What is the test for a claim for damages arising out of the sale of a house where there is a close family relationship?

Prince Edward Island, Canada


The following excerpt is from Macleod (estate of), 1999 CanLII 4369 (PE SCTD):

In cases of a close family relationship there is presumption that services rendered are gratuitous and the law does not raise an implied promise to pay. This is to be contrasted with a situation where there is no family relationship and where it is generally a rule that there is a presumption of payment. When two persons understand that they are mutually rendering and receiving services with no present design to make any pecuniary charge therefore, neither can recover for the services so rendered. This was the conclusion of Nicholson J. in the Gallant v. Burke Estate case.

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