Lord v. Guimond

Lord v. Guimond

The clause making post-five-year rent subject to mutual agreement constituted a potestative condition; no agreement was reached by September 1, 1949, so the contractual lease relationship terminated on that date and, because occupation continued without agreement, the landlord was entitled not to contractual rent but to an indemnity for the adverse occupation equal to the fair rental value ($200/month) for the period of occupation; eviction was ordered.

Citation
[1957] SCR 79
Parties
Appellant (plaintiff): Wilfrid Lord; Respondent (defendant): Simon Guimond
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
21 December 1956
Procedural Posture
Contract (lease/occupation) / Appeal to the Supreme Court of Canada From Quebec Court of Queen's Bench (appeal Side)
Outcome
Appeal allowed. Convention declared terminated as of September 1, 1949; respondent occupying thereafter unlawfully; appeal judgment awards indemnity and eviction with costs to appellant.
Legal Topics
Potestative Condition, Indemnity for Adverse Occupation, Contract Interpretation, Tacit Renewal, Lease Versus Habitation
Source Language
English
Contract Law Property Law Civil Code Interpretation Landlord and Tenant Law Potestative Condition Indemnity for Adverse Occupation Contract Interpretation Tacit Renewal +1 more

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Parties

Wilfrid Lord

Appellant (plaintiff)

Simon Guimond

Respondent (defendant)

Procedural Posture

Contract (lease/occupation) / Appeal to the Supreme Court of Canada From Quebec Court of Queen's Bench (appeal Side)

Legal Issues

  1. 1 Whether the agreement constituted a lease or an agreement of use and habitation
  2. 2 Whether the clause "ce prix pourra être modifié après cinq ans" created a valid mechanism for future rent or a purely potestative condition
  3. 3 Legal consequence of no mutual agreement on rent after five years

Ratio Decidendi

The clause making post-five-year rent subject to mutual agreement constituted a potestative condition; no agreement was reached by September 1, 1949, so the contractual lease relationship terminated on that date and, because occupation continued without agreement, the landlord was entitled not to contractual rent but to an indemnity for the adverse occupation equal to the fair rental value ($200/month) for the period of occupation; eviction was ordered.

Court Disposition

Appeal allowed. Convention declared terminated as of September 1, 1949; respondent occupying thereafter unlawfully; appeal judgment awards indemnity and eviction with costs to appellant.

Orders

  • Convention of September 1, 1922 terminated as of September 1, 1949.
  • Respondent ordered to vacate the premises within 30 days.