The appellant banquet hall appealed a Small Claims Court decision dismissing its claim for breach of contract and ordering the return of the respondents' $10,000 deposit.
The respondents had booked a wedding reception but sought to postpone it due to illness, which the appellant treated as a cancellation under the contract.
The Divisional Court allowed the appeal, finding the trial judge erred in law by failing to apply proper principles of contractual interpretation.
The contract clearly stipulated that a failure to proceed on the specific function date constituted a cancellation, entitling the appellant to retain the deposit and claim liquidated damages.
