The appellant, Mr. Krebs, appealed a motion judge's decision that a cohabitation agreement with the respondent, Ms. Cote, was of no force and effect.
The motion judge erred by applying the common law rule that reconciliation terminates a separation agreement to a cohabitation agreement, by misinterpreting the parties' intentions, and by concluding that a $5,000 payment exhausted the agreement's terms.
The Court of Appeal held that the common law rule for separation agreements does not extend to cohabitation agreements, as the latter contemplates cohabitation.
Interpreting the agreement holistically, the Court found it was intended to be long-lasting and apply despite separations and reconciliations.
The $5,000 payment was not a triggering event that exhausted the entire agreement.