The appellant tenant sought to renew a cottage lease with the respondent municipality.
The municipality argued the renewal clause was void for uncertainty regarding the duration of the term, and that it lacked the power to enter the renewal without Ontario Municipal Board approval.
The application judge found the renewal clause void for uncertainty.
The Court of Appeal reversed, holding that the duration of the renewal term could be ascertained from the lease's express terms.
The Court also held that the municipality was exercising its proprietary powers, not divesting legislative powers, and that OMB approval was not required because no costs were to be raised in a subsequent year.