The Corporation of Loyalist Township sought to enforce an option to purchase two historic properties (Layer Cake Hall and Old Town Hall) from The Fairfield-Gutzeit Society for a nominal sum of two dollars each.
The Society, which received the properties from the former Village of Bath (predecessor to Loyalist Township) for preservation, had listed them for sale to the general public.
The Township argued this triggered its contractual option to repurchase.
The Society counter-applied, challenging the covenant's validity and enforceability, and seeking vacant possession due to the Township's alleged lease breaches.
The court found the Township's option to purchase was a valid contractual right, not an interest in land or a restrictive covenant, and was triggered by the Society's public listing of the properties.
The court granted specific performance to the Township, entitling it to purchase the properties.
The Township was also found to be in breach of its lease obligations by overholding, but this was deemed of limited consequence given the option to purchase outcome.