the concept of good faith but doesn't define it. The courts have another tool to address the situation in insolvency cases.