Parkland Corporation, a fuel supplier, sought a declaration that its lease and sublease agreements with Caledon Fuels Inc., a gas station operator, were in full force and effect, and a permanent injunction to prevent Caledon from breaching exclusive supply covenants.
Caledon argued an alleged oral agreement varied the renewal option and that Parkland breached its duty of good faith.
The court found the alleged oral agreement unenforceable due to lack of consideration and the parol evidence rule, and deemed it unbelievable.
The court also found no breach of good faith by Parkland.
Consequently, the court granted the declaration and permanent injunction in favour of Parkland and awarded partial indemnity costs.