Shayan Kamalie

The applicant and respondent were partners in a joint venture to develop a condominium.

The applicant exercised a shotgun buy/sell provision, and the respondent elected to purchase the applicant's interest.

The respondent failed to close, arguing that the COVID-19 pandemic and resulting economic downturn frustrated the contract and prevented it from obtaining financing.

The court rejected the frustration defence, finding that economic downturns and restrictive lending are inherent risks that do not radically alter the contractual obligations.

The court granted the application and ordered specific performance, noting that damages would be an inadequate remedy.