Ottawa Electric Co. v. St. Jacques

Ottawa Electric Co. v. St. Jacques

When the lessee renewed the lease the contingency in the second clause occurred and that clause became operative, creating an absolute five‑year supply obligation and corresponding payment obligation; consequently the defendant could not unilaterally cancel the contract during that renewed term and his notice of cancellation was ineffective.

Citation
(1901) 31 SCR 636
Parties
Appellant / Plaintiff: Ottawa Electric Company; Respondent / Defendant: F.X. St. Jacques
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
16 November 1901
Procedural Posture
Contract / Appeal to Supreme Court of Canada From Court of Appeal for Ontario
Outcome
Appeal allowed with costs; judgment for plaintiffs (Ottawa Electric Company).
Legal Topics
Duration of Contract, Right to Cancel, Contract Interpretation, Repugnant Clauses, Statute of Frauds
Source Language
English
Contract Duration of Contract Right to Cancel Contract Interpretation Repugnant Clauses Statute of Frauds

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Parties

Ottawa Electric Company

Appellant / Plaintiff

F.X. St. Jacques

Respondent / Defendant

Procedural Posture

Contract / Appeal to Supreme Court of Canada From Court of Appeal for Ontario

Legal Issues

  1. 1 Whether defendant could cancel lighting contract during a renewed lease term
  2. 2 How to reconcile an initial fixed minimum term clause with a contingent renewal clause
  3. 3 Whether clauses are repugnant or can both be given effect

Ratio Decidendi

When the lessee renewed the lease the contingency in the second clause occurred and that clause became operative, creating an absolute five‑year supply obligation and corresponding payment obligation; consequently the defendant could not unilaterally cancel the contract during that renewed term and his notice of cancellation was ineffective.

Court Disposition

Appeal allowed with costs; judgment for plaintiffs (Ottawa Electric Company).

Orders

  • Appeal allowed with costs in all courts.
  • Judgment entered for plaintiffs and reference to Master to ascertain damages from 1 December 1897 to 31 October 1900.