The applicants entered into an Agreement of Purchase and Sale to buy the respondents' home.
The agreement included an escape clause allowing the respondents to accept a better offer if the applicants did not waive their conditions within 24 hours of notice.
The respondents received a higher offer and notified the applicants, who promptly waived their financing and inspection conditions.
The respondents claimed the applicants also needed to explicitly waive the escape clause itself, and sold the property to the second buyer.
The court found the respondents breached the contract, as the escape clause was merely a mechanism that was fulfilled when the applicants waived their conditions.
The court directed a reference to determine the quantum of damages, noting the applicants' duty to mitigate.
