Gao v. Khan 2019 Ont SCJ
After default, purchaser offered to again purchase the property, but forfeit only $25,000 of his original $65,000 deposit. The vendor refused, sold the property for a $5,000 loss, and claimed the entire deposit of $65,000. Purchaser claimed that the vendor did not deal with the agreement in good faith (i.e. he should have accepted purchaser’s offer). The court held that an obligation to perform a contract in good faith does not mean that the party must accept an offer for less money than he is seeking for his property.
Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.