Can a vendor rely on a "time of the essence" provision to terminate a contract?
Ontario, Canada
The following excerpt is from Jongazma v. Primont Homes (Heritage Hollow) Inc., 2011 ONSC 7091 (CanLII):
Leung v. Leung, 75 O.R. (2) 786: 43. Further, a vendor is under a duty to act in good faith and to take all reasonable steps to complete the contract … Where a vendor acted contrary to good faith in his performance of the contract, the law precludes him from relying on the "time of the essence" provision to terminate the contract…
"The most advanced legal research software ever built."
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.
Other Questions
When a vendor consigns goods to a vendor, and sends a bill of lading to his own correspondent, and gives no delivery order to the vendor, does the vendor have a right to possession of the goods? (Ontario, Canada)
What is the test for interpretation of a commercial contract where the contract states that the contract is not a "contract with respect to the context or factual matrix"? (Ontario, Canada)
What is the test for a contract where there is no "time is of the essence" clause in the contract? (Ontario, Canada)
What is the test for setting aside a domestic contract or provisions in that contract? (Ontario, Canada)
What is the test for a “time is of the essence” provision in real estate law? (Ontario, Canada)
Can a domestic contract or a provision of it be overturned if a party failed to disclose to other significant assets existing when the contract was made? (Ontario, Canada)
What is the test for a party to a contract where the contract is not binding and the terms of the contract are not binding? (Ontario, Canada)
What is the test for determining whether there has been economic duress in a contract where a party entered into the contract at the time of execution? (Ontario, Canada)
Does an indefinite term employment contract require the employer to give reasonable notice of an intention to terminate the contract? (Ontario, Canada)
What is the difference between the provisions of an employee’s rights on termination from an employee's employment plan and those of the employee's termination notice? (Ontario, Canada)
