The appellant, Toronto Wholesale Produce Association (TWPA), appealed a trial judgment finding it breached a Sale and Maintenance Agreement (SMA) with the respondent, ID Inc., regarding the conversion of a billboard to a digital sign.
The trial judge had awarded ID Inc. damages for lost profits, finding the SMA had not expired and that TWPA had waived or was estopped from relying on the expiry provision.
The Court of Appeal allowed the appeal, holding that the trial judge erred in her contractual interpretation by injecting a fault concept into the plain language of the SMA, which clearly stated the agreement would terminate if a permit was not obtained within 360 days.
The Court also found no evidence to support waiver or estoppel.
ID Inc.'s cross-appeal regarding an alleged separate oral agreement was dismissed, as the trial judge correctly applied the objective test for contract formation.
The action against TWPA was dismissed.