A failed purchase and sale agreement for the Applicants' home at 4 McArthur Heights, Brampton.
Applicants sought $400,000 in damages (loss on resale), $25,319.69 in carrying costs, and forfeiture of a $100,000 deposit.
Claims and Defenses:
Applicants: Claimed breach of contract by the Respondents for failing to close.
Respondents: Argued they were entitled not to close due to innocent misrepresentation by the Applicants about municipal taxes and alleged bad faith by the Applicants.
Facts:
The purchase price was $2,900,000 with a $100,000 deposit.
Agreement amended to remove one buyer and extend closing to August 15, 2022.
The transaction failed; the property was resold at a $400,000 loss, with additional carrying costs incurred.
Key Legal Issues:
Innocent Misrepresentation: Respondents claimed misrepresentation on municipal taxes induced the contract.
Entire Agreement Clause: Applicants argued this clause excluded reliance on pre-contractual misrepresentations.
Good Faith Performance: Respondents claimed Applicants failed in their duty by not extending the closing date adequately.
Court Findings:
Entire Agreement Clause: The court ruled it excluded the misrepresentation claim regarding municipal taxes.
Good Faith Performance: The claim failed as the misrepresentation argument was invalid.
Decision:
The court awarded the Applicants $425,319.69 in damages and ordered forfeiture of the $100,000 deposit.
Both parties were to submit cost filings within specified timelines.
