In what circumstances will a court order rescission of a contract where the contract for sale of land has been executed?
British Columbia, Canada
The following excerpt is from First City Dev. Corp. v. Bekei, 1986 CanLII 1070 (BC SC):
In Shortt v. MacLennan, involving a contract for the purchase of land, the plaintiff purchaser had entered into possession and the transaction was duly completed by the execution of a conveyance, a mortgage back for a substantial portion of the purchase price, and payment of the balance in cash. Judson J., delivering the judgment of the court, reviewed the line of authority leading up to Redican and reaffirmed the principle that rescission was not available for innocent misrepresentation where a contract for sale of land has been executed. The contract there under consideration was held to be executed and in his reasons, Judson J. quoted with approval (at p.6 S.C.R.) the last paragraph in the above-quoted passage from the reasons of Duff J. in Redican.
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