The moving party sought release from a terminated agreement of purchase and sale and relief from forfeiture of a 15% condominium deposit after failing to close due to significant post-contract mental health and financial deterioration.
The court held rescission was unavailable because the agreement was entered without duress, fraud, mistake, or other inequitable formation circumstances, and the responding party had no knowledge of disability at contract formation.
Applying s. 98 of the Courts of Justice Act and Redstone, the court found the deposit was not disproportionate to anticipated loss and that unconscionability was not established on the evidentiary record.
The court emphasized arm’s-length bargaining, purchaser sophistication, good-faith conduct by the seller, and the fundamental nature of the breach.
The application was dismissed, with reduced partial indemnity costs fixed at $5,000 all-inclusive.
