Ville de Maisonneuve v. Banque Provinciale du Canada

Ville de Maisonneuve v. Banque Provinciale du Canada

Article 1691 does not authorize partial cancellation of a fixed‑price construction contract; rebates of compound interest included in the fixed price are to be computed in accordance with the contract (interest accrues from the agreed mean completion date for early payments and from payment date for later payments) and the rebate base is the amounts actually paid (not the 'real' or actual cost of the works); where the contractor tacitly consented to a municipal diminution and made no protest, the contractor cannot recover the omitted‑works deduction as damages.

Citation
(1903) 33 SCR 418
Parties
Appellant/defendant: La Ville de Maisonneuve; Respondent/plaintiff: La Banque Provinciale du Canada
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
5 May 1903
Procedural Posture
Contract / Appeal to Supreme Court of Canada From Court of King's Bench, Province of Quebec
Outcome
Appeal allowed with costs; cross-appeal dismissed with costs.
Legal Topics
Fixed Price Construction Contracts, Partial Cancellation Vs Rescission, Calculation of Rebates/interest on Advance Payments, Advance Payments, Damages for Breach, Appellate Powers
Source Language
English
Contract Civil Code (quebec) Remedies Fixed Price Construction Contracts Partial Cancellation Vs Rescission Calculation of Rebates/interest on Advance Payments Advance Payments Damages for Breach +1 more

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Parties

La Ville de Maisonneuve

Appellant/defendant

La Banque Provinciale du Canada

Respondent/plaintiff

Procedural Posture

Contract / Appeal to Supreme Court of Canada From Court of King's Bench, Province of Quebec

Legal Issues

  1. 1 Whether article 1691 C.C. permits a partial cancellation of a fixed‑price construction contract
  2. 2 Proper method and basis for calculating rebate (compound interest) on advance payments and period from which rebate accrues
  3. 3 Whether the municipality was entitled to deduct part of the contract price for work omitted by its orders and whether the contractor tacitly consented to the diminution

Ratio Decidendi

Article 1691 does not authorize partial cancellation of a fixed‑price construction contract; rebates of compound interest included in the fixed price are to be computed in accordance with the contract (interest accrues from the agreed mean completion date for early payments and from payment date for later payments) and the rebate base is the amounts actually paid (not the 'real' or actual cost of the works); where the contractor tacitly consented to a municipal diminution and made no protest, the contractor cannot recover the omitted‑works deduction as damages.

Court Disposition

Appeal allowed with costs; cross-appeal dismissed with costs.

Orders

  • Appellant condemned to pay respondent $1,660.99 with interest from 15 December 1901 at six per cent per annum
  • Costs to respondent of the Superior Court proceedings