Bryan Benjamin Skolnik

The appellant vendor appealed a trial judgment finding that its failure to construct a cathedral ceiling in a new home was a fundamental breach of the agreement of purchase and sale.

The Court of Appeal upheld the trial judge's conclusion, noting that the cathedral ceiling was a crucial feature of the contract and the vendor's unilateral change provision did not apply to fundamental changes.

The court also rejected the argument that the purchasers affirmed the contract by delaying their rescission, finding that they rescinded within a reasonable time after learning of the change.

The appeal was dismissed and the purchasers were entitled to the return of their deposit.

The appellant creditor appealed a finding that the company was insolvent under s. 20(1)(d) of the Business Corporations Legislation Act.

The Court of Appeal was not persuaded that the master erred in making that finding.

The appeal was dismissed with costs.