Bogue Electric of Canada Limited v. Crothers Manufacturing Limited

Bogue Electric of Canada Limited v. Crothers Manufacturing Limited

Time remained of the essence of the sub-contract; the agreed substitution of dates did not waive that requirement; the May 6 notice was reasonable under the facts; and the specific contract clause authorizing immediate cancellation for non-delivery prevailed over the general 15-day cancellation provision, thus Crothers was justified in cancelling.

Citation
[1961] SCR 108
Parties
Plaintiff/appellant: Bogue Electric of Canada Limited; Defendant/respondent: Crothers Manufacturing Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
19 December 1960
Procedural Posture
Contract Appeal to Supreme Court of Canada / Appeal From the Court of Appeal for Ontario; Judgment on Review of Trial Dismissal for Plaintiff
Outcome
Appeal dismissed
Legal Topics
Time of the Essence, Delivery Schedule, Cancellation, Notice of Termination, Subcontract Interpretation, Contract Clauses Precedence
Source Language
English
Contract Commercial Law Time of the Essence Delivery Schedule Cancellation Notice of Termination Subcontract Interpretation Contract Clauses Precedence

Case Brief

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Parties

Bogue Electric of Canada Limited

Plaintiff/appellant

Crothers Manufacturing Limited

Defendant/respondent

Procedural Posture

Contract Appeal to Supreme Court of Canada / Appeal From the Court of Appeal for Ontario; Judgment on Review of Trial Dismissal for Plaintiff

Legal Issues

  1. 1 Whether time was of the essence of the sub-contract
  2. 2 Whether substitution of new delivery dates removed time as the essence
  3. 3 Whether notice given was reasonable

Ratio Decidendi

Time remained of the essence of the sub-contract; the agreed substitution of dates did not waive that requirement; the May 6 notice was reasonable under the facts; and the specific contract clause authorizing immediate cancellation for non-delivery prevailed over the general 15-day cancellation provision, thus Crothers was justified in cancelling.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs
  • Judgment of trial court and affirmation by Court of Appeal for Ontario upheld