The purchasers agreed to buy the vendors' house.
Shortly before closing, the basement flooded.
The vendors informed the purchasers of the damage and insurance details the day before closing.
The purchasers refused to close on the scheduled date and demanded a price reduction or an extension with conditions.
The vendors offered reasonable extensions, which were rejected.
The application judge found the vendors breached the contract and acted in bad faith.
On appeal, the Court of Appeal reversed, finding no substantial damage that would allow the purchasers to terminate.
The purchasers' refusal to close constituted repudiation, entitling the vendors to terminate and claim damages for the lower resale price.