In what circumstances will the court find detrimental reliance against the landlord in a lease dispute?

Alberta, Canada


The following excerpt is from Vector Energy Inc. v. Pacific Gas and Electric Co., 2000 ABQB 178 (CanLII):

In Bettelheim, supra, detrimental reliance was found on the basis of the plaintiff’s inducement of the defendant to extend a tenancy in the belief that a lower rental would be accepted than that set out in the overholding provisions of their lease. The plaintiff landlord accepted the lower amount for some eight months without protest and then claimed the higher amount. In such circumstances the court found estoppel on the test set out in C.I.T. Corporation v. Hawley, 34 Cal.App. 2d 66 at 72, 93 P. 2d 216 at 219: The circumstances attending the entire transaction must be such as to make it reasonably probable that the person seeking to set up the estoppel has suffered prejudice by the other’s unreasonable acquiescence. [ emphasis added]

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