Colonial Real Estate Co. v. La Communauté des Sœurs de la Charité de l'Hopital Général de Montréal

Colonial Real Estate Co. v. La Communauté des Sœurs de la Charité de l'Hopital Général de Montréal

Under Quebec civil law (art.1082 and related provisions) a conditional obligation that specifies a fixed period for fulfilment is extinguished when the condition is not fulfilled within that period; therefore the vendor had no obligation to pay commission after the option expired and the sale executed thereafter did not revive the expired conditional right absent waiver or wrongful prevention by the vendor.

Citation
(1918) 57 SCR 585
Parties
Plaintiff/appellant: Colonial Real Estate Company; Defendant/respondent: La Communauté des Sœurs de la Charité de l'Hopital Général de Montréal
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
9 December 1918
Procedural Posture
Appeal / On Appeal to the Supreme Court of Canada From the Court of King's Bench, Appeal Side, Province of Quebec
Outcome
Appeal dismissed; judgment of the Court of King's Bench (appeal side) affirmed; action dismissed with costs.
Legal Topics
Commission, Option to Purchase, Condition Precedent, Time Is of the Essence, Waiver, Quantum Meruit (rejected)
Source Language
English
Agency Contract Property Law Civil Law (quebec) Commission Option to Purchase Condition Precedent Time Is of the Essence +2 more

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Parties

Colonial Real Estate Company

Plaintiff/appellant

La Communauté des Sœurs de la Charité de l'Hopital Général de Montréal

Defendant/respondent

Procedural Posture

Appeal / On Appeal to the Supreme Court of Canada From the Court of King's Bench, Appeal Side, Province of Quebec

Legal Issues

  1. 1 Whether an agent is entitled to commission where sale to purchaser introduced by agent is completed after expiration of a limited option period
  2. 2 Whether a conditional obligation with a fixed time survives failure to fulfil the condition within that time under Quebec law (Civil Code)
  3. 3 Whether the vendor waived the time limit by later selling to the purchaser introduced by the agent

Ratio Decidendi

Under Quebec civil law (art.1082 and related provisions) a conditional obligation that specifies a fixed period for fulfilment is extinguished when the condition is not fulfilled within that period; therefore the vendor had no obligation to pay commission after the option expired and the sale executed thereafter did not revive the expired conditional right absent waiver or wrongful prevention by the vendor.

Court Disposition

Appeal dismissed; judgment of the Court of King's Bench (appeal side) affirmed; action dismissed with costs.

Orders

  • Appeal dismissed with costs
  • Judgment of the Court of King's Bench affirmed