Key Facts:
- The Smiths listed their property at 87 Tower Road for sale on March 23, 2022, and received six offers, with Bryant’s $1,220,000 offer being the highest.
- An Agreement of Purchase and Sale (APS) was signed, requiring a $10,000 deposit by March 31, 2022, and closing on April 29, 2022.
- On March 29, 2022, Nova Scotia announced new property taxes affecting non-residents, effective April 1, 2022.
- Bryant expressed concerns but proceeded, amending the APS to delay the deposit to April 1, 2022.
- On April 25, 2022, Bryant’s agents indicated he would not complete the purchase, citing financial viability issues due to the new taxes and failed financing from another property sale.
- The Smiths re-listed the property on May 1, 2022, received one offer of $950,000, and accepted it.
Legal Issues and Rulings:
- Evidentiary Issue:
- Previous purchase price and ownership duration were deemed irrelevant.
- Breach of APS:
- Bryant breached the APS by failing to complete the purchase.
- Doctrine of Frustration:
- The contract was not frustrated; the new taxes were foreseeable and did not alter the contract's fundamental nature.
- Mitigation of Damages:
- The Smiths reasonably mitigated their damages by promptly re-listing and accepting the best available offer.
Conclusion:
- Bryant was ordered to pay $260,000 in damages to the Smiths, reflecting the difference between the agreed purchase price and the final sale price, less the deposit.
