Canadian Terminal System, Ltd. v. The City of Kingston

Canadian Terminal System, Ltd. v. The City of Kingston

The deposit agreement made the city's right to retain the bonds conditional on its conveyance of the specified lands; the city never conveyed those lands so the condition precedent was not satisfied and the city had no contractual right to forfeit or retain the bonds; there was no waiver or estoppel by the company...

Source-derived case information.

Citation
[1936] SCR 106
Parties
Plaintiff/appellant: Canadian Terminal System, Limited; Defendant/respondent: The Corporation of The City of Kingston
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
7 November 1935
Procedural Posture
Contract / Appeal to Supreme Court of Canada From the Court of Appeal for Ontario
Outcome
Appeal allowed; judgment of trial judge restored; plaintiff entitled to return of the bonds; costs to appellant throughout.
Legal Topics
Deposit Agreement, Condition Precedent, Forfeiture of Bonds, Return of Security, Waiver, Estoppel, Liquidated Damages, Specific Performance
Source Language
english
Contract Property Equity Deposit Agreement Condition Precedent Forfeiture of Bonds Return of Security Waiver +3 more

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 4 Authorities cited 3 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Canadian Terminal System, Limited

Plaintiff/appellant

The Corporation of The City of Kingston

Defendant/respondent

Procedural Posture

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

Legal Issues

  1. 1 Whether the city was entitled to retain deposited bonds despite failure to convey lands
  2. 2 Whether the conveyance was a condition precedent to forfeiture/retention of the bonds
  3. 3 Whether the plaintiff waived its right to return of the bonds or is estopped from claiming them

Ratio Decidendi

The deposit agreement made the city's right to retain the bonds conditional on its conveyance of the specified lands; the city never conveyed those lands so the condition precedent was not satisfied and the city had no contractual right to forfeit or retain the bonds; there was no waiver or estoppel by the company to deny return of the bonds.

Court Disposition

Appeal allowed; judgment of trial judge restored; plaintiff entitled to return of the bonds; costs to appellant throughout.

Orders

  • Defendant to deliver the deposited bonds to the plaintiff
  • Judgment of the trial judge restored