Does a lessor have a right to cancel a lease if the lease is terminated because the lease has been breached?
British Columbia, Canada
The following excerpt is from Pam-Cor Investments Ltd. v. Friends & Neighbours Family Restaurant Ltd., 1986 CanLII 901 (BC SC):
I respectfully follow Sparkhall v. Watson, supra, and I find that because of its breaches of cls. 3.04 and 3.05 of this lease the defendant had disentitled itself to the right to renew. It is not inconsistent to hold that the lessor may not cancel the lease for breaches of covenant which are found to have been waived, but at the same time may refuse to allow renewal of the lease at the lessee’s option because of the same breaches. The lessor is entitled to take the position that he will overlook the breaches as a ground for cancelling the original five-year term, thus waiving his right, but when the time for renewal comes he is still entitled to insist that the lessee should have performed the conditions precedent to his right of renewal. Should the defendant be relieved from forfeiture of its right to renew the lease?
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