Newport Industrial Development Co. v. Heughan

Newport Industrial Development Co. v. Heughan

The negotiations never matured into a binding lease: the defendant’s signed draft amounted only to an offer which lapsed because the plaintiff conditioned its execution on a surety bond that was never furnished and did not execute and deliver the lease within a reasonable time, and the Gum Company remained in...

Source-derived case information.

Citation
[1929] SCR 491
Parties
Appellant (plaintiff): Newport Industrial Development Company; Respondent (defendant): Susie P. Heughan
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
30 April 1929
Procedural Posture
Contract (landlord and Tenant) / Appeal to Supreme Court of Canada From Appellate Division of the Supreme Court of Ontario
Outcome
Appeal dismissed; judgment of the Appellate Division affirmed; defendant not liable for the claimed rent
Legal Topics
Lease Formation, Offer and Acceptance, Guarantee/bond as Condition Precedent, Possession, Negotiation, Reasonable Time for Acceptance
Source Language
english
Contract Property Landlord and Tenant Lease Formation Offer and Acceptance Guarantee/bond as Condition Precedent Possession Negotiation +1 more

Source-derived case record

Summary, issues, holding and outcome

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Parties

Newport Industrial Development Company

Appellant (plaintiff)

Susie P. Heughan

Respondent (defendant)

Procedural Posture

Contract (landlord and Tenant) / Appeal to Supreme Court of Canada From Appellate Division of the Supreme Court of Ontario

Legal Issues

  1. 1 Whether a binding lease existed between plaintiff and defendant
  2. 2 Whether defendant's signing of a draft lease constituted an acceptance or merely an offer
  3. 3 Whether plaintiff's failure to execute and deliver the lease or obtain the stipulated surety relieved defendant of liability

Ratio Decidendi

The negotiations never matured into a binding lease: the defendant’s signed draft amounted only to an offer which lapsed because the plaintiff conditioned its execution on a surety bond that was never furnished and did not execute and deliver the lease within a reasonable time, and the Gum Company remained in possession and the circumstances changed; therefore no privity or liability against the defendant arose.

Court Disposition

Appeal dismissed; judgment of the Appellate Division affirmed; defendant not liable for the claimed rent

Orders

  • Appeal dismissed with costs