Case information

Contracts — Conditional promise to purchase — Transfer of rights – Whether Quebec Court of Appeal erred in allowing trial judge to rewrite terms of contract — Whether Quebec Court of Appeal erred in setting restrictive conditions with respect to transfer of rights acquired under contract — Whether Quebec Court of Appeal erred in not closing doors that trial judge opened, thus resulting in discrepancies in Quebec civil law.

Case summaries are prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch). Please note that summaries are not provided to the Judges of the Court. They are placed on the Court file and website for information purposes only.

The parties and a third person partnered to purchase lands, build houses on them and resell them at a profit. Mr. Piéraut purchased one lot, but pulled out of the project shortly thereafter. He signed a promise to purchase conditional on obtaining a loan within 60 days with the third person involved in the project. Several years went by and the business continued for Mr. Trépanier and that third person. When the business relationship was deteriorating between the two partners, the rights in the promise to purchase were transferred to Mr. Trépanier, and he sought to force Mr. Piéraut to sign the act of sale.

The trial judge found that the promise to purchase had lapsed, that the transfer of rights was invalid and that the application for transfer of title was unfounded. The Court of Appeal upheld that interpretation, in addition to rebutting the argument based on art. 1710 C.C.Q. and not dealing with the claim in the absence of supporting documents.

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