This appeal concerned the interpretation of a 1988 agreement between a school board and a municipality for snow and garbage removal services provided in exchange for the sale of a school property for $1.
The municipality unilaterally terminated the services in 2017, arguing the contract was terminable on reasonable notice.
The Court of Appeal found that the application judge erred in characterizing the agreement as a personal services contract and in his analysis of surrounding circumstances.
The Court concluded that the agreement was perpetual in nature, given the upfront transfer of an enduring capital asset by the school board and the public nature of the parties' mutually beneficial arrangement, which was not primarily commercial.
