This appeal concerned a failed residential real estate transaction where the buyers' financing fell through, leading the sellers to terminate the Agreement of Purchase and Sale (APS) and retain the deposit.
The sellers subsequently resold the property for a higher price.
The buyers sought specific performance, damages, or relief from forfeiture.
The Court of Appeal upheld the application judge's decision, finding that the sellers were entitled to terminate the APS as they were ready, willing, and able to close, and that relief from forfeiture was not warranted, despite the sellers realizing a profit on the resale.
The court also addressed the duty of honest performance and the effect of anticipatory repudiation.