Background:
The case of Zihao Yan (Tony Yan) v. Benbow Residences Inc. involved a failed real estate transaction for a property in West Vancouver, British Columbia. Yan, the buyer, paid a $1,000,000 deposit, expecting the defendant, Benbow Residences Inc., to provide a clear title and an occupancy permit by the completion date of October 30, 2019.

Legal Issues:
The key issues were whether Benbow Residences Inc. breached fundamental terms of the contract by failing to (1) provide an occupancy permit, and (2) deliver clear title free of encumbrances, including mortgages. The court also examined whether Benbow’s conduct constituted repudiation of the contract and if Yan was entitled to the return of his deposit and special costs.

Court Findings:
The court found that the failure to provide a clear title and occupancy permit constituted a fundamental breach. Benbow Residences Inc. did not attend the trial, further supporting the court's decision to proceed in their absence. Yan was deemed ready and willing to complete the transaction, but Benbow’s breach prevented completion.

Outcome:
The court ruled in favor of Zihao Yan, awarding him the return of his $1,000,000 deposit with interest, and granted special costs due to the defendant’s conduct, with the amount to be determined at a later hearing. Additionally, the counterclaim by Benbow Residences Inc. was dismissed.