Racicot et al. v. Bertrand et al.

Racicot et al. v. Bertrand et al.

Sale upheld: purchasers tacitly confirmed the contract by conduct showing knowledge of misrepresentations and intent inconsistent with rescission; the building's non-compliance with the 1970 provincial regulation did not constitute eviction or a latent defect at the time of sale because occupation/operation was not prohibited then; unilateral error was not a ground for nullity; consequently rescission and damages refused.

Citation
[1979] 1 SCR 441
Parties
Vendor/appellant: Jules Racicot; Vendor/appellant: Jean-Paul Couture; Defendant/respondent: Les Immeubles d’Aubigny Enr.; Purchaser/plaintiff/cross Appellant: Guy Bertrand; Purchaser/plaintiff/cross Appellant: Marcel Laverdière; Real Estate Agent/defendant/respondent: Henri Abel; Real Estate Broker/defendant/respondent: Quebec Land and Realty Inc.; Predecessor in Title/defendant/respondent: Gédéon Rouleau; Predecessor in Title/defendant/respondent: F.G. Rouleau Inc.; Mis En Cause/third Party: Quebec City; Mis En Cause/third Party: Registrar of the Registry Division of Quebec
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
31 October 1978
Procedural Posture
Civil Appeal Sale of Apartment Building (contract/property) / Appeal to Supreme Court of Canada From Court of Appeal for Quebec (cross Appeal by Purchasers)
Outcome
Appeal allowed; cross-appeal dismissed; judgment of the Superior Court restored
Legal Topics
Misrepresentation, Tacit Confirmation, Latent Defects, Warranty Against Eviction, Rescission, Damages, Unilateral Error, Municipal by Law Compliance, Public Health Regulation, Delay/limitation/caveat Emptor
Source Language
English
Contract Law Property Law Civil Law (quebec) Municipal/regulatory Law Evidence Misrepresentation Tacit Confirmation Latent Defects +7 more

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Parties

Jules Racicot

Vendor/appellant

Jean-Paul Couture

Vendor/appellant

Les Immeubles d’Aubigny Enr.

Defendant/respondent

Guy Bertrand

Purchaser/plaintiff/cross Appellant

Marcel Laverdière

Purchaser/plaintiff/cross Appellant

Henri Abel

Real Estate Agent/defendant/respondent

Quebec Land and Realty Inc.

Real Estate Broker/defendant/respondent

Gédéon Rouleau

Predecessor in Title/defendant/respondent

F.G. Rouleau Inc.

Predecessor in Title/defendant/respondent

Quebec City

Mis En Cause/third Party

Registrar of the Registry Division of Quebec

Mis En Cause/third Party

Procedural Posture

Civil Appeal Sale of Apartment Building (contract/property) / Appeal to Supreme Court of Canada From Court of Appeal for Quebec (cross Appeal by Purchasers)

Legal Issues

  1. 1 Whether sale should be cancelled for fraud/misrepresentation as to profitability
  2. 2 Whether sale should be rescinded because building failed to comply with provincial and municipal regulations
  3. 3 Whether unilateral error by purchasers vitiates consent and permits rescission

Ratio Decidendi

Sale upheld: purchasers tacitly confirmed the contract by conduct showing knowledge of misrepresentations and intent inconsistent with rescission; the building's non-compliance with the 1970 provincial regulation did not constitute eviction or a latent defect at the time of sale because occupation/operation was not prohibited then; unilateral error was not a ground for nullity; consequently rescission and damages refused.

Court Disposition

Appeal allowed; cross-appeal dismissed; judgment of the Superior Court restored

Orders

  • Set aside the decision of the Court of Appeal in part
  • Restore the Superior Court judgment dismissing purchasers' action