Dear Colleagues:

 

The Supreme Court of Canada has just released a case discussing the principles of contract formation through conduct and the distinction between contract, property and equitable rights, see Owners, Strata Plan LMS 3905 v. Crystal Square Parking Corp. (https://scc-csc.lexum.com/scc-csc/scc-csc/en/item/18514/index.do).

 

The context of the decision was whether a strata corporation had entered into a post-incorporation contract with the plaintiff-parking lot operator on the same terms as an unenforceable pre-incorporation contract.  The court (over the dissent of Rowe J) found that it had and also found that a line of cases which considered whether the company’s actions were subjectively motivated by an erroneous belief in the enforceability of the pre-incorporation contract should no longer be followed (at paras. 28-33).  The court also declined to decide whether the narrow benefit/burden principle endorsed in Rhone v. Stephens, [1994] 2 A.C. 310 (H.L.) formed part of Canadian law.

 

Congratulations to all the ODGers cited in the judgment!

 

Happy Reading,

 

Jason Neyers
Professor of Law
Faculty of Law
Western University
Law Building Rm 26
e. jneyers@uwo.ca
t. 519.661.2111 (x88435)