Background:
10058216 Manitoba Ltd. ("100") entered into an agreement to purchase land from TFG Lakewood Rentals Ltd. ("TFG") for $3,595,500. The agreement required due diligence and rezoning approval within specific timeframes. Delays due to election-related administrative pauses prevented 100 from obtaining the required approvals in time.

Legal Issues:
The court considered:

1. Whether 100 breached the agreement.
2. Whether 100 exercised good faith and reasonable commercial efforts in seeking rezoning.
3. Whether 100 was entitled to a return of its deposits.

Court's Findings:

• 100 complied with due diligence obligations and acted in good faith.
• The seven-month zoning approval period was effectively shortened due to election-related delays.
• TFG had the contractual right to refuse an extension but was aware of the time constraints.
• 100’s inability to complete rezoning was not due to its own failure but external factors.

Judgment and Award:
The court ruled in favor of 100, granting summary judgment. TFG was ordered to return $100,000 in deposits to 100, with pre- and post-judgment interest at the statutory rate.

Costs:
If the parties could not agree on costs, they were required to submit written arguments, including a Bill of Costs, for judicial consideration.