Les Pétroles Inc. v. Tremblay et al.

Les Pétroles Inc. v. Tremblay et al.

The lease was annulled because the lessee signed in reliance on false representations as to earnings and the appellant failed to discharge the burden of proving ratification; representations justified rescission and ratification cannot be presumed.

Citation
[1963] SCR 120
Parties
Defendant/appellant: Les Pétroles Inc.; Plaintiffs/respondents: Dame Lorenzo Tremblay et al.
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
17 December 1962
Procedural Posture
Appeal (contract Lease/misrepresentation) / Supreme Court of Canada on Appeal From Court of Queen's Bench, Quebec
Outcome
Appeal dismissed; judgment of the Court of Queen's Bench restoring annulment of lease affirmed.
Legal Topics
Misrepresentation, Rescission/annulment, Ratification, Lease of Business, Onus of Proof
Source Language
English
Contract Property Fraud Civil Law Misrepresentation Rescission/annulment Ratification Lease of Business +1 more

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Parties

Les Pétroles Inc.

Defendant/appellant

Dame Lorenzo Tremblay et al.

Plaintiffs/respondents

Procedural Posture

Appeal (contract Lease/misrepresentation) / Supreme Court of Canada on Appeal From Court of Queen's Bench, Quebec

Legal Issues

  1. 1 Whether the lessor's representations constituted actionable fraud/misrepresentation inducing the lease
  2. 2 Whether the lessee ratified the contract despite the alleged misrepresentation
  3. 3 Whether the lessee's delay in acting constituted acquiescence or barred relief

Ratio Decidendi

The lease was annulled because the lessee signed in reliance on false representations as to earnings and the appellant failed to discharge the burden of proving ratification; representations justified rescission and ratification cannot be presumed.

Court Disposition

Appeal dismissed; judgment of the Court of Queen's Bench restoring annulment of lease affirmed.

Orders

  • Appeal dismissed with costs.
  • Lease and hypothec (mortgage) annulled.