and application of limitation clauses under the Hague-Visby Rules: Daewoo Heavy Industries Ltd. v. Klipriver Shipping Ltd. and The Happy Ranger. Although the Suisse Atlantique case has taken the sting out of the fundamental breach idea, in deviation itself little has changed. Glynn v Margetson still holds, so that not only may deviating carriers be denied the protection of exemption clauses expressly in the contract, they will also be denied the protection of implicit exemptions such as Article IV of the Hague-Visby Rules. However, given the general move in the common law away from strict liability to a standard of "reasonable care" (or "due diligence"), this may change in due course. Canada The doctrine of fundamental breach has been “laid to rest” by the Supreme Court of Canada in Tercon Contractors Ltd. v. British Columbia (Transportation and Highways) in 2010. In its place, the court has created a three-step test to evaluate the application of exclusion clauses. The first step is to evaluate the exclusion clause in the factual context of each case to determine if it applies to the material circumstances. The second step is to evaluate if the exclusion clause was unconscionable at the time of incorporation. The final step is to evaluate whether the exclusion clause should not be enforced on public policy grounds. See also Maxine Footwear Company Ltd. v. Canadian Government Merchant Marine Ltd (1957) Breach of contract Pacta sunt servanda, a brocard or basic principle of law Terms in English contract law Notes References Contract law Legal doctrines and principles