What is the impact of a tenant’s repudiation of the agreement?
British Columbia, Canada
The following excerpt is from Stearman v. Powers, 2017 BCCA 165 (CanLII):
Last, he says that regarding his conduct as acceptance of the tenant’s repudiation risks creating a disincentive to mitigate. He says there are strong policy reasons to encourage mitigation: “The principle of mitigation maximizes the utility of resources by directing the innocent party back to the market place, there is an inherent fairness or justice in the principle of mitigation. It is simply fair that the innocent party not receive compensation for losses that he or she could have avoided by acting reasonably.” Shapiro v. 1086891 Ontario Inc., 2006 ONSC 2050 at para. 130.
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