Can a mortgagee sue the purchaser for breach of contract?
Saskatchewan, Canada
The following excerpt is from Montreal Trust Company v. Boggs, 1915 CanLII 129 (SK QB):
It was only where the mortgage formed part of the purchase price of land, that equity fastened upon the purchaser’s conscience, the obligation of indemnifying the vendor. Even when the purchaser was bound to make good the purchase money, the mortgagee could not sue him direct, as there was no privity of contract between them. But if the mortgagee obtained an assignment from the mortgagor of his right of indemnity, he could then sue the purchaser direct. Moloney v. Campbell, 1897 CanLII 19 (SCC), 28 S.C.R. 228.
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