On July 13, 2020, the Superior Court of Quebec rendered a decision in Hengyun International Investment Commerce Inc. v. 9368-7614 Québec Inc., 2020 QCCS 2251 in which it held that a tenant was relieved from its obligation to pay rent under its lease for a gym for the months of March, April, May and part of June 2020.
COVID-19 has resulted in a number of issues which put the performance of purchase contracts for real property at risk. Some of the more obvious concerns include reduced cashflows, layoffs, economic slow down, dropping housing prices and general inability to conduct business in ordinary fashion.
There has been some uncertainty about whether a purchaser who enters into a contract but fails to pay the deposit still forfeits the deposit for repudiating the contract. The British Columbia Court of Appeal recently answered that question in Argo Ventures Inc. v. Choi, 2020 BCCA 17.