FORMATION - Rights of first refusal

Law360 Canada (September 29, 2022, 6:25 AM EDT) -- Appeal by the appellants from application judge’s determination that a right of first refusal contained in a registered agreement fixed the price of sale to a maximum of $30,000 was void as it was a restraint on alienation. The respondent owned a property which the appellants rented. They agreed that no rent would be paid if the appellants made improvements to it. The appellants invested personal funds amounting to $10,000 for the necessary repairs on the property. The appellants transferred the property to the respondent and her husband at an agreed cost of $10,000. The property was adjacent to the appellants’ residence, and, as such, they wished to have a right to repurchase it. The parties executed a deed conveying the property in fee simple to the respondent and her late husband and an agreement of purchase and sale (“Agreement”), which was the subject of this appeal. The Agreement clearly reflected the deed was to be registered first as it referred to the respondent and her late husband as “vendors” and the appellants as “purchasers.” The deed was registered in the Registry Office for the County of Kings, New Brunswick....
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