The vendor of commercial condominium units sought a declaration that the purchaser had anticipatorily breached an agreement of purchase and sale and that the vendor was entitled to retain the deposit.
The application judge found that the agreement came to an end when both parties were unable to close on the appointed date and ordered the deposit returned.
On appeal, the vendor argued that the purchaser had anticipatorily repudiated the agreement and sought to hold the purchaser's signatory personally liable as a guarantor.
The Court of Appeal dismissed the appeal, finding that although the purchaser had anticipatorily repudiated the agreement, the vendor's insistence on strict performance on the scheduled date, combined with its own failure to be ready, willing and able to close on that date, resulted in the agreement terminating.
The court also rejected the personal guarantee claim against the signatory.