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Tag Archives: contract

New Québec Transfer Duty Regulations

Posted in Commercial, Policy, Residential

The Quebec government has deposited new regulations to give effect to measures ann‎ounced in the March budget.

Among the clarifications are confirming that exemptions for inter corporate transfers are based on 90 per cent issued shares and not voting shares, a trigger on change of control within 24 months of an exempt transfer, clarifying that options to purchase shares are captured within the anti-avoidance provisions as well as clarifying that amalgamations are exempt transfers.… Continue Reading

Usury Update from Québec Court

Posted in Policy

It is now settled law that application fees and similar charges are considered when calculating interest for purposes of offences under Canada’s criminal code but a recent Québec case provides some interesting guidance as to the civil consequences of such a finding.… Continue Reading

The Binding Non-Binding Letter of Intent

Posted in Commercial, Policy

Proposed parties to a transaction often enter into a letter of intent to reflect the basic terms of the deal. These letters are usually expressed to be non-binding (with the exception of the confidentiality and exclusive dealing provision). The parties then begin negotiating definitive binding agreements. An unintended consequence of the activities taken during the negotiating period can turn the non-binding letter of intent into a binding agreement. … Continue Reading

Is Time on Your Side? Best Practice for Purchase Contract Date Extensions

Posted in Commercial, Construction

The “time is of the essence” clause in a standard purchase contract is often treated as “boilerplate”, but this short, simple statement can be critically important, as it makes it “essential” that the parties perform their obligations by the relevant dates and times specified in the contract (e.g., the date by which a deposit must be paid or closing must occur).  What is not well understood is that, if the parties subsequently agree to extend a date specified in the contract, they may lose their ability to rely on the “time is of the essence” clause.  This somewhat … Continue Reading

Does it Take Two to Tango? When a Party Can (and Cannot) Contract With Herself

Posted in Commercial, Litigation

The following Canadian Appeals Monitor blog post by Anthony Alexander may be of interest to readers of this blog:

Does it Take Two to Tango? When a Party Can (and Cannot) Contract With Herself

At common law, a party is generally unable to contract with itself, or to transfer property to itself. In some provinces, these limitations have been overcome through  explicit legislation. In a recent ruling, Penny v. DeLong Estate, 2013 NSCA 74, the Nova Scotia court confirmed that, in the absence of statutory intervention, equity will not intercede to overcome this common law prohibition. Read moreContinue Reading