GAP in the Contract? COVID-19 Does Not Excuse a Tenant from Paying Rent

By now, we have become all too familiar with the hardships that businesses in Ontario have had to endure in the face of the ongoing COVID-19 pandemic. In a recent decision, Braebury Development Corp v. Gap (Canada) Inc., 2021 ONSC 6210 the Ontario Superior Court of Justice ruled that neither a force majeure clause nor the doctrine of frustration excused a tenant from its obligation to pay rent. Background The defendant tenant operated a Gap clothing store in downtown Kingston, Ontario, and had entered into a lease agreement for the premises that was set to end on December 31, 2020. ... [more] Full article
Supreme Court of Canada confirms that Releases are interpreted just like any other contract
In a decision released today, July 23, 2021, in Corner Brook (City) v. Bailey, a unanimous Supreme Court of Canada overturned a decision of the Court of Appeal for Newfoundland and ... [more] Full article
Commercial lease not renewed in time; landlord’s silence as to deadline not bad faith
In Subway Franchise Restaurants of Canada Ltd. v. BMO Life Assurance Company, 2021 ONCA 349 (CanLII), the Court of Appeal for Ontario upheld a decision that rejected Subway’s attempts to ... [more] Full article
Supreme Court explains duty to exercise contractual discretion in good faith
In a highly anticipated decision, which took over a year to release, the Supreme Court of Canada clarified the parameters of the duty to exercise contractual discretion in good faith ... [more] Full article
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