Action based on contract
It is required of a party who in his pleading relies upon a contract to state whether the contract is written or oral and when, where and by whom it was concluded. If the contract is written a true copy thereof or of the part relied on in the pleading must be annexed to the pleading.
It shall not be necessary in any pleading to state the circumstances from which an alleged implied term can be inferred, but although it is not so required, if it is alleged that a contract itself is implied, the circumstances which give rise to such implied contract must be set out.
It follows from the provisions of the court rules that where the action is founded in contract, the contract and then its breach must be alleged. Written contracts are annexed to the declaration / particulars of claim in which case it will not be necessary to refer in detail to the portions which are especially relied upon. However, if a written contract is not annexed or if a verbal contract is relied upon, it is essential that the terms should be specified. Unless this is done the cause of the action will not be set out specifically.
Thus, it is not enough to allege that the contract relied on was entered into by and is contained in correspondence covering a long period of time; the particular letters relied on and their dates must be indicated, and the terms of the contract must be alleged. The rule entitles a defendant to particularity in the declaration / particulars of claim.
For more go to Notes on action (trial) proceedings