Can an oral agreement be established between a debtor and her landlord?
Alberta, Canada
The following excerpt is from Royal Bank of Canada v Reddy, 2007 ABQB 613 (CanLII):
The respondent further argues that even if an oral agreement can be established, the applicant would not be entitled to the equitable remedy of specific performance since they have failed to pay the monthly rent over a substantial period of time. In Toombs v. Mueller 1974 CanLII 263 (AB QB), [1974] 6 W.W.R. 577, 47 D.L.R. (3rd) 709, Justice D. C. McDonald made such a finding on similar evidence. In addition, he ignored improvements made by the plaintiffs to the property, which were made without the knowledge and approval of the defendant. In addition, I would think that by failing to disclose the ownership interest in the property to her bankruptcy trustee, the applicant would be guilty of defrauding her creditors in the bankruptcy. Such conduct would disentitle her to any equitable relief.
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