This appeal concerned a pre-construction agreement of purchase and sale for a condominium unit.
The vendor purported to terminate the agreement, alleging the purchasers breached a clause prohibiting leasing without consent.
The application judge found the termination wrongful and granted specific performance.
On appeal, the Court of Appeal affirmed the lower court's decision, holding that the vendor lost its right to terminate by failing to act within a reasonable time after the alleged breach.
The Court further upheld the award of specific performance, finding that damages were an inadequate remedy given the advantageous terms of the original agreement, the rising real estate market, the purchasers' tied-up deposit, and the vendor's bad faith in attempting to re-sell the unit to related parties at an undervalue.
The issue regarding the subsequent lease to tenants became moot.
