The purchaser brought a motion for summary judgment for specific performance of an Agreement of Purchase and Sale (APS) for a commercial property.
The vendor attempted to repudiate the APS, alleging various formal defects, lack of authority of its own signatory, and relying on an annulment clause to refuse to discharge a mortgage and construction lien.
The court found the APS valid, applying the indoor management rule to bind the vendor to its director's signature.
The court held the encumbrances were matters of conveyance, not title, and the vendor acted in bad faith.
Finding the property unique and damages inadequate, the court granted specific performance.