Landlords that wish to terminate commercial tenancies are subject to stringent legal requirements. The failure to meet those requirements can have significant consequences, including a Court order to restore a tenant’s access to the leased premises and an award of damages. The recent case of Subramaniam v. Metamore Inc. offers useful guidance to commercial landlords. […]
Category Archives: Commercial Real Estate Litigation
An Update on the Law of Deposits in Real Estate Transactions
Deposits are a common feature of real estate transactions, standing as “security for the purchaser’s performance of the contract” (see Benedetto v. 2453912 Ontario Inc.). But are there circumstances under which a buyer will be entitled to the return of a deposit for a failed purchase? The legal principles surrounding this issue are relatively complicated […]
A Review of the Law of Quantum Meruit
Sometimes, a party may provide services to another, expecting a contract to be signed between them, only to find that the contract never comes to fruition. Alternatively, a party may provide services to another outside the scope of their contract or following the contract’s expiration. In such situations, the question arises of whether the party […]
What is the Meaning of a “Time Is Of The Essence” Clause in an Agreement?
The standard form agreement of purchase and sale used by the Ontario Real Estate Association includes language that reads, “Time shall in all respects be of the essence.” Vendors and purchasers often wonder what this clause means. The legal effect of this and similar language has been litigated many times, both in a real estate […]
Calculating Damages For A Failed Real Estate Purchase
We previously wrote about the date at which losses are to be assessed for the purpose of determining damages in the context of failed real estate transactions. In The Rosseau Group Inc. v. 2528061 Ontario Inc., the Ontario Court of Appeal recently reviewed the normal measure of calculating damages in such a scenario. The case […]
Certificate of Pending Litigation Denied in Partnership
When purchasing property under a Partnership Agreement, disputes may arise. Ensuring that everyone is on the same page throughout a given process can be challenging when working with multiple parties. If a dispute arises which may impact the property, individuals may seek to obtain a certificate of pending litigation in order to warn potential buyers […]
Non-Payment Triggers Re-Entry for Commercial Landlords
When a prospective buyer defaults on deposit payments, the seller has the option to provide some leniency and perhaps amend the terms of the Agreement of Purchase and Sale. But what happens when the buyer defaults both on the deposit and on commercial rent? When commercial real estate and lease agreements collide, it can be […]
COVID-19 & Relief From Forfeiture
Businesses across the country still feel the impact of the COVID-19 pandemic, and legal disputes related to the fallout of safety measures are still working their way through Canada’s court systems. Given the novel scale and impact of the pandemic on commercial activities and real estate, courts and lawyers are finding themselves applying long-established legal […]
Loss of Profit Not Included in Damages for Breach of Commercial Real Estate Contract
When assessing damages for breach of contract, the date at which the losses are assessed can have a significant impact on the final award for damages. For example, if two parties were to enter into a contract for the sale of raw materials for a discounted price, and the seller failed to close the transaction, […]
Landlord Consent for Commercial Lease Assignments
In the current climate, several businesses have faced challenges operating brick-and-mortar premises. As a result, there may be increased interest in reducing expenses by shrinking an enterprise’s real estate footprint or transferring their commercial leases. When a tenant chooses to reduce their financial burden by assigning their lease, their relationship with the landlord takes on […]