Does a purchaser of a leaseholds have a valid assignment clause in their contract?
Saskatchewan, Canada
The following excerpt is from Union Bank v. Dutczak, 1923 CanLII 160 (SK QB):
In Shaw v. Foster, supra, a purchaser of leaseholds deposited his contract with his bankers together with a written agreement that he would at any time thereafter at their request execute to them a valid assignment of the contract, and the bankers gave a formal notice to the vendor of the terms of this agreement, only not mentioning the deposit of the contract, or expressing any intention to stand in the purchaser’s place as regards its completion, and took no further steps to secure to themselves the benefit of the sale. It was considered that the terms of the agreement amounted not to a present assignment of the benefit of the contract but only to a promise to assign same at a future time upon request, and it was held that the vendor was justified in executing on payment of the purchase-money by the original vendee a conveyance which took no notice of any interest on the banker’s part.
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