The respondent purchased two subdivided lots from a developer under a contract where the developer retained ownership until the purchase price was paid in full.
Before the price was fully paid and ownership transferred, the Act to preserve agricultural land came into effect, prohibiting the alienation of the lots without authorization.
The developer subsequently transferred ownership to the respondent without authorization.
The Supreme Court of Canada held that the contract created an obligation with a term, not a suspensive conditional obligation, and therefore the transfer of ownership was not retroactive to the date of the contract.
The Court also found that the respondent did not have an acquired right to the transfer under the Act.
The appeal was allowed and the deeds of sale were declared voidable.
